Chapter 1-5 PROMOTION APPRAISAL SCHEME ON WORKER’S PERFORMANCE

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CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

In today’s competitive business world, it is understood that organizations can only compete with their rivals by innovating. Organization can only innovate by managing their human resources well. The human resource system can become more effective by having a valid and accurate appraisal system used for rating performances of the employees. Unfortunately, the number of organization using an effective performance appraisal system is limited (Ikemefuna, 2005).

Promotion appraisal is a key in human resource management function which is viewed as a subset of performance management. Rao (2005) opines that €œpromotion appraisal is a method of evaluating the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Competition for scarce resources among organizations in Nigeria is becoming more and stiffer. This therefore means that organizations can grow to the extent that people who work in such organization are supported to grow.

However Muo (2007) asserts that there is probably no program in the arsenal of personnel management that is difficult to effectively implement and yet so fundamental to individual and organizational growth than performance appraisal. In business as well as in government, effective results are crucial to survival since improved performance is a basic criterion for individual and organization growth.

In many Nigerian organizations, performance appraisal is viewed and conducted solely in terms of its evaluative aspect thereby overlooking its use for facilitating growth and development in workers through training, coaching, counselling and feedback of appraisal information. It explains that performance appraisal is accorded a lesser role in Nigerian organization as more emphasis is given to selection, training, development and salary administration (Fajana, 2002). This means that organizations are putting the cart before the horse and are in turn stifling genuine individual and organizational growth. It would be inappropriate for organizations to emphasize more on training without paying special attention to performance appraisal as Rao (2005) writes that it is the outcome of performance appraisal that would reveal training needs.

Organizational performance and its resultant efficiency and effectiveness can only be achieved when individuals are continuously appraised and evaluated. The inability of organization to install an effective performance appraisal strategy has hindered them from achieving competitive advantage which they require more now than ever before. Appraisal processes are not systematic and regular and often characterized by personal influences occasioned by organizations preoccupation to use confidential appraisal system which hinders objectivity and fairness.

Effective performance management is essential to ensure that a business is operating effectively and is on track to achieve strategic goals. Performance appraisals are a review of a workers performance against pre-determined objectives. They identify the strengths and weaknesses of an employee and address how to improve or develop these areas. They aim to motivate the employee and provide them with sufficient challenges and responsibilities in relation to the business objectives.

Cardy and Leonard (2011) posit that performance appraisal is an important management tool to assess employees efficiency in the workplace, and may be defined as a structured formal interaction between a subordinate and supervisor that usually takes the form of a periodic review which could be annual or semi-annual to evaluate work performance. Performance appraisal is intended to engage, align, and coalesce individual and group effort to continually improve overall organizational mission accomplishment. In some organization’s appraisal results may be used to determine relative rewards in the firm who should get merit pay increases, bonuses, or promotions.

1.2    Statement of the Problem

This brings us to those problems that are associated with conducting performance appraisals. The process usually starts at the middle management level where it is the job of a middle manager to appraise his subordinates or employees who are under him. In fact every successive hierarchical level, the superiors are asked to evaluate the employees who are working under them. This can give rise to many issues that make performance appraisals an unpleasant task. As a result many managers view the process of appraisal as time consuming and burdensome. To begin with performance appraisals can cause friction, resentment and the consequent low morale. Since appraisals are rather subjective in nature, they can also be disputed in case of negative ones.

The performance appraisal systems tend to have several problems. Raters evaluations are often subjectively biased by their cognitive and motivational states, and supervisors often apply different standards with different employees which results in inconsistent, unreliable, and invalid evaluations.

The employee reactions to appraisals can be an important condition to improve the employee’s performance. Recently, scholars have begun to argue that employee emotions and perceptions are important in determining the efficacy of performance appraisal systems. In fact, appraisal reactions such as satisfaction, acceptability, and motivation to use feedback, are cited as an important trend in the appraisal research during the past ten years in a recent review of that literature.

Moreover, the appraisals sometimes might be coloured by the status based personal relationships in form of prejudice and unfair as the appraisal might be there is no way the superior’s process of appraisal can be contested and thus causes resentment.

Furthermore, employers sometimes feel pressurized to give a good appraisal in order to avoid confrontation or any friction in the existent work environment. apart from these problems, appraisals also take up extra time and effort’s on the manager’s part.

1.3    Aim and Objectives of the Study

This research work seeks to study promotion appraisal scheme on worker’s performance and the objectives of this study include: Other specific objectives of the study include to:

1. Examine the effect of promotion appraisal on worker’s performance.
2. Access the impact of promotion appraisal on employees’ commitment in an organizational.
3. Examine the challenges encountered by human resource management during promotion appraisal in an organization.
4. Examine the effect of promotion appraisal on workers’ attitude.

 1.4    Research Questions

The study seeks to answer the following research questions:

1. How effective is promotion appraisal on worker’s performance?
2. To what extent will promotion appraisal affect employees’ commitment in an organizational?
3. What are the challenges encountered by human resource management during promotion appraisal in an organization?
4. How does promotion appraisal affects workers’ attitude?

1.5    Significance of the Study

When performance standards are clearly articulated by management, employees know what is expected, what is considered unacceptable performance, and how organizational standards should be achieve. This research work is useful and relevant to the entire society, as it helps organizations and other sectors of the economy in knowing and appreciating the roles performed by human resources, in enhancement of organization efficiency as well as how best to manage these human resources.

To this end it therefore serves as a benchmark for financial researchers to further evaluate the effect of employer-employee relationship, and how it ultimately impacts the performances and growth of the manufacturing industry in Nigeria.

Consequentially, it aids the Government, policy makers and stakeholders to properly articulate critical areas in HR that needs to be improved on so as to forge a stronger workforce.

1.6    Scope & Determination of the Study

The work examines promotion appraisal scheme on worker’s performance with a view to explore Dangote Sugar Plc in Apapa, Lagos. In addition, the study covers human resources management, promotion appraisal, its components, functions, objectives as well as how it impacts on performance.

1.7    Operational Definition of Terms

Promotion Appraisal: A promotion appraisal (PA), also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal is a method by which the job performance of an employee is documented and evaluated.

Organization: An organization is a social group which distributes    tasks for a collective goal.

Human recourses management: These are human beings used in the production process.

Influence: Influence is the action or process of producing effects on the actions, behavior, opinions, etc., of another or others.

Worker: Worker is a person who is actively involved in a particular activity.

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