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ASSESSMENT OF APPRAISAL TECHNIQUES OF ORGANIZATIONS IN NIGERIA (A Study of Nigerian Customs Service)
This research study tends to examine the assessment of appraisal techniques of organizations in Nigeria with special reference to the Nigerian Custom Service. Many organizations are experiencing low productivity due to lukewarm attitudes of their management to performance appraisal system. This study outlines the benefits that can be derived from the use of the performance appraisal system if it is properly administered to staff.
Data used in this research were sourced through primary means with the aid of a well-structured questionnaire. A sample of fifty (50) respondents were drawn from the population with the aid of simple random sampling technique to eliminate biasness in the selection.
For the purpose of this research, four (4) hypotheses were formulated and tested with the aid of Chi-square analysis. Data gathered were also presented on table using a simple percentage.
The analysis shows that reward has significant influence on the commitment of comptrollers of the Nigerian Customs Service and training influences employees’ innovation and motivation, also, promotion has effect on the productivity of comptrollers of the Nigerian Customs Service.
Conclusion was drawn that performance appraisal has the potential of improving staff performance if it is organized well thereby contributing to organizations productivity and growth. Recommendations were proffered to the Nigerian Customs Service, some of which include; needs to takes a second look at its performance appraisal system so as to make it more effective to achieve the purpose for which it was instituted. In this regard, the researcher has recommended the following which Management of Nigerian Customs Service; Management of Nigerian Customs Service should put all the necessary structures in place to make performance appraisal more effective; all the stakeholders such as appraisers and appraises and consultants should be involved in the process of performance appraisal. It is highly recommended that feedback should be given to all appraises since it is an important component of performance appraisal.
TABLE OF CONTENTS
Front Page i
Table of Contents vi
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Research hypotheses 5
1.6 Scope and Limitations of Study 5
1.7 Significance of the Study 6
1.8 Definition of Key Terms 6
2.1 Introduction 10
2.2 The Conceptual Framework 10
2.2.1 Performance Appraisal and Related Variables 13
2.2.2 Performance Appraisal and Employees performance 16
2.2.3 Performance Appraisal and Feedback 16
2.2.4 Problems in Performance Appraisal 17
2.2.5 Conceptual Model 18
2.3 Theoretical Framework 19
2.3.1 Equity Theory 19
2.3.2 Goal-setting Theory 20
2.3.3 Expectancy Theory 20
2.3.4 Motivational Theory 20
2.4 Empirical Framework 21
2.5 Approaches / Techniques of Performance Management 24
2.5.1 Traditional Approach 24
2.5.2 Modern Approach 25
2.6 Brief History of Nigeria Customs Service 27
3.1 Area of Study 36
3.2 Research Design 36
3.3 Population of Study 36
3.4 Sample Size and Sampling Technique 36
3.5 Re-Statement of Research Hypotheses 36
3.6 Sources of Data Collection 37
3.7 Instrument of Data Collection 37
3.8 Validity and Reliability Test 38
3.9 Methods of Data Analysis 38
3.10 Limitations of the Research 39
3.11 Perceived Conclusion 39
DATA ANALYSIS FINDINGS AND DISCUSSIONION
4.1 Introduction 40
4.2 Personal Characteristics of the Respondents 40
4.3 Response of Respondents to the Problem Areas. 43
4.4 Testing and Interpretation of the Hypotheses 50
4.4.1 Analysis of Hypothesis One 50
4.4.2 Analysis of Hypothesis Two 52
4.4.3 Analysis of Hypothesis Three 54
4.4.4 Analysis of Hypothesis Four 56
4.5 Discussion of the Findings 57
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of the Findings 59
5.2 Conclusion 60
5.3 Recommendations 60
5.4 Proposal for Further Studies 62
Appendix: Questionnaire 67
1.1 Background to the Study
Performance appraisal is one of Human Resource Management Practices (HRMP) that has been well researched in both developed and developing countries and it has equally been identified as a strong motivator. Performance appraisal is considered as important human resource function because performance appraisal results are used for managerial decision making and for variety of other purposes including administrative decisions, employee development and personnel research (Muhammad & Surayya, 2013). According to Fletcher (2001), performance appraisal has increasingly become part of a more strategic approach to integrating human resources activities and business policies which can be seen as a generic term covering a variety of activities through which organizations seek to assess employees and develop their competence, enhance performance and distribute rewards. In the same vein, Anso (2014) attests that performance appraisal has emerged as a tool for enhancing organisational growth and professional development. Performance appraisal is a continuous process through which performance of employees is identified, measured and improved in the organization. This process includes various practices like identification of employees’ strengths and weaknesses, providing them regular feedback and offering career development (Aguinis, 2007). Grubb (2007) also sees performance appraisal as a process of assessment individual employee’s performance and how it can be improved to contribute to overall organization’s performance.
