Full Project – Performance appraisal as a tool for achieving organizational objectives in covid-19 era

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CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Performance appraisal system is a good instrument that can be used to improve the quality of an organization’s work force performance, of which it is considered as an important aspect in human resources management and as part of the control process in administration (Kavussi Shal, 2016). In order for an organisation to achieve its objectives, planning of the appraisal process as an important subject should be undertaken to enable it achieve the objectives like work force development, including improvements, promotions and assignments in managerial positions, persuasion and punishment, salary increase, personnel’s performance feedback and determining their educational needs. Therefore, an appraisal can be considered as an important factor in identifying the people’s talents and capacities and its results can make them aware of advancements, plans and goals. An organization, itself, needs to detect employees’ efficiency to improve its manpower’s status, for the purpose of increasing the volume of the production and services and making positive changes in its trend (Kavussi Shal, 2016).

Appraising performance is important because it helps to ensure that the organization will be easily understood by employees and effectively put into action by managers. Appraisal structures that are complex or impractical tend to result in confusion, and frustration. Likewise, systems that are not specifically relevant to the job may result in wasted time and resources. Indeed, most successful appraisal programs identify and evaluate only the critical behaviors that contribute to job success. Systems that miss those behaviors are often invalid, inaccurate, and result in discrimination based on nonrelated factors.

In an organization, performance appraisal is a systematic evaluation of the performance of an employee on his present job and also in relation to future jobs that he may be required to take up. It measures and evaluates the results of the performance of workers pointing out their potentialities and deficiencies so that they can improve over time. A good appraisal system is so fundamental to the management of people in any organization. The success of the organization itself depends largely on a good appraisal system. With a good appraisal system those who contribute more will be adequately rewarded and the right type of people are likely to be promoted into positions of higher responsibilities. Thus, for any evaluation system to work well, the employees must understand it, must feel it as fair, and must be work oriented enough to care about the results. One way to foster this understanding is for the employees to participate in the system design and be trained to some extent in performance appraisal.

The underlying objective of performance appraisal in any organization is to improve the productivity of workers. Thus, performance appraisal provides adequate feedback on how staff are performing, by exposing them to knowledge and the result of their work; clear and attainable goals of the organization; avenues for involvement in the setting of tasks and goals.

1.2       Research Problem Statement

For an employee to have motivation to perform, to develop personal capabilities, and improve their future performance this is influenced by continuous feedback on their performance (Invancevich, 2008). People are motivated when they expect a certain course of action will likely lead to attainment of a goal and thus a valued reward – one that satisfies their needs and wants (Armstrong, 2009). Only when employees are motivated towards appropriate goals that there is likelihood or organizational success is enhanced. Since productivity is influenced by employee motivation level, organizations and particularly their line managers have to realize what inspires employees to reach the highest level of their performance (Beardwell and Claydon, 2007). Organizations with best systems of performance appraisal usually show higher growth, higher return per employee, less attrition rate and stable platform for new challenges (Debemitra, 2008). Aquinis and Kraiger (2009) argue that implementation of a well-designed performance appraisal system can strength an organization in several ways such as employee retention, commitment, increase in employee self-efficacy and competitiveness hence increased satisfaction (in areas of recognition and experiencing growth).

Several studies have been done in relation to the effect of performance appraisal on job satisfaction. Chaponda (2014) conducted a case study on the effect of performance appraisal on job satisfaction in Slum based non-governmental organization situated in Nairobi. The study established that performance appraisal is important in job satisfaction and has helped improve job performance since it identifies performance appraisal problems and how to improve employee productivity and motivation. Njeru (2013) conducted a descriptive research study on the role of performance appraisal on performance of job in the public sector at Kirinyaga Central District. The study established that majority of civil servants set goals and attains them while a few received feedback on their performance.

Many of these studies that have not been done on the effect of performance appraisal on job satisfaction within civil service have failed to explain how performance appraisal affects job satisfaction in public service. This study therefore aims at bridging the existing knowledge gaps by endeavouring to provide an answer to the question; what is the effect of performance appraisal on job satisfaction among public service. It against this background that this study examines performance appraisal as a tool for achieving organizational objectives with reference to MC Plastics Limited, Kano state.

1.3        Objectives of the Study

The overall objective of this study is to determine the effect of performance appraisal as a tool for achieving organizational. However, the specific objectives are as follows:

(i)     To determine the effect of performance appraisal criteria on organizational objectives;

(ii)    To determine the effect of performance appraisal feedback on organizational objectives;

(iii)   To determine the effect of performance appraisal reward on organizational objectives.

1.4       Research Questions

The following are the research questions for the study:

(i)     What is the effect of performance appraisal criteria on organizational objectives?

(ii)    What is the effect of performance appraisal feedback on organizational objectives?

(iii)   What is the effect of performance appraisal reward on organizational objectives?

1.5       Research Hypothesis

The following are the research hypothesis for the study:

H₁:       Performance appraisal criteria has a positive effect on organizational objectives.

H₂:       Performance appraisal feedback has a positive effect on organizational objectives.

H₃:       Performance appraisal reward has a positive effect on organizational objectives.

1.6       Significance of the Study

The research on performance appraisal and organizational objectives among workers of MC Plastics Limited, Kano state during covid-19 era which can be of immense use to employers and future researchers interested in this area.

The general understanding of this study would serve as a useful guide to management of an organization to understand how performance appraisal can enable organization during covid-19 era in sensing any possible changes in the level of productivity; thereby figuring out strategies for identifying, encouraging, measuring, evaluating, improving and rewarding employees’ productivity at work.

The findings of this study would also be helpful to various organizations when setting policies on their specific performance appraisal system in order to adopt performance appraisal practices that are consistent with the requirements of these policies and that best fit the nature of the work performed and the mission of the organization during covid-19.

This study would also enable policy makers create better policies and regulations with regard to performance appraisal in a way that can create an enabling environment for employees to survive during coivd-19 era.

Finally, the study would be of immense benefits to the society by contributing to the body of knowledge and stimulate more researchers’ interest in this field of study. The findings of this study will be a source of literature to future researchers who might want to carry out research on similar topic.

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Full Project – Performance appraisal as a tool for achieving organizational objectives in covid-19 era