PERFORMANCE EVALUATION AND ITS EFFECT ON PERSONNEL EFFECTIVENESS (A CASE STUDY OF ANAMMCO LTD ENUGU

ABSTRACT

            This research work on “Performance evaluation and its effect on personnel effectiveness” is very important as far as the attainment of the organizational objective is concerned. Particularly in enhancing the employee’s effectiveness.

            The study intends to determine the extend to which performance evaluation has been used to motivate workers towards the attainment of organizational goal and to examine the various systems of performance appraisal and reporting.

            In the course of the research, the data collection methods are the primary and secondary sources. The primary data collection source comprise of oral interview and administration of questionnaire while the secondary source comprise of company’s records, source, articles and textbooks. The data collected are interpreted using the following statistical tools and tables such as percentage and chi-square formular which is used to test the validity of the hypothesis. After through interview and questionnaire administration the following findings were made:

            That three categories of employees namely senior, supervisory and junior staff exist in ANAMMCO.

            The senior and supervisory staff are in age than the junior staff which is attributed to the  number of years spent to acquire the desired experience for these categories of staff.

            Although a lot have been said, it is important to highlight of the chapter contents.

             Chapter one which is where the started which started with introduction part which includes background of the study, statement of the problem, and others.

            Chapter two which is the literature review says a lot on performance evaluation and appraisal which includes its definition, process purpose and uses and so on.

            Chapter three treated the research design and methodology.

            Chapter four is the presentation of data and critical analysis of data were made and various answers were got from a sample percentage and chi-square analysis.

            Chapter five dealt on the discussion, recommendation and conclusion. Following the findings, it was found out that majority of the staff of ANAMMCO, if properly evaluated base on their performance, works very hard towards the achievement of desired objective.

TABLE OF CONTENT

CHAPTER ONE:

Introduction                                                                                                   

1.1              Background of the Study                                                                  

1.2              Statement of the problem                                                                  

1.3              Purpose of the Study                                                             

1.4              Scope of the Study                                                                

1.5              Research Hypothesis                                                              

1.6              Significance of the Study                                                      

1.7              Limitations of the Study                                                                    

1.8              Definition of Terms                                                               

References                                                                                         

CHAPTER TWO:

Review of Related Literature                                                            

2.1              Performance Evaluation and Appraisal Defined                   

2.2              Process of Evaluation                                                            

2.3              Essential Companies of Evaluation Research                        

2.4              Purposes and Uses of Performance Appraisal                       

2.5              Who does the Appraisal                                                                     

2.6              Methods of Performance Appraisal                                       

2.7              Appraising Reporting System in ANAMMCO                     

2.8              Common errors of Employee Appraising System                  

2.9              Requirements of Good Quality employee Appraisal System

References                                                                                                     

CHAPTER THREE

3.1              Research Design                                                                                

3.2              Area of the Study                                                      

3.3              Population of the Study                                                                     

3.4              Sample and Sampling procedure/Technique                          

3.5              Instrument for Data Collection                                              

3.6              Method of Data Collection                                                    

3.7              Method of Data Analysis                                                      

References                                                                             

CHAPTER FOUR:

Data Presentation and Analysis                                                                     

4.1              Presentation and Analysis of Data                            

4.2              Testing of Hypothesis                                                            

4.3              Summary of Results                                                               

References                                                                                         

CHAPTER FIVE:

Discussion, recommendation and conclusion.                                   

5.1              Discussion of Results/Findings                                                          

5.2              Conclusions                                                                                        

5.3              Implication(s) of the Research Findings                                

5.4              Recommendations                                                                             

5.5              Suggestions for Further Research                                          

References                                                                                         

Bibliography                                                                          

Appendix                                                                                           

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

            Although performance evaluation and performance appraisal are being used inter-changeably, what differs is that performance evaluation represents a single or two unit(s) while performance appraisal represents the entire management. It is good for the researcher to highlight on what performance is. Performance is the consistent ability to perform a particular job over a prolonged period of time (Ojemba Agbo). Then how the performance is judged  and how the subordinate know that he or she is performing or not are attempted through performance appraisal. It is a very difficult task that managers will not run away from.

