EFFECT OF PERFORMANCE APPRAISAL PROCESSES ON EMPLOYEES PRODUCTIVITY CASE STUDY: BUEA COUNCIL

ABSTRACT

The purpose of this study was to establish the effect of performance appraisal processes on employee productivity in the Buea Council. Performance Appraisal Criteria (PAC) and Performance Appraisal Feedback (PAF) were used as variables (Proxies) that influenced employee productivity. The study employed a cross sectional survey. The sample size was made up of 21 employees from selected departments of the council. Data was collected using questionnaires, personal observation and interviews, which were further presented using tables, charts and simple percentages. The studies also revealed that majority of the respondents were not counseled after performance appraisal. It is recommended among other things, that the process involved in performance appraisal should be duly followed. Buea council should make sure that feedback is given so as to help employees know they are faring on the job. The study found that there exists a strong relationship between Performance Appraisal and Employees Productivity.

Keywords: Performance Appraisal, Performance Appraisal Feedback, Performance Appraisal Criteria, employee Productivity

CHAPTER ONE

1.0 General Introduction

1.1 Background to the Study

The performance of employees is important in every business organization to achieve their organizational goals. It’s roots can be traced in the early 20^th century to Taylor’s pioneering time and motion studies. The performance appraisal system started in practice mainly in 1940s and with the help of this system, merit rating was used for the second time near the second world war as a method of justifying an employee wages (Iqbal et al, 1913). According to Asamoah (2012), performance appraisal was introduced by Lord and Taylor (1914). As a result, many companies were influence by Frederick Taylor’s “scientific management” efforts of the early 20s Century. It therefore believed that the continued success of each organization depends on its performance appraisal process.

In every business organization, the performance of employee’s is important in achieving organizational goals. The success of every business organization therefore be attributed to performance appraisal. (Gichuhi et al 2012). Performance appraisal is one of the basic tools that make workers to be very effective and active at work. A critical assessment of this may reveal the need for motivation, reward, development, training and good human relationship in an organization.

The role of performance appraisal has gone beyond a tool of assessing employee’s to one is used to reinforce the desired behavior and competent performance of employee’s (Gichuhi et al 2012). Performance appraisal instruments for mobilizing employee’s in a sophisticated and we’ll managed organization order to achieve strategic goals ( Singh et al, 2010) it is a universal phenomenon which serves as a basic element of effective work performance which is essential for the effective management and evaluation of staff. It aims at improving the organizational performance as well as individual development. Performance appraisal process is necessary to increase the performance of the employees and the organization check the progress toward desired goals.

The fundamental objective of performance appraisal process is an organization increase in employees productive. Therefore, performance evaluation provides adequate feedback on how employees are performing by dividing them to knowledge and the result of their work avenues for participating in the setting of task and goals. Clear and attainable goals of organization ( Mullins, 1999). By undertaking these activities, it will lead to the improvement of employee’s performance and thus higher productivity I’m the organization.

Performance evaluation in the Buea council is one of the important activities carried out by management. If done, properly, it will improve motivation and productivity, set the ground for employee’s to grow, improve on their performance. On the other hand of handled poorly Blau (1990) suggest that performance appraisal can contribute to job dissatisfaction and the development of negative employee attitude towards their organization thus lowering productivity.

Performance appraisal are employed to determine who needs training and who will be promoted, retrained or fired. Performance appraisal are been conducted actually ( long cycle) however, many companies are moving towards short cycle ( every six months or quarter) and some have been moving into short cycle ( weekly), to achieve highest performance. How performance is managed in an organization determines to a large extend the success or failure of the organization. Therefore, improving performance appraisal, everyone should be among the highest priorities of contemporary organization. However, the process is generally necessary for employee commitment as it determine the loyalty and psychological attachment of an employee to his or her job. While there are many potential benefits of performance appraisal, there are also some potential drawbacks. For example it can facilitate management employee communication but on the other hand, it is disadvantageous because it may result legal issue if not executed properly, as many tend to be unsatisfied with the performance appraisal process.

1.2 Problem of the Statement

The capacity of the organization to achieve positive outcome will be a function of the quality of performance appraisal. Performance appraisal is not only considered to have a positive influence on the performance of employees in an organization (Bargozzi, 1980) but also may have a negative impact on motivation, role perception and turnover if poorly designed and handled              (Churchill et al 1985) performance appraisal is a complex process and there is a scope of vanation, particularly when the supervisor is required to make subjective judgements  of employees performance, principles of work planning, setting agreed performance targets, feedback and reporting.

The main challenge that faces manager in all types of organization how to get maximum performance from their employees. Performance appraisal, therefore, seems to be inevitable in the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others including subordinates, naturally, informally and arbitrarily. The human inclination to judge without a structured appraisal system can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that judgments made will be lawful, fair, defensible and accurate. It is in the light of this that the present study intends to investigate the effects of performance appraisal process on employees attitude. (Asamoah, 2012).

Most precious studies had focused on staff appraisal on employees motivation some on appraisal practices on job satisfaction using different case studies but not known study had been done on the effects of performance appraisal on employees productivity in the Buea council. This study therefore seems to fill this knowledge gal by determining the influence of performance appraisal process on the productivity of employees in Buea council. Further , the study is going to address some of the concerns of employees. Performance appraisal in the Buea council by providing long term suitable recommendations to the management of the council and other relevant government authorities.

1.3 Research Questions

For the purpose of this study the main research question is, what impact does performance evaluation have on the productivity of Buea council?

Other specific research questions include,

• What problems are faced by the Buea council in increasing productivity?
• Does effective performance evaluation reduce cost and wastage of resources?
• What effect does the different component of performance evaluation have on the productivity of employees?
• Does performance evaluation motivate employees in the Buea council?