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EFFECT OF
PERFORMANCE APPRAISAL ON EMPLOYEE PERFORMANCE IN AN ORGANIZATION
CHAPTER ONE
INTRODUCTION
1.1 Background To The Study
Organization
has no opinion to whether to appraise its personnel and their performance or
not just as training is a must after procurement, so is the personnel
appraisal. Therefore, it is inevitable that the performance of the hire
personnel will be evaluated by someone. It has been established that the
manager job is to achieve the predetermined result through its people. This is
an exercise that required cooperative and term effort on the part of the
managers and employee under him.
The test of
an organization success is its abilities to create value sufficient to
compensate for the burden imposed upon resource contributors. There are two
categories of appraisal; the formal appraisal is relation and unduly in nature
and the other informal appraisal. It is an assessment of a planned way; the
planned approaches can be divided into system through which supervisor can
appraise on person comparative basic (ranking person list etc) and those in
which there is joint superior subordinate establishment and appraisal to
position goals accomplishment. The formal appraisal relies on some training
supervisor to rate objective through amending errors such as leniency,
harshness basis and central tendency.
The informal
on the other hand is a continuous assessment of an individual performance by
his manager in his normal course of work, it is of an adhoc nature and its
mainly determined by inactive felling as a fact of evidence of result it is
normally a native product of the day to day relationship of the manager ad subordinate.
1.2 Statement of the Problem
The effects
of performance appraisal on employee the employee performance appraisal is an
important career development tool for the manager and employee. The manager can
help guide the employee on the path to corporate advancement, and the employee
gets a clearer understanding on what is expected from him or her in his/her
daily duties performance appraisal have a wide varieties of effects on
employees that managers must identify and understanding such effects are:
1)
Motivation: And employee performance appraisal can act as motivation for an
employee to improve his productivity. When an employee sees his goals clearly
defined, his performance challenges identified and career development solutions
in places to help advance his career, the effect is to motivate the employee to
achieve those goals. Creating a comprehensive plan for employee for employee
development and give an employee achievements to strive for will inspire a
higher level of efficiency.
2) Charity:
Employee performance their duties to the best of their abilities throughout the
year base on guidance from management part of a performance appraisal is when a
manager and employee review the job description and compare the employee’s
performance with expectations. This gives the employee a feelings of clarity
and understanding will help him better perform his job duties.
Common
errors in performance appraisal
Take
responsibility: To prepare for the annual review, a manager should keep note of
all of the employee’s accomplishments and challenges throughout the year. When
these are presented to the employee during the appraisal, it gives the employee
the opportunity to benefit from her accomplishments and accept responsibility
for the performance challenges. By claiming ownership of performance issues,
the employee makes the process of career development a more personal
commitment.
Team work:
During a performance appraisal, a manager needs to take time to show the
employee how his performance affects productivity of the entire organization.
When employee understands how their performance affects the ability of others
to do their jobs, it helps put his own job duties into an overall company
contest. It helps improve the motion of teamwork among the staff and can also
encourage age cooperation to achieve corporate goals.
The Effects
Of Performance Appraisal On Organization: Performance appraisal doesn’t benefit
only employees. Organizations that use the result of performance appraisal to
identify areas of strength and opportunity can benefit as well performance
appraisal can provide an indication of area of training need as well as
direction for leadership development, performance improvement and succession
planning.
Identifying
Areas of Strength: The result of performance appraisal can be assessed to
identify areas of strong performance across all employees by departments or by
demographics. Standardized performance assessment allows companies to
aggregate, calculate, and analyze results to show where performance is strong.
These areas of strength then can serve as benchmark and opportunities for
searching of best practices for other areas of the organization.
Identifying
Training Needs: Evaluating the result of performance appraisals can provide
managers, human resources department and organizations with an indication of
where additional training and development may be necessary, says Lin
Grensing-Pophal, author of “human resources essential” for instance, result may
indication. The employees collectivity are scoring low on items related to use
of technology or customer services. These may become target area for the
creation and implementation of training programs designed to boost employee
competence and performance. Results also may be assessed at the individual department
and division levels.
1.3 Research Questions
The
following was the research question gotten from the project topic, they
include:
Does
performance appraisal improve employees productivity in an organization?
Does
positive appraisal yield better result than negative appraisal?
Does views
of performance assessment differently depends on a particular needs and wants?
1.4 Objective of the Study
A company is
always set up to meet up some predetermined task, which are the objectives.
Their objectives being what should be of paramount in the mind at all
concerned. It is blended into the day to day activities of the employees of an
organization by the management tool called management by objective (MBO). This
is harmonization of individual objective with group of company objective for
easy goal attainment. The objectives of the company are as follows:
To provide
conflict and other processed areas for both internal and external
To reduce
its operative cost so that their products can get the market at moderate price.
Attempts to
meet the rated capacity of the plant which is one hundred and thirteen thousand
cases of Nigeria Bottling company conflates per annum.
To provide
employment for the people in the locality and to educate the country in general
to reflect the geographical irrelativeness of Edo State
To produce
these conceal that satisfy’s both national and international standard.
1.5 Statement of Hypotheses
The
formulation of research hypothesis for this study are:
Informing workers of their rating will not
help to improve performance.
Positive appraisal does not yield better
result in performance appraisal
Views of performance assessment differently
depend does not on the employee’s particular needs and wants.
1.6 Scope of the Study
Emphasis
will be on key words of performance appraisal, its steps, process and problem
that are involved and also effects of performance appraisal on productivity and
training for improved performance and to be analyzed. Also a study on how
employee’s appraisal is carried out by every department but is the personnel
department which is one of the main functions.
Moreover,
since this research work is limit to Nigeria bottling company, it is actually
designed to assess the need for employee to improve their productivity it will
also attempt to identify an appraisal of management by objectives.
1.7 Significance of the Study
The study of
performance appraisal plays a vital role in the management and stability of any
organization. It is important therefore, to undertake such a study since this
constitute the main objective which serves as a means of improving employees
productivity, it should be noted that the survival of a business rest on the
efficiency of implementing the performance appraisal.
Though, this
piece of study was written by the researcher and was based on both primary and
consultation of the secondary data, its significant can be under stated.
1.8 Limitation of the Study
There is
great need on the part of the researcher to reveal certain problems encountered
in the course of writing this project. There were some constrains which as
limiting factors are worth mentioning first, the issues of time there was not
enough time for the researcher to adequately carry on indent worth. This was
due to the high schedule of the school political impasses in this study.
Secondly, it
was certainly not easy for the researchers to get vital information from the
company understudy as they were termed confidentially. Most of the workers too
declined accepting questionnaire.
Finally, in
spite of these difficulties, a justifiable and acceptable work has done to this
research work.
1.9 Operational Definition Of Terms
Productivity:
This is the rate at which products are produced, especially in relation to the
time, money and workers needed to produce them.
Performance
Appraisal: This is a business meeting between a worker and their managers in
order to discuss how well they are doing in their work comment; the positive
involvement of participant to an organizations goal is the same view, negative
involvement is seen as alienation.
Developing
Individual: By advice information and attempt as shopping their behaviours by
praise or punishment.
Product
Liability: It is the duty of a company that makes or sell a product to pay if
their product causes damage or injury product placement. It is the use of a
company in a firm or television show a way of advertising the product.
Checking:
The effectiveness of personnel procedures and practices.
Motivational
Staff: This brings about reaching the organization standard and objectives.
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