THE IMPACT OF EMPLOYEE PERFORMANCE APPRAISAL ON THE ACHIEVEMENT OF ORGANIZATIONAL GOAL IN THE BANKING INDUSTRY
(A CASE STUDY OF KEYSTONE BANK LTD)

ABSTRACT

Impact of Performance Appraisal on Employees’ Job Performance using Keystone Bank Limited as case study. The main objective of the study was to determine whether performance appraisal has any impact on job performance of employees and the extent of such impacts. In service industries e.g. Bank s, the service is fast, more efficient, and product are delivered on time leading to customer satisfaction and more profit are achieved. The researcher adopted the primary method of data collection through the use of structured questionnaire.  Research show that performance appraisal has positive impact on employees’ job performance. Moreover, the respondents all agreed that the Behavioural Checklist and Scales Appraisal System was the best appraisal system to be adopted by an organization. Based on the-research findings, the researcher recommends among others that organization and employees must have a clear idea of where the organization is going and employees must understand how their job contributes to the goals of the company. Besides, employees must be given the needed trainings to ensure they have the skills needed to perform their work. Finally, the researcher further recommends that supervisors must give feedback to employees about their performance on regular basis not just at formal appraisal times.

CHAPTER ONE/INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Employee’s performance appraisal is one of the most critical functions of a leader/manager and is a basic expectation of anyone in a supervisory role. In many organization staff are being appraised to ascertain how much each person contributed to the achievement of corporate goals and objectives. The major objectives are usually profit maximization and service delivery. Performance Appraisal System has been found to act as strong and indispensable Machinery for increase in organizational productivity, organizational peace and harmony and organizational position in its environment Brown, M., J.S. Heywood (2005:43).

          According to Schoenfeld and Shaw (1996) “the evaluation of performance is the control mechanism that provides not only feedback to individuals but also an organization assessment of how things are progressing. Without performance information, managers of the organization can only quess as to whether employees are working towards the right goals, in the correct way and to the desired standard. Performance Appraisal according to then is a means of knowing if employee behaviour is consistent with the overall strategic focus and a way for bringing to the fore any negative consequences of the strategy behavior link” Kuvaas, B. (2006:17).

          In their own view Hicks and Gullet (1973 states that “all persons in organization have personal objectives and each person expects that participation in the organization will help him achieve his personal objectives.

          Therefore performance appraisal becomes a means of aligning the objectives of the individual employees with the organizational objectives. According to Frankline (2003), there are several reasons for performance appraisal exercise they are to:

To provide feedback to the employee, To clarify job expectations, To determine training needs, To diagnose performance problems and  Merit pay or salary adjustment.

Other reasons for performance appraisal according to Akpata (2001) are to provide feedback to the supervisor and input for administrative decisions i.e. promotion, tenure, future employment etc.

According to Ubeku (1984:188) “performance appraisal is basically concerned with a review of individual performance during a set period to identify his area of strength and weakness and establish targets for him to achieve within the overall corporate objectives of the organization.

Moreover Nwachukwu (1988:165) stakes that performance appraisal is the determination of how effective an individual has performed the job for which he was hired. In many cases any one can aptly say that performance appraisal is a periodic and systematic assessment of the work, a compliment of an employee either by himself or his superior in other to impact his effectiveness and adequacy on the job.

Performance appraisal is one of the management tools designed to achieve organizational objectives contributing to the subject matter. Orugbo (1978:24-25) states that individuals in an organization have their own objectives which they hope to achieve through the organization, hence their reason for their placing much reliance or being effectively appraised.

However, Khan (2006) warnes that an ineffective performance appraisal can seal the fate of an organization by creating chaos and confusion from top to bottom in the administrative hierarchy. As a consequence, the chances of success and growth of that organization are bleak.

A Survey by Cleveland et al (1989) shows that performance appraisal has the greatest impact on salary administration, performance feedback and identification of strengths and weakens. However, the impact of appraisal on employee overall performance it yet to be empirically studied.

In keystone Bank Nigeria Limited each staff is appraised to highlight the members good performance and also mention some areas where they have not fared well. The training needs of the staff member’s are also identified. The fact that personnel are to be appraised makes then work very hard.

