Effective appraisal on employees productivity

Thesis Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p><strong>1.1 BACKGROUND<br>OF THE STUDY</strong></p><p>In every business<br>organization including Nigerian Bottling Company, the performance of the<br>employees is important in achieving organizational goals.</p><p>Performance appraisal<br>is one of the basic tools that make workers to be very effective and active at<br>work. A critical look out on this may bring about the need for motivation,<br>allowances, development, training and good human relationship in an<br>organization.</p><p>Performance appraisal<br>is defined as a structural formal interview between subordinate and supervisor,<br>that usually takes the form of periodic interview (annually or semi-annually),<br>in which the work performance of the subordinate is examined and discussed,<br>with the view of identifying the weaknesses as strengths as well as<br>opportunities for improvement and development.</p><p>The essence of<br>performance for most organizations is delivering products and services that<br>meet or exceed customer expectations, thereby creating a competitive advantage<br>so that customers are retained and market share is increased (Sasson, Alvero<br>&amp; Austin, 2006). Another view is that a performing business is one that<br>maximizes shareholder value, thus maximizing the difference between input costs<br>and revenue (Copeland, 1994). This is often a controversial statement since<br>organizations in Europe and Japan expect a balance between all the stakeholders<br>(Copeland, 1994:97), and is supported by the view of Neely, Adams and Kennerley<br>(2002) as part of their Performance Prism which includes all the stakeholders<br>and not only the shareholders.</p><p>The output of every<br>organization depends on how well and how much the performance of the employee<br>is appraised and evaluated.</p><p>Productivity can<br>therefore be defined as “quality or volume of the major product or services<br>that an organization provides”. In short, productivity is what comes out of<br>production. Managers of every business organization are charged with the<br>responsibility to motivate their employees to achieve organizational goals.</p><p>Without a good<br>product to sell, problems in an organization are bound to rise.</p><p>It is a structural<br>formal interview between subordinate and superior that usually takes the form<br>of periodic interview (annually or semi-annually) in which the work performance<br>of the subordinate is examined and discussed, with the view to identifying the<br>weakness and strength as well as opportunity for skills and development<br>(Decenzo and Robbins, 1995: 358).</p><p>Performance refers to<br>the degree of accomplishment of the task that makes an employee’s job. It reflects<br>how well employee is fulfilling the requirement of the job.</p><p><strong>1.2 STATEMENT<br>OF THE PROBLEM</strong></p><p>In Nigeria most of<br>the performance appraisal exercise/program is not well managed. Management of<br>organization tends to view it as a punitive measure. This makes it lose its<br>objectives and goals. Performance appraisal no longer seek to actualize its<br>objective of correcting deviations, hence increasing productivity and jettison<br>all hindrances that tends to hinder productivity. But it is being used as a<br>tool for subordination oppression, victimization and exploitation.</p><p>Most organizations in<br>the competitive market fail since their workers perform below standard for they<br>are not encouraged to work harder. Managers and employees are the life blood of<br>every business organization. If management does not invest much into the<br>welfare of their workers, problems are bound to rise leading to industrial<br>strike actions, low commitment to work, low morale and low productivity of<br>goods and services.</p><p>Attractive appraisal<br>systems are established by some business organizations to help motivate their<br>employees to strike hard to be recognized and rewarded. Once employees are<br>motivated, their performance reflects on productivity. Employees strive hard by<br>pooling together skills, knowledge and efforts to achieve maximum output. Hence<br>the essence of this paper is to find out the part played by performance<br>appraisal.</p><p><strong>1.3 OBJECTIVES<br>OF THE STUDY</strong></p><p>The aims of this<br>study are;</p><p>1. &nbsp; &nbsp;<br>Investigate the effectiveness of performance appraisal technique in an<br>organization.</p><p>2. &nbsp; &nbsp;<br>Examine the usefulness of performance appraisal programme</p><p>3. &nbsp; &nbsp;<br>To examine the ways in which performance appraisal has impacted employees<br>performance</p><p>4. &nbsp; &nbsp;<br>To examine the relationship between performance appraisal and employees’<br>productivity</p><p>5. &nbsp; &nbsp;<br>To help managers review past performance and improve current performance.