Abstract
Main purpose of this study is to examine how
employee’s performance can be appraised. The population size of the study based
was three hundred and eighty five (385). The sample size use in collecting the
data was sample random sampling a total of one hundred and eighty five (385)
persons were chosen as the researcher sample size. The researcher also used
questionnaire method as the instrument for data collection. The research also
employed design was considered appropriate for the study; it also provided three
(3) research questions. The researcher also uses simple percentage method in
data analysis. This is because of its simplicity finally the researcher’s
findings sates that for performance appraisal to serve as a tool for control in
any company, there should be effective planning system. The researcher
concluded that any organization with the aim of productivity in order to make
profits should be prepared to satisfy the employees. This can be done by
providing the means through the needs and wants can be met. The researcher
further recommends that to inform and not to deform the First Bank PLC
activities should follow effective management approach to events and make sure
that all his plans regarding to performance appraisal is well structured in
order to ensure proper management.
CHAPTER
1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It is
a very clear fact by both definition and common understanding that every
organization is formed for an objective. Through two objectives may be profit
or non profit commonly for any organization to succeed, the efforts of its
employees must be directed towards the realization of their individual set
objectives. The efforts of each of the employees or group of employees in each
organization may be directly or not and normally varies in degrees and
relevance to the corporate objective, but should not for any reason be rejected
in the interest of the corporate objectives. Out performance by any employee or
group of employees in a department will surely result to underachievement of
the co-operate organizational goals.
In
recognition of the importance of one employee to the corporate existence and
goal attainment, the need to have a set goal or standard at each level of the
organizational structures becomes imperative. This arrangement will make it
possible and help in checking and appraising of the employee by various
superiors in the organization. This objective standard will be proportionate
and appropriate to the level and position of the employees in the
organizational structures as the expectations of each employee depends on his
position and level in the organizational hierarchy.
It was
in recognition of this Fredrick will show Taylor, the father of scientific
management in his article in the journal transaction urged for the
establishment of performance standard. This was with this aim to determining
the employee’s productivity as their performance appraisal could be measured if
standards are set. He added that he could perform up to the established
standard will be rewarded. He that performs above the standard will be entitled
to bonus. On the other hand, employees that failed to perform up to subjecting
him to training to improve. But where this effort to improve this fail the next
line of action will be punish the employee either by demoting or firing him.
These were with the intention that the employees might be motivated to high
performance and discouraged from under achieving.
As was
urged by Taylor (1968) in his article in “transaction” to reward the worker who
performed up to the set standard; to give bonus to those who are above the
standards and demote or fire the employees who performed below the standard and
failed to improve after training. The question that calls to mind is how do you
know the employees who performed above or up to or below the set standard. It
is aimed that at objectively deciding which employee deserves which treatment
from management praise or course.
By
definition, performance appraisal could be the analysis and appraisal of
individual workers performance and productivity based on the objective set.
Sluck
(1970) in his own, defined performance appraisal as a personnel activity by
means of which the enterprise determines the extent of which the employees is
performing the job effectively.
Evaluation
system are systems that have ultimate connections within all forms of
organization set up that aim at determining the employees effectiveness and
reward fairly made accordingly. Failure to administer regards in consistence
with the performance will undoubtedly bring some sets back in an organizational
productivity this is the case when the most efficient employee is not reward
accordingly. Many evaluation methods have been critical as not suitable
designed to yield the position result that could be a fair guide to
compensating the efficient employees.
Effective
implementation is another problem that is associated with performance appraisal.
A good evaluation system or institution has to be effectively implemented or
executed to yielding a reliable result. A person desirous of good plant the
good species, he also aims the duties of tending, feeling watching the plant
grow to give the expected good yield/performance appraisal is live is that,
when a good and suitable system is installed in an organization to give a fair
and reliable result it has to be strictly and objectively implemented by the
appraisers.