Staff that are rated highly in Keystone Bank Ltd are given staff an edge over others in terms of promotion. Those that do not measure up during appraisal exercise often not promoted. They are also not placed to work in places that need high intelligence e.g. credit and marketing department.

Management in organizations generally agrees that one of the key factors in developing a smooth functional and efficient firm is the full utilization of its human resources.

Management of workforce is not different from other areas of operation, expect that while other key areas of operation focus on issues like machinery or finance, human resource focus on the most important resources of business the personnel.

The performance management-process is thus an integrated concern that helps to ensure that employees are aware of what is expected of them and how their contribution fits into the big picture as follows:

• Have been involved in establishing the objectives they are required to achieve.
• Understand how their performance is to be measured and can tract how well they are doing.
• Receive appropriate support and coaching throughout the period.
• Are given appropriate recognition and reward for their achievement. 

Performance appraisal is one step in developmental sequence for strengthening the total organization. It is a crucial step which unfortunately has often been carried out with achieving little or no success. It is against this attitude of indifference background that the study intends to examine the attitude of staff towards performance appraisal in keystone bank limited.

1.2     STATEMENT OF THE PROBLEM

          These problems are:

• Operational Challenges: These are associated with products innovation, customers. Oriented banking rather than task oriented, improved technological system, increased internal rivalry/competition among the staff and management.
• Human Resource Challenges: Threats in these areas include volatile loyalty and commitment, employees’ taste for different appraisal packages.

Individual performance appraisals hardly serve as important tool to facilitate job growth by providing information to management regarding compensation and decision-making on performance appraisal There is no of which is to enhance open, and timely communication between employees and supervisors.

There is no criteria for an objective assessment of the performance of employees by supervisors.

There are no clear information processes, rating proper of errors, on objective to reaction to the performance appraisal process, as well as rater training, appraisal feedback and group dynamics.

1.3     OBJECTIVES OF THE STUDY    

          The main objective is the impact of employees’ performance in the achievement of organizational goals in Nigerian Banking Industry. The specific objective are to:

Find out how performance appraisal exercise impact on employees’ performance in Keystone Bank (Nig) Ltd  examine how appraisal rating errors affect the performance appraisal exercise in Keystone Bank (Nig) Limited.   

1.4     RESEARCH QUESTIONS                             

i.        Does the performance appraisal system impact on employee job performance in organization?  

ii.       How do performance appraisal criteria affect an organization development growth in Keystone Bank Limited?

iii.      How does appraisal rating errors impact on the performance appraisal exercise?

iv.      What are effects of performance appraisal system on employee job performance?

1.5     RESEARCH HYPOTHESES

Ho:   There is s significant relationship between performance appraisal system adopted by Keystone Bank in Enugu and employee job performance in Limited? 

Ho:   Appraisal errors have no significant impact on the objectivity of appraisal exercise.

Hi:    Appraisal rating errors have significant impact on performance appraisal exercise in Keystone Bank in Enugu?

Hi:    Performance appraisal exercise has significant relationship with employee job performance.

1.6     SIGNIFICANCE OF STUDY

i)       Future Researchers in related Banking Area

A research of this nature enables the researcher to carryout a detailed study and analysis of core effect and importance of employee performance appraisal as it relate to practice of banking, with special reference to Keystone Bank Ltd.

ii)      Management of Commercial Banks 

          Operators of financial institution especially banking will definitely find the recommendations and findings of this work relevant and useful in charting a new course for employee utilization through appraisal as tools for human resources development.

iii)     Central Bank of Nigeria

          The study will also attempt to change the processes and methods being adopted by most institutions for healthy and more modern ones.

          The nation in general will benefit from this research findings as it will contribute to the development of a buoyant and profitable financial industry where employees as well as stakeholders give in their best performance, which will translate to better economic and quality of life.

iv)     Shareholders

          The study will also help personnel managers become better decision makers in the area of performance appraisal and act as agent of change.

          Finally it help to improve managerial effectiveness in financial institutions and facilitate better utilization of employee to contribute to the organization and their individual career development.

1.7     SCOPE OF THE STUDY

          These research focus will be on effectiveness of staff appraisal on the bank in relation to the subject matter by research, focus will also be on the effect of the appraiser and the appraisal.

Topic Scope

This study was based on the impact of employee performance appraisal on the achievement of organizational goal in the banking industry.

