THE IMPACT OF PERFORMANCE APPRAISAL ON ORGANIZATIONAL GROWTH IN NON-GOVERNMENTAL ORGANIZATION

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THE IMPACT OF PERFORMANCE APPRAISAL ON ORGANIZATIONAL GROWTH IN NON-GOVERNMENTAL ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The current economic atmosphere characterised by the globalisation of markets and constant change in customer and investor demands competition has become vital for the survival of any organisation. Competitiveness is the core of any business organisation (Denis and Pritchard,2006) the market experiences savage competition and only those who offer better products than the best will survive.

Organisations must incessantly improve performance through cost reduction, product and process innovation to improve quality and speed to market. The organisation greatest asset is the human resource. Managing the workforce is vital in improving competence and performance through increased individual performance the ability of an organisation to achieve its target is its competitiveness especially through its labour force.

An improvement in the performance of an organisation accrues when its workforce is competent and performs at an optimum level. The human resource at a strategic level has a significant economic effect on the firm and there is a need to shift the focus to value creation. performance appraisal and management are the essences of organisation growth.

A performance evaluation is a systemic process through which managers determine job-relevant strength through identification, observation, measurement and development. An accurate appraisal helps to diagnose the level of job performance by integrating human resource policies with the firm strategic plan. Training and development programs are conducted to ensure that each task description is executed efficiently to improve the performance level of the human resource.

Performance appraisals allow managers to make appropriate adjustments to the current performance levels. performance management is a tool for directors to advance competitiveness for the organisation through creating a competitive edge with a highly skilled labour force training and development, employees can perform efficiently and prepare for future challenges (Thurstonrmane, wells, & Mcnall, (2010) through performance appraisals, managers (Cameroon 2001) through e also able to make decisions on compensation adjustments and promotion for their human resource (walker, Damanpour & Devece, 2011)

Performance appraisals are a formal and systematic assessment of the performance of employees by managers and directors to understand the labour force regarding abilities to further growth the process involves managers measuring and evaluating job-related behaviours of their employees and the outcome to determine the level of employee performance and ways to improve the current level of performance in future for the benefit of the organisation (walker, Damanpour & Devece, 2011)

However, in a large organisation, the degree of interaction is so remote that made employees find it difficult to predict what the manager thinks of them and what the outcome of their performance appraisal could be. In the contemporary business environment, we keep competition among firms and economic downturn, and many firms use performance appraisal to scale down the use of their workforce in order to retain only those once who are more productive.

Downsizing the workforce helps the organisation to reduce the total cost of labour and to top up the profit of the enterprise. If performance appraisal is properly utilising it will go a long way in assisting it organisation in human resource planning and development (Dipboye,2001) modern organisations are taking more interest in determining the quantity and level of performance of their employees. Assessing the present productivity of the workforce helps an organisation to; prepare the ground for future training and development of the workforce.

The process of assessing and appraising the performance of employees is made difficult by the fact criteria of effective and ineffective performance are frequently difficult to define. One of the ways that an organisation can apply development performance appraisal is by using performance appraisal activities in relation to determining strategies, purpose and organisational performance.

1.2 Problem Statement

Performance appraisals are a critical component of human resource management. Recent years have seen an increase in their use among organisations motivated by the desire to drive employees’ behaviours and ultimately the team performance.

The establishment of goals and objectives at the beginning of fiscal years for the organisation provides employees with clear performance targets and enables the managers to monitor performance during the cycle. performance appraisals help reinforce good performance, alert managers to the need for training and development in a certain area or the need to offer assistance to poorly performing personnel and establish systems and promotions all geared toward improving performance.

Two separate studies one conducted by Wang and Min (2001) and the other by Singh (2011) focus on the effects of performance appraisals on organisational performance and both conclude that the system motivates employee’s attitudes towards improved performance.

The study is different from other existing studies as it focuses on an organisation with a renowned performance ethic. The study concentrates on the impact performance appraisals has had on the fulfilment of the organisation. The study concentrates on the impact performance appraisals has had on the fulfilment of the organisation. The scope of the survey is also broad to allow the researcher the chance to collect more information needed to answer the research question for the study.

1.3 Research Question

How does objective-based appraisal influence organisational growth and development?

What is the effect of a 360-degree appraisal on organisation growth and development?

1.4 Objective of the Study.

The main objective of this study is to examine the role of performance appraisals on the growth and development of an organisation.

To examine objective-based appraisal influences organisational growth and development?

To examine the effect of a 360-degree appraisal on organisation growth and development?

1.5 Hypotheses

H0: There is no significant impact of performance appraisal on the growth and development of an organisation.

H1: There is a significant impact of Performance appraisal on the growth and development of an organisation.

1.6 Significance of the Study

The meaning of this study to academicians and researchers is that it helps determine the knowledge among the public and what points the researcher may want to make known and emphasize to the ²audience. The study contributes to ascertain if the ideas put forward in this research are supported by previous studies. It also helps to build and improve knowledge in the study of organisational performance while narrowing the knowledge gap on the effect of performance appraisals on the performance of organisations.

There is often a concern about existing policies and their ability to meet current and future challenges. strong policies make for stable governments and prosperous countries. Failed policies cost the state a significant amount regarding monetary and have the potential to stunt economic growth.

The research conducted in this study provides decision-makers with adequate information on performance appraisal and organisational performance to improve existing policies and their functions. The study also allows decision-makers to define, rationalise and develop policies for the organisation to improve economic growth.

1.7 Organization of Work

The chapter highlights the background of the study by giving a conceptual link between performance appraisals and performance in the introduction.it introduces the concepts of performance appraisals and organisation performance in a detailed account.

The problem statement, research question link the dependent variable, organisation performance to the independent variable performance appraisals.it also looks at existing studies, their focus, findings and finally how this study is different from them. The chapter also highlights the purpose of the survey, the question that will guide the research and the significance of the study in theory to academicians and researchers, in policy to the government. The chapter concludes by providing a definition of the terms section. Chapter two is the review of related literature, empirical literature, theoretical literature.

Chapter three research methodology, scope and area of study, research design, method of data collection, sample and sampling technique, sources and types of data, variables of data collection, specification of mode (where applicable), method of data analysis, limitations of the method, chapter four, the presentation and discussion of results, characteristics of respondents, presentation and discussion of results, and hypothesis testing. Chapter five is the summary of major findings, conclusion and recommendations.

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