Human resource is the most valuable asset having the greatest potential in determining the statuesque of an organization in today’s competitive business world (Belete, Tariku & Assefa, 2014). In order to survive and wax stronger in this global competition, employees have to be motivated through performance appraisal system (Kumbhar, 2011). In line with this assertion, Grote (2011) observes that an organization without a suitable and consistent performance appraisal will experience failure and poor performance of its employees. Chemeda (2012) also opines that to continue enjoying efficiency and effectiveness of members of staff, each organization has to carry out employee performance appraisal from time to time so as to keep them in check and replace, motivate, retain or take any other appropriate action.
The importance of performance appraisal in contemporary business organizations cannot be overemphasized. Some view it as potentially "the most crucial aspect of organizational life” (Lawrie, 1990). Performance appraisal has increasingly become an integral part of the human resource function of any profit - making organization.
Performance appraisal when practised effectively, to a larger extent can contribute to growth of an organization. According to Macmillan English Dictionary for Advanced Learners (2002), "growth is an increase in the success of a business or a country's economy or in the amount of money invested in them". Any profit-making organization will seek to achieve growth in terms of sales, profit or expansion through performance.
Growth has been ingrained in Americans as "the path of success". Organizational growth cannot be a reality if the performance of its workers is not appraised for an improvement or reinforcement of performance. According to Donegan (2002), "success will to a larger extent depend on the organization's ability to evaluate progress and also hold accountable those charged with executing certain tasks". This is exactly what performance appraisal seeks to do. It aims at evaluating the performance of the worker against standard set thereby taking corrective actions if necessary.
In many organizations performance appraisal is used for the purpose of administering wages and salaries after feedback had been given to the worker. The appraisal also helps management to identify individual employee's strength and weakness. The latter will lead to training and other measures to correct inefficiencies.
Performance appraisal may be viewed as an overall measure of organizational effectiveness. Organizational objectives are met through the efforts of individual employees. Teaching employees how to do their jobs and evaluating their performances are strategic human resource function and for that matter should not be relegated to the background.
"Maximizing performance is a priority for most organization today", Mathis et a1 (2004). It is then obvious that performance appraisal as a management tool is cardinal to contributing to organizational success. If employee performance is improved, the organization raises it performance in terms of meeting it objectives. On the other hand, if employee performance is not improved it adversely affects performance hence organizational productivity.
Performance appraisal cannot exist independently. It needs to be closely linked to set standards by managers and supervisors. This will in the end have direct effect on the main goal of the organization. There is the need therefore to have a well-defined appraisal system in organizations to enable management know how well individual workers are performing on their job and if there is the need to improve performance or reward performance.
It is a well known fact that the growth and success of an organization to a very large extent depends on the performance of its employees which could be measured by performance appraisal. It could therefore be said that performance appraisal is a key elements in today's competitive era of business.
Just as any other industry, it is important to note that the Nigerian Customs aim at efficiency and as a result of the role performance appraisal plays in organizations, the researcher attempted to find out how management uses performance appraisal as a management tool to assess and improve the performance of its officers thereby contributing to the productivity, growth and success of the Nigerian Customs.
1.2 Statement of the Problem
Many organizations experience low productivity despite their acclaimed effective performance appraisal system (Armstrong, 2006). In Nigeria, many organizations are experiencing low productivity and performance due to ineffective appraisal system. Performance appraisal is viewed and conducted solely in terms of its evaluative aspect thereby overlooking its use for facilitating growth and development in workers through training, coaching, counselling and feedback of appraisal information (Asamu, 2013). The inability of many organizations to install an effective performance appraisal strategy has hindered them from achieving competitive advantage (Obisi, 2011).
Management of organization tends to view performance appraisal as a punitive measure. This makes it lose its objective sand focus, performance appraisal no longer seek to actualize its objective of correcting deviations, hence increasing productivity and jettison all hindrance that tends to hinder productivity. But it is being used as and jettisons all hindrance that tends to hinder productivity. But it is being used as a tool for subordination oppression, victimization and exploitation. Despite the veritable return at performance appraisal to many organizations, the societal value system has subdued it objectivity and its attendant’s outcomes. This makes most of our performance more subjective than objective.
