Full Project - PERFORMANCE APPRAISAL AS A MANAGEMENT TOOL FOR EMPLOYEE COMMITMENT AND PRODUCTIVITY - AZ Research Consult (MBA MSc Dissertation/thesis Project Writer) Nigeria

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Full Project – PERFORMANCE APPRAISAL AS A MANAGEMENT TOOL FOR EMPLOYEE COMMITMENT AND PRODUCTIVITY

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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 commitment 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

For a research work to get underway, some difficulties must be felt in a practical and theoretical situation. In other words, there must be a felt difficulty succeeded by efforts to find solutions to the problem. Efficiency and effectiveness in the Nigerian public sector has been a subject of controversy and debate by all and sundry. Inefficiency, ineffectiveness, red-tapism and low productivity are all common features of public sector. It is in line with this that Umo (2003), after examining the attitude to work of Nigerians concluded that Nigeria’s ambition for rapid industrialization, economic prosperity, social and political stability will singularly and collectively be frustrated if the current poor work attitude of Nigerian public sector is not urgently and positively improved”. The above opinion if properly analyzed, shows that improved or positive attitude to work in the Nigerian is an antidote for industrialization and economic stability and development in Nigeria. Performance appraisal as an important human resource (HR) strategy for achieving better employee commitment and productivity is hardly taken serious by many organizations’ and most especially the Nigerian public sector. In fact, public sectors Managers see performance appraisal as a ritual and an academic exercise.

This prevailing anomaly in the public sector has provoked a series of studies geared towards ameliorating the ugly situation which scholars have attributed to the familiar challenges of the Nigerian federation. These problems according to Mukoro (2005) citing Fajemirokun, Briggs (2007) Igbokwe-Ibeto (2011), and Tonwe and Oghator (2009) comprises ethnicity, religious strife, corruption, colonial history, governance/leadership style, the military involvement in politics, dishonest performance appraisal and federal character principles. A number of reasons have been identified as being responsible for this ugly situation and a number of solutions have also been suggested, but the problem remained endemic and persistent in the Nigerian public sector. Their performances are still below expectation, their productivity is far below average, efficiency and effectiveness is virtually nil.

This study therefore, aims to further interrogate this catalogue of problems by having a look at performance appraisal in the Nigerian public sector so as to determine its effectiveness or otherwise using the Central Bank of Nigeria (CBN) Enugu Zonal office as a case study.

1.3 Objectives of Study

The main objective of this study is to determine the extent to which performance appraisal can enhance employee commitment and productivity. Other specific objectives include:

To examine the extent to which managers utilize performance appraisal strategies to improve employees’ commitment and productivity.
To examine whether there is a relationship between performance appraisal and employees productivity.
To determine how individuals objectives and corporate objectives can be integrated to achieve better employee commitment and productivity enhancement.
To determine the extent to which organisational climate can influence workers behaviour towards better performance or otherwise.
To suggest on how to overcome identified problems in the system, thereby proffering strategies for performance appraisal to become more effective and efficient while embarking on performance appraisal excise.

1.4 Research Questions

To investigate the problem of performance appraisal in Nigerian public sector, effort will be made to beam our search light on the following research questions.

Do managers use performance appraisal in improving workers commitment and productivity?
Is there any relationship between performance appraisal and employees’ commitment and productivity in Nigerian public sector?
Is there any correlation between performance appraisal and attitude to work by employees?
Can organisational climate influence workers satisfaction, commitment and productivity?

1.5 Research Hypotheses

This study is geared towards testing the following four tentative statements or research hypotheses for the purpose of this research.

Employee’s commitment and productivity is not dependent on effective performance appraisal.
There is no correlation between performance appraisal and attitude to work by employees.
Organisational productivity is not dependent on employees’ satisfaction and performance.

1.6 Scope and Limitations of Study

The study examines Performance Appraisal as a Management tool for employee commitment and productivity. Since the researcher cannot cover the Central Bank of Nigeria within limit and available resources, the study covered only the 80 respondents at the Enugu Zonal Office for the purpose of this study. These include the management, supervisory and the junior cadre of the Bank. All cadres of staff at the Bank were selected as samples for the purpose of questionnaires administration.

In the course of carrying out this study, it is envisaged that certain challenges will be encountered. These include: time constraint due to the detailed nature of the topic to be investigated, access to respondents could be difficult due to the ever busy schedule of those to be interviewed. Getting some of the policy makers (Deputy and Assistant Directors) in the Bank for comments could be difficult as they are either in a meeting or not on seat.