In
carrying out the exercise the lowest level employees are evaluated by their
immediate supervisor. Their performance against each set objective should be
assessed and perhaps graded setting an objective is therefore an element in
carrying out the evaluation exercise. Regarded less of what method adopted, the
primary objectives are the same. It aims at developing the employees so that
the best could be obtained from them for the benefit of the entire
organization.
1.2 STATEMENT OF THE PROBLEM
Performance
evaluation is universal and its universality undoubtedly epitomize it
importance to many organizations. Every organization, ministry or department
has a peculiar function it carries out or performance to encourage efficiency
and effectiveness.
Ideally
performance appraisal result should e unquestionable, undoubtful guide to
improve and developed the performance of the employees who are appraised. The
rewards and promotion of the employees if based on the result of performance
appraisal should not be doubted by the employees and should not discourage them
putting in more effort to achieve the best. The essence of performance
appraisal in any organization, ministry or department is to achieve the
organizational goal by making plan and looking for a way to actualize what they
have planned for effective performance result to harmony in any organization
and this constitutes to increase in productivity of both human and material
resources in any given organization.
Emphasis
in this research will be hand the best way of encouraging the First Bank PLC to
consider performance as essential tool for central in an organization and as a
matter of fact First Bank PLC Onitsha is faced with many problems as a result
of not having adequate personnel’s who can have out effective performance which
will enable the organization to carry its functions successfully.
It is
intended in the research to go into these analyzing and discussing them with a
view of facilitates performance in the organization.
These
problems although is difficult to go into solved, will make the organization to
be in a better position to attain its aims successfully.
1.3 PURPOSE OF THE STUDY
The
general purpose of this study is to examine the performance appraisal and its
effect on employees retention.
Other purposes include:
Ø To examine the effect of performance appraisal on employees
retention.
Ø To identify the problems associated with staff
career development in First Bank PLC.
Ø To find out workable solution for an effective
evaluation.
1.4 SIGNIFICANCE OF THE STUDY
The significance of this study is to find out how
the employee is performing in his responsibility. Hence many workers in different organization
do not attain the organization goal required of them. Employee performance
appraisal provides legal, ethical and visible evidence that employees were
actively involved in understanding the requirements of their jobs and their
performance. The accompanying goal setting, performance feedback and
documentation ensure that employees understand their required outputs. In the
event that an employee is not succeeding or improving in his job performance,
the performance appraisal documentation can be used to develop a Performance Improvement
Plan (PIP). This plan provides more detailed goals with more frequent feed back
to an employee who is struggling to perform. The goal is improvement but non
performance can lead to disciplinary action up to and including employment
termination.
1.5 RESEARCH QUESTION
This study sought answers to the following research
questions:
1.
To what
extent does performance appraisal affect employee’s retention?
2.
What are
the problems associated with staff career development in First Bank PLC?
3.
What are
the workable solutions for an effective evolution of First Bank PLC employee?
1.6 SCOPE OF THE STUDY
The
study of performance appraisal in Nigeria public enterprises will not deal with
all aspects of annual performance appraisal; it will treat mainly the area
where mistakes and mismanagement most commonly occur. Concentration will be the
degree of achievement of objective result, the reliability of the result and
the effectiveness of the result on future performance of workers.
1.7 DEFINITION OF TERMS
The
terms used in the study, which have unique meaning that could be subjected to
different interpretation by different readers of this project report are
defined as follows:
Effective: An exercise or action is said to be effective
when it realized its intended result or purpose.
Performance: In the context of the study performance could be
look at as the execution and going on work towards the achievement of
objectives.
Evaluation: This means estimates of values among and quality.
Negative
Evaluation: This means that employees are negatively
evaluation does not favour them.
Appraisal: To evaluate especially in an official capacity,
to estimate the quality amount size, and other features of judgement.
Performance
standard: The aim to
determining the employee’s productivity as their performance appraisal could be
measured is standards are set.
Employees: A person or group of person who is paid to work
for somebody.
Efficiency: The quality of doing something well with no waste
of time or money.