- AN ASSESSMENT OF BUSINESS ENVIRONMENT AND ITS IMPACT ON ORGANIZATIONAL GROWTH (A Case Study of Oil Down Stream in Nigeria.)
- AN ASSESSMENT OF STAFF MOTIVATION AS PANACEA FOR IMPROVED ORGANIZATIONAL PRODUCTIVITY (A CASE STUDY OF LASACO ASSURANCE PLC)
- COMPENSATION MANAGEMENT AND ORGANIZATIONAL PERFORMANCE (A STUDY OF PZ CUSSIONS NIGERIA PLC)
- EFFECTS OF LABOUR TURNOVER ON ORGANIZATIONAL PERFORMANCE (A COMPARATIVE STUDY OF UNILEVER AND PZ NIGERIA PLS)
- THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONAL PERFORMANCE (A Study of Nigeria Bottling Company Plc)
- IMPACT OF PERFORMANCE APPRAISAL ON EMPLOYEES PRODUCTIVITY (A CASE STUDY OF NIGERIA BREWERY)
- IMPACT OF PENSION REFORM ON ORGANIZATIONAL PERFORMANCE IN THE PUBLIC SECTOR (A Case Study of Lagos State Ministry of Education)
- IMPACTS OF PERFORMANCE APPRAISAL ON PRODUCTIVITY IN AN ORGANIZATION (A CASE STUDY OF FIRSTBITE NIGERIA LTD)
- IMPACT OF EFFECTIVE PERFORMANCE APPRAISAL ON EMPLOYEE PRODUCTIVITY (A STUDY OF MTN NIGERIA)
- THE IMPACT OF TRAINING AND DEVELOPMENT ON EFFECTIVE PERFORMANCE OF WORKERS IN THE PUBLIC SECTOR A STUDY OF NIGERIA PORTS AUTHORITY
PERFORMANCE APPRAISAL AS A TOOL FOR ORGANIZATIONAL PRODUCTIVITY AND GROWTH AT GHANA PORTS AND HABOURS AUTHORITY (GPHA) – PORT OF TEMA.
Performance appraisal is a process of assessing or evaluating the performance of employees on their job in order to identify their strengths and weaknesses so as to improve upon their performance. The Ports and Harbour industry all over the world aim at efficiency. As a result, performance appraisal plays an important role in determing the performance of staffs at Ports and Harbours thereby contributing to the efficiency of Ports and Harbour. The study was intended to assess how management uses performance appraisal as a tool in Tema Port and its contribution to its productivity and growth. The objective of the study were; first, to find out the design and implementation of performance appraisal at Tema Port. Second, to find out the importance of performance appraisal at Tema Port. Third, to identify problems or challenges encountered when conducting performance appraisal and fourth, to find out whether performance appraisal contributes to the productivity and growth of Tema Port. Both primary and secondary sources of data were used to gather information for the study. Questionnaires were administered to employees at Tema Port and interviews were also conducted to seek information for the study. Result from the study revealed that only the human resource department was responsible for the design and implementation of performance appraisal. Again, it was revealed that the time feedback were given to appraises were not consistent. Furthermore, the performance appraisal was characterized by biases and impartiality during the appraisal process leading unacceptable ratings scores. It was recommended that the Human Resource Department as Tema Port should involve other
stakeholders such as appraisers and appraises during the design of appraisal and its implementation. This will make both appraisers and appraises have vested interest in the appraisal programme therefore attach all the seriousness it deserves. This will also go along way to reduce the incidence of biases and impartiality since appraises are well educated on the programme. Feedback should also be given to all appraises at a specified period and in a conducive atmosphere. All supervisors should have a formal training on how to appraise. Finally, the Human Resource Department of Ghana Ports and Harbours Authority should endeavour to have a yearly appraisal report to serve as an official document for performance appraisal.
