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PERFORMANCE APPRAISAL AS AN INSTRUMENT FOR EFFECTIVE HUMAN RESOURCE MANAGEMENT (CASE STUDY OF CHEVRON)
BACKGROUND OF THE STUDY
“Performance appraisal is an evaluation of the appraisee performance in his or her job while potential appraisal helps in discovering the appraisee’s capabilities, skills and talents for development.”(Obisi, 1996). Worldwide, performance appraisals are used in nearly all organizations. There are different tools and number of goals that performance appraisals focus to examine individual’s performance and potential of development, (Leena and Twinkle, 2012: pg01-06). Therefore, the general area of our study is performance appraisal systems in organization. Only minority activities in personnel management are concerned with evaluating employees as individuals. Performance appraisal is a planned interaction between employees and their supervisors, during which the former examine the performance of the latter to identify strengths and weaknesses with the view to improving future performance, (Kofi, 2012: pg22). For their, appraisal is part and parcel of an important personnel activity salary planning and administration. Having accepted that staff performance appraisal is a legitimate activity in organization, we shall familiarize ourselves with the difficulties concerning both accuracy and fairness.
It is important to note that the culture of value-system of the organization will act as the major determinant of both the appraisal scheme adopted and the way it is introduced. For instance if the culture is one which favors control and measurement of people, then it is likely that system will be imposed on the participants, but that it will at least contain some measurable criteria against which to judge performance. But where openness performance are encourage, any system will be discussed first with those involved, with the result that appraisals are more likely to be joint problem – solving affairs rather than a calling to account by a superior.
Similarly, we can appreciate the importance of performance appraisal when we realize that it is through it that organizational progress at the target and productivity of workers can be evaluated. For instance, a high performance rating tells the workers the organizations is aware of his devotion to his job increase his performance via the goal when were set. The above arguments are not weights. Today open appraisal system has come to stay and any organization, which ignores open appraisal system, should be prepared to face the negative consequences of low performance, conflict and uncertain future. (Obisi, 1996). Alo, (1999) defines performance appraisal as a process involving deliberate stock taking of the success, which an individual or organization has achieved in performing assigned tasks or meeting set goals over a period of time. The specific subject matter of our t is study concern the use of performance of employee as a basis for judging the contribution and weakness of employees so that continuing efforts can be made to build a strange and more effective organization performance appraisal system helps in retaining promotional and retaining policies.
Performance appraisal as the process of appraising staff performance against previously agreed standard and targets. It is based on guidelines given to employer by the management of what is expected of them in terms of organizational objectives. Performance appraisal involves the observation and evaluation of employee work behavior or the result that behavior by some. To appraise is to judge the work quality or conditions of something or to find out its value. However, it is important to note that one of the responsibilities of manager is to evaluate the performance of his subordinates. The essence of the evaluation is to assess their character, attitude, potentials and past performance on the job. According to Alo (1999) defines performance appraisal as a process involving deliberate stock taking of the success, which an individual or organization has achieved in performing assigned tasks or meeting set goals over a period of time. Atiomo (2000) agrees with Fajana (1997) that performance appraisal is a system which provides organizations with a means of identifying not only what people’s performance levels are but which areas those levels need to be improved if maximum use is to be made of human resource. In most organizations, there is always a way instituted to evaluate productive behavior of the workers. This is important if the goals for which organization was established are to be attained. Further, most industrial organizations institute mechanism to solve human problems of workers such as motivation and job satisfaction with an overall objective of ensuring higher productivity.
STATEMENT OF PROBLEM
The process of appraising the performance of employees is made difficult by the fact that criteria of effective performance are frequently difficult to define, the areas of performance for which an individual is responsible are often unclear and evaluation tend to be based not on measurement of actual performance but on the perceptions and judgments of an employee’s immediate boss. And also there can be ineffective if the performance appraisal system does not correspond with organizational culture and system. Despite that performance appraisal will be of immense assistance to management in formal organizations in general and CHEVRON NIGERIA LIMITED. It can be detrimental to quality improvement: it has been proposed that the use of performance systems in organizations adversely affect organizations pursuits of quality performance.
