CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Most organizations in the quest for excellent service delivery make performance appraisal a basis for rewarding employees. Performance appraisal, which can also be referred to as performance evaluation, is an aspect of working relationships that emphasizes for both the boss and his subordinate’s specific accountability areas. It is aimed at bringing home to both the manager and his subordinates the interdependent nature of their roles and hence provides an opportunity for each to reaffirm what each need from the other to do his own job more effectively. 

To appraise is to set value on something. Performance appraisal therefore implies in its general meaning the measurement and assignment of value on the performance of an employee, the aim of this most times is to increase the development of employees’ skills, knowledge and attitude and modifying these elements so that the employee’s performance will be at it’s optimum. This in most cases help to boost the morale of the employees to put in their best at all times to ensure that their services are not only carried out effectively but also efficiently.

The essence of performance appraisal is not only done based on how the employer perceives an employee, but can also be seen to be tied closely to the employee’s future as promotions, pay rises and continuation of employment are the most obvious outcomes. The appraisal of employees’ performance and the way they are rewarded represent an employee’s work.  

It is therefore necessary that organizations that desire change and improvement make the appraisal of its employees a very important and serious management function because the basic assumption is that the organization will be more effective and efficient as a result of regular appraisal which also aim at establishing controls on behaviour 

1.2     STATEMENT OF THE PROBLEM

The problem of performance appraisal is sometimes made difficult because most of the time appraisal is based on the judgmental decision of the employee’s direct boss and not on the employee’s actual performance. This type of situation does not boost the morale of the employees. 

The process of performance appraisal could be difficult sometimes because the measurement of the effectiveness or ineffectiveness of some

tasks are difficult.

The problem or question therefore is, can performance appraisal be effectively used as a means for reward in organizations?

1.3     OBJECTIVE OF THE STUDY

The aim of the study is to examine the prospects and problems associated with employees’ performance appraisal and reward system in an organization with particular reference toOrganisation PHB. 

The objectives of this research work are as enumerated below:

1.                 To examine the impact of performance appraisal and reward system of       Nigeria Breweries on its employees.

2.                 To access the effectiveness of the reward system on employees ofOrganisation       PHB.

3.                 To examine the problems and prospects of performance appraisal and         reward system in Nigeria Breweries.

1.4     SIGNIFICANCE OF THE STUDY

                                Performance appraisal and reward are important aspect of any

organization. They serve as tools in making appropriate business decisions such as promotions, salary adjustments, terminations etc. Therefore, it is important that appraisals be on target and accurately written.

 The study will help both employees and the organization (Nigeria Breweries) access the effectiveness of the method of performance appraisal and reward system adopted, it will also provide information on the prospects of the appraisal and reward system used and the problems that are related to it. It will also give an insight into how employees perceive the way they are been appraised.

1.5   SCOPE OF THE STUDY

This topic is directed at evaluating performance appraisal and reward system in Nigeria Breweries, Lagos State. The research work shall be limited to 100 employees of Nigeria Breweries, drawn from top, middle and low-level cadre of staff and from December 2015 to November 2018.

1.6     HYPOTHESES

In research hypothesis helps us to make categorical statement.  A hypothesis is a conjectural statement of the relationship between two or more variables, they are always in declarative sentence form, and they relate either generally or specifically to variables. 

There are two types of Hypotheses, Null and Alternate hypotheses, represented by Ho and H1. Hypothesis is said to be null if it suggests no difference in effects of one or more independent variables on the dependent variable and it is usually non-committal. While the alternate is the opposite of the null hypothesis. The following hypotheses shall be tested for this research work:

1.                  Ho:   The performance appraisal and reward system does not                         contribute positively to the growth of the Organisation.

                 H1:   The performance appraisal and reward system contribute                            positively to the growth of the Organisation. 

2.                  Ho:   Employees are not satisfied with the performance appraisal

                                                        and reward system.

                 H1:  Employees are satisfied with the performance appraisal and                    reward system          

1.7     RESEARCH QUESTIONS

 A research question is a statement that identifies the phenomenon to be studied.  It acts as a guiding force behind the experiment and aims at bringing clarity to some doubt on the topic. The study will address the topic by attempting to answer the following questions:

1.     Does Nigeria Breweries have any performance appraisal system?

2.     Is the type of appraisal and reward system operated by theOrganisation

transparent to all? 

3.     How are employees rewarded for good performance?

4.     Are rewards commensurate with the performance of employees, and how often is this done?

5.     Are employees allowed to participate or contribute to their appraisal system?

6.     What is the effect of this type of appraisal and reward system on the performance of employees of Nigeria Breweries, and the overall growth on the Organisation?

                                1.8   SCOPE AND LIMITATIONS OF THE STUDY

The study is limited to Nigeria Breweries and due to time and financial implication, a sample size of 100 was selected, the questionnaire was administered but 84 responses were collected back.  Collation of data and analysis were on these data.  All the responses are based on how performance appraisal is done in Nigeria Breweries, therefore the conclusions and recommendations are all limited to the operations of the organisation.

1.9 DEFINITION OF TERMS 

Performance: This is defined as how well a person does something.

Appraisal: This is the official or formal assessment of the strengths and weaknesses of someone or something. Appraisal often involves observation or some kind of testing. Therefore if you make an appraisal of something, you consider it carefully and set value on it or form an opinion about it. 

Reward: A reward is something that you are given, for example because you have behaved well, worked hard or provided a service to the community.

Performance appraisal: This is a review or an assessment by an immediate supervisor or others to determine how employees or subordinates have carried out their duties against the organizations agreed standards covering an identified period of time. It is an on going process of evaluating and managing outcomes of human behaviour in the work place. It is a process that supervisors and immediate boss normally employ to find out how subordinates have been doing their jobs. It is done within a specified period of time e.g. annually

Problem: This is referred to as a difficult situation, matter or person. I.e. something that is hard to do: requiring a lot of effort to do, understand or deal with. 

Prospect: This can be described as the possibility of something happening soon, a chance or the likelihood that something will happen in the near future, especially something desirable.

Examination: This is the process of looking at and considering something carefully with the idea of learning something.

MBO:  This is a system of management by objective whereby  the superior and subordinates managers of an organization jointly identify its common goals, define each individual’s major areas of responsibility in terms of the results expected of him/her, and use these measures as guides for operating the unit and assessing the contribution of each of its members.

REFERENCES

1.   Collins, C. (2013). Advanced Learner’s English Dictionary, 4th edition,            Great Britain: HarperCollins Publishers

2.   Osuala, E.C. (2015). Introduction to Research Methodology. 3rd edition, 

            Onitsha: Africana-first publishers limited     

3.   Robbins, S.P. (2013). Organizational Behavior, 10th edition, India:              Pearson Education (Singapore) Pte. Ltd

4.   Seevers, J.S (2012). Management by Objectives and Performance             Appraisal, Retrieved from http/www.airpower.maxwell.af.mil              on November 17, 2006.

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