EMPLOYEES’ PERFORMANCE APPRAISAL AS A TOOL FOR ORGANIZATION GROWTH

ABSTRACT

This study examined the relationship between employees’ performance appraisal and organizational growth. It employed the descriptive survey research method. The random stratified sample method was used to select the total numbers of 250 respondents used for the study. Data used for the study were collected through the questionnaires. Hypotheses one and two were tested using the t-test of significance method while hypotheses three to five were tested using Chi square statistics method with the help of Special Package of Social sciences (SPSS). Findings of the study showed that the tested employees of Nigeria Bag Manufacturing Company placed significant attention to performance appraisal system; there was a significant difference between Performance Appraisal of Nigeria Bag Manufacturing Company (BAGCO) and those of literature. Result further shows that Nigeria Bag Manufacturing Company managers have significant knowledge of the method of Appraisal System and a significant relationship exist performance appraisal m and organization growth.. It is recommended that individual goals should derive from strategic direction and overall company goals. These goals should be stated in measurable term so that the expectations of the employee and the manager could be aligned. Managers should have good knowledge of employees’ performance appraisal system and that performance appraisal should have a feedback.

CHAPTER ONE

INTRODUCTION

1.1Background of Study

Growth is essential to organization’s survival. Without it, the organization will find its competitive position weakened as rivals increase their hold on the market; eventually it will either suffer a declining market share or succumb to a takeover. In addition, growth offers a greater opportunity to satisfy the aspiration of the diverse interests within organization. It should be borne in mind that willingness to grow is not sufficient. Condition both within and outside the organization must be favourable to growth if this is to be achieved.  The human resources have been identified as a critical factor in organization growth. Ever since the time of Abraham Taylor (1856-1951) productivity improvement in organization had been an issue of great concern (Idemobi and Onyeizugbe, 2011). It is noted that there is negative influence of group on performance.  As a result Abraham Taylor broke informal group activities through spatial and work-flow designs and individual piece rate system of pay. Taylor had based his management system on production-line time studies. Instead of relying on traditional work methods, he analyzed and timed steelworkers’ movements on a series of jobs.  He therefore, encouraged employers to pay more productive workers at a higher rate than others, using a “scientifically correct” rate that would benefit both company and worker. Thus, workers were urged to surpass their previous performance standards to earn more pay.  Rather  than  quarrel  over profits,  both  management  and  workers  should  try  to  increase production and by so doing, he believed, profits would rise to such an extent that labour and management would no longer have to fight over them. What this analysis seems to suggest is that the  productivity  of  an  organization  is jointly  determined  by  the  efficiency with which the organization utilizes several available factors of production which invariably are  scarce relative to the demand for them. In other words, organizations can only win a competitive advantage through people (Obisi (2011).

However, the importance of effective employees’ performance appraisal system cannot be underscored. In this ever increasing and competitive world,  organizations  can  grow  to  the  extent that  people  who  work  in  such organization are supported to grow. It has been reported by researchers that many Nigerian business organization pay less attention to performance appraisal system despite the believe that management and labour had a common interest in increasing employees’ productivity in the organization, evidence in the literature also suggests that 44% of organizations worldwide use performance measurement systems as a mechanism to improve employee performance (Idemobi and Onyeizugbe, 2011). Yet, many Nigerian Organization viewperformance appraisal and conduct it solely in terms of its evaluative aspect thereby overlooking its use to facilitate growth and development in employees through training, coaching, counseling and feedback of appraisal information (Obisi, 2011). Nigerian business organizations need to view performance appraisal as a major management practice to assess the immediate and future relevance of their workers. By so doing, employees will contribute more to the achievement of their business organizations’ goal and objectives.