            Performance evaluation has to do with appraising staff performances and results objectively against previously agreed standards and targets. It is based on guidelines given to the employees by the management of what is expected of them in terms of organization’s objectives. Goals should be set for the employees and evaluation be based on the these goals. These opportunities should include economics, social and cultural settings of the environment. The supervisor must let his subordinates know what is expected of them, what constitutes good performance and unsatisfactory performance. He should use these standards of goods and poor performance to let the employees know whether or not their past performance on the job need improvement.

            Two trends stand out in the modern attitude toward evaluation. First, evaluation has to come to be expected as a regular accompaniment to rational social-action programs and second, there has been a movement towards demanding more systematic, rigorous and objective evidence of success. The application of social action programs has come to be called evaluation research.

            Important value of performance evaluation is that it puts a check on the success of recruitment, selection and placement. When personnal stock is taken, the need will be determined for the type of recruitment needed. New employees in the organization are placed on specific jobs after going through the normal orientation and possibly induction course. Based on the opportunities before the employees, the success of recruitment and placement will be known.

            The evaluation approach seeks to identify area(s) where corrective measures should be adopted, performance evaluation guides management to understanding its staff strength and weakness. This understanding should be used to build on the strength and determination of the employees which helps to determine the type of development needed for effective job performance. Actual evaluation should reflect the staff punctuality and attendance to the job and problems, in this area, it can be effectively handled by good appraisal system. The employees should be made to know their strength and weakness to enable them improve where they are found waiting. This approach assist the management on job placement and training.

            Performance evaluation of employees give management a guide for salary reviews and which they may also use to judge future job assignment and compensation and in the selection of candidate for promotions. It is not that promotion that is the best reward for outstanding performance but actually it is a way of acknowledging personal contribution towards the achievement of organizational goals.

            However, it should not be misconstrued (misinterpreted) that performance evaluation has to do with appraisal of subordinate or junior employees only. It also involves the appraisal of the performance of managers themselves to see how well they have performed their roles as managers. Managerial appraisal is referred to as the key to the management development   because if a manager’s strength and weakness are not known; would only be accidental that development efforts would be aimed in the right direction. If a business or an organization is to reach its goals effectively and efficiently ways of accurately measuring management performance must be found and implemented.

            Managerial appraisal should measure performance, as a manager, in meeting goals for which the manager is responsible. No person would want a manager who will not carry out his/her managerial role properly most especially when he could not turn in a good record of profit making, marketing, controlling whatever the order of responsibility might be. This means that they should be appraised on the basis of how well they understand and undertake the managerial functions of planning, organizing, staffing, leading and controlling.

            The success or failure of performance evaluation in an organization is therefore dependent upon the philosophy on which it is established, the attitude or management and supervisory personnel towards it and their skills in achieving its objectives.

            The researcher’s aim here is to find out the various performance evaluation approaches and how they affect employees effectiveness. In the pursuit of this therefore, the Anambra motor manufacturing company (ANAMMCO) was chosen as a case study.

            At ANAMMCO, various performance evaluation methods are used to attain the corporate objective of the company. This methods of performance evaluation will be explain properly in the researcher’s literature review. In conclusion on the background of the study, it is well understood that effectiveness and efficiency of employees in an organization depends much on its laid down performance evaluation approach and more so on the mode of execution and implementation.

1.2       STATEMENT OF THE PROBLEM

            Most organization, be it government owned or private owned, small scale business or large scale business operate with performance evaluation under a corporate objective, it holds on an organization to take into cognizance the individual contribution of employees towards attaining the corporate objective or goal.

            This study, on performance evaluation and its effect on personnel effectives” attempts to determine the ways by which organizations especially the Anambra Motor Manufacturing Company (ANAMMCO) evaluate the performance of their employees and how it affect the workers effectiveness.

            The problems are under the following headings and they are as follows:

(a)                Inadequate communication between a superior and subordinate.

(b)               Technical  know-how non experts

(c)                Bias attitude of supervisors towards the evaluation system

(d)               Personnel Administration strategy

(e)                Inadequate provision of Training needs

(f)                The level of motivation of the employees.

