Relationship between performance appraisal and employee productivity

relationship between performance appraisal and employee productivity

Performance Appraisal and Employee Productivity in Plateau State Internal used to assess the nature and degree of relationship between dependent variable. performance problems to improve employee productivity and motivation. .. Table Correlation between Solution and Performance Appraisal Problems. The performance appraisal is the periodic evaluation of an employee's the relationship between performance appraisal and employee productivity in the.

They state that "… performance is the end result and behaviour is the means to that end" therefore performance is an accomplishment or output. Two fundamental dimensions of performance is efficiency or resource utilization and effectiveness the meeting of requirements Neely et al. Labour union always get into the matters of employees well being at work and also in their personal lives so that they can give their full at work.

But some time it has a negative impact on performance appraisal and the management to give promotion or rise in the salary on the bases of seniority. The basic aim of every business organization is to achieve its objectives, goals or targets successfully. In other to achieve set goals and objectives successfully, there is the need to focus on performance appraisal.

Performance Appraisal should be linked to attractive incentive to employees, enabling workers to demonstrate higher productivity.

relationship between performance appraisal and employee productivity

Most organizations in the competitive market fail since their workers perform below standard for they are not encouraged to work harder. Managers and employees 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 morale and low productivity of goods and services.

relationship between performance appraisal and employee productivity

Attractive appraisal systems are established by some business organizations to help motivate their employees to strike hard to be recognized and rewarded. Once employees are motivated, their performance reflects on productivity. Employees strive hard by pooling together skills, knowledge and efforts to achieve maximum output.

Hence the essence of this paper is to find out the part played by performance appraisal.

relationship between performance appraisal and employee productivity

To provide employees with necessary information pertaining to recognition of their work. To know if performance appraise enhances productivity. How often are employees appraised at the work place? Is performance appraisal an ongoing process in the company? Is feedback information received after performance appraisal? Is performance appraisal helpful in identifying strengths and weaknesses?

Effective performance appraisal does not influence employee performance. Effective performance appraisal influences employee performance. To what extent has managerial decision influenced the productivity of an employee in the public sector?

Research hypotheses The following hypotheses were tested: Reward will not have effect on the commitment of employees. Promotion does not have any significant effect on labour productivity. Giving feedback will not improve competitive advantage. Literature Review Also explained that one of the key determining factor of performance management and appraisal is employee engagement [ 26 ]. Contributed that the importance of employee engagement cannot be underestimated when the desire of the organization is to improve performance and productivity [ 9 ].

The effectiveness of HR systems is, in part, a task of the degree to which they are matching with both organizational and individual goals. According to [ 27 ], there are a great number of design features that potentially can influence the effectiveness of a performance management system, and many of these have been empirically studied to clarify their impact.

Studies from [ 19151726 ] have shown that the major and prevalent problem confronting personnel appraisal is always the mistake that the rater often commits. Some of the mistakes are halo effects this occurs when a manager appraises the performance of an employee based on a certain characteristicerror of contrast this occurs when the rating of an employee is dependent on the performance of another person doing similar workcentral tendency error this occurs when a rater award all employees average or above average ratingleniency or strictness error leniency occurs when the rater rate all employee high while strictness occurs when all employees are rated lowrecency effect error this occurs when rater allows recent occurrence to influence his judgement of an individual performance and the proximity error this occurs when a rater uses one technique to measure different traits in individual performance.

The failure of any of the subordinate to meet the organizational goal is a failure of the manager [ 2 ]. Posited that the manager account for every action of the subordinate [ 1 ].

relationship between performance appraisal and employee productivity

Performance appraisal and related variables Acclaimed that through personnel research, appraisal of employees should be to discover the weakness of their employeeor why the target productivity levels is not being met and thus use the information to plan future developmental programme such as employee training, possession of better equipment or motivating their workers by providing appropriate leadership style [ 26 ].

If a company is just developing its appraisal system without a baseline performance to reward accordingly, there is likely to be a problem from the side of the employee which will inturn affect the goal of the organization in general.

Appraisals are often developed mostly in the public sectors to reward or recognize employee s for a job well done. This kind of motivation for high performers also serve as a challenge for the low performers. Training Appraisals are done in order to identify the kind and level of employees that are low performers. Training comes in when some employees are found to be deficient in the performance of their duties [ 13 ].

