1.1 BACKGROUND STATEMENT
In any business organization or institution, effective use of human resources requires a complete knowledge of employees capabilities and an effective record system. To achieve this objective, it has become necessary to regularly take stock of the experience and exposure levels of employees with a view to identifying those staff with potentials for development. This could be done with the aid of performance appraisal.
Performance appraisal could be defined as the process of measuring performance and assessing the level of performance of the organizational members. It is one of the most delicate issues in human resources management, because an employee’s overall success in an organization depends largely on the outcome of performance appraisal. It is pertinent to state here that some bosses take advantage of this to undermine prospect of employees they do not like. Thus, a proven performance appraisal system linking organization and employees goals is of paramount important because it can serve as a development tool to counsel and motivate employees. Furthermore, it could as well assist employees to understand what is expected of them in a job and where they fit into an organization.
The fact that they are scarcely few employees who would not like to know exactly that their manager thinks of their performance makes performance appraisal scheme a controversial subject.
In small organization with few employees, the level of information between the manager and employees is so close that employees generally, know what their boss thinks of them. However, in large institution such as Alvan, the degree of interaction is so remote that many employees find it difficult to predict precisely what manager thinks of them.
In contemporary atmosphere of world-wide recession and especially in Nigeria, of downright economic gloom characterize by massive unemployment and increasing number of employees redundancy, those organizations including Alvan which are holding their own are likely to be much more interested in maximizing the effective use of existing personnel than being new staff. It follows therefore, that is performance appraisal is properly utilized, it could go a long way in assisting the management of the institution in its human resources planning and development.
Performance appraisal is one of the most important tasks of any manager. Douglas Mc Gregor (1972) sees it a process that involves communication to a person how he or she is performing on the job.
Most organizations are rightfully quite interested in determining the quality and level of performance of their employees in assessing the potentials they demonstrate for future development and in identifying areas of weakness that many require assistance and training.
The process appraising the performance of employees is made difficult by the fact that criteria of effective and ineffective performance are frequently difficult to define, the areas of performance for which an individual is responsible are often unclear and evaluations tend to be based not in measurements of actual performance but on the perception and judgments of an employee’s immediate boss, some of these vague ambiguous and judgmental characteristics of performance appraisal in organizations are unavoidable because of the complexity of managerial jobs and the difficulties in clearly defining concrete criteria of effective performance.
At the same time however, a considerable proportion of the vagueness and ambiguity associated with the appraisal process can be attributed to inadequate attention being paid by organization to the design and functioning of its performance appraisal system.
In this context, the researcher is particularly doubtful of the extent to which the employees of Alvan are usually satisfied after the outcome of each appraisal exercise. This is because instance abound where a staff has spent over nine (9) years on one post without promotion, one is therefore, tempted to conclude that performance appraisal is not so effective in assisting management to select the right people for advancement.
Furthermore, it appears that the general feeling among the Alvan staff is that appraisal is not properly utilized hence it could not achieve the desired objective. This simply implies that all is not well with the way performance appraisal is being conducted in Alvan Ikoku College of Education.
Specifically, this research is in partial fulfillment of the requirements for the award of the Higher National Diploma in Business Administration.
More so, the study will among others thing attempt to:
These questions include:
The following answers to the above questions will help to defined and emphasize the importance and effect of performance appraisal in human resource management.
Hi: An employee should not be rewarded based on his or her scores in performance appraisal report.
Hi: Performance appraisal reports are not usually reflection for employees strength and weakness.
The scope of this researcher is on the effect of performance appraisal in human resource management, a case study of Alvan Ikoku College of Education Owerri and it is being restricted only to Alvan workers both the employees and the employees of the institution in order to find out if performance appraisal scheme has created an impact employees.
In order to carry out this research, the research was faced with a number of limitations. The greatest identifiable constraints are the following.
The whole process of performance appraisal exercise involves reviewing the past to enable proper projection to be made of the future. The study therefore is as important for growth of this business organization. Business as we know cannot operate without employees and in order for organization to operate profitably, both employees and the employers must work with understanding and in satisfactory atmosphere so that one will not be seen as an obstacle to the other.
The study therefore will expose ways of reducing friction that may ensure between management and the union as well as managers and subordinates following the outcome of every appraisal exercise in order to usher in a peaceful industrial harmony in the organization.
The Alvan, the researchers employer will find the study particularly useful in human resource planning of the company. The study will also-serve as an insight for management on the proper use of performance evaluation on their subordinates.
Finally, the study can motivate the other interested researchers in this subject thereby giving them impetus to venture into a fresh field of study.
In order to achieve clarity and avoid misconceptions an attempt will be made here to define some terminologies used in this study.