Performance Evaluation And Its Effect On Productivity

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ABSTRACT

The objective of this study is to find out the work of performance evaluation to productivity and the relationship between productivity and performance evaluation in the star paper Mill Nigeria ltd. Aba. The population of the study consists of 100 workers. The sample for the study was 80, which were drawn using Yaro Yamen’s formular. Two research questions and two hypotheses were formulated to guide the study. 16 item structured questions was developed, validated and tested for its reliability. The use of the percentage was used to analyze the data collected from respondents. While chi-square method was used to test the hypothesis. This work is grouped into five chapters. Chapter one has to do with the introduction. While chapter two deals with related literature. Subsequently, chapter three deals with the method of data collected which involves primary and secondary data. Chapter four is where data was analyzed and test of hypothesis which leads to conclusion in chapter five.

 

Summarily, from the findings of the study through questionnaire suggested that to improve in productivity, the workers have to be appraised for good performance. Also, management has to improve especially in the area of feedback because it is a way of motivating employee and subsequently organizational effectiveness.

TABLE OF CONTENTS

 Title page                                                              i

Approval page                                                        ii

Dedication                                                             iii

Acknowledgement                                                  iv

Abstract                                                                v

Table of contents                                                    vi

CHAPTER ONE

  1. Introduction                                                    1

1.1  Background of the study                                          1

1.2  Statement of the problem                                 8

1.3  Objectives of the study                                     10

1.4  Research questions                                                 10

1.5  Statement of hypothesis                                          11

1.6  Significance of the study                                   12

1.7  Scope of the study                                           13

1.8  Limitation of the study                                     13

1.9  Definition of terms                                           14

CHAPTER TWO

  1. Literature review                                             17

2.1  Introduction                                                    17

2.2  Evaluation model                                             18

2.3  Evaluation process                                           20

2.4  How to measure                                              20

2.5  People connected with performance evaluation     23

2.6  Chief factors in evaluation                                 25

2.7  A contingency model of evaluation                            26

2.8  Effectiveness of organization                             28

2.9  Effectiveness versus efficiency                           31

2.10 Evaluation of current position                                   32

2.11 The corporate planning process in ongoing

organization                                                    35

CHAPTER THREE

  1. Research design and methodology                            37

3.1  Introduction                                                    37

3.2  Research design                                              37

3.3  Sources/methods of data collection                    38

3.4  Population and sample size                               39

3.5  Sample technique                                            41

3.6  Validity and reliability of measuring instrument    42

3.7  Method of data analysis                                    43

CHAPTER FOUR

  1. Presentation and analysis of data                       45

4.1  Introduction                                                    45

4.2  Presentation of data                                         46

4.3  Test of hypothesis                                           58

4.4  Interpretation of result(s)                                 64

CHAPTER FIVE

  1. Summary, Conclusion and Recommendations             65

5.1  Introduction                                                    65

5.2  Summary of findings                                        66

5.3  Conclusion                                                      68

5.4  Recommendation                                             69

       References                                                      71

       Appendix                                                        73-76

 

 CHAPTER ONE

 

  1. INTRODUCTION

1.1  BACKGROUND OF THE STUDY

In any organization, numbers of the workforce conscious and unconsciously form opinions about each other. Supervisors or superior officers continually judge the contributions and abilities of their subordinates for the purpose of evaluations, subordinates also form opinions of the bosses colleagues, jobs and even their organizations, many judgments relates to the quality of work performance as well as the relationship between superior and subordinates. Supervising officers take decision on employees, remuneration, transfer, promotion, discipline, training and development. Due to the importance of these personnel matters, organizations attach great significance to the official evaluation which supervisors make their subordinates.

 

Indeed, the livelihood and career progress of employees rest largely on such assessments to generate confidence in decisions made on the basis of performance assessment, objective and fair. Very clear policies and well designed procedures are therefore necessary to achieve these objectives. It is very important for managers to always evaluate the performance of his subordinates. James black (1961) said. “However difficult it may be for a manager to conduct a frank appraisal interview, it is absolutely essential to the development of an employee”.

Evaluation is the assessment of performance. However, it is well understood that an employee cannot improve unless he frankly told on how he/she is measuring up to his/her supervisor’s performance standards.  The periodic evaluation of performance is one of the best ways to prevent employee’s likely problems and ensure effectiveness. Any firm that evaluates periodically knows how everything moves within the organization, and can quickly react to the weaknesses.