Negative perceptions, quite often individuals have negative perceptions of performance appraisal receiving and/or the anticipation of receiving a performance appraisal can be uncomfortable and distressful and potentially cause tension between supervisors and subordinates. Performance appraisal should provide accurate and relevant ratings of an employee’s performance as compared to pre-established criteria that is organizational expectations. Legal issues: if performance appraisal are not carried out appropriately, legal issues could result that place the organization at risk.
OBJECTIVES OF THE STUDY
The main purpose and objective of studying performance appraisal systems is as follow. i.To understand varieties of an heir use in personnel administration and motivation of workers for higher productive behavior. Evaluate the strength of performance appraisal in supplying data that could help the management of the CHEVRON NIGERIA LIMITED to make an efficient use of its human resources. iii.To understand problem of performance appraisal system and reaction of workers to consequences of their adoption iv.Highlight whether the appraisal technique as presently creates a learning experience for the employees of the organization to motivate them on improving their level of performance on the job. v.To find out whether the employees of the company are usually satisfied with the way they are being appraised by their supervisors. Vi.Find out how effective is the use of performance appraisal technique as a toll for determining promotion, salary increases and training.
To direct the conduct of this study, the following research questions were developed whose answers will go along in attaining the objectives of the study. i.Do you agree with the fact that performance appraisal is significant to the personnel and effective human resource manager? ii.To what extent can Performance appraisal as an instrument enhance effective human resource management? iii.In what areas has the Chevron Nigeria Limited performance appraisal scheme created an impact on employees? vi.Are performance appraisal reports usually a true reflection of employee’s strength and weakness? v.Is the present appraisal scheme appropriate for evaluating suitability for promotion and salary increment? vi.Do bosses influence performance appraisal reports?
Could proper use of performance appraisal lead to employee’s motivation?
The following research hypothesis has been developed for the purpose of this study tested for acceptance or rejection. H0:The usefulness of performance appraisal is significant to the personnel and human resource managers. H1:The usefulness of performance appraisal make no significant to the personnel and human resource manager. H0:Performance appraisal could be used to enhance employee’s performance H1:performance appraisal could not be used to enhance employee’s performance. H0:performance appraisal systems usually a true reflection of employee’s strength and weaknesses H1:performance appraisal systems does not usually reflect a true employee’s strength and weaknesses H0:Present appraisal scheme is appropriate for
evaluating suitability for promotion and salary increment H1:Present appraisal scheme is not appropriate for evaluating suitability for promotion and salary increment. H0:Proper used of performance appraisal leads to employee’s motivation. H1:Proper used of performance appraisal does not lead to employee’s motivation.
SCOPE OF THE STUDY
Because of the time constraint, the research will be primarily directed to the country headquarter CHEVRON NIGERIA LIMITED located at 2, Chevron drive, Lekki Peninsula, Lagos, Nigeria. It will delve into such sensitive and areas like promotion, salary increases, training and reward for hard work. To make the research work more reliable and valid the sample study will cut across all categories of junior staff, officers and management staff. It is my sincere hope that the study of the research will be of immense assistance to the management in formal organizations in general and CHEVRON NIGERIA LIMITED in particular.
LIMITATION OF THE STUDY
Generally, in any meaningful project work of this nature, some difficulties are likely to come up. Such difficulties include: TIME FACTOR: Time factor is a major problem because as an undergraduate student, there is little or no time to allocate to a greater work as the available time is shared between this study and other subject course study. FINANCE: Research project is quite expensive.
Preparing the research instrument, moving about to gather the data, administering the research instrument, compiling, validating, writing, typesetting and printing the report cost a lot of money. For an undergraduate, the fund may not really flow as much as needed. HUMAN FACTOR: All efforts would be made towards ensuring error free findings. However, absence of errors is not totally guaranteed as all human are prone to mistakes. DATA GATHERING: Eliciting of data from the stakeholders might also be like a camel trying to pass through the eye of a needle in the sense of inaccessibility and unwillingness of executives and other respondents in providing data information for the purpose.
