Full Project – Performance appraisal as a management tool for increasing productivity

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CHAPTER ONE

1.0  INTRODUCTION

1.1  BACKGROUND OF STUDY

In organization, supervisors must from time to time evaluate the contributions and the abilities of their subordinates, they have to take decision relating to fair treatment, placement, transfers, promotion of their subordinates as well as those bordering on individual development. These personal responsibilities and activities should not based on a spur of the moment decisions, but rather on carefully and lucid judgment made by the supervisor in agreement with all affected and arrived of periodically in a systematic manners.

According of Ohadimma and Uwaoma (2000.73) performance appraisal can be seen as the systematic evaluation of an individual with respect to his performance on the job and his potentials for development. It is this judgmental process of evaluation the performance of another in this contest explains when an individual found up-grades and promotable while the others are not.

Nwachukwu (1985:473) stated that the essence of performance appraisal is to help the management take national decision in such things as promotion, transfer, pay increase, training and development, dismissal, termination and retirement on the employee concerned.

The role performance appraisal plays is very crucial because it help in the growth and survival of an organization, need to know how actually performance appraisal is contributing to the accomplishment of job plans, the staffing plan and ultimately the overall strategic plan of the organization.

Performance appraisal is also a development process since “It seeks to identify the strengths and weakness of the employee as a guide to his further development”. Appraisal in this contest does not act as a “Judge” who convicts the weakness of the employee and suggests way of strength him through training and developments.

The undying philosophical understanding according to Tamunome (2002:99) is that for any individual being asset the performance is fathy in him with the group goal. Individual goals must work into group goal to make relevance, so the whole essence of performance is to see how the individual goals are matching the group goals.

In recent times, it has been renamed performance appraisal. Generally to appraisal is to judge the worth, quality of condition of something or to find out its value. Therefore, to appraise performance is it’s asses and determine the quality of contributions and the possible worth of individuals potentials.

However, appraisal of employee or subordinate in most business organization can be ineffective without all concerned with the exercise seeking to eliminate hindrance which could cause or even lead to decrease productivity, been the facts that then disappointing approach adopted by most managers of business organization has really rendered the evolution process sometimes unimportant.

• Unilever and Zandob Industries

Location of Unilever (Nig) PLC Aba (NSD Factory) 

The Aba site is located on two (2) industry road, Aba. It was developed in 1958 from a green field site that covers some 9.86 hectares. The factory commenced its operations that same year with the product of hard soap namely key and sunlight.

In 1980, the NSD power plant was commissioned in 1982 a continuous soap making plant was also commissioned to replace the making plants that was commission to replace the batch operation that was existing. In 1959, the NSD power making capacity was up rated from 6TPH to 8TPH. In 1986, an NSD bar plant was commission. The rationalization policy led in 1987 to concentration of NSD production. A subsequent capacity up rate took production from the spray drying capacity of 8TPH to 12TPH rationalization led to the final withdrawal and movement of soap production from Aba to Apapa in 1991. The site in Aba has witnessed some major subsidence works as a result of structural inability caused by the low bearing capacity of its soil. 1992 marked remedial works of the sulphoration plant 1996, 1999 and 2002 marked major subsidence work uniliver (Nig) PLC ABA.

The marketing manager stated some of the reason why the company was sited at Aba

1. The city Aba is very large compare to other city in the east of the Niger.
2. Geographically, Aba is at focus of road and rail way network leading to all parts of the country
3. The city is the centre of Eastern market

Zandob Industries Ltd.

Zandob Industries Ltd. is a NAFDAC registered organisation . Zandob Industries Ltd. is located at Km 5, Aba/Port Harcourt Expressway, Unode, Aba, Abia State.. Some of their products includes Shamnur Orange Flavoured Drink (Bottle) and Shamnur Pineapple Flavoured Drink (Bottle).

1.2  STATEMENT OF THE PROBLEM 

Certain conditions of factors can make the appraisal exercise ineffective. Generally, evidence of ineffectiveness in this regards is seen in the attitude of line managers towards the evaluation process. These includes the lack of complete knowledge of employee behaviour by managers or supervisors, the element of business on the part of the management addition to the traditional  rating system that has become their custom that their employee must be rated  that way. Also, the high rate of bribery and corruption nepotism, god fatherism etc. proper performance evaluation may not be realized in order to increase productivity.

