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The Impact of Employees’ Performance Appraisal on Productivity

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The Impact of Employees’ Performance Appraisal on Productivity

CHAPTER ONE

1.0 INTRODUCTION/BACKGROUND STATEMENT

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.

Performance appraisal is defined as “a structural formal interview between subordinate and supervisor, that usually takes the form of periodic interview (annually or semi-annually), in which the work performance of the subordinate is examined and discussed, with the view of identifying the weaknesses as strengths as well as opportunities for improvement and development” (DEcENZO and Robbins, 1995: 358).

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.

Without a good product to sell, problems in an organization are bound to rise.

1.1 PROBLEM STATEMENT

The basic aim of every business organization is to achieve its objectives, goals or targets successfully. Goals set by organization will only be in vain if much attention is not paid to employees’ effort or performance for successful accomplishment. 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.

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.

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.

1.2 OBJECTIVES OF THE STUDY

The aims of this study are;

1.3 SIGNIFICANCE OF THE STUDY

The findings of the study will not only be beneficial to the personnel of the chosen organization, but also to every individual. It will also;

Ø Help managers in other organizations in setting goals and targets for employees to achieve through proper supervisory control by line managers.

Ø Aid in identifying and improving the training and development needs of workers.

Ø Assist in motivating employees who contribute effectively to the attainment of organizational goals and objectives.

Ø Help managers to know how to appraise the performance of their workers.

1.4 RESEARCH METHODOLOGY

This Section elaborates in details the procedure the researchers will use in collecting data. It entails how the topic under review will be examined and why some techniques will be preferred to others. It must be noted that a good data must be reliable, credible and relevant. So as to achieve a good result of this research, techniques or methods which will be convenient to use are employed under specific situations to give an accurate, valid, logical and satisfactory analyses of the data.

In lieu of this, the researchers wish to discuss the topic under the following headings;

1.5 SCOPE OF THE STUDY

Ghana Water Company Limited (GWCL), Ho.

1.6 LIMITATION OF THE STUDY

The following are the problems faced by the researchers whilst carrying out the research;

and evaluating an employee’s performance, recording the assessment and providing feedback to the employees” (Daft and Marcic, 1998:368).

Performance appraisal is “a formal assessment of how well employees are doing their job”. Thus employees’ performance should be evaluated regularly for many reasons. Some of these reasons are;

easy. It is a matter of evaluating employee’s behaviour to see if it matches standards.

Initially, most people will make mistakes and fail to meet expectation, as it takes time to learn a new job and does it well.

Discussing an employee’s success and areas that need improvement can provide managers with an opportunity to be understanding and helpful and to guide the employee to better performance.

Moreover, the performance appraisal can be good source of suggestion on how a particular task could be better performed.

As an appropriate part of the performance appraisal, a manager can take corrective action or provide corrective feedback to help the employee perform his or her job better. The primary purpose of conducting this type of appraisal is to improve employee performance if possible.

Decision about promotion, compensation, additional training and firing are all based on performance evaluation. An effective performance appraisal system is a way of satisfying certain legal concerning such decision.

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