 

In the aspect of historical records, there is a familiar saying, which postulates that “those who do not look to the past are destined to repeat the error of the past. This is because, the future is the continuation of the past, if one is to look at performance evaluation and its effects on productivity from the point of view of means and ends, it becomes obvious that the relationship exist between them and it is always positive. Managers should try their best to know the best ways of going about performance evaluation for the best result to be obtainable.

 

Generally speaking, all organizations in their different field of endeavours have one thing in common, they are strive towards achieving their performance determined goals and objectives. Human beings working in any organization are the most important and indispensable resource of the organization, without which the organization would not even exist. They equally carry out the organization functions and processes and also co-ordinate activities which means it is on that, effectiveness of the organization depends most.

 

In fact, it is believed that if the performance of employee in organization is improved, motivation is meant to be reciprocal as it should, and then effectiveness is achieved and that will attract increase in productivity and vice versa. Performance evaluation is like guiding a hand which the employee needs to know how he is fairing. This of course helps him to correct mistakes and improve his performance. From the ongoing analysis, it has become clear that a relationship exist between performance evaluation and effectiveness on productivity. So in this text, we shall deal with evaluation of performance and its effects with the aim of finding out the nature of its relationship between performance evaluation and organizational effectiveness with regards to productivity.

 

HISTORICAL BACKGROUND OF STAR PAPER MILL LIMITED ABA

Star paper mill was incorporated as a paper converting company in 1977. It is based in Aba with its registered office at number 114/116 Aba Owerri road, Umungasi Aba, Abia state. It is a private limited liability company with its chief executive in the person(s) of Chief Nnanna Kalu and his sons. They make up the board of directors and own all the shares in the company.

 

The company was established in 1977 by Chief Nnanna Kalu. The objective of setting up the company was to manufacture medium Gram-mage (M.G.) Duplex board and cardboard from waste exercise books with brand name. “Three star” stationeries and toilet papers. The off cuts from the conversation operation aroused the ingenuity the chairman/managing director of the company, chief Nnanna Kalu into commissioning a study on waste paper recycling plant at owerrinat in September 29, 1984. This plant opened to star paper mill the whole technology and scope of the waste paper recycling capacity of 2500 metric tones tissue jumbo real per annum and has a 90% local raw material sourcing. This in effect positions the company as the largest producer of toilet rolls and tissue products in Nigeria with marketing outlets throughout the country. Just recently, new product line sanitary towels for ladies with the brand name of “Every woman” became a new addition to the stable.

 

The company has caliber of management and technical staff that will enable it cope with the waste paper recycling technology. The company also embarks on intensive training of its technical and production staff (i.e.) workers. Star paper mill has sufficient financial resources to carry out its operations.

 

More so, it has credit line with commercial banks. The company has an aggressive marketing policy aimed at capturing the cardboard and exercise book markets. This has equally helped in improving the financial stand of the company through increased revenue from increased sales. Certain factors seem to hinder the operation of the company. They are as follows:

  1. The general economic conditions
  2. Difficulty in obtaining foreign exchange for importing raw materials and spare parts.
  3. Order time constraints
  4. Difficulty in transportation of finished goods from one place to another

 

Despite these constraints, the company still operates at a considerable level of success. A large part of this success can be attributed to the performance evaluation and its effects on the activities of the company.

 

 

 

    1. STATEMENT OF THE PROBLEM

Performance evaluation has always been a problem to management due to its complexity in the sense that no development has been made to find a lasting solution to productivity problems. However, the problem of performance evaluation will be considered. Under the headings of the problem of reliability and validity, one measure of reliability of performance is the consistency with which a superior rate a subordinate. In effect, a method is reliable if two different rates judging independently do come up with similar ratings of a given employee.

 

The problem of halo effect appears where an individual has one or two outstanding good or bad characteristics that colour the appraiser’s judgments of the overall performance. There is also the issue of central tendency which occurs when some raters are reluctant to rate people at the outer ends of the scale. The raters therefore fail to discriminate between superior and inferior persons. The problem of leniency occurs when a supervisor tends to put excessive weight on recent employee behaviour with earlier behaviour having faded from memory. Moreover, bias or prejudice occurs when a supervisor make an informally high or unfairly low judgment based on prejudice emotion or subjective option. However, there is the problem of leniency or strictness and it occurs when some supervisors have the tendency to be liberal in their ratings. That is to say that they assign consistently high value or scores to their subordinates.