SIGNIFICANCE OF THE STUDY
The significance of this study includes:
The study will assist organizational control by ensuring efficient initialization of human resource. It will also be of assistance in formulation of acceptable and objective performance appraisal. It will also assist in areas such as staff promotion or advancement as well as demotion. Performance appraisal helps to maintain records in order to determine compensation packages, wage structure, salaries raises. It helps to identify the strengths and weaknesses of employees to place right men on the right job. It helps to maintain and assess the potential present in a person for further growth and development.
This section of the research proposal will examine, research design, research population and sample, data collection method and procedures for data analysis.
The survey research methods would be used in this study and a case study of CHEVRON NIGERIA LIMITED would be undertaken.
POPULATION OF THE STUDY
The population of the study would be made up of the entire staff of CHEVRON NIGERIA LIMITED located at 2, Chevron drive, Lekki Peninsula, Lagos, Nigeria.
After the sampling size has been determined, simple random sampling techniques would be utilized in coding the sample. The reason for using the simple random sample is precisely to give each individual in the population equal chances of being included in the sample and to make it possible to every sectional group of individual to be represented.
DATA COLLECTED METHOD
Both primary and secondary sources of data collection method would be adopted in gathering data relevant information on this study. The primary sources will consist of a well-structured questionnaire to be administered to the respondents within three levels of management (i.e. top, middle and lower management) of CHEVRON NIGERIA LIMITED. The secondary data would be collected from the texts, journals, newspapers, seminar papers, magazines, employee’s performance reports from the personnel departments of CHEVRON NIGERIA LIMITED and other literature on performance appraisal as an instrument for effective human resource management the usefulness of financial ratio analysis.
DATA ANALYSIS METHOD
The analysis of the data to be obtained would be done by the use Chi-Square methods of statistical analysis. The spearman’s rank approach
Χ2 = [ (O – E)2]
E= Expected value
O= Observe value
DEFINITION OF TERMS
Appraisal: A method of assessing and grading employees for the purpose of promotion, commendation/development and salary increase. Performance: It refers to the output or personal contribution of an employee to the overall goals and objectives of an organization. A high performance may yield positive appraisal and vice versa. Employee: It refers to the workforce of every organization or firm Human Resource Management: It is a term that can notes the management of human being and raw material of an organization. The blending of both is crucial if the object of an organization is to be realized. Organization: It is the entity where economic activities take place. It could be formal or informal. Organizations strive to harness its human and material resources in order to achieve its goals.
Obisi, C. (1996). Personnel Management: lakbod enterprise, Ibadan.
Leena. T and Twinkle. P. (2012). From Performance Appraisal to Performance Management. IOSR Journal of Business and Management, Volume 3, Issue 5. 01- 06.
Kofi, O. A., and Vincent, P.K. (2012). Performance Appraisal As Employee Motivation Mechanism In Selected Financial Institutions In Kumasi, Ashanti Region Of Ghana. International Journal of Multidisciplinary Research, Vol.2
Issue 6, 22.
Atiomo, A.C. (2000). Human Resource Management: Malthouse Management Science Books, Lagos. Fajana, S. (1997). Human Resources Management: Labofin and Company, Lagos. Alo, O. (1999). Human Resource Management in Nigeria: Business and Institutional Support Associates Limited, Lagos.
UNIVERSITY of LAGOS
Department of Business Administration
NAME: LAWAL ADEBISI FATIMAT
MATRIC NUMBER: 100203122
COURSE TITLE:RESEARCH SEMINAR
PERFORMANCE APPRAISAL AS AN INSTRUMENT FOR EFFECTIVE HUMAN RESOURCE MANAGEMENT (CASE STUDY OF CHEVRON)