Full Project – The effects of employees performance appraisal on productivity growth of public enterprises

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CHAPTER ONE

1.0 INTRODUCTION

      The effect of employee performance on productivity and growth of public enterprises in Nigeria is likening when our economy is having an economic meltdown turnover due to a very low productivity of our public enterprises.

1.1 BACKGROUND OF THE STUDY

To manage an organization efficiently and effectively, there should exist a proper hierarchical structure to clarify organizational lines of responsibility. This structuring is necessary for the purpose of knowing the following principal managerial functions thus:

• Where to fix an employee
• When his capability have out lined such position.
• When a training and development of new skills for other positions are needed.
• What to pay the employees as salary
• What can we do help our employees do better for us and for themselves.
• The way of achieving this structure.

Different organizations have many strategies among them are:

• Performance of an employee: If the performance of an employee is of such important, then there must be a method of re-assuring it which should be scientific and empirical so that attitude of personalization, favourism, traditions and tribalism would not influence it.
• Employees performance rating:. Through this means, the organization can grade the capacity strength of its employees to whether the employees requires training programme in order to improve for better performance.
• Recognition:. This is one among the strategies organization use to improve the performance of its employees once an employee is praised or recognized to increase his moral in order for him or her to put more efforts on the job which will automatically increase production.
• Motivation: This theory has made us to believe that an employee must have a reason (motivator) to act or behave in the manner in which he does. Organization expects its workforce to perform at an acceptable level and for this aspiration to be realized it have to motivate its workface so as to perform very well.

1.2  PROFILE OF THE COMPANY OF A CASE STUDY    

              Power Holding Company of Nigeria was first established in Nigeria in 1886 when two 30-kilowatts generating unit were installed to serve the city of Lagos. P.H.C.N generates electricity from nine power stations six of which are thermal and three hydro. The thermal and Afan, includes Delta, Egbin and Ijora. Power station which runs on gas, sapele power stations run on gas and stream as of then while oji River power runs on coal. Kainji jebba and shiroro. Hydro power stations and distribution are inter-linked by a transmission network known as the Nation and with the National center at Oshogbo. As a simple and public utility whose presence is felt in all nooks and crannies of the federation?

Power Holding Company of Nigeria has numerous distribution stations throughout the country and the strategic position which PHCN occupies in the solid economic development of Nigeria means that the machinery of PHCN should be efficient hence the need for performance appraisal on productivity and growth of public enterprises in Nigeria are to meet with the modern technology requirement.

1.3 STATEMENT OF THE PROBLEM

              The raise and fall in productivity with an enterprise depends on the general performance of the employee. One of the factors that help to improve performance is the problems associated with it in a public enterprise which can be summarized as follows:

• The human limitation of the appraiser:. Most appraisal system as practiced in public enterprises in Nigeria leaves the appraiser wholly to his judgments, this judgment is often afflicted by tribalism, favourism, insufficient knowledge – `of the appraisal
• Follow-up:. Follow up is suppose to be part of appraisal scheme are not done by the appraiser, rather it has turned out to be and which does not bear the reason for which appraisal was set-up.

The present procedures affects the moral of the appraises because managers did not take or follow-up action after the appraisal.

• Lack of use of appraisal made:. This file away attitude associated with the personnel department in most public enterprise in Nigeria is one of the problems militating against the use of performance appraisal.
• Subjectivity of the part of the appraiser:. The appraiser sometimes exhibit an act of fear in carrying out their duties, for them not to be named wicked, so because of that, a let my people go attitude are attached to the appraisal process, and the appraises is assed below average whether or not he will quality for it. The appraiser does this only to answer a good name among the appraises.

• OBJECTIVES OF THE STUDY

The following are the objectives of the study

1. To determine the effect of performance appraisal on productivity in public enterprises with particular reference to Power Holding Company of Nigeria PLC. Aba District
2. To find out how performance appraisal are in use in public enterprises in Nigeria and the relevant that attach to it.
3. To determine the extent to which performance appraisal can be used to improve an employee performance and hence productivity.
4. To identify training needs its general reflects and the gap between the set performance standard for a job and the actual level of performance of the incumbent.
5. To make recommendation based on the findings.

• RESEARCH QUESTIONS

In the course of this research the following research question were made clear and it helps to direct the study

1. How can the productive capacity of an employee be permanently increased?
2. What factor is responsible for the inefficient and ineffective performance of workers in any relational work process?
3. Does appraisal really contribute to the increase of productivity of the enterprise?
4. Can lack of training and development of interest employees be responsible for low work morale absenteeism and lateness?
5. What are the benefits of performance appraisal?
6. What are the steps to effective and efficient performance appraisal?
7. What are the factors that hinder effective and efficient performance appraisal?
8. Is there any identification relationship between training development and labor turnover?

1.6       SIGNIFICANCE OF THE STUDY

The study is designed to aid public enterprises to clearly understood and appreciate the performance appraised in an organization for effective tools towards the organizational mission and vision statement.

THE SIGNIFICANCE IS AS FOLLOWS:

1. Knowing how to use performance appraisal report to make decision regarding to training and retraining the employees.
2. Transfer dismissal and retirement of employees
3. Hierarchical placement in an organization in large.
4. Carrier planning and development programmes.
5. Progression and channels of promotion
6. Assessing and evaluating the performance of each employee in the organization.
7. To aid future researcher and academic interest in this topic with valuable information.

1.7 SCOPE AND LIMITATION OF THE STUDY

This study focuses on the effects of employees’ performance appraisal on productivity and growth of public enterprises (P.H.C.N)

1. FINANCE: The management of power holding company of Nigeria (P.H.C.N) did not initiate research work, the financing of the work solely depends on the research which made the research work to be limited.
2. TIME: Despite the delay from the respondents there was no sufficient time to carryout the research project effectively.
3. IGNORANCE: Here most of the respondents were ignorant of what the research was recent for, because of that there was no willingness to give information freely. At the initial stage, despite the introductory letter attached respondent refuses to fill their personal answer to the questionnaire even when they were told by the researcher that no name is required.

1.8 DEFINITION OF TERMS

These are brief explanation of technical language used in write ups. They include:

1. APPRAISER: The person who is responsible for measuring the report and performance of another
2. APPRAISEE: The person whose performance are being measured and reported upon.
3. EMPLOYEE: A person (worker) who has been employed in the public organization or private sectors and is on regular payroll by his employer (management).
4. PRODUCTIVITY: This is the skills and talents necessary for the production goods and services.
5. PERFORNACE APPRAISAL: The process of measuring reporting employee behavior and accomplishment for a given period for the purpose of improving job performance.
6. Mallain Sdiq Of P.H.C.N Kaduna District Define: performance appraisal as annual assessment of employees’ performance behavior and the result of their achievement in the enterprise.
7. PUBLIC ENTERPRISE: This is a public oriented venture usually owned by the government.

1.9 BRIEF HISTORY OF THE CASE STUDY

Power Holding Company of Nigeria (P.H.C.N) Aba district was established in Aba on April 1951, when then the electricity corporation of Nigeria came into being in that area and it was located along Saint Michael’s road Abayi Umungasi Aba since 1951 till date and has many branches thereafter.

A total of 16 cities and communities were receiving electricity supply from that district now.

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Full Project – The effects of employees performance appraisal on productivity growth of public enterprises