However, there is the problem of leniency or strictness and it occurs when some supervisors have the tendency to be liberal in their ratings. That is to say that they assign consistently high value or scores to their subordinates.

Conversely, there is also the tendency of some supervisors to assign considerably low rating. Both trends are due to the subjectivity of man.

 

 

    1. PURPOSE/OBJECTIVE OF THE STUDY
  1. To determine if there is a relationship between performance evaluation and productivity.
  2. To find out the effects of performance evaluation on employee behavior.
  3. To find out whether the employees of the star paper Mill are usually satisfied with the way they are appraised by their superiors.
  4. To highlight whether performance rating has created a learning experience for the employees.
  5. To identify performance appraisal method adopted by the organization.

 

1.4     RESEARCH QUESTIONS

1. Does employees feedback after evaluation has anything to do with his performance towards productivity?

2. Is the present appraisal scheme appropriate for determining employee behavior?

3. Do bosses influence performance appraisal report?

4. Do you think that performance appraisal has created a learning experience for the employees?

5. What method of performance appraisal is being used by the organization?

 

    1. RESEARCH HYPOTHESIS

HYPOTHESIS 1

Ho:    The performance appraisal scheme of the organization is not suitable for determining employee behaviour.

 

HI:     The performance appraisal scheme of the organization is suitable for determining employee behavior.

 

HYPOTHESIS 11

Ho:   The training and development needs of staff are not dependent on the performance appraisal scheme.

 

HI:    The training and development needs of staff are dependent on the performance appraisal scheme.

 

 

    1. SIGNIFICANCE OF THE STUDY

This research work is intended to provide the needed information for management functions, so as to enhance the increment of employee performance effectiveness in productive firms. The importance of performance evaluation to management is enormous. It enables the management to make effective decisions and correct their earlier decision relating to human resource management. The study will therefore aid the management to improve on its decision towards evaluation of workers performance.

     In another development, the research, work or study will serve as a guide for the government and its agents while making policies as it affects personnel management, salary and wages administration in addition to training and development of staff to enhance performance productivity.

However, it will also help future researchers to take corrective measure while carrying out their research work.

 

 

    1. SCOPE OF THE STUDY

The data for this study is mostly from Star paper Mill Limited, Aba. The study is also enriched through data from related literature text books.

 

1.8 LIMITATIONS OF THE STUDY

I Questionnaire: The major limitation is in the use of questionnaire in terms of objectivity, truthfulness and sincerity in answering the questions. Therefore, the work was limited to answers gotten from the respondents.

 

II    Data gathering: there is difficulty in getting respondents to complete their questionnaires. For that reason, collection time for the questionnaire was extended to enable the respondents complete their questionnaire.

 

III   Confidentiality: the frequent rescheduling of interviews by top management staff and their unwillingness when interviewed to disclose some information’s on performance evaluation of the company which they considered confidential and secret also constitute one of the limitations.

 

    1. DEFINITION OF TERMS
  1. Performance appraisal- Performance appraisal is the systematic evaluation of the individual with respect to his performance in the job and potential for development.
  2. Productivity- Productivity may be viewed as a measure of efficiency alone at a given moment in economic development. That is, as an index of growth.
  3. Organization performance- This has to do with the achievement of success or failure of an organization. In this work however, success will be considered.
  4. Halo-effect- The halo-effect appears where an individual has one or two outstanding good (or bad) characteristics that colour the appraiser’s judgment of the overall performance.
  5. Strategy- The long term method or plan to achieve a goal.
  6. Finance- Money to implement or execute actions or projects.
  7. Decision making- The quality of being able to make rational choice or judgments quickly and act on the firmness.
  8. Policy- A plan or course of action chosen in directing affairs
  9. Tactic- The art of arranging ideas and its implementation in an organization.
  10. Organization- A group of people that work together in an organization to achieve a common goal.
  11. Objective- This is the goals and aims, which the organization wishes to achieve. It is a statement of planning purpose developed within any kind of business plan.
  12. Effectiveness- This is a measure of appropriateness of the goals an organization is pursuing and the degree to which the goals are achieved by the organization. It is also the ability to achieve a set goal.
  13. Efficiency- This entails how objectives were achieved. It reveals whether the management follows the acceptable management practices and policies.
  14. Measure- This enables the management to determine what performances because it is necessary to acquire information about it.

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