Geographical Area Scope

The study was carried out at Keystone Bank Enugu. The bank has three branches; the main branch is located at New Heaven and other branches are located at Okpara Avenue and Ziks Avenue. They are strategically placed in these locations for easy accessibility.

Time Scope

The period under study covered a period between 2009 to 2014. This period was chosen because a range of five years is enough to help the researcher determine the relation of appraisal on the achievement of organizational goal in the banking industry.    

1.8     LIMITATIONS OF THE STUDY

          In carrying out this research work, the researcher encounter some basic problem as follows:

1. Time Constraint:  Time constraint pose one of the numerous problems encountered during the research work. Research work needs sufficient time in order for extensive and detailed investigation.
2. Financial Constraints: The researcher was really faced with many difficulties in the funding of this project and this was the host important problem encounter by the research since money is the life blood of every individual as regarding going out to seek for information to enable him get research and reasonable fact.
3. Attitude of respondent towards the filling of the questionnaire.

1.9     OPERATIONAL DEFINITION OF TERMS

Appraisal: This is a system of measuring the performance of an employee to determine its level of meeting an established standard (Ubeku, 1984:12).             

Employee:  This is the workforce, human element of production in creation of economic goods or services (Murphy, 1995:6)

Appraiser:  An appraiser is an employee who carries out an appraisal exercise on others, who are in subordinate position, rank or status (Onuoha, 1993:15).

Appraise:   This is the employee who performance is being appraiser or measured (Kuvaas, 2006:30).

Human Resource practitioner: This is a specialist who coordinate the activities of others for organizational efficacy and set goals, and oversees the human resources functions in the organization (Feris, 1991:88).    

1.10   PROFILES OF KEYSTONE BANK LIMITED

          Keystone Bank is a full service commercial bank wholly owned by the Asset Management Corporation of Nigeria (AMCON) and was granted banking license on August 5, 2011, by the Central Bank of Nigeria (CBN). The bank has met and exceeded all capital and capital adequacy requirements of the CBN and assumed the deposit liabilities, certain other liabilities and assets of the former Bank PHB Plc, following the revocation of the erst while banks operating license by the CBN.

Life at Keystone   

          On June is 2012, Keystone Bank launched a campaign to introduce our vision, mission, values and service philosophy. The essence of the new campaign is to re-assure all our stakeholder of our commitment to serving our customers better then ever before. The campaign is christened “we Never Say Never” and is featured on various media including, newspaper, magazine, Radio, television and on social media platforms (face book, twitter, youtube and linkedin).

REFERENCES

Bretz, R. D.; G.T. Mikovich, W. Read (1992): The Current State of Performance Appraisal Research and Practice: Concerns, Directions, and Implications. Journal of Management (18), 312-352.

Brown, M., J.S. Heywood (2005): Performance Appraisal Systems: Determinants and Change, British Journal of Industrial Relations (43), 659-679.

Callahan, J.S., A.L. Brownless, M.D. Brtek, H.L. Tosi (2003): Examining the Unique Effects of Multiple Motivational Sources on Task Performance, Journal of Applied Social Psychology (33); 255-257.

Cleveland, J.N., K.R. Murphy, R.E. Williams (1989): Multiple Uses of Performance Appraisal: Prevalence and Correlates, Journal of Applied Socio Psychology (74), 130-135.

Kerr, S. (1975): On the Folly of Rewarding A, While Hoping for B. Academy of Management Journal, 18(4): 69-83.

Kuvaas, B. (2006): Performance Appraisal Satisfaction and Employee Outcomes: Mediating and Moderating Roles of Work Motivation. International Journal of Human Resource Management (17), 504-522.

Levy, P.E., J.R. Williams (2004): The Social Context of Performance Appraisal: A Review and Framework for the Future. Journal of Management (30), 81-95.

Murphy, K. J. (1989): Executive Compensation. In Ashenfelter, O. and Card, D. (eds.), Handbook of Labor Economics, Vol. 3, North Holland.

Murphy, K.R. and Cleveland, J.N. (1995): Understanding Performance Appraisal: Thousand Oaks, Sage.

Niederle, Muriel, and Lise Vesterlund (2007): Do Women Shy Away from Competition? Do Men Compete Too Much? Quarterly Journal of Economics.