TABLE OF CONTENTS
TITLE PAGE PAGE
Table of contents vii
List of tables x
List of figures xi
CHAPTER ONE INTRODUCTION
1.0 Background of the study 1
1.1 Statement of the problem 4
1.2 Objectives of the study 4
1.3 Research questions 5
1.4 Rationale for the study 5
1.5 Scope of the study 6
1.6 Limitations of the study 6
1.7 Definition of terms 7
1.8 Organization of the study 7
CHAPTER TWO LITERATURE REVIEW
2.0 Introduction 8
2.1 Performance management 8
2.2 Performance appraisal 9
2.3 History of Performance Appraisal 12 2.4 Consequences of performance appraisal 13 2.4.1 Some positive results of performance appraisal 13 2.4.2 Some negative results of performance appraisal 13
2.5 The Design of appraisal system 14
2.6 Performance appraisal process 16 2.6.1 Established performance standard 17
2.6.2 Communicate performance expectation 18
2.6.3 Measure actual performance 18
2.6.4 Compare actual performance with standards 18
2.6.5 Discuss result with employee 19
2.6.6 Initiate corrective action if necessary 19
2.7 Methods of performance appraisal 19
2.7.1 Graphic rating scale 20
2.7.2 Critical incident method 20
2.7.3 Essay – method 21
2.7.4 Behaviourally Anchored Rating scale (BARS) 21
2.7.5 Behavioral checklist method 22
2.7.6 Mixed standard scale 22
2.7.7 Forced – choice method 23
2.7.8 Results method 23
2.7.9 Management by Objective (MBO) 23
2.8 Factors that can distort the effectiveness of performance appraisal 26
2.8.1 Leniency error 26
2.8.2 Hallo effect 26
2.8.3 Low appraiser motivation 26
2.8.4 Similarity error 27
2.8.5 Central tendency 27
2.8.6 Inflationary pressures 27
2.8.7 Attribution theory 28
2.8.8 Recency error 28
2.8.9 Management attitude 28
2.9 Effective performance appraisal system 29
2.9.1 Requirements for effective appraisal system 29
22.214.171.124 Relevance 29
126.96.36.199 Sensitivity 29
188.8.131.52 Reliability 30
184.108.40.206 Acceptability 30
220.127.116.11 Practicability 30
2.9.2 Training of Appraisers 30
2.9.3 Appraisal feedback to employees 31
2.9.4 Motivation 32
CHAPTER THREE METHODOLOGY AND ORGANIZATIONAL PROFILE
3.0 Introduction 34 3.1 Sources of data 34
3.1.1 Primary data 34
3.1.2 Secondary data 34
3.2 Population 35
3.3 Sampling 35
3.3.1 Sampling Technique 36
3.4 Data collection instrument 36
3.5 Data Analysis 37
3.6.0 Organizational profile of Tema Port 37
3.6.1 Vision of Port in Tema 38 3.6.2 Mission of Port of Tema 38
3.6.3 The services of Tema Port 38 3.6.4 Board of Directors 39
3.6.5 Management Team 39
3.6.6 Tema Port Departments 39
3.6.7 Staff of Tema Port 40
3.6.8 Organizational Structure 40
CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND DISCUSSION
4.1 Employee Profile
4.2 Profile of Junior Staff
4.3 Profile of Senior Staff
4.4 Design and Implementation of Performance appraisal Importance of
4.5 Importance of Performance Appraisal system to Tema Port
4.6 Challenges encountered when conducting performance appraisal
4.7 Contribution of performance appraisal to the productivity and growth
CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.0 Introduction 58
5.1 Summary of findings 58
5.1.1 Lack of involvement of stakeholders in the design and implementation
of performance appraisal 58
5.1.2 Challenge faced by supervisor during appraisal 58
5.1.3 Contribution of performance appraisal 58
5.1.4 Lack of consistency in providing feedback 59
5.1.5 Importance of performance appraisal 59
5.2 Conclusion 59 5.3 Recommendations 60 5.3.1 Performance appraisal policy 60
5.3.2 Involvement of stakeholders 60
5.3.3 Provision of feedback 60
5.3.4 Fairness and impartiality during appraisal 61
5.3.5 Training of all appraisers 61
5.3.6 Involvement of subordinates in setting target 61
5.3.7 Appraisal report 62
LIST OF TABLES
Table 4.1 Appraisers 35
Table 4.2 Appraisees 36
Table 4.3 Gender status of Subordinates 42
Table 4.4 Age Status of Subordinates 42
Table 4.5 Number of years at Port (subordinates) 43
Table 4.6 Gender Status of Appraisers 44
Table 4.7 Age of Appraisers 44
Table 4.8 Number of years at Port (Appraisers) 45
Table 4.9 Number of times appraised in a year 46
Table 4.10 Whether supervisors play role in designing performance appraisal 47
Table 4.11Whether supervisors set targets for subordinates 49
Table 4.12 Subordinates’ opinion on performance appraisal 53
Table 4.13 Contribution of performance appraisal (Subordinates) 55
Table 4.14 Contribution of performance appraisal (Appraisers) 56
LIST OF FIGURE
Figure 2.1 The performance appraisal process
Figure 4.1 Whether employees have ever been appraised
Figure 4.2 Whether supervisors have ever had formal training
Figure 4.3 Involvement of subordinates in setting targets
Figure 4.4 Whether Supervisors provide feedback
Figure 4.5 Duration of appraisal feedback
Figure 4.6 Whether performance appraisal motivate subordinates
Figure 4.7 Perception of performance appraisal (supervisors)
Figure 4.8 Challenges during performance appraisal of subordinates
Figure 4.9 Performance of Tema Port in relation to appraisal for the past 4 years 57
1.0 Background of the study
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.
Perfom1ance 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.
Globally, performance appraisal is used and this has led most organizations to spend quality time in conducting performance appraisal. According to Torrington and Mackey 350 organizations have a formal appraisal system for senior management, compared with 251 organizations for middle management, 189 for clerical staff, and 92 for manual, unskilled and semi skilled workers. Over a quarter of the respondent organizations carried out no appraisal at all. It is interesting to note that 140 organizations said that they had increased the time that they spent on appraisal over the previous three years, compared with 112 organizations that spent the same amount of time, and only 29 organizations where the time spent had decreased. In my understanding, it points out to the fact that many organizations in the world today had realized the tremendous need for performance appraisal systems. If it is done well could yield the desired results for the organization.
