Abstract
The main objective of this study is to determine the extent to which
performance appraisal can enhance employee performance and productivity.
To investigate the problems of performance appraisal in MTN Nigerian (MTN),
the researcher employed the descriptive surveys and the case study design. The simple random sampling method was used to
draw a sample of eighty (80) respondents from MTN Enugu Zonal Office . The
researcher also made use of self administered questionnaires for data
collection. For the validity and reliability of the research instruments,
content validityand the test-re-test method were
employed. Similarly, in order to test the hypotheses and establish the degree
of dependence or independence of the variables under consideration, the
chi-square statistical technique was used.
The study established among others that, there is a positive relationship
between performance appraisal and employee performance and productivity. Also,
the study reveals that there is a correlation
between effective performance appraisal, working environment, satisfaction,
morale, motivation and employee performance and productivity at work.
The study concludes that the MTN Nigerian is faced with performance
appraisal problems which have affected its level of performance and
productivity. In the light of the findings, we recommend that there should be a
human capital audit, organizational and physical performance audit and audit
reports should be submitted to management periodically. The immediate priority,
therefore, is the need to re-examine the validity and reliability of
performance management and appraisal instruments in use in MTN Nigeria.
CHAPTER ONE
INTRODUCTION
1.1 Background of Study
In
every business organization, the performance of the employees is important in
achieving organizational goals. The success of every business organization can
therefore be attributed to performance appraisal. Performance appraisal is one
of the basic tools that make workers to be very effective and active at work. A
critical look out on this may bring about the need for motivation, allowances,
development, training and good human relationship in an organization.
The
output of every organization depends on how well and how much the performance
of the employee is appraised and evaluated. Productivity can therefore be defined
as “quality or volume of the major product or services that an organization
provides”. In short, productivity is what comes out of production. Managers of
every business organization are charged with the responsibility to motivate
their employees to achieve organizational goals. The efficiency and effectiveness of any work place
whether the private or the public sector, largely depend on the caliber of the
workforce. The availability of competent and effective labour force does not
just happen by chance or accident but through an articulated recruitment
exercise (Peretomode and Peretomode, 2001) and performance appraisal.
The whole essence of the management
activities of an organization culminates into the system of performance
appraisal adopted in that organization. This, in turn, reflects the extent of
the individual contributions and commitment of the employees in different
hierarchical levels toward the achievement of organizational objectives. It
goes without saying that an effective performance appraisal system can lead an
organization to take strides towards success and growth by leaps and bounds.
Conversely, an ineffective performance appraisal system can seal the fate of an
organization by creating chaos and confusion from top to bottom in the
administrative hierarchy. As a consequence the chances of success and growth of
that organization are doomed.
The Nigerian economy has been plunged
into a state of economic decline since the early 1980’s, following the
introduction of Structural Adjustment Programme (SAP), by Babangida’s
Administration. Since then, productivity improvement has become a major
challenge facing all work and business organizations and the Nigerian economy
as whole. It has therefore become imperative for government and all stakeholders
to evolve adequate measures that would improve productivity in Nigeria.
The nonchalant attitudes of workers towards
their duties and responsibilities have become a matter of great concern to the
government at all levels and other well meaning Nigerians. There has been a persistent
public outcry in the mass media indicting employees for their negative attitude
to work which has lead to low productivity and declining revenue.
Igbokwe-Ibeto (2011) observed that
“people do not take their work seriously in many instances because people do
not like what they are doing”. This nonchalant attitude to work is independent
of geo-political zones, rural-urban residence, religious affiliation, sex or
age. This opinion if properly examined suggest that in many cases, they see
themselves as birds of passage, such notion and feeling is even worsened by the
fact that performance appraisal and productivity management is not taken
serious in most organizations.
Some Nigerian scholars such as, ,
Mustafa (2006), Nwachukwu (2008) and Fatile (2010), emphasized the issue of poor
performance appraisal and motivation at work as the some of the causes of this
national slide. They argued that poor performance and low productivity is a
direct consequence of inadequate motivation and performance appraisal. In line
with this proposition, Enyinta, (2001) noted that, “there is general apathy on
the side of the employers of labour to reward a worker who is conscientious and
dedicated to his duties”. Workers more often than not go on strike resulting to
loss of man-hours before they get their due rights.
