CHAPTER ONE
1.0 BACKGROUN D OF THE STUDY
1.1 INTRODUCTION
A Performance Appraisal is a review and discussion of an employee’s performance of assigned duties and responsibilities. The appraisal is based on results obtained by the employee in his or her job, not on the employee’s personality characteristics. According to Thomas F. Patterson, (1987) appraisal or performance review is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time) typically by the corresponding manager or supervisor.
Again, performance appraisal is a part of guiding and managing career development as well as the process of obtaining, analyzing and recording information about the relative worth of an employee to the organization. It can also be termed as an analysis of an employee’s recent successes and failures, personal strengths and weaknesses and suitability for promotion or further training. The appraisal again measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify areas for performance enhancement and to help promote professional growth. It should not however be considered the supervisor’s only communication tool. Furthermore, each employee is entitled to a thoughtful and careful appraisal. The success of the process depends on the supervisor’s willingness to complete a constructive and objective appraisal and on the employee’s willingness to respond to constructive suggestions and to work with the supervisor to reach future goals.
According to Beer, M. et al, (1978) performance appraisal serves a two-fold purpose generally, thus, to improve the work performance of employees by helping them realize and use their full potential in carrying out their firm’s mission and also to provide information to employees and managers for use in making work-related decisions. More specifically according to them, appraisals serve some purposes.
Firstly, they support personal decisions to promote outstanding performers in order to weed out marginal or low performers and train, transfer or discipline others as well as to justify merit increases. In short, appraisal serves as a key input for administering a formal organizational reward and punishment system.
Secondly, appraisals provide feedback to employees and thereby serve as vehicle for personal and career development. Again once the development needs of employees are identified, appraisals can help establish objectives for training programmes.
Also, as a result of the specification of performance levels, appraisals can help diagnose organizational problems. They do so by identifying training needs and the knowledge, abilities, skills and other characteristics to consider in hiring as well as provide a basis for distinguishing between effective and ineffective performers. Appraisal therefore represents the beginning of a process, rather than an end product.
In spite of the purposes of the performance appraisal system, it is beset by a lot of problems which inhibit its progress.
According to the Mansis Development Corporation (2001), many organizations do not have clearly established corporate objectives for undertaking performance reviews .Many managers particularly in large organizations routinely complete the required forms which are then filed and the subject not mentioned again until the next review period, usually a year hence. Also another problem in many organizations is that the process of performance evaluations lacks credibility. This is due to the failure of management to spell out clearly what aspects of the job are to be evaluated and to define the standards against which performance is to be measured. Lack of clearly defined measurements can lead to intellectual dishonesty in the evaluation, unfair ratings and loss of credibility of management and the appraisal process.
Again according to Gordon L. Simpson, Toronto Managing Partner of the Mansis Development Corporation (2001), a recent study of major United States corporations revealed that 40% of managers admitted to fudging performance data because it was obvious to them that the appraisal served no useful purpose in the way it was managed in their organizations.
A performance appraisal or coaching session is a way to give feedback and define behaviours for improvement. Managers committed to the success of their team, take the time to frequently coach and mentor employees. Providing guidance and input on employee performance encourages positive behaviour. The key to performance improvement begins with recognising employee contributions while helping plan for future development and growth. Also performance discussions should be timely, informative and comprehensive.
Again, the effective use of performance reports can result in improved productivity and higher levels of job satisfaction. According to Entrepreneur.com, performance appraisals are important because they boost motivation and help employees refine their competitive edge.
1.2 STATEMENT OF THE PROBLEM
Performance appraisal provides a good opportunity to formally recognize employees’ achievements and contributions to the organization, and to ensure that a clear link is established and maintained between performance and reward. Employees of MTN in recent times have been accused of high level of inefficiencies in the discharge of their duties by the general public. However, it was recently that research had revealed the deplorable working conditions under which telecommunication work. Poor infrastructure, inadequate logistics and equipment, poor remuneration and inadequate reward system have always led to the low level of public confidence and respect in telecommunication industry.
The situation had further resulted in ripple effects of poor performance, low morale and lack of discipline in the service vis-a-vis the theories on performance appraisal. Given the challenges earlier enumerated to be facing employees in MTN, performance appraisal offers a valuable opportunity to recognize and reward employees’ efforts and performance, detect key barriers and identify professional developmental needs and opportunities. It provides valuable feedback and instruction to employees and gives managers and supervisors a useful framework from which to assess the employees’ staff’s performances.
1.3 AIMS AND OBJECTIVES OF THE STUDY
The aim of this study is to assess the effectiveness of the Performance Appraisal system in MTN.
1. To measure employees’ understanding of the objectives of the appraisal system, its processes and procedures at MTN.
2. To find out whether the appraisal system at MTN is achieving the objectives.
3. To measure employees perception of the appraisal system at MTN.
4. To find out how the performance appraisal system has been able to identify employees’ strengths and weaknesses and programmes put in place to address weaknesses and reward performance.
1.4 RESEARCH QUESTIONS
The following research questions formed the basis upon which the study was conducted:
1. What is the level of employees’ understanding of the objectives of the appraisal system, its processes and procedures at MTN?
