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Abstract
This research investigated the relationship between Performance Evaluation and Organizational Sustainability (A survey of selected manufacturing firms in Rivers State.). The study utilized a survey research design in which population which consists of all employees of selected manufacturing firms in Rivers State, a total of 170 workers. The sample was driven from the population using Taro Yamene formula for sample size determination with 5% confidence level in which a total of 119 employees was driven out of the population and questionnaires administered according to the sample. The questionnaire was designed to address the extent to which Employee Participation influence Organizational effectiveness of selected manufacturing firms in Rivers State. Data collected were presented using tables and analyzed using simple percentage. The study found that, Employee rating scale, Employee ranking, and critical incident method were suitable dimensions of employee performance evaluation and has great impact on organizational sustainability. And also, the study found that there exist a positive relationship between employee performance evaluation and organizational sustainability. The study therefore requires that managers should put in place all these factors in order to improve organizational effectiveness.
TABLE OF CONTENTS
Title Page – – – – – – – – – – I
Declaration – – – – – – – – – – Ii
Certification – – – – – – – – – Iii
Dedication – – – – – – – – – Iv
Acknowledgements – – – – – – – – V
Abstract – – – – – – – – – – Vi
Table of Content – – – – – – – – Vii
CHAPTER 1: INTRODUCTION
1.1 Background of the Study – – – – – – – 1
1.2 Statement of the Problem . – – – – – 3
1.3 Objectives of the Study – – – – – – 4
1.4 Research Questions – – – – – – – 5
1.5 Significance of the Study . – – – – – 5
1.6 Scope of the Study . – – – – – – 6
1.7 Limitation of the Study – – – – – – 7
1.8 Definition of Terms – – – – – – 7
CHAPTER 2
LITERATURE REVIEW
2.1 Conceptual Framework – – – – – – 10
2.2 Theoretical Framework – – – – – – – 25
2.3 Empirical Review Of Related Literature – – – 27
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Design – – – – – – – 30
3.2 Population Of The Study – – – – – – 30
3.3 Sample And Sampling Technique – – – – 31
3.4 Questionnaire Design – – – – – – 32
3.4 Method Of Data Collection – – – – – – 33
3.6 Method Of Data Analysis – – – – – 33
CHAPTER 4
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation – – – – – – – 34
4.2 Data Analysis – – – – – – – 37
4.3 Discussion of Findings – – – – – – 40
CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary – – – – – – – – 43
5.2 Conclusion – – – – – – – – 44
5.3 Recommendations – – – – – – – 45
References – – – – – – – – – 47
Appendix I – – – – – – – – – 50
Appendix II – – – – – – – – 51
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The greatest asset in nearly all organizations is their human resource. These surpasses in value and in importance than physical assets i.e. building, land, equipment and vehicles. (Anstey et al., 2017) To enable organizations achieve competitive advantage over competitors globally, employees play a very critical role (Oaya et al., (2017). Employees’ performance determines company’s success, conducting employee performance appraisal ought to be done appropriately and regularly in order to improve quality of work, reduce employee dissatisfaction and decline in work performance. (Shrestha, S. &Chalidabhongse, J., 2006).
(Obeidat et al., 2014) Performance appraisal plays a role that is valuable in employee training and development and can be used to identify and initiate the process of providing relevant training and development in their study. Mwema and Gacunga (2014), found out that performance appraisal enables identification of training needs for staff and accordingly organization is able to provide the required training thus helping employees achieve their
performance targets.
Belcourt et al, (2002) examined that the main purpose for training is to help the organization achieve its goals. In addition training programs should be established with a focus on organizational goals and strategies. Most organizations emphasize on capacity building programmes to the employees as a critical human resource management practice towards employees commitment.
Eliphas et al., (2017) using recognition, feedback, and training and development as performance appraisal tools found out that productivity in the organization is mainly influenced by recognition and feedback while training and development does not play a critical role.
Performance appraisal is one of the human resource management and development practices that have attracted extensive attention from both practitioners and academicians (Fletcher, 2001).