Afam (2003) contributing to the above
subject matter, believes that the Nigerian worker has become a pawn in the
hands of exploitative capitalist. He went further to observe that workers are
subjected to all kinds of ill treatments like reduction in ranks, removal of fringe
benefits, pay cuts, late payment of salaries and wages and the prevalent
retrenchment with or without benefits. He concluded by saying that a situation
where a worker is not adequately rewarded for the cake he has painstakingly
toiled to bake, is disheartening and left much to be desired, as it amounts to
killing the goose that lays the golden egg.
1.2 Statement of the Problem
For a research work to get underway,
some difficulties must be felt in a practical and theoretical situation. In
other words, there must be a felt difficulty succeeded by efforts to find
solutions to the problem. Efficiency and effectiveness in an organization has
been a subject of controversy and debate by all and sundry. Inefficiency,
ineffectiveness, red-tapism and low productivity are all common features of many
organization. It is in line with this that Umo (2003), after examining the
attitude to work of Nigerians concluded that Nigeria’s ambition for rapid
industrialization, economic prosperity, social and political stability will
singularly and collectively be frustrated if the current poor work attitude of many
organization is not urgently and positively improved”. The above opinion if
properly analyzed, shows that improved or positive attitude to work in the Nigerian
is an antidote for industrialization and economic stability and development in
Nigeria. Performance appraisal as an
important human resource (HR) strategy for achieving better employee
performance and productivity is hardly taken serious by many organizations. In
fact, managers see performance appraisal as a ritual and an academic exercise.
A number of reasons have been
identified as being responsible for this ugly situation and a number of
solutions have also been suggested, but the problem remained endemic and
persistent in many organization. Their performances are still below
expectation, their productivity is far below average, efficiency and effectiveness
is virtually nil.
This study
therefore, aims to further interrogate this catalogue of problems by having a
look at performance appraisal in MTN Nigeria so as to determine its
effectiveness or otherwise using theMTN
Nigeria (MTN) Enugu Zonal office as a case study.
1.3 Objectives of Study
The main objective of this study is
to determine the extent to which performance appraisal can enhance employee performance
and productivity. Other specific objectives include:
1.
To
examine the extent to which MTN Nigeria managers utilize performance appraisal
strategies to improve employees’ performance and productivity.
2.
To
examine whether there is a relationship between performance appraisal and
employees productivity in MTN Nigeria.
3.
To
determine how individuals objectives and corporate objectives can be integrated
to achieve better employee performance and productivity enhancement in MTN
Nigeria.
4.
To
determine the extent to which organisational climate can influence workers
behaviour towards better performance or otherwise.
5.
To
suggest on how to overcome identified problems in
the system, thereby proffering strategies for performance appraisal to become
more effective and efficient while embarking on performance appraisal excise.
1.4 Research Questions
To investigate the problem of
performance appraisal in MTN Nigeria, effort will be made to beam our search
light on the following research questions.
1.
Do
managers use performance appraisal in improving workers performance and
productivity?
2.
Is
there any relationship between performance appraisal and employees’ performance
and productivity in MTN Nigeria?
3.
Is
there any correlation between performance appraisal and attitude to work by
employees of MTN Nigeria?
4.
Can
organisational climate influence workers satisfaction, performance and
productivity?
1.5 Research Hypotheses
This study is geared towards testing
the following four tentative statements or research hypotheses for the purpose
of this research.
1.
Organizational
productivity is not dependent on effective performance appraisal.
2.
2.
There is no correlation between
performance appraisal and attitude to work by employees.
3.
Organisational
productivity is not dependent on employees’ satisfaction and performance.
1.6 Scope and Limitations of
Study
Since the researcher cannot cover the MTN Nigeria
within limit and available resources, the study covered only the 80 respondents
at the Enugu Zonal Office for the purpose of this study. These include the
management, supervisory and the junior cadre of MTN Nigeria. All cadres of
staff at MTN Nigeria were selected as samples for the purpose of questionnaires
administration.
In the course of carrying out this study, it is
envisaged that certain challenges will be encountered. These include: time
constraint due to the detailed nature of the topic to be investigated, access
to respondents could be difficult due to the ever busy schedule of those to be
interviewed. Getting some of the policy makers (Deputy and Assistant Directors)
in MTN Nigeria for comments could be difficult as they are either in a meeting
or not on seat.
