THE IMPACT OF PERFORMANCE APPRAISAL ON EMPLOYEES PRODUCTIVITY: A CASE STUDY OF CENTRAL BANK OF NIGERIA (CBN)

Table of Contents

          Cover                                                                                                                           i

Title Page                                                                                           ii                

  Dedication                                                                                               iii

Certification                                                                                             iv        

Acknowledgements                                                                                  v         

Abstract                                                                                                                       ix

Appendices                                                                                                  x         

List of Tables                                                                                                              xii

 List of Figures                                                                                                 xiii    

Chapter One

Introduction

• Background  of the Study                                                             1
• Statement of the Problem                                                              3
• Objectives of the Study                                                                 5
• Research Questions                                                                                    5
• Research Hypotheses                                                                  6         
• Significance of the Study                                                              6
• Scope          of the Study                                                                             8
• Limitations of Study                                                                                   8
• Operational Definition of Terms                                                  9

Chapter Two

Literature Review

    2.1          Introduction                                                                                        14

    2.2          The Concept of Performance Appraisal                                  14

    2.2.2       Productivity Management and Measurement                                16

    2.3          Objectives of Performance Appraisal                                          19

    2.4          Steps in Performance Appraisal                                                    20

    2.5          Methods of Performance Appraisal                                          23

    2.5.1       Instruments of Performance Appraisal                                         25

    2.6          Errors in Performance Appraisal                                          26 

    2.6.1       Overcoming Errors in Performance Appraisal                 27

    2.7          Legal Aspect of Performance Appraisal                            28

    2.8          Theoretical Framework                                                            28

    2.9          Summary of the Chapter                                            29            

Chapter Three

Research Methodology

3.1          Introduction                                                            31

    3.2          Research Design                                                                   31

    3.3          Population of Study                                                              33

    3.4          Sample Size and Sampling Techniques                                  33

    3.5          Data Collection Instrument                                                34

    3.6          Validity of Data Collection Instruments                       38

    3.7          Reliability of Data Collection Instruments                                        38

    3.8          Data Analysis                                                                     39

Chapter Four

Data Presentation, Analysis and Interpretation

    4.1      Introduction                                                                                         43

    4.2      Respondents Characteristics and Classification                               43

    4.3      Presentation & Analysis of Data According to Research Questions            47

    4.4      Presentation & Analysis of Data According to Test of Hypotheses             57

    4.5      Discussion of Findings                                                               62

Chapter Five

Summary, Conclusion and Recommendations

     5.1        Introduction                                                                              66

     5.2        Summary of Findings                                                                    66

     5.3        Conclusion                                                                                  67

     5.4        Recommendations                                                                   68

     References                                                                                              70

     Appendix I: Specimen of Letter of identification and Questionnaire                    74

     List of Tables

     Table 1: Sex Distribution of Respondents                                              44

     Table 2: Age Distribution of Respondents                                             44

     Table 3: Marital Status of Respondents                                             45

     Table 4: Respondents Length of Service                                            45

     Table 5: Official Status of Respondents                                              46    

     Table 6: Educational Qualification of Respondents                                46

     Table 7: Grade Levels of Respondents                                                    47 

     Table 8: Opinion on level of CBN Performance                                           48

     Table 9: Views on Utilization of Performance Appraisal System   48

     Table 10: Opinion on Conduct of Performance Appraisal                 49

     Table 11: Opinion of Result Oriented Appraisal                                      49

     Table 12: Opinion on Performance rating Efficiency                          50

     Table 13: Relationship between Appraisal and Productivity                50

     Table 14: Productivity dependent on Effective Appraisal                51

     Table 15: Opinion on Training and Development                                      51

     Table 16: Correlation between Appraisal and Attitude                       52

     Table 17: Views on Internal Environment                                            52

     Table 18: Views on In-Service Training                                                53

     Table 19: Opinion on Factors Impeding Effective Appraisal                      53

     Table 20: Opinion on Incentives for Hard work                                       54

     Table 21: Views on Labour-Management Relations                                54

     Table 22: Opinion on Productivity and Employee Satisfaction         54

     Table 23: Opinion on Superiors Communication                                 55

     Table 24: Views on Awareness of Skill gaps                                            55

     Table 25: Opinion on Individual and Corporate Objectives       56    

     Table 26: Opinion on Increased Motivation                                   56    

    List of Figures

    Table I: Observed and Expected Frequency for Hypothesis One           58

    Table II: Observed and Expected Frequency for Hypothesis Two        59

    Table III: Observed and Expected Frequency for Hypothesis Three         61       

CHAPTER ONE

INTRODUCTION

1.1       Background of Study

In every business organization, the performance of the employees is important in achieving organizational goals. The success of every business organization can therefore be attributed to performance appraisal. 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.