The Provisional National Defense Council (PNDC) Law 160 established the Ghana Ports and Harbours Authority (GPHA) - Tema Port on July, 1st 1986. Since its establishment perfOTIl1anCe appraisal is being used as a management tool to assess and improve performance of its employees thereby increasing the overall output of the Port in terms of productivity.
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 in which Tema Port is not left out.
Performances of Port workers at Tema at the various levels are very important and contribute to achieving the goals of the Authority. The Port therefore expects every worker to contribute towards the achievement of its goals. This is evident by management showing much commitment in the use of performance appraisal by putting in place mechanisms for instance logistical support and time to ensure the success of the scheme. Additionally, the Port of Tema has a training department which apart from other training purposes organizes training programmes for employees who are underperforming to correct deficiencies after being appraised. This goes a long way to improve the skills, knowledge and competences of employees to perform their task effectively and efficiently. The human resource department and the training department collaborate to conduct appraisals of the Port which is carried out annually. Before the process commences, appraisals forms are distributed to the various departmental heads for assessment or evaluation of subordinates. The completed forms are submitted back to the human resource department for final review and decision making.
Just as any other industry, it is important to note that the Ports and Harbour industry worldwide 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 workers thereby contributing to the productivity, growth and success of Tema Port.
1.1 Statement of the problem.
Performance has played significant roles in organizational productivity. However, it is pathetic to note that most organizations have not been practising a sustainable performance appraisal system to enhance efficiency.
Some organizations though invest so much in other factors of production such as machinery, information technology, funds etc but unfortunately place little value on manpower. In this regard, little attention is directed to improving the human capital which is the anchor of every organizational success story. Improving manpower requires that performance appraisal becomes an essential tool to assess the individual employee and should be based on consistent feedback such that an appropriate reward system could be ascribed or measures for correction could be put in place.
Lack of performance appraisal system in most organizations unfortunately makes assessment of individual employee extremely difficult and m that vain most organizational targets are not periodically achieved hence lack of direction and low productivity.
In this regard therefore, it is imperative that a consensus effort is made by every organization to have a performance appraisal policy in order to' evaluate the performance of individual employees in conformity with the overall objective of the organization.
1.2 Objectives of the study
The objectives of the study are classified into General and Specific.
1.2.1 General objective
The main objective underlying this study is to assess the performance appraisal situation at Tema Port.
1.2.2 Specific objectives
a) To find out how the design and implementation of performance appraisal is done at Tema
b) To evaluate the importance of performance appraisal system at Tema Port.
c) To identify the problems encountered when conducting performance appraisal at Tema Port.
d) To find out whether performance appraisal contributes to productivity and growth at Tema
e) To provide some recommendations towards improving performance appraisal system at Tema
1.3 Research Questions
i. What performance appraisal system is in place at Tema Port?
ii. What is the role and importance of performance appraisal to the growth at Tema Port? iii. Is performance appraisal contributing to the productivity and growth at Tema Port? iv. What problems are encountered during performance appraisals at Tema Port?
1.4 Rationale for the study.
Managers must be able to determine whether or not their workers are doing an efficient and effective job, with a minimum of errors and disruption. They do so by using perfonl1ance appraisal (Nickels, et al 2002). 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 GPHA- Tema Port in the economic growth and development of the nation cannot be a mere exaggeration. Just as a seaport is the lifeline of any country, so is the Port of Tema which provides about 90% of Ghana's export and import services. It is in this regard that the researcher attempted to undertake a study to assess how management of Tema Port evaluate the performance of its workers thereby contributing to its productivity and growth and also essentially, providing revenue to the state. 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.
1.5 Scope of the study
The study is concentrated on an assessment of performance appraisal. This was limited to only Tema Port and it covers all the departments. Tema Port has 14 departments namely Personnel! Administration, Marine Operation that is fire and safety, Port Operations that is monitoring and control, Marine Engineering, Materials department, Management Information System (MIS), Security, Finance, Audit and Mechanical Engineering.
1.6 Limitations of the study
Every research studies certainly have some limitations. The major limitation to this research work was finance. This limitation informed the researcher to concentrate the work at only Tema Port. Also, time factor was another limitation that is combining lectures with the research work. Finally, the researcher had to visit the Port of Tema several times before retrieving the questionnaires administered.
1.7 Definition of 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.
1.8 Organization of the study
The study is organized into five chapters. Chapter one is the Introduction of the study. This is made up of the background of the study, statement of the problem, objectives of the study, rationale for the study, scope of the research, limitations of the study, research questions, and definition of terms and organization of the study.Chapter two dwells mainly on the literature review, while chapter three consists of the research methodology and the organizational profile. Chapter four involves the analysis and discussion of results. Finally, chapter five concerns summary of findings, conclusion and recommendations.