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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Human resources management is concerned with the effective performance of employees to enable it achieve organisational goals and objectives as well as employee’s job satisfaction. The philosophical mission of all organisations whether profit motivated or not requires that employees behave in certain ways in order to meet predetermined targets or goals. This requirement is the sum totals of employees work behaviour which must be mentioned and constantly assessed so that it dies not result into pitfalls in organisation goals and targets. The process of monitoring and assessing this work behaviour in relation to the predetermined objectives is called “Performance Appraisal or Evaluation”.

Performance appraisal is a systematic process of describing a job and the weakness of employees with respect to the job. No matter how technologically advanced an organisation may be, the position of workforce willingness, satisfaction, technical ability and other relevant behaviour cannot be taken for granted.

The assumption is that if managers and supervisors are able to constantly measure productive outputs in relation to employees labour inputs obviously, there is bound to be one situation variable of either the quality of input to output or an inequality of input to output. The notion of performance appraisal is that machine, raw materials and money (3ms) are constant to exclusion of labour or human resources.

Systematic employment appraisal techniques came into prominence during and immediately after the World War 1 era. Gil Scott succeeded in persuading the United States Army to adopt to his man to man rating for evaluating military officers. During the 1920’s, an industrial concern began installing wage structure for their hourly employees, they established the policy that grade increase would be based upon merit. The early employee’s appraisal plans were called “merit rating programmes”. The term merit rating was by far the most widely accepted designation up until the mid 1950s. Performance evaluation serves a number of purposes in an organisation. Management uses performance evaluation for general personnel decisions.

In some cases, performance evaluation has often yielded unsatisfactory and disappointing results. This has made some critics to suggest that we abandon performance appraisal as a lost hope, but considering the potentials of appraisal performance programmes, the issue should not be whether to scrap it rather, it should be made better.

1.2 STATEMENT OF THE PROBLEM

For too long, managerial scientists have focused their attentions on a number of people who can enhance productivity among its performance appraisal system, yet, little emphasis is given to it. Therefore the inclination of this study is to attempt to prove that performance appraisal is crucial to organisation’s effectiveness especially in the organisational performance perspective.

1.3 OBJECTIVES OF THE STUDY

The objectives of the study are as follows:

To determine if performance appraisal can truly result in effectiveness in organizational performance
To find out the extent which performamnce appraisal affect organizational performance
To find out the contribution of performance appraisa to organizational performance

1.4 RESEARCH QUESTIONS

In order to know the effects of performance appraisal on organisational performance, the following research questions need to be answered.

To what extent does performance appraisal truly result in effectiveness in organisational performance?
To what extent does performance appraisal affect organisational performance?
What is the contribution of performance appraisal to organisational performance?

1.5 RESEARCH HYPOTHESIS

Hypotheses are tentative statements that are subject to empirical or statistical test. More so, it is an intelligent guess about the possible relationship between variables. It may also be a cause effect statement between phenomena.

In order to determine whether performance appraisal can truly result in effectiveness in organisational performance, a null hypothesis and an alternative hypothesis must be formulated. Null hypothesis H₀ is usually negative.

H₀: There is no significant relationship between performance appraisal and organisational performance.

Alternate hypothesis is usually denoted as “Hi”. It is usually positive.

H₁: There is a significant relationship between performance appraisal and organisational performance.

It is pertinent to note that none of the afore-mentioned hypothesis is said to be correct not until it has been tested and proved. This is so because it is just a mere guess statement.

1.6 SIGNIFICANCE OF THE STUDY

The field of management today has been so devoted to progress and change. As a result, many organisations are now aware that people need to be well managed through constant and routine assessment, monitoring as well as encouraged in order to achieve organisational targets.

The significance of this study is anchored on the belief that if supervisors could regularly and objectively evaluate the performance of employees, organisations can hope to meet its goals and objectives especially in the area of productivity and employee job satisfaction.

1.7 SCOPE OF THE STUDY

The scope of this study is to provide readers with a detailed understanding of the true picture of performance appraisal.

1.8 DEFINITION OF TERMS

For proper study of this research, the following terms concerned are explained below:

Performance Appraisal: This is the systematic evaluation of individuals with respect to his performance on the job and his potential for development.

Organisation: This is a system having an established structure and conscious planning in which people work and deal with one another in a coordinated and cooperative manner for the accomplishment of recognised or defined goals.

Job Description: These are statements of facts describing the work to be performed, the requirements involved, the skill and job required, the conditions under which the job is to be done, personnel requirement and relationship with others.

Promotion: The evaluation of an employee to a new work status with larger responsibilities and pay.

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Full Project – Performance evaluation as an effective tool for organizational performance

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