1.3 Objectives of the Study
The general objective of this study is to assess the performance appraisal techniques of organisations in the Nigerian Customs Service. Other specific objectives include;
i To investigate the performance appraisal techniques adopted in the Nigerian Customs Service.
ii To examine if reward significantly influence the commitment of officers
iii To determine the influence of training on employees’ innovation and motivation
iv To assess the effect of promotion on the productivity of workers in Nigerian Customs Service.
v To examine the influence of managerial decision on the productivity of officers in the Nigerian Customs Service.
1.4 Research Questions
In order to achieve the purpose of this research study, the study will attempt to provide answers to the following research questions in order to arrive at a logical conclusion
i In what ways has reward significantly influence the commitment of officers of Nigerian Customs Service?
ii What is the influence of training on officers’ innovation and motivation?
iii How has promotion affected the productivity of Officers of the Nigerian Customs Service?
iv To what extent has the role of feedback improve the organizations competitive positioning?
vi To what extent has managerial decision influenced the productivity of officers in the Nigerian Customs Service?
1.5 Research hypotheses
To provide answer to the research questions arising from this study, the following hypotheses are postulated:
H0: Reward does not have any significant influence on the commitment of officers of Nigerian Customs Service
H1: Reward has significant influence on the commitment of officers of Nigerian Customs Service.
H0: Training does not have influence on employees’ innovation and motivation
H1: Training influences employees’ innovation and motivation.
H0: Promotion has no effect on the productivity of Officers of the Nigerian Customs Service
H1: Promotion has effect on the productivity of Officers of the Nigerian Customs Service
H0: Managerial decision does not have influence on the productivity of officers in the Nigerian Customs Service
H1: Managerial decision has influence on the productivity of officers in the Nigerian Customs Service
1.6 Scope and Limitations of Study
The premise on which this study is based is to assess the appraisal techniques of organisations in Nigeria with special reference to the Nigerian Customs Service. Due to the large scope of the Nigerian Customs, the study covers one area command ‘Apapa Area Command’ of Zone ‘A’ Lagos state.
In the course of conducting this research work it is envisaged that the following will constitute impediments to the effective conduct of the study
a) Time constraint within which the study must be completed.
b) Financial constraint
c) Inaccessible and inadequate data
d) Also, combining project work with several other activities is another stressful task that may not allow me to cover research materials extensively.
Nevertheless, I believe the above limitations will in no way affect the reliability and validity of the research study.
1.7 Significance of the Study
According to Mullins (2002), "The underlying objective of performance appraisal is to improve performance of individuals leading to improvement in the performance of the organization as a whole". An effective appraisal scheme therefore offers a number of potential benefits to both the individual and the organization. It is important therefore that, for the desired benefits of performance appraisal to be achieved, the challenges that it poses during the process need to be identified and addressed.
The role of Nigerian Customs Service on the economic growth and development of the nation cannot be a mere exaggeration. It is in this regard that the researcher attempted to undertake a study to assess how management of Nigerian Customs Service evaluate the performance of its workers thereby contributing to its productivity and growth and also essentially, providing revenue to the country. The study also offered some suggestions and recommendations to the Authority. This will help management to take good decisions and identify strategies that will help improve worker performance to enhance growth.
1.8 Definition of Key Terms
Performance Appraisal: Refers to the process by which employees are evaluated on the task assigned them after a given time in order to find out their strengths and weaknesses.
Under-Performing Employees: Refer to those employees who perform below average or those employees who normally do not meet targets set for them.
Growth: This refers to the general improvement of performance of the organization.
Appraisers: They are managers, superiors, or supervisors who have employees working directly under them.
Appraises: They are employees or subordinates who are appraised.
Measurement: assessing performance according to agreed objectives and assessing employee behaviors and attitudes to their values;
Feedback: informing the employees on their achieved levels of performance, while mentioning the issues which should be enhanced;
Positive reinforcement: giving constructive criticism on what should be improved;
Exchange of views: providing a discussion on work results and how employees should be supported by managers to achieve their aspirations in relation to their future career;
Agreement: achieving a common agreement between managers and employees on what needs to be done to improve and sustain performance
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