2. How is the appraisal system at MTN achieving the objectives?
3. What is the perception of employees of the appraisal system at MTN?
4. Is the performance appraisal system able to identify employees’ strengths and weaknesses?
5. What are the main problems associated with the conduct of performance appraisal at MTN?
1.5 SIGNIFICANCE OF THE STUDY
This study would bring to light employees understanding and appreciation of the performance appraisal system and the relevance of an objective, systematic and effective performance appraisal. Also, it would contribute to knowledge and literature because it would focus on how performance appraisal can be more effective which would enable management to develop a broader understanding of human resource management process. Further, it would provide information for human resource practitioners on how rules and regulations regarding performance appraisal work in MTN and develop the necessary programmes to address weaknesses and reward performance.
1.6. SCOPE OF THE STUDY
The research seeks to shed more light on the ineffective conduct of performance appraisal system in an organization and its effects on employee performance. The research therefore covers employees of MTN.
1.7. LIMITATIONS OF THE STUDY
The researcher was faced with the problem of finance because of the long distances the researcher had to cover to administer the questionnaires to respondents.
The researcher was also hard pressed with time due to the fact that the researcher had to work alongside doing the research.
The researcher again faced the problem of the unwillingness of some staff of MTN to answer questions on the questionnaires. Even though some of the respondents accepted the questionnaires, some of the spaces provided were left unfilled.
1.8. DEFINITION OF TERMS
Appraisal- The act of estimating or judging the nature or value of something or someone.
Performance appraisal- This is the systematic evaluation of performance of employees and to understand the abilities of a person for further growth and development.
Organization- This is a group of people who work together, like a neighborhood association, a charity, a union, or a corporation.
Job satisfaction- Contentment arising out of interplay of employee’s positive and negative feelings towards his or her work.
Employee- An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties. Also called worker.
Training- Organized activity aimed at imparting information and/or instruction to improve the recipient’s performance or to help him or her attain a required level of knowledge or skill.
TABLE OF CONTENT
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Resume vi
CHAPTER ONE
1.0 BACKGROUND OF THE STUDY 1
1.1 INTRODUCTION 1 – 4
1.2 STATEMENT OF THE PROBLEM 4 - 5
1.3 AIMS AND OBJECTIVES OF THE STUDY 5 – 6
1.4 RESEARCH QUESTIONS 6
1.5 SIGNIFICANCE OF THE STUDY 6 - 7
1.6 SCOPE OF THE STUDY 7
1.7 LIMITATION OF THE STUDY 7
1.8 DEFINITION OF THE TERMS 7 - 8
CHAPTER TWO
2.0 LITERATURE REVIEW 9
2.1 INTRODUCTION 9
2.2 THE CONCEPT OF PERFORMANCE APPRAISAL 10 - 11
2.3 HISTORICAL OVERVIEW 11 - 12
2.4 THE PERFORMANCE APPRAISAL PROCESS 13 - 16
2.5 EFFECTIVE PERFORMANCE APPRAISAL PROCESS 16 - 18
2.6 PERFORMANCE APPRAISAL METHODS 18 - 24
2.7 PURPOSE OF PERFORMANCE APPRAISAL 24 - 27
2.8 HISTORY OF MTN 27 - 29
2.9 CHALLENGES OF PERFORMANCE APPRAISAL 29 - 31
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION 32
3.1 RESEARCH DESIGN 32
3.2 SOURCES OF DATA 32 - 33
3.3 RESEARCH POPULATION 33
3.4 SAMPLE SIZE 33
3.5 SAMPLING TECHNIQUES 33
3.6 DATA GATHERING INSTRUMENTS 34
3.7 METHODS FOR DATA ANALYSIS 34 – 35
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
4.0 INTRODUCTION 36
4.1 RESPONDENTS’ PROFILE 37
4.1.1 GENDER OF RESPONDENTS 38 - 39
4.1.2 AGES OF RESPONDENTS 39 - 40
4.1.3 NOTICE FOR PERFORMANCE APPRAISAL 41 - 42
4.1.4 TIMING OF NOTICE FOR PERFORMANCE APPRAISAL 42 - 44
4.1.5 HOW OFTEN EMPLOYEES ARE APPRAISED 44 - 45
4.1.6 HOW EMPLOYEES ASSESS THE OFFICERS WHO CONDUCT PA 45 - 46
4.1.7 THE METHOD OF PERFORMANCE APPRAISAL 47 - 48
4.1.8 THINGS THAT HAPPEN IMMEDIATELY AFTER PERFORMANCE APPRAISAL 49 - 50
4.1.9 THE OBJECTIVITY OF PERFORMANCE APPRAISAL 51 - 53
4.1.10 THE MAIN DIFFICULTIES ASSOCIATED WITH PERFORMANCE APPRAISAL 53 – 55
4.1.11 HOW PERFORMANCE APPRRAISAL AFFECTS EMPLOYEES COMMITMENT TO WORK 55 – 57
4.1.12 FACTORS THAT CAN BEST HELP IMPROVE PERFORMANCE APPRAISAL 57 – 58
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 INTRODUCTION 59
5.2 SUMMARY OF FINDINGS 59 - 62
5.3 CONCLUSION 62
5.4 RECOMMENDATIONS 62 - 63
5.5 SUGGESTIONS FOR FURTHER RESEARCH 63
REFERENCES
APPENDIX A
APPENDIX B