THE IMPACT OF PERFORMANCE APPRAISAL ON THE ORGANIZATION EFFICIENCY
1.1 Background of the Study
Institutionalization of performance appraisal started as far back as the industrial revolution when it was used as a means of measuring organizational efficiency (Fundary, 2001). When (1994) affirmed that performance was incepted when the Robert Owen used modern coloured block measure the achievement of employees workers in the cotton utilized as a disciplinary mechanism for punishing for performance (Kennedy and Dresser, 2001). This resulted in the negative notation of appraisal system which turned out to be by both the appraiser and appraise a confirmed by Robert and Pregitzer (2007).
“Performance appraisal is a yearly rite of passage in organizations that triggers dread and apprehension in the most experience bauble hardened manager”. The above quote summarized the extent to which the appraisal process is disliked by the evaluation. Subsequently, organizations tried to refine the methods linking it to other administrative method including reward, promotion, training and so forth arguing the employees achievement should not only the measured but evaluated and managed (Kennedy and Dresser, 2001). Despites the universal, there has been several analysis and with criticism of the effectiveness and use of performance appraisal within the organizational context but up to recent time the issues is skill being debated among scholars academicians and professionals and no system gas been successful is meeting the desire goals.
Performance appraisal is a means of measuring or assessing employee’s achievements within a stated period of time using reliable measurement criteria with the ultimate goals of providing information to superiors on how to improve employee’s effectiveness. There are tons and wind range of literature on performance appraisal. The term has been synonymous with performance management, performance review and performance evaluation. In the book “strategic performance management” the author defined performance appraisal as “a systematic and holistic process of work, planning monitoring and measurement aimed at continuously improving the terms and individual employees contribution to contribution to achievement of organizational goals”. (Akata, 2003).
The depicts performance appraisal is used as a means of establishing future goals, monitoring employee’s process based on specified job description, and measuring performance, teamwork and achievements based on specifying task that can be linked with organizational goals on objectives. Furthermore, performance appraisal is used to formally determine employees effectiveness and contribution (Ikranmullah et al, 2011). In addition Fleteha (2001) opined performance appraisal as a means by which organization develop competency improve employee motivation and achieve equitable allocation of resources. In essences, performance appraisal achieves multiple purposes from measurement to motivation and resource, allocation. As noted by Cleveland, Murphy and William (1989), performances appraisal systems can be used to motivate employment of skills, competences and expertise. In addition, performance evaluation can be said to be a process of measuring employees contribution which turn out to be beneficial both to the suf and the organization of large it carried out properly.
Moreover, Seiden sally and Jessica E. Sowa (2011) believes that the ultimate objective of any evaluation procedure is aligning individual goals and objectives in how they contribute to organizational growth and development. According to Bassey Esu and Inyang (2009), performance appraisal system is a means of investing employee achievement over a certain period of time for achieving organization goals. Consequently, performance appraisal is a means of knowledge sharing among subordinate and superior the adequately measure the process of the employees which will aid in making strategic human resources decisions.
In addition Atiomo (200) agree with Fajana (1997) that performance appraisal is a method of assessing the human resource capabilities and skills and also to identify areas of improvement (Fajana, 1997: Atiomo, 200. Obisi, 2010).
Atiomo (200) noted that, in order for performance appraisal to be effective, there must be clear job description hence, every individual needs to know what his role is the organization can be deduced the performance appraisal is the process through whi0ch an organization collect individuals date in terms of strengths and weakness in order to explore one’s opportunity and potential for development and growth while also determining future threats can be harmful to one’s care and the organizational selling at large which is subsequently communicated.
1.2 Statement of the Problem
Looking on the issue on ground, most organization fails to appraise their staff in which the effect is the organization not recognizing there staff by not appraising than and not give them what their contribution worth in the organization. Implementing and designing and employee’s performance appraisal plan will definitely increase productivity and motivate employee in an organization.
A study conducted by Agbo (2010) in some West African countries including Nigeria reveals that most organization in developing countries, do not have structure to implement employee performance appraisal system in an appropriate manner. Hence, employee found it very difficult to believe, that they are appreciated for what they are doing at their workplace.
Non-performance appraisal do not actually motivate employee to put in their beat at work it is a major issue in cooperate Nigeria lody. Organization that do not have performance appraisal system plan based on the personality an nature of the employees hardly motivate their employees to work hard it certain appraisal packages offer by the organization do no speak of their need.
An average Nigerian workers place more important to the appraisal package or benefit he/she will derive from working, thereby they are very concerned about their performance in an organization. Therefore in conclusion, it is of all these problems mention above, that the researcher no decide to go into the study and give recommendation on how to solve the problems.