CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
As organizations aimed to remain sustainable and competitive, organization’s policy makers and human resources management collaborate more intensely in designing strategies and expertise in planning, organizing, directing, and controlling the operations to achieve set targets (Mello, 2015). The Human Resource Management is concerned with the management of an organization’s workforce. They are responsible for the recruitment and retention of competent employees also they are responsible for also the training and development of employees to boost their productivity, efficiency and motivate themthereby for the overall success of the organization (Mohammed and Abdulahi,2019). Targets and goals set by organizations serve as yardsticks for measuring success
. HRM practitioners, via the use of performance appraisals, evaluate their employees’ performance since their performances are vital to their productivity and the entire organizational success (Onyije, 2015). Desirable performance of employees which an organization needs, however, is dependent on positive job attitudes like job satisfaction and commitment. Thus, negative job attitudes pose a threat to the attainment of organizational goals. Performance appraisals are indispensable for organizations in the light of making their employees cognizant of their performance improvements and growth, their abilities and their potentials as well (Hayford, Boakye and Ovusu, 2016). Performance appraisal system has a substantial impact on other aspects of HR and the strategy of an organization in entirety. It’s the effectiveness of performance appraisals that lays bedrock for ensuring the success in matters relating to employees such as selection, training, and employee motivation practices (Mollel-Eliphaz, Mulongo and Razia, 2017).Performance appraisal has to do with staff performances and results objectively against previously agreed standards and targets. It is based on guidelines given to the employees by the management of what is expected of them in terms of organization’s objectives(Sheahan, 2017).Goals should be set for the employees and appraisal be based on these goals. These opportunities should include economics, social and cultural settings of the environment. The supervisor must let his subordinates know what is expected of them, what constitutes good performance and unsatisfactory performance (Onyije, 2015).
The important value of performance appraisal is to identify area(s) where corrective measures should be adopted, performance appraisal guides management to understanding its staff strength and weakness. This understanding should be used to build on the strength and determination of the employees which helps to determine the type of development needed for effective productivity (Jamil, 2012).
Actual appraisal should reflect the staff punctuality and attendance to the job and problems. In this area, it can be effectively handled by good appraisal system. Employees should be made to know their strength and weakness to enable them improve where they are found wanting (Khawaja and Nadeem, 2013). This approach assists the management on job placement and training.
Performance appraisal of employees give management a guide for salary reviews and which they may also use to judge future job assignment, compensation and in the selection of candidate for promotions. Promotion is not the best reward for outstanding performance but actually it is a way of acknowledging personal contribution towards the achievement of organizational productivity and goals.However, it should not be misconstrued (misinterpreted) that performance appraisal has to do with appraisal of subordinate or junior employees only (Liza, 2012). It also involves the appraisal of the performance of managers themselves to see how well they have performed their roles as managers. Managerial appraisal is referred to as the key to the management development and productivity, because if a manager’s strength and weakness are not known, it would only be accidental that development efforts would be aimed in the right direction. If a business or an organization is to reach its goals effectively and efficiently - ways of accurately measuring management performance must be found and implemented (Denisi, and Murphy, 2017).Managerial appraisal should measure performance of a manager in meeting goals for which the manager is responsible.
No organizaiton would want a manager who will not carry out his/her managerial role properly, most especially when he could not turn in good record of profit making, marketing, controlling and whatever the order of responsibility might be. This means that they should be appraised on the basis of how well they understand and undertake the managerial functions of planning, organizing, staffing, leading and controlling.
1.2 Statement of the Problem
The purpose of performance appraisal is to help enhance productivity in organizations and it is against this background that this proposed study seeks to examine performance appraisal and its impact on employees’ productivity.
One of the problems that organizations face today is issue of employee productivity. Poor performance appraisal has negative impact on employee performance. When performance appraisal is not practiced in an organization, it brings about low job performance among the staff (Magher, 2018). The main objective of an organization is to successfully achieve its set goals. Thus, performance appraisal is credited with encouraging employee loyalty, fostering teamwork, impacting other Human Resource functions positively and also positively involved in employee motivation. The success or failure of performance appraisal in an organization is dependent upon the philosophy on which it is established - the attitude of management and supervisory personnel towards it and their skills in achieving its objectives. Owing to the role these factors play in attaining organizational goals, many organizations invest in Performance appraisals. However, researchers also cite loopholes in the appraisal system and also warn of the dangers it poses to management and their subordinates (Gerhart and Milkovich, 2010).
The negative effect of lack of performance appraisal is usually low productivity. When performance appraisal is not practiced in an organization, it brings about low job performance among the staff. Even though the labour union points out that it is good (in terms of increase in productivity) to know about employee’s personal lives and also ask about their wellbeing, it could sometimes impact negatively on the performance appraisal and the management because they would be forced to increase salary or promote workers on seniority basis.
The main objective of an organization is to successfully achieve its set goals. These goals would not be attained if employee’s effort or performance is ignored (Anne, Poti and Isaac, 2012). It is very important to focus on performance appraisal so that the organizational goals can be achieved successfully and it is against this background that this study seeks to examine performance appraisal and its impact on employees’ productivity.
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