However, both managers and employees of high performance should be continually trained as to be able to provide objective input. Several studies [ 20 ] indicated that employees are often satisfied with jobs only when it affords them the opportunity to apply their skills and abilities, freedom, as well as adequate training and seminars which creates avenues for their enhancement and self-development [ 21 ].

In Nigerian public sectors, employees are given feedback on their level of performance with a realistic period and support in improving their performance through adequate training and developmental programmes. Promotion It has been a culture in Nigeria public sectors that when appraisal are done, they are often linked with bonuses and not to promotion.

Performance Reviews - Performance Evaluations & Appraisal

Also, it was also observed that appraisal system in the Nigeria public sectors does not always ensure that high performer employees are treated fairly with regard to both the appraisal and resulting promotions. In developing an appraisal system for organizations, management needs to think through pay increases and promotions [ 29 ]. Numerous studies like [ 30 ] pointed that employees get motivated to work when they get frequent promotions after appraisal system in their work place.

While some also argued that that factors such as promotion, training and career development, and appreciation and improved work place environment gives employees greater opportunities and this will either directly or indirectly influence their satisfaction on the job. When high performances are recorded for employees, it must be supported with a basis for pay increases and promotions.

However, when developing an appraisal system, the management of the public sectors needs to consider the connection between the appraisal and pay increases or promotions. Feedback An employee performance appraisal serves as a means for management to evaluate and provides feedback on employee job performance, including steps to improve on their deficiencies as needed.

The study of and [ 27 ] have indicated that the feedback mechanism serves as a means of identifying their strengths and weaknesses. This record of feedback in appraisal can be provided verbally but in many cases, legal experts counsel employers to maintain written records in order to provide themselves with greater legal protections.

The use of degree feedback can also be adopted in evaluating the performance of individual. This degree affords the manager the opportunity to assess the performance of an individual employee through his interaction with different co-workers or departments, external customers, and the employee himself. As a company increases its staff, a more formal system using a written appraisal form developed internally or externally should always be used, with the results of the appraisal being tied to salary feedback on a regular basis so that employees increases or bonuses.

Whether the appraisal is provided verbally or in writing, organization needs to provide consistent can improve their work performance. Demotion, Termination, Redeployment, Transfer and Retrenchment A sound performance appraisal mechanism must be directed towards the achievement of every organizational goal [ 1 ]. Performance appraisal in public sectors bring uniformity in evaluation process so treat employees with the capabilities could secure the same rating.


In the same vein, it provides information for controlling and carrying out important manpower planning subsystems [ 9 ] like training, demotion, pay increases, termination of employment, redeployment, retrenchment, promotion, etc.

Invariably, the waywardness of an individual in the organization could be contained or removed by helping him or her through performance appraisal to adjust or shoved out. Performance appraisals PAs are conducted at least annually [ 24 ], and annual employee performance reviews appear to be the standard in most American organizations [ 8 ]. Methodology The study involves a survey research design and the cross sectional design which involves the observation of the sample subjects and variables as they are without making any attempt to control or manipulate them.

The sampling method adopted in this paper was simple random sampling method. The sample frame for this study is and out of which questionnaires were valid and filled completely. The questionnaire is structured into five sections, Section A deals with the bio data of respondents. Section B deals with rewards and commitments, Section C is based on motivation and innovation, Section D is aimed at obtaining information as regarding effects of promotion on labour productivity and section E deals with competitive positioning and feedback.

Journal of Economics and Business Research

The questionnaires were designed in such a way to obtain data from the respondents. It was designed to gather relevant information to be used in testing hypothesis [ 33 ].

The well-structured questionnaires were in such a way that the items for which responses were needed had already been written and all that was needed was to tick the most suitable option from the list of options given, ranging from Strongly agree SAAgree AUndecided UDisagree DStrongly Disagree SD. At the end, statistical package for social sciences SPSS was used to analyze the data and correlation and regression method was also used for the analysis and interpretation of the data collected.

Analysis and Results The Table 1 shows that This therefore means that majority of the respondents are male. This table above shows that