Since this study seeks to examine performance appraisal as management tool for increasing productivity in selected firms in Aba, Abia state I therefore attempt to identify various employee appraising techniques. Some common appraisal problems and how proper performance appraisal can enhance increase productivity in selected firms.

1.3  PURPOSE OF THE STUDY 

The purpose of writing this project is to investigate on how performance appraisal can enhance increased productivity in Unilever and Zandob industries.

In the study the researcher tries to find out the

1. Find out the various performance appraisal techniques used.
2. Examine the implication of these used on performance and productivity.
3. To identity some common appraisal of employee and how proper appraisal can enhance increased productivity.
4. Make some useful recommendation to the management

1.4  RESEARCH QUESTIONS

The following research questions will help achieve the objectives of this study.

1. To what extent does management use performance appraisal running Unilever and Zandob?
2. Does performance appraisal have any effect on productivity?
3. Does it affect productivity positively or negatively?
4. To what extent does performance appraisal affect the firms understudy i.e. that is their productivity?
5. Will the management of these firms be able to tell the performance appraisal techniques used?
6. Will the management that is the officers and other employees of Unilever and Zandob be prepared to tell how long they have been working in the company?
7. Can the management of Zandob and Unilever be able to tell how often they evaluate performance of it employees?

1.5  RESEARCH HYPOTHESES

H₀:  The use of performance appraisal technique has no significance to the firms.

H₁:  The use of performance appraisal has significance to the firms.

H₀:  There are no implications on the use of performance appraisal on productivity.

H₁:  There are implications on the use of performance appraisal on productivity

1.6  SIGNIFICANCE OF THE STUDY

The study of Performance Appraisal as a Management Tool for Increasing Productivity (A Study of Selected Firms in Aba, Abia State) is important in three major aspects

1. In addition to serving as a partial fulfillment of the requirement(s) for an award of Higher National Diploma, (HND), this study will benefit administrative organization, government, researchers and academics.
2. On the part of administrative and the government, the importance of this study will expose the importance of Performance Appraisal as a Management Tool and its relationship to Increasing Productivity and therefore provides guiding steps towards policy formulation, strategic planning and attain other major decision making in this regard.
3. Researchers and academics will stand to benefit by way of having additional materials for academic work such as lecturing, seminar and conference materials available in this complication. The out-come of this study is also expected to contribute to the expansion of his total knowledge base in this aspect of study. Another aspect is that this study will offer a basis for future researcher who shall find and use this study as a reference material when analyzing other issues related to this.

1.7  SCOPE OF THE STUDY

The study will be limited to Performance Appraisal as a Management Tool for Increasing Productivity. The Selected Firms for the study are Unilever (Nig) PLC and Zandob industries limited Aba, Abia, state.

The research methods designed for this research work are survey studies and descriptive studies, which topically employ questionnaires and interviews in determining the opinion and perception of people about issues. This study would seek opinion on the highly and middle level of personnel drawn from different department of the firms understudy.

1.8  LIMITATIONS OF THE STUDY

This work has many limitations. In respect of the poor attention I receive while carrying on this research from both the employees and the employees. Many of the workers were not willing to answer questions while I was carrying out oral interview to know of performance appraisal can increase their productivity.

• Lack of Finance and Time

These also contributed to the limitation of this work because of the little time given to us students to carry out this research work. Also the cost of transportation from Owerri to Aba three times in a week to get information contributed a lot.

• Administrative Red Tapetism

This was a major limitation while I was carrying out this research. Some of these firms the process one has to undergo before getting any information is long thereby limiting the research. In some firms before you will be allowed to see the personal manager it will take up to two weeks and above.

1.9  DEFINITION OF TERMS

Performance Appraisal: It is a process of or series of formalize discussion with an employee about performance over a specific or specified period of time (Luthens 1929, p.234).

Manager: A person with the task of panning, organizing, directing, coordinating, staffing, and controlling of organizational resources to attain the objectives of an organization.

Productivity: This is the quantity or value of the major product or sourced that an organization produces (Decenzo and Robbins 1989 p.9).

Effectiveness: This is concerned with the art of getting the right done, in the right way for the right purpose.

Efficiency: This is concerned with achieving objectives or producing products at the cheapest cost in other to assist organization achieve its main objectives.

Plan: According to Longman dictionary to contemporary English, plan is a carefully considered arrangement for carrying out some future activity.

Organization: This is the combination of people, or individual effort working together in pursuit of certain common purpose called organizational goals.

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Full Project – Performance appraisal as a management tool for increasing productivity