</p><p><strong>1.4 RESEARCH<br>QUESTION</strong></p><p>1. &nbsp; &nbsp;<br>Does performance appraisal have positive impact on employees’ performance?</p><p>2. &nbsp; &nbsp;<br>How often are employees appraised at the work place?</p><p>3. &nbsp; &nbsp;<br>Is performance appraisal an ongoing process in the company?</p><p>4. &nbsp; &nbsp;<br>Is feedback information received after performance appraisal?</p><p>5. &nbsp; &nbsp;<br>Is performance appraisal helpful in identifying strengths and weaknesses?</p><p><strong>1.5 RESEARCH<br>HYPOTHESES</strong></p><p>HYPOTHESIS I</p><p>Ho: Performance<br>appraisal does not have impact on employees’ performance.</p><p>Hi: Performance<br>appraisal has impact on employees’ performance.</p><p>HYPOTHESIS II</p><p>Ho: There is no<br>significant relationship between performance appraisal and workers’<br>productivity.</p><p>Hi: There is a<br>significant relationship between performance appraisal and workers’<br>productivity.</p><p><strong>1.6<br>SIGNIFICANCE OF THE STUDY</strong></p><p>The findings of the<br>study will not only be beneficial to the personnel of the chosen organization<br>for the study, which is Nigerian Bottling Company Plc, Benin City, but also to<br>every individual. It will also help managers in other organizations in setting<br>goals and targets for employees to achieve through proper supervisory control<br>by line managers.</p><p>Aid in identifying<br>and improving the training and development needs of workers.</p><p>Assist in motivating<br>employees who contribute effectively to the attainment of organizational goals<br>and objectives.</p><p>Help managers to know<br>how to appraise the performance of their workers.</p><p><strong>1.7 SCOPE OF<br>THE STUDY</strong></p><p>This research work is<br>limited the impact of performance appraisal on workers performance and in turn<br>leading to organizational performance and productivity, using Nigerian Bottling<br>Company Plc, Benin City. This therefore means that the study area in which data<br>were obtained is Nigerian Bottling Company Plc, Benin City.</p><p><strong>1.8 LIMITATION<br>OF THE STUDY</strong></p><p>There is no gain<br>saying that there are no limitations in research work generally. Any<br>shortcoming that arises in this study is as a result of factors which are<br>beyond the researcher’s control.</p><p>Therefore, it will be<br>of more importance to highlight certain militating factors that tend to narrow<br>or limit my scope of study. This project research would have been easier if not<br>for these limitating factors:</p><p>1. &nbsp; &nbsp; <strong>Time factor:</strong>&nbsp;time<br>was not on the researchers to consult various sectors of the economy to review<br>employees or given out questionnaire to various institutions on the effect of<br>government revenue policies.As we all know, time is never our friend. The time<br>scheduled for the completion of this research thesis was too short. As a<br>result, generating information/data was strenuous as it coincides with final<br>year examination period, which needed attention.</p><p>2. &nbsp; &nbsp; <strong>Finance:</strong>&nbsp;this<br>is another barrier that limited the researcher’s work.</p><p><strong>1.9 DEFINITION<br>OF TERMS</strong></p><p><strong>Appraisal:</strong>&nbsp;A<br>formal assessment, typically in an interview, of the performance of an employee<br>over a particular period.</p><p><strong>Human<br>recourses:</strong>&nbsp;These are human beings used in<br>the production process. They could still be called employees or provide of<br>labour.</p><p><strong>Compensation:</strong>&nbsp; &nbsp;<br>This is the reward or payment gain to the provider of labour. A labourer<br>disserves his wages. Compensation could also be retired to as<br>remuneration.</p><p><strong>Separation: </strong>This<br>is a process whereby an employee is returned to the wider society from where he<br>was taken from, probably as a result of old age, non-performance or misconduct</p><p><strong>Job<br>evaluation:</strong>&nbsp; This is the systematic<br>method of appraising the work of each job in relation to other jobs in the<br>organization.</p><p><strong>Equity:</strong>&nbsp;A<br>stock or any other security representing an ownership interest. On a company’s<br>balance sheet, the amount of the funds contributed by the owners (the<br>stockholders) plus the retained earnings (or losses). Also referred to as<br>“shareholders’ equity”.</p><p><strong>Effectiveness: </strong>Effectiveness is<br>the capability of producing a desired result. When something is deemed<br>effective, it means it has an intended or expected outcome, or produces a deep,<br>vivid impression.