1.2 STATEMENT OF THE PROBLEM
Global economy has forced organizations to emphasizeon transparency, accountability and efficiency to enhance productivity.One key factorto staff performance is organization goal achievement and for employees to be considered successful, they are expected to achieve their performance goals (Campbell, 1990). According to Armstrong (2009) managing performance is the means of getting better results within an agreed certain time period while upholding the organization standards and competency. McDougall and Levesque (1999) elucidates that poor or ineffective, service delivery will result to loss of confidence by the customers who becomes dissatisfied and end up seeking for alternatives. Performance appraisal is widespread and it is potentially a crucial instrument for organizations to make the most of their employees (Armstrong and Baron, 2005). While performance appraisal is applied to a cross section of employees and in different levels, at times they are seen as merely administrative in nature, quite mechanical, ineffective and serve little or no purpose towards improvement of employee performance (Torrington et al., 2011). Critiques argue that performance appraisal is not a very reliable tool to measure employee and organizational performance. That notwithstanding, performance appraisal system is considered efficient enough and seem to be achieving good results for organizations (Dauda&Luki, 2021).
Empirical studies in performance appraisal have shown that employee performance on organizations can be enhanced through effective performance appraisals. On the contrary, empirical study’s findings from some scholars have doubted whether performance appraisal leads to employee performance. The differences in empirical evidence of performance appraisal and employee performance thus create gaps that need further empirical investigation. Hence the study seeks to investigate the association of performance appraisal and organizational productivity.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study is to investigate the relationship between performance evaluation and organizational productivity in some selected maritime firms in Rivers State.
The following are the specific objectives of the study:
• To determine the impact of employee rating scale on organizational sustainability.
• To elucidate the effect of employee ranking on organizational sustainability.
• To check the influence of critical incident method on organizational sustainability.
1.4 RESEARCH QUESTIONS
The following research questions were postulated for the purpose of the study:
• Does employee rating scale affect organizational sustainability?
• Does employee ranking have influence on organizational sustainability?
• Does critical incident method of performance evaluation impact organizational sustainability?
1.5 SIGNIFICANCE OF THE STUDY
The study examines employee performance evaluation and organizational sustainability. The study will provide knowledge on how Employees appraisal affects organizational sustainability.
The result from the study will help management of organizations to know the need to embarking on employee on performance evaluation programs as it is essential for the growth of a company and the employee. It helps the company to find out whether the employee is being productive or is a liability. It helps the employee to find out where his / her career is heading. It is an essential part of HR management.
The study will provide useful material for academic work such as researches, lectures, workshops, symposia and seminar. Students will also find this material useful for class assignment and other academic works.
1.6 SCOPE OF THE STUDY
The study is delimited under the following heading: content scope, geographical scope, and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between employee performance evaluation and organizational productivity. The independent variable is employee performance evaluation measured by employee rating scale, employee ranking, and critical incident method. While the dependent variable is organizational productivity measured effectiveness, profitability, and efficiency.
Geographical Scope: This study is delimited to selected Maritime firm in Rivers State.
1.7 LIMITATIONS OF THE STUDY
The major limitations that we encountered in the course of carrying out this research study, was the short time frame, coupled with the tight academic time table, which prevented a very comprehensive study.
Lack of adequate fundswas also a major impediment to the study as funds was not always available to us at the time it is needed and therefore caused a slowdown in the process.
Another limitation encountered by the researcher was the difficulties in obtaining enough materials and information relating to the topic under study as materials was few.
1.8 DEFINITION OF TERMS
Critical Incident: involved indentifying describing specific events or incidents where the employee did something really well or something that needs improvement.
Employee ranking: each employee is rated based on the scale of ‘does it meet expectations’ to exceed expectations. Sometimes numbered scales are used such as 1 (low) to 5 (high).
Evaluation: the making of a judgment about the amount, number, or value of something; assessment of employee performance.
Organization: this is an organized group of people with a particular purpose, such as a business or government department. Here it means manufacturing firms in Rivers State.
Organizational Productivity: organizational productivity is often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production process, i.e. output per unit of input, typically over a specific period of time.
Performance Evaluation:The regular review of an employee’s job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee’s skills, achievements, and growth, or lack thereof.
Productivity:Productivity is the efficiency of production of goods or services expressed by some measure.
Rating Scale: involve employee traits which are rated on a bipolar scale that usually have several points ranging from ‘poor’ to excellent (or any similar arrangement)