Also, travelling to Enugu where MTN Nigeria Zonal Office
is located could be a major limitation to the effectiveness of the research
work, raising enough finance for the study could be difficult in view of the
harsh economic conditions in the country and sourcing for materials across the
length and breadth of the country could be a major handicap to any effective
research work. In fact, some of the libraries visited did not allow borrowing
of relevant materials, while others allowed restricted patronage. In some
cases, access to certain materials was possible only on a fee.
Yet, lack of access to information at MTN Nigeria due
to bureaucratic bottle-necks and the secretive nature of our public service are
emphasized. Finally, the result of the findings of this study may not
adequately apply to all other organizations in Nigeria as the study only
focused on the civil service. However, none of these omissions and limitations
may have any adverse effect on the conduct, reliability and validity of this
research report, but they among other difficulties constitute the limitations
of this study.
1.7 Significance of the Study The expected benefits of this research study to all stake
holders and partners in national transformation and development are so
enormous. First and foremost, the
purpose of every scientific research is to discover answers to questions
through the application of scientific procedures. These procedures have been
developed and adopted in order to increase the likelihood that information
gathered are relevant to the questions asked and are reliable and unbiased.
Secondly, the Federal and indeed the
States and Local Governments will through the findings of this study discover
the immense importance of performance appraisal if we are to achieve service
oriented public service in Nigeria.
Thirdly, this study will also present
to the government and management of MTN, the true picture of what their concern
about workers appraisal should be. Hence this study is intended to give an
insight into the best ways of integrating the organizational objectives with
that of the workers. This will make management to develop and adopt performance
appraisal techniques that would improve employee performance and productivity. yet,
organisations, managers, directors and policy formulators will benefit a lot if
they are aware of those factors inhabiting their employees from greater
performance and productivity.
This study is also of both practical
and theoretical significance. Theoretically, it is significant in the sense
that it will add to a body of knowledge in this area both in Nigeria and other
countries of the world. Practically, this study is significant in the sense
that it will serve as an appraisal of the value of performance management and appraisal
in a work place.
Scholars, upcoming researchers and
students in general stands to benefit from this study as it serves as
intellectual information depository for research development on topical issues.
Through this study, they will know what have already been said concerning the
study area and the areas that call for further study. Above all, it will serve
a guide and reference materials for scholars, researchers as well as undergraduate
and postgraduate students conducting research in partial fulfillment for the
award of degrees.
The society at large and indeed the
ordinary citizen or reader of this work will know that his or her individual
input to the growth or national development process and the entire body of
knowledge is indispensable if genuine transformation that can accelerate
National development is to take place in Nigerian and elsewhere.
The Non-governmental Organisations
(NGO’S) i.e. voluntary agencies, religious bodies, philanthropic organizations
and public spirited individuals will find this study of immense importance and
value as it will serve as a guide for performance appraisal and productivity
enhancement.
In conclusion, this study will
however recommend appropriate measures to be adopted so as to safe guide
against the anti-performance appraisal circumstances. It is the purpose of this
study to show that if workers are properly managed, motivated and their
conditions of service made conducive; MTN Nigeria can improve their level of
performance and productivity.
1.8 Operational Definition of
Terms
Usually in most social science
research, in order to avoid ambiguity in the interpretation and understanding
of certain terms, concepts used in the study must be clearly defined. The key
concepts that are used in this study are defined below:
Appraisal: AS a measure of individual staff work
achievements against agreed targets. As a progress evaluation, employee
performance or merit rating of an individual worker in areas of relative
strengths and weaknesses so as to reinforce the areas of shortcomings
Attitudes: The
word is used in this research to mean how one feels about one’s job. It refers
to those evaluative states either favourable or unfavorable concerning objects,
people or events. Here we concentrated on job attitudes like job satisfaction,
job involvement i.e. the degree to which a person identifies with his or her
job and actively participates in it; and organizational commitment, an
indicator of loyalty and identification with the organisation.
Development:
Is a way or method designed to increase the quality and quality of managerial
personnel through training. It is always designed around the needs of individuals
involved and it is evaluated periodically. Development can be measured in terms
of profitability or growth level.