</p><p><strong>Efficiency:</strong>&nbsp;<br>A level of performance that describes a process that uses the lowest amount of<br>inputs to create the greatest amount of outputs. Efficiency relates to the use<br>of all inputs in producing any given output, including personal time and<br>energy. </p><p><strong>Employee</strong>:<br>These are workers employed to perform jobs in an organization under an<br>obligation, which they expect income as exchange for effort contribution to the<br>growth of the organization.</p><p><strong>Employers</strong>:<br>They are the employer of labour, who might therefore be said the controller of<br>the activities of the establishment.</p><p><strong>Exploitation</strong>:<br>The process of being able to use a company’s natural resources such as adverts,<br>covering of event, publicity of event for the attainment of profit<br>maximization.</p><p><strong>Management</strong>:<br>Is the effectiveness and optimum used of human and material resources to<br>achieve a goal.</p><p><strong>Responsibility</strong>:<br>Is a person who is reliable and able to carryout various duties imposed on<br>him/her by the establishment.</p><p><strong>Strength</strong>:<br>These are factors in the environment that place the organization at a<br>advantages over its competitors</p><p><strong>Selection</strong>:<br>Is the process of identifying the most suitable applicant and persuades him/her<br>for employment.</p><p><strong>Training: </strong>Training is<br>the acquisition of knowledge, skills, and competencies as<br>a result of the teaching of vocational or practical skills and<br>knowledge that relate to specific useful competencies. Training has specific<br>goals of improving one’s capability, capacity,<br>productivity and performance.</p><p><strong>Weakness</strong>:<br>This is the low level of performance in an establishment which hinders its<br>growth.</p><p><strong>Evaluation:</strong>&nbsp; &nbsp; &nbsp; &nbsp; <br>Evaluation is a systematic determination of a subject’s merit,<br>worth and significance, using criteria governed by a set of standards. It<br>can assist an organization, program, project or any other intervention or<br>initiative to assess any aim, realizable concept/proposal, or any alternative,<br>to help in decision-making; or to ascertain the degree of achievement or value<br>in regard to the aim and objectives &nbsp;and results of any such action<br>that has been completed. The primary purpose of evaluation, in addition to<br>gaining insight into prior or existing initiatives, is to enable<br>reflection and assist in the identification of future change.</p><p><strong>1.10</strong>&nbsp;<strong>HISTORICAL PROFILE OF NIGERIAN<br>BOTTLING COMPANY </strong>(NBC)</p><p>The Nigerian Bottling<br>Company Ltd is one of the biggest companies in the non-alcoholic beverage<br>industry in the country and is the sole franchise bottler of The Coca-Cola<br>Company in Nigeria.</p><p>The company serves<br>approximately 160 million people by producing and distributing a unique<br>portfolio of quality brands, bringing passion to marketplace implementation,<br>and demonstrating leadership in corporate social responsibility.</p><p>NBC Ltd started<br>operations in Nigeria in 1951. Based in the city of Lagos, they operate 13<br>bottling plants across the country. In addition, they channel products through<br>59 warehouses and distribution centers.</p><p>The company employs<br>about 4,800 people and indirectly supports the jobs of up to more than a<br>million more in our value chain.</p><p>The company aims to<br>be our customers’ most preferred supplier, and conduct programmes to support<br>more than 450,000 customers who sell our products to consumers.</p><p>The company is part<br>of the Coca-Cola Hellenic Group, one of the largest bottlers of the Coca-Cola<br>Company’s products in the world, and the biggest in Europe. Coca-Cola Hellenic<br>operations span 28 countries, serving more than 570 million people. The company<br>is headquartered in Athens and listed on the Athens, New York, and London stock<br>exchanges.</p><p>The company produces,<br>sells and distributes a wide range of beverages, most of which are trademark<br>products of the Coca-Cola Company. The company product’s portfolio consists of:</p><p>• &nbsp; &nbsp; &nbsp; <br>Leading brands Coca-Cola, Coca-Cola light, Fanta and Sprite</p><p>• &nbsp; &nbsp; &nbsp; <br>Local brands such as Schweppes, Five Alive, Limca and Eva</p><p>The company continuously<br>reviews opportunities to expand our product portfolio in order to offer<br>consumers in Nigeria an increasing range of choices. Every measure is taken to<br>ensure that The company’s products are of the highest quality.</p> <br><p></p>