Also, travelling to Enugu where the Bank Zonal Office is located could be a major limitation to the effectiveness of the research work, raising enough finance for the study could be difficult in view of the harsh economic conditions in the country and sourcing for materials across the length and breadth of the country could be a major handicap to any effective research work. In fact, some of the libraries visited did not allow borrowing of relevant materials, while others allowed restricted patronage. In some cases, access to certain materials was possible only on a fee.

Yet, lack of access to information at the Bank due to bureaucratic bottle-necks and the secretive nature of our public service are emphasized. Finally, the result of the findings of this study may not adequately apply to all other organizations in Nigeria as the study only focused on the civil service. However, none of these omissions and limitations may have any adverse effect on the conduct, reliability and validity of this research report, but they among other difficulties constitute the limitations of this study.

1.7 Significance of the Study

The expected benefits of this research study to all stake holders and partners in national transformation and development are so enormous. First and foremost, the purpose of every scientific research is to discover answers to questions through the application of scientific procedures. These procedures have been developed and adopted in order to increase the likelihood that information gathered are relevant to the questions asked and are reliable and unbiased.

Secondly, the Federal and indeed the States and Local Governments will through the findings of this study discover the immense importance of performance appraisal if we are to achieve service oriented public service in Nigeria.

Thirdly, this study will also present to the government and management of CBN, the true picture of what their concern about workers appraisal should be. Hence this study is intended to give an insight into the best ways of integrating the organizational objectives with that of the workers. This will make management to develop and adopt performance appraisal techniques that would improve employee commitment and productivity. yet, organisations, managers, directors and policy formulators will benefit a lot if they are aware of those factors inhabiting their employees from greater commitment and productivity.

This study is also of both practical and theoretical significance. Theoretically, it is significant in the sense that it will add to a body of knowledge in this area both in Nigeria and other countries of the world. Practically, this study is significant in the sense that it will serve as an appraisal of the value of performance management and appraisal in a work place.

Scholars, upcoming researchers and students in general stands to benefit from this study as it serves as intellectual information depository for research development on topical issues. Through this study, they will know what have already been said concerning the study area and the areas that call for further study. Above all, it will serve a guide and reference materials for scholars, researchers as well as undergraduate and postgraduate students conducting research in partial fulfillment for the award of degrees.

The society at large and indeed the ordinary citizen or reader of this work will know that his or her individual input to the growth or national development process and the entire body of knowledge is indispensable if genuine transformation that can accelerate National development is to take place in Nigerian and elsewhere.

The Non-governmental Organisations (NGO’S) i.e. voluntary agencies, religious bodies, philanthropic organizations and public spirited individuals will find this study of immense importance and value as it will serve as a guide for performance appraisal and productivity enhancement.

In conclusion, this study will however recommend appropriate measures to be adopted so as to safe guide against the anti-performance appraisal circumstances. It is the purpose of this study to show that if workers are properly managed, motivated and their conditions of service made conducive; the public sector can improve their level of commitment and productivity.

1.8 Operational Definition of Terms

Usually in most social science research, in order to avoid ambiguity in the interpretation and understanding of certain terms, concepts used in the study must be clearly defined. The key concepts that are used in this study are defined below:

Appraisal: AS a measure of individual staff work achievements against agreed targets. As a progress evaluation, employee performance or merit rating of an individual worker in areas of relative strengths and weaknesses so as to reinforce the areas of shortcomings

Attitudes: The word is used in this research to mean how one feels about one’s job. It refers to those evaluative states either favourable or unfavorable concerning objects, people or events. Here we concentrated on job attitudes like job satisfaction, job involvement i.e. the degree to which a person identifies with his or her job and actively participates in it; and organizational commitment, an indicator of loyalty and identification with the organisation.

Public Service: The term is used interchangeably with the term public service. It refers to the body of officials and state institutions engaged in the formulation, administration and implementation of government policies and programmes.

Public Servants: As permanent people who earn their living by carrying out government tasks and responsibilities as directed from time to time by the constituted authority.

Development: Is a way or method designed to increase the quality and quality of managerial personnel through training. It is always designed around the needs of individuals involved and it is evaluated periodically. Development can be measured in terms of profitability or growth level.

Effectiveness: As the achievement of desired goals. Tangible properties which deal with physical manifestation, here our emphasis is on the quantity or unit of production measure against standard.

Efficiency: As achieving a purpose with lowest cost i.e. the ratio of output to input required to achieve output i.e. achieving a purpose with a low cost. This is the imputation of limited resources to maximize greater output. This emphasizes on cutting down waste so as to improve more profitability for the overall benefit of the organization.