The output of every organization depends on how well and how much the performance of the employee is appraised and evaluated. Productivity can therefore be defined as “quality or volume of the major product or services that an organization provides”. In short, productivity is what comes out of production. Managers of every business organization are charged with the responsibility to motivate their employees to achieve organizational goals. The efficiency and effectiveness of any work place whether the private or the public sector, largely depend on the caliber of the workforce. The availability of competent and effective labour force does not just happen by chance or accident but through an articulated recruitment exercise (Peretomode and Peretomode, 2001) and performance appraisal.

The whole essence of the management activities of an organization culminates into the system of performance appraisal adopted in that organization. This, in turn, reflects the extent of the individual contributions and commitment of the employees in different hierarchical levels toward the achievement of organizational objectives. It goes without saying that an effective performance appraisal system can lead an organization to take strides towards success and growth by leaps and bounds. Conversely, an ineffective performance appraisal system can seal the fate of an organization by creating chaos and confusion from top to bottom in the administrative hierarchy. As a consequence the chances of success and growth of that organization are doomed.

The Nigerian economy has been plunged into a state of economic decline since the early 1980’s, following the introduction of Structural Adjustment Programme (SAP), by Babangida’s Administration. Since then, productivity improvement has become a major challenge facing all work and business organizations and the Nigerian economy as whole. It has therefore become imperative for government and all stakeholders to evolve adequate measures that would improve productivity in Nigeria. It is on account of this, that most, if not all of the past leaders, have tried in one way or the other to carry out at least one reform measure in the public sector in order to enhance employee performance and productivity.

The nonchalant attitudes of public sector workers towards their duties and responsibilities have become a matter of great concern to the government at all levels and other well meaning Nigerians. There has been a persistent public outcry in the mass media indicting public sector employees for their negative attitude to work which has lead to low productivity and declining revenue.

Igbokwe-Ibeto (2011) observed that “people do not take their work seriously in many instances because people do not like what they are doing”. This nonchalant attitude to work is independent of geo-political zones, rural-urban residence, religious affiliation, sex or age. This opinion if properly examined suggest that in many cases, they see themselves as birds of passage, such notion and feeling is even worsened by the fact that performance appraisal and productivity management is not taken serious in most organizations.

A segment of Nigerian scholars such as, Okoro (2003), Oko (2004) and Arhuidese (2006)well tutored in Nigerian history have traced the genesis of the negative attitude to work prevalent among Nigerian to the event of colonial era. They argued that during the struggle and fight against colonialism, many nationalist using various approaches and strategies tended to give the impression that government as an institution and its agencies should be impoverished and vandalized. The public sector for example, was seen as a “white man’s job” and anything done to frustrate its operations is well intended. The notion, they argued have spread into all spheres of work in the present day Nigeria.

Some Nigerian scholars such as, , Mustafa (2006), Nwachukwu (2008) and Fatile (2010), emphasized the issue of poor performance appraisal and motivation at work as the some of the causes of this national slide. They argued that poor performance and low productivity is a direct consequence of inadequate motivation and performance appraisal. In line with this proposition, Enyinta, (2001) noted that, “there is general apathy on the side of the employers of labour to reward a worker who is conscientious and dedicated to his duties”. Workers more often than not go on strike resulting to loss of man-hours before they get their due rights.

Afam (2003) contributing to the above subject matter, believes that the Nigerian worker has become a pawn in the hands of exploitative capitalist. He went further to observe that workers are subjected to all kinds of ill treatments like reduction in ranks, removal of fringe benefits, pay cuts, late payment of salaries and wages and the prevalent retrenchment with or without benefits. He concluded by saying that a situation where a worker is not adequately rewarded for the cake he has painstakingly toiled to bake, is disheartening and left much to be desired, as it amounts to killing the goose that lays the golden egg.

1.2       Statement of the Problem