CHAPTER ONE
INTRODUCTION
Background Of The Study
Every employee, from top management to the people in the field, must have individual objectives that support organizational goals. Establishing and communicating employees’ objectives and measuring result is critical and can be achieved with the help of a good appraisal system. Such a system will provide managers with the tools to effectively align the goals of their team, and each direct report, with the strategic initiatives of the company. It will help to measure performance of each employee and deliver feedback during the appraisal process that is helpful and constructive (Dulewiz, 1989).
Appraisal system began as simple method of income justification, i.e. appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee’s performance was found to be less than ideal, a cut in pay would follow. On the other hand, if the performance was better than the supervisor’s expectation, a pay rise was in order. Little consideration was given to the developmental possibilities of appraisal. It was felt that a pay cut or raise should provide the only impetus for an employee either to improve performance or continue to perform well as the case may be. Sometimes, this basic system succeeded in getting results that were intended, but more often than not, it failed (Fedor et al, 1989).Pay rates were important but they were not the only element that had impact on employee appraisal. It was found that other issues such as morale and self esteem, could also have a major influence (Daven, 1990).
As a result, the traditional emphasis on reward outcomes was progressively rejected. The potential usefulness of appraisal as tool for motivation and development was gradually recognized (Fedor et al, 1989).Appraisal, it seems is both inevitable and universal. In the absence of carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is a little chance of ensuring that the judgment made will be lawful, objective, fair, defensible and accurate.
A well structured staff appraisal system can lead to employees’ motivation and increased productivity. This will, therefore, impact positively on corporate performance. Appraisal is one way of reinforcing a legitimate emphasis on employees’ performance but the extent of its implementation in government departments, parastatals and agencies is not known. Hence, this research intends to find out how staff appraisal is being implemented and its effect on corporate performance in Akwa Ibom State Water Company Limited.