Onuoha, B.C. (1993): A Handbook for Successful Management of Organization, Avan Global Publication, Owerri.

Poon, J.M.L. (2004): Effects of Performance Appraisal Politics on job Satisfaction and Turnover Intention. Personnel Review (33), 322-334.

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THE NEGATIVE EFFECTS OF LACK OF EFFECTIVE TOOLS ON PRODUCTIVITY- A CASE STUDY OF FIDELITY BANK PLC

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Every business organization is established with the primary aim of producing economic goods and their service to maximize certain objectives (e.g profits, staff and stakeholders interests). The relationship that exists between organizations and resource input (e.g. trainings and development, negotiation for industrial peace, information technology, adequate marketing and financing as well as production facilities) is mutual in that they benefits from one another (Siegrist, 1990). This is because effective tools in the form of efficient resources in an organization booster performance or productivity. In other words, Inadequate or negative supply in a effective tools adversely affect productivity of an organization. For example when a marketing officer in an organization as bank is not properly trained with adequate information technology facilities (e.g.Mobile telephone and official car) not given, performance will likely fall short of expectations from him/her. Similarly, when necessary tools as computer, calculating machine, conducive working environment are not available for staff in an organization, productivity is bound to drop. Thus absence or invariably low attention in acquisition of skills and other necessary resources for an organization results into poor or ineffective qualitative and standardized performance either in goods or services.

In the words of Olise (2003) adequacy of effective tools for the running of an organization (i.e present and future expectation of business) allows for their efficient contribution to the production of goods and services. To him however, negative effect of non availability of needed tools for productivity is distress, liquidation, bank failure. To this effect, regular review of policies and program in the banking industries is a strong weapon curbing waste and losses in the relationship between resource input and output. It is so important and benefiting to effectively manage working tools if an organization wants to flourish.

Contributing Onuoha (1997) acknowledged that human resource training and development are indispensable aspect of effective organizational activities and have the following specific benefits to:

1. Improve the quality and quantity of output.
2.  Lower costs (error, production, services, etc).
3.  Lower turnover and absenteeism by increasing employee job satisfactions through self esteem.

However, Kost and Rosenzweing (2002) argued that organizations failure of resource control and management development could lead to constant reduction in output which eventually may end in the form of loss as against profit. Moreover, if human resources are not motivated in an organization, there could be reported cases of negative attitude towards the organization, accidents may be frequency in production, hence the production people may have more scrap and wastage, more labour turnover owing to helpless induction. This may mean greater losses all rounds and it may result in a negative productivity for such an organization. In brief, training and development human resources of an organization (as an effective tool) according to Sherman (1992) have five basic benefits:

1. It improves employee, team and corporate performance in terms of output, quality and speed.
2. Improves operational flexibility by extending the range of skills possessed by an individual, thus aiding succession planning.
3. Help to manage change by increasing understanding of the reasons and necessity for change and proving people with the knowledge and skills needed to adjust to new situations.
4. Provide higher level of service to customers.
5. Finally, it serves as a means of job satisfaction through skill enhancement and competence development.

On the contrary or as a demerit Wendell (1998) stated that organizational resource has fallen short of efficiency due to lack of necessary tools to improving efficiency in marketing, production, engineering and administration as well as in non-human recourses factors such as machines, methods, tools, equipment, etc.

1. Statement of the Problem

The negative effect of lack of effective tools (staff welfare, training, acceptable leadership, style, adequacy of resource inputs, etc) has continue to pose a threat in the process, procedures and over all efficient performance and productivity of organizations, industries and Nigerian economy. Similarly, the challenges from the recent global economic meltdown has forced organizations and industries to neglect basic motivational factors to the employees and the provision of working tools (e.g. machine information/communication technology, adequate financial resources, experts or trained personnel, etc), hence production in goods and services are either below capacity or out rightly delayed. 

1.3       Objectives of the Study

The broad purpose of this study is to assess the negative effect of lack of effective tools on productivity in organizations a study of Fidelity Bank Plc, Lagos.