1.3       PURPOSE OF THE STUDY

            The purpose of this research work is to determine the extent to which performance evaluation has been used to motivate the employees of ANAMMCO towards improved productivity and also to examine the system of performance evaluation in Anambra Motor Manufacturing Company (ANAMMCO).

            This study also intends to identify how much the employees of ANAMMCO both managers and subordinates regard performance evaluation as a very important motivational tools that helps in improving workers effectiveness and efficiency in order to achieve organizational goals. The purpose or goal could be achieved by measuring the performance of employees against previously agreed standard and objectives.

1.4       SCOPE OF THE STUDY

            This research work on “performance evaluation and its effect on personnel effectiveness” covers all areas of performance evaluation in organizations but the emphasis is on Anambra Motor Manufacturing Company (ANAMMCO) Emene Enugu.

1.5       RESEARCH HYPOTHESIS

For valid and effective work on the topic in focus, the following key research hypothesis would be addressed in the course of study.

There are two types of hypothesis, the Null hypothesis that takes the negative form and the Directional hypothesis that takes the positive form.

Let NH            stands for Null hypothesis

Let DH            stands for Directional hypothesis

NH      performance evaluation if well conducted will not lead to personnel effectiveness.

DH      performance evaluation if well conducted will lead to personnel effectiveness.

NH      Performance evaluation does not help in career development.

DH      performance evaluation help in career development.

NH      Immediate supervisions are not in the best position to appraise their subordinates

DH     immediate supervisors are in the best position to appraise their subordinates.

NH     Performance evaluation do not act as motivational tool to employees.

DH     performance evaluation acts as motivational tools to employees.

1.6       SIGNIFICANCE OF THE STUDY

            In essence, this research work is aimed to serve certain significant role in relation to individual or group of individuals or a particular event. The way and manner the study influences significantly their attitude towards the particular issue studied by the another.

            In view of this, and on the premise that organization’s effectiveness and personnel efficiency depends largely on its laid down performance evaluation system, this research work becomes significant to both

(i)                 The management

(ii)               The labour (Employees)

The study which was carried on ANAMMCO was necessary to find out the effects of its performance evaluation on the employee’s efficiency.

Moreso, it is aimed to help management attain greater height in efficiency and productivity. This study is also intended to help the today’s managers and the like overcome the challenges posed by improper performance evaluation system administration in an organization.

Conclusively, it is hoped therefore that the result of this study will serve a significant role in shaping the organisation’s performance appraisal formulation and implementations towards the attainment of the over all organizational objective, and also to help other beneficiaries in other related areas of human endavour.

1.8       DEFINITION OF TERMS

The following are the definition of terms used in the study.

PERFORMANC EVALUATION/APPRAISAL: Performance evaluation or appraisal as used in this research refers to the assessment of personnel performance in terms of progress made base on the agreed objectives.

EMPLOYEE/PERSONNEL: This refers to the member of staff of ANAMMCO.

ORGANISATION: Organisation in this research paper refers to ANAMMCO Emene Enugu.

TARGETS: Target as referred to this study deals with the objectives of the organization.

STRENGTH: This refers to that aspect of an employees job that is good.

STANDARD PERFORMANCE: This refers to the condition that will exist what a job is satisfactory done.

BIAS OF PERSONNEL PREJUDICE: This refers to having a preconceived opinion of judging the employee’s performance as against what the actual situation is.

SHORT FALL/SHORT COMING: As used in this research, it refers to that aspect of the employee’s job where he is lacking or not performing well.

POTENTIALS: This is the employee’s natural ability on the job.

RANDOM SAMPLING; WITHOUT REPLACEMENT: As used in the study, it involved representing each person within the population of the organization by number and those numbers were drawn by ballot from an arrangement of number in a way that number drawned cannot be replaced by another number even if the person the number represents cannot be found or is not around to answer questionnaire.

RESPONDENT: This refers to the number of staff of ANAMMCO whose answers to the questionnaire were collected.

REPORT: As used here means the atmosphere of friendliness.

PRE-TESTING: This is testing the questionnaire before distribution to avoid an ambigious question and also to know how long it takes to fill questionnaire.

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