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IMPACT OF EFFECTIVE PERFORMANCE APPRAISAL ON EMPLOYEE PRODUCTIVITY

ABSTRACT

This project work tries to explain the impact of performance appraisal on workers performance and in turn leading to organizational performance and productivity, First Bank Plc, Ikpoba Hill Branch, Benin City. Performance appraisal is defined as “a structural formal interview between subordinate and supervisor, that usually takes the form of periodic interview (annually or semi-annually), in which the work performance of the subordinate is examined and discussed, with the view of identifying the weaknesses as strengths as well as opportunities for improvement and development”. The main objective of this research work therefore is to critically examine the impact of performance appraisal on workers performance. The research identified that low productivity is usually the negative effect of lack of performance appraisal, absence of performance appraisal brings about staff low job performance. The output of every organization depends on how well and how much the performance of the employee is appraised and evaluated. The data collected were presented in tables where necessary percentages were computed. The hypothesis was tested using Chi-square and contingency table. The questionnaires were well designed and the reliability and validity of the information was done by the project supervisor before 100 copies of produced and distributed to the organization under study. Out of the total questionnaire distributed, 50 was duly completed and returned for further findings for the research work. The research therefore recommended that to be able to obtain a reliable appraisal of the employee, supervisors should make it a point of making periodic notes on each of the persons to be appraised.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

Performance appraisal is one of the basic tools that make workers to be very effective and active at work. A critical look out on this may bring about the need for motivation, allowances, development, training and good human relationship in an organization. Performance appraisal is defined as “a structural formal interview between subordinate and supervisor, that usually takes the form of periodic interview (annually or semi-annually), in which the work performance of the subordinate is examined and discussed, with the view of identifying the weaknesses as strengths as well as opportunities for improvement and development” Decenzo and Robbins, (1995: 358).

The essence of performance for most organizations is delivering products and services that meet or exceed customer expectations, thereby creating a competitive advantage so that customers are retained and market share is increased (Sasson, Alvero & Austin, 2006). Another view is that a performing business is one that maximizes shareholder value, thus maximizing the difference between input costs and revenue (Copeland, 1994). This is often a controversial statement since organizations in Europe and Japan expect a balance between all the stakeholders (Copeland, 1994:97), and is supported by the view of Neely, Adams and Kennerley (2002) as part of their Performance Prism which includes all the stakeholders and not only the shareholders.

Two more general definitions of "performance" are that performance is a "…particular action, deed or proceeding / the execution or accomplishment of work, acts, feats, etc." or "the manner in which or the efficiency with which something reacts or fulfils its intended purpose" (Dictionary.com, 2010). These definitions show that it is about performing work in an efficient way. This compares with the very simple but clear definition provided by Dunnette and Fleishman (2000) that performance is

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