However, the specific objectives are;

1. To determine if lack of effective tools lead to organizational failure.
2. To examine if inability of organizations to develop given assets to given tasks and position results in poor performance.
3. To determine if bureaucratic practice of organizations in determining resources adoption and application results into losses and error.
4. To evaluate if there exists any relationship between organizational performance and improve welfare scheme of staff   
5. To identify if the broad policy on organization growth is pursued by Fidelity Bank Plc reduce or eliminate job dissatisfaction.

1.   Research Questions

Considering statement of the problem and purpose of the study, the following research questions were formed;

1. Does lack of effective tools lead to organizational failure?
2. Does inability of organizations to develop given assets to given tasks and position results in poor performance?
3. Does bureaucratic practice of organizations in determining resources adoption and application results into losses and error?
4. Is there any relationship between organizational performances and improve welfare scheme of staff?

Could it be true that the broad policy on organization growth being pursued by Fidelity Bank Plc reduce or eliminate job dissatisfaction?

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THE IMPACT OF TRAINING ON EMPLOYEES JOB PERFORMANCE IN NIGERIAN ORGANIZATION

INTRODUCTION

An important aspect of human resource management, which is often neglected today, is staff training and development. This is so because in most organizations, top management regards training as of marginal importance and therefore gives it only a token support. Many managers even feel that training is purely staff function for which the line managers have no responsibility. Others who institute training programme do so because that is the fashionable thing to do. This is a serious misconception because we live in a changing world, a world where people and things change rapidly and continually. New technology and new work procedure emerge every day. People’s attitude, beliefs, values, behaviours and taste change. The supra environment is too static. In fact there is a knowledge explosion in the world, which calls for additional and improved skills on the part of both the workers and management. Hence, the need for training and retraining of staff is to make them cope with the dynamic work world.

 

The training and development of organization members is very crucial because a trained staff is more likely to be highly motivated, competent, and consequently more productive. The importance of training and development become more evident as workers face the challenges of learning new skills, which will enable them, maintain their proficiency level or prepare them for future promotion. The term training refers to the various extra knowledge an employee derive in addition to the knowledge already gained (achieved). If we agree that management is defined as “getting things done through the efforts of other people”, then the training manager is just like many other managers. In this case, he establishes and maintains an environment that will develop people and facilitate co-operative, effective and efficient efforts in the pursuit of organizational goals. He also accomplishes his job by performing the functions of planning, organizing, staffing, directing and controlling. Training management provides the means for the solution to problems, for the proper use of resources and for coping with changing conditions, and for making an enterprise successful.

 

STATEMENT OF THE PROBLEM

This study seeks to examine the impact of training on employees job performance. Most organizations do not believe in employees training. Training determines the degree of success an organization achieves. An ill conceived training will not produce a good result regardless of how effectively the other businesses are carried out. The complaints in most organizations are that of not performing to the best of their ability and to the optimum level of their capability. Many management practitioners and experts have expressed varying degree of concern about falling workers productivity which, could be attributed to inadequate training, lack of discipline and non-evaluation of performance of subordinates. If the organization is to survive, there should be the tendency of adequate training. Training is important because it is needed to performance other functions. Most organizations don’t pay much attention to training, forgetting that without training, other business activities will not function properly.

 

 

 

 

OBJECTIVES OF THE STUDY

The broad objective of this research is to study the impact of training on employees job performance. The specific objectives include:

1. To examine if training impact on workers
2. To examine if there is a relationship between training and the attainment of organizational
3. To study the relationship between training and organizational
4. To identify the various constraint militating against effective training in
5. To make recommendations aimed at effective training based on the findings of the

 

RESEARCH QUESTIONS

The following research questions are considered relevant for the purpose of this research work.

1. Do you agree that training impact on workers productivity?
2. Does training has any influence on the attainment of organizational goals?
3. Does training has any significant influence on organizational performance? 4.

 

STATEMENT OF HYPOTHESES

For the purpose of this research, the following hypothetical statements are considered relevant.

1. H₀: There is no significant relationship between training and workers
2. H₀: There is no relationship between training in influencing organizational
3. H₀: There is no significant relationship between training and organizational

 

SCOPE OF THE STUDY

In order to carry out a comprehensive and meaningful research work, the scope of the study was limited to Diamond Bank, Zenith Bank, Wema Bank Plc, Unity Bank Plc and United Bank for Africa Plc, all in Warri where reliable and accurate data were easily available at a relative cost.Download Full Material-N5000