Equity: Here is defined as the perception by the workers that motivational incentives are directly proportional to their input or effort at work as compared with the rewards in similar professions.

Incentives: Incentives here refer to those financial and non financial materials, morale and psychological inducement that are given to Nigerian public sector workers which tend to boast their morale and ego towards better performance and higher productivity for the achievement of public service goals.

Management: Management is the act of using the resources in an organization (i.e. training and material) to attain desire objective. Also, management can be said to be a team of people who are saddled with the responsibility to take certain key decisions that will determine future of the organization, a faulty policy by the management will bring about faulty result viz-versa. It involves the control of human and materials resources towards achievement of organisational goals and objectives. Getting things done through others, efficient utilization of resources. Guiding or directing a group of people towards organizational goals or objectives, i.e. the act of planning, organizing, staffing, directing, controlling, leading and separation with an organisation.

Motivation: Motivation here refers to goal-directed behaviour i.e. the process and means of influencing and activating a workers energies and full potentials towards the performance of set tasks and achievement of agreed organizational goals and objectives.

National Development: As a process involving the re-orientation and re-organisation of the entire economic, social and political system. It involves improvement not only in income and output per head, but radical changes in social, institutional and administrative structures as well as attitudes, customs and beliefs of people in Nigeria.

Objectives: Objectives are unbiased aims or purpose existing in real world outside the training mind. That is to say, objectives are those ends that an organization seeks to achieve by its existence and operation. The more the objectives are clearly determined, stated and understood, the more likely they are achieved. The main characteristics of objectives are: Objectives are advance or predetermined statement; Objectives describe future desire results towards which present efforts are directed; Objectives serve a variety of functions in any organization t.

Performance: This is simply referred to the extent to which an individual, unit or department carryout task assigned to him. It is also a means by which an organization evaluate an individual employee input and out level especially in the area of attaining set goals or task assigned to him or her. It involves the execution of duties and responsibilities assigned by constituted authorities which one have promised to do, so as to achieve set goals. Performance of the Nigerian civil servants measured in terms of effectiveness and efficiency

Policies: As the general guides to action which constrain or direct objective attainment. In the light of this, policies channel how management/government orders its affairs and its attitude towards major issues: the guide to the dictate of the intent of those who guide the organisation/government institutions. In other words, instrument which define the universe from which future strategies and plans are derived.

Public Sector Productivity: As the ratio of what is produced to what is required or expected to produce in the public civil. The output per person hour of input, it also includes client satisfaction which can be seen in terms of value of project or programme to the society, opinion or feelings of cliental over a policy or project etc. they are described as intangible properties.

Strategy: As the basic steps or approaches of management/government towards effecting positive change in the Central Bank of Nigerian in order to reach an objective or set of objectives. In other words, the methodologies or measures adopted or outlined by the CBN towards the achievement of employee better commitment and productivity improvement in the Nigerian public service to achieve its objectives.

1.9 Organization of Study

The organization setting of this study commences with an introduction i.e. a background statement, statement of the problem, then objectives of the study and research questions. These are closely followed by statement of research hypothesis and scope and limitations of the study, the significance/utility of the study and the definition of terms all within the first chapter.

Chapter two is made up of introduction, review of related relevant literature on the research topic and the theoretical framework. We reviewed the conceptual framework where we looked at the concept and definition of performance appraisal, commitment and productivity improvement, objectives of performance appraisal. Also reviewed are significance/purposes of performance appraisal, problems of performance appraisal as well as steps for productivity improvement

The second phase of the review focused on the theoretical framework where theories of performance management, concept of reward and reward management as well as motivation theory and relevance of the theories to the study. We concluded with a summary of the chapter.

Chapter three devolves on the research methodology where aspects such as introduction, restatement of the research questions and hypotheses, the research variables, research design, target population, sample size and sample adopted, methods of data collection, research instruments used as well as a detailed explanation of administration of research instruments and methods of analysizing such data and finally limitations of the methodology.

The fourth chapter contains the analysis of the data itself and the exposition of responses. We commenced this chapter with a brief introduction, followed by respondents’ characteristics and classification, then presentation and analysis of data according to research questions. The presentation and analysis of data according to tested various research hypotheses to validate or invalidate the earlier claims of the research then comes discussion of the research findings.

Finally, the fifth chapter summaries the results of the fourth chapter, draws conclusions, propose appropriate recommendations to the research problems.

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