Effectiveness:
As the achievement of desired goals. Tangible properties which deal with
physical manifestation, here our emphasis is on the quantity or unit of
production measure against standard.
Efficiency: As
achieving a purpose with lowest cost i.e. the ratio of output to input required
to achieve output i.e. achieving a purpose with a low cost. This is the
imputation of limited resources to maximize greater output. This emphasizes on
cutting down waste so as to improve more profitability for the overall benefit
of the organization.
Equity: Here
is defined as the perception by the workers that motivational incentives are
directly proportional to their input or effort at work as compared with the
rewards in similar professions.
Incentives:
Incentives here refer to those financial and non financial materials, morale
and psychological inducement that are given to MTN Nigeria workers which tend
to boast their morale and ego towards better performance and higher
productivity for the achievement of public service goals.
Management: Management
is the act of using the resources in an organization (i.e. training and
material) to attain desire objective. Also, management can be said to be a team
of people who are saddled with the responsibility to take certain key decisions
that will determine future of the organization, a faulty policy by the
management will bring about faulty result viz-versa. It involves the control of
human and materials resources towards achievement of organisational goals and
objectives. Getting things done through others, efficient utilization of
resources. Guiding or directing a group of people towards organizational goals
or objectives, i.e. the act of planning, organizing, staffing, directing,
controlling, leading and separation with an organisation.
Motivation:
Motivation here refers to goal-directed behaviour i.e. the process and means of
influencing and activating a workers energies and full potentials towards the
performance of set tasks and achievement of agreed organizational goals and
objectives.
Objectives: Objectives
are unbiased aims or purpose existing in real world outside the training mind.
That is to say, objectives are those ends that an organization seeks to achieve
by its existence and operation. The more the objectives are clearly determined,
stated and understood, the more likely they are achieved. The main
characteristics of objectives are: Objectives are advance or predetermined statement;
Objectives describe future desire results towards which present efforts are
directed; Objectives serve a variety of functions in any organization.
Performance:
This is simply referred to the extent to which an individual, unit or
department carryout task assigned to him. It is also a means by which an
organization evaluate an individual employee input and out level especially in
the area of attaining set goals or task assigned to him or her. It involves the
execution of duties and responsibilities assigned by constituted authorities
which one have promised to do, so as to achieve set goals. Performance of the Nigerian
civil servants measured in terms of effectiveness and efficiency
Strategy: As
the basic steps or approaches of management/government towards effecting
positive change in the MTN Nigerian in order to reach an objective or set of
objectives. In other words, the methodologies or measures adopted or outlined
by the MTN towards the achievement of employee better performance and
productivity improvement in the Nigerian public service to achieve its objectives.
1.9 Organization
of Study
The organization setting of this
study commences with an introduction i.e. a background statement, statement of
the problem, then objectives of the study and research questions. These are
closely followed by statement of research hypothesis and scope and limitations
of the study, the significance/utility of the study and the definition of terms
all within the first chapter.
Chapter two is made up of
introduction, review of related relevant literature on the research topic and
the theoretical framework. We reviewed the conceptual framework where we looked
at the concept and definition of performance appraisal, performance and productivity
improvement, objectives of performance appraisal. Also reviewed are
significance/purposes of performance appraisal, problems of performance
appraisal as well as steps for productivity improvement
The second phase of the review
focused on the theoretical framework where theories of performance management,
concept of reward and reward management as well as motivation theory and
relevance of the theories to the study. We concluded with a summary of the
chapter.
Chapter three devolves on the research
methodology where aspects such as introduction, restatement of the research
questions and hypotheses, the research variables, research design, target
population, sample size and sample adopted, methods of data collection,
research instruments used as well as a detailed explanation of administration
of research instruments and methods of analysizing such data and finally limitations
of the methodology.
The fourth chapter contains the
analysis of the data itself and the exposition of responses. We commenced this
chapter with a brief introduction, followed by respondents’ characteristics and
classification, then presentation and analysis of data according to research
questions. The presentation and analysis of data according to tested various
research hypotheses to validate or invalidate the earlier claims of the research
then comes discussion of the research findings.
Finally, the fifth chapter summaries
the results of the fourth chapter, draws conclusions, propose appropriate
recommendations to the research problems.