THE IMPACT OF PERFORMANCE APPRAISAL ON STAFF PRODUCTIVITY. (A CASE STUDY OF MAINSTREAM BANK AND UNION BANK PLC, UYO, AKWA IBOM STATE)
CHAPTER ONE
1.0 INTRODUCTION
Performance appraisal are indispensable for the effectual supervision and costing of staff. Appraisal help to enlarge individuals. Perks up secretarial routine, and nourish into dealing development ceremonial performance judgment is commonly conducted per annum for each and every one work force in the organization everyone is appraised by their unit supervisor. Performance appraisal are also crucial for career and succession development. Performance review design for workforce inspiration, position and conduct improvement, converse directional aims along with nurturing optimistic association between supervision and work force. Performance appraisal provide a recognized, recorded customary assessment of an individual’s routine and a scotch for potential enlargement in diminutives performance and career judgment are crucial for administration. The performance of natives and organizations (Panagar 2009) performance evaluation ought to be treated as an enduring developmental progression to a certain extent than a prescribed once-a year review. It ought to be intimately monitored by both worker and assessor to guarantee that targets are mortal achieved. By preparing physically conscientiously and signifying a keenness to work together with your reviewer to enlarge your responsibility, you will craft and encouraging consciousness, worker act, in common submit to behavior with the intention of applicable to directorial goals and with intention to organize entity workforce (I.P et al 1993) performances assessment are perchance the preponderance Uague along with ill- treated administration means in the time of yore. While raise, the mainstream of individual director will pledges canopy with the intention of their mass crucial means for analysis constituent of the section. The authenticity is that, on the whole managers appears supervisors, and employee abhorrence the inference for item and they hardly ever obtain complete. Individual reserve specialized squander and assortment of moment trouncing lay people into doing them (Armstrong 2005). According to known Dwfer Performance Appraisal should be the opportunity for an organization to set the enlargement opportunity for their work force flaming it should be as revitalize invigorating juncture.
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 organizational goals. Hence, for productivity to be attained at the workplace, the individual workers must be appraised on regular basis. Again, the appraisal system should be objective in nature so as give room for the effectiveness of the appraisal system or method in the banking industry.
Performance appraisal is the interpretation of a performance measurements in terms of relative or absolute levels of effectiveness and or the standards of performance met (Bernadin and Bealty: 1984). It has also been said that the human elements is the most vital factor of production because it is not only the factor that determines the combination and use of all the factors of production but also it can be contributed or withdrawn at will depending on the temperament of the individual at the time furthermore, Robbin (1978) maintains that the human being in an organization is the pivotal variable without which the in-animate assets are worthless. It is therefore important to have a good appraisal system if an organization, is to maintain an effective functioning human resource system. It is indeed more so in Nigeria in view of a study conducted by Ahiazu (1985a) which found that when the African is observed in his self-employed concern, he is very hard working, but when he is wage earning industry or public service employment, his attitude to work falls below that of his counterparts in more advanced countries. Performance appraisal originally was meant to provide a documentary justification for management action in case of litigation (Etchel and Bender, 1984). It is also used as a basis for promotion, salary increase and staff training and development.
From different studies, it has been found that organizations use their appraisals for more than purpose and opinions are divided as to whether this is a good development. However, Randell (1994) maintains that employees performance appraisal fulfills three purposes namely:
- a) As reward reviews, it is used to determine the distribution of rewards in the organization.
- b) As performance reviews, it assists improving the performance of each worker.
- c) Functioning as potential reviews, it is invaluable in predicting the level and type of work which workers may be capable of carrying out successfully in the future.
To achieve the various purposes, various methods, ranging from trait, behavior and result – oriented approaches are open to any organization to adopt.
However, irrespective of the method adopted for effective Performance appraisal, the basis and criteria for appraisal must be clear to all concerned, that is the appraiser and the appraiser.
Clearly, the fundamental human experienced of appraisal action, feedback, reappraisal also conditions the behaviours of individuals staff productivity of well managed or vice versa. As a result of the nature of appraisal systems this study will examine the impact of employee Performance appraisal on staff productivity in two selected banks these are Mainstream Bank and Union Bank PLC, Uyo, Akwa Ibom State.
1.1 STATEMENT OF THE PROBLEMS
The basic aim of every banking organization is to achieve its objectives, goals or targets successfully. Goals set by organization will only be in vain if much attention is not paid to staff effort or performance for successful accomplishment in other to achieve set goals and objectives successful, there is the need to focus on performance appraisal. Performance appraisal should be linked to attractive incentive to staff enabling workers to demonstrate higher productivity.
Most organization in the competitive market fail since their workers perform below standard for they are not encouraged to work harder. Managers and staffs are the life blood of every business organization if management does not invest much into the welfare of their workers, problems are bound to rise leading to industrial strike actions, low commitment to work low morals and low productivity of goods services. Attractive appraisal systems are established by some business organization to help motivate their staff to strive hard to be recognized and rewarded once staff are motivated their performance reflects on productivity staff strive hard by pooling together skills.
1.2 PURPOSE OF THE STUDY
The aims of this study are as follows:
- To identify the various forms of appraisal and how it is executed in the banking industry with particular reference to main stream bank and Union Bank PLC. Uyo, Akwa Ibom State.
- To determine the purpose (s) of performance appraisal and how effectively it relates to staff productivity.
- To make it possible for management to be able to attract and retain suitable staff through performance appraisal in Union Bank and Mainstream Bank Uyo, Akwa Ibom State.
1.3 RESEARCH QUESTIONS
In order to achieve the objective of the study the following research questions will be highlighted as follows:
- What are the forms of appraisal system in use and how are they executed in Mainstream Bank and Union Bank PLC, Uyo, Akwa Ibom State.
- What are the basic purpose of performance appraisal in the Union Bank PLC Uyo?
- What are the significant impact of appraisal on staff productivity?
- What are the major factor that determine performance appraisal system to adopt the banking industry?
- How are you aware of the details of the appraisal system?
1.4 RESEARCH HYPOTHESIS
Hypothesis is the relationship between two or more variables. The hypothesis of this study are:
H1: The more objective the performance appraisal system adopted the more unwilling the employee to work and be satisfied.
H2: The continuous adoption of performance appraisal system will not lead to increase in profit banks.
H3: Assessment centres appraisal system is not significantly related to the awareness of its details by employee in the banks.
1.5 SIGNIFICANCE OF THE STUDY
The findings of the study will not only be beneficial to the chosen organization mainstream bank and union bank PLC, but also to every individual. It will also;
- Help bank managers in other banks in setting goal and targets for staff to achieve through proper supervisory control by line managers.
- Aid in identifying and improving the training and development needs of workers.
- Help managers to know how to appraise the performance of their staff.
