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PERFORMANCE EVALUATION AND ITS EFFECT ON EMPLOYEES EFFICIENCY A CASE STUDY OF MICHELIN RUBBER ESTATE UTAGBA – UNO

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ABSTRACT This research work is aimed at knowing the effect of performance evaluation and its effects on employees’ efficiency using Michelin Rubber Estate as a case study. Every organization is designed and exists for a purpose and it is only when this purpose is attained that the survival of the Business is guaranteed and  the corporate goal is achieved too. Knowing what we want to do is the critical step in knowing what we must do. The first pre-requisite for performance therefore is knowing the goal which the organization is out to achieve and based on this premise, standards are  set for the employees to meet. But whatever motive behind any organization, the actualization of it lies on the human factor on the job and so human beings cannot be treated in the same manner like other resources. Based on this fact, there must be a basic and scientific way of measuring employees’ performance appraisal is a means by which managers and their staff can discuss key issues in a systematic manner and thereby ensure that both work for the accomplishment of the corporate goal.               TABLE OF CONTENTS Title page                                                                                                              i Certification                                                                                                          ii Dedication  Acknowledgement  iii                                                                                                    iv Abstract table of content                                                                                                v CHAPTER ONE                                                                                                 vi 1.1                          Background                                                                                          1 1.2                          Statement of problems                                                                         4 1.3                          Objectives of the study                                                                        4 1.4                          Research questions                                                                              5 1.5                          Significant of the study   1.6                          Scope of the study                                                                                6 1.7                          Limitation of study                                                                               7 1.8                          Definition of terms                                                                                8            CHAPTER TWO 2.1                                    literature Review                                                                               11 2.2            relevant theoretical foundations how to appraised performance                          16 2.3            who should appraise                                                                                  17 2.4            what employee need in relation to job                                                                  18 2.5            key factor in marketing effective performance appraisal                                      20 2.6            Acting on appraisal                                                                                    21 2.7            Stages in performing appraisal                                                                            23 2.8            Six elements of performance appraisal                                                       24 2.9            Objective of performance appraisal in organization                                   25 2.10       Feedback in appraisal system                                                                     37 2.11       Common error of employees appraisal system                                          38 CHAPTER THREE RESEARCH METHODOLOGY 3.1            Research methods and sources of data                                                       45 3.2            Population of the study                                                                                        46 CHAPTER FOUR 4.1            Data presentation, Analysis and Discussion                                                        47 4.2            Data Presentation and Analysis of Sample subject                                              47 CHAPTER FIVE SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION 5.1            Summary of Findings                                                                                 53 5.2            Conclusion and recommendations                                                              55 5.3            Suggestions for further research                                                                 57 5.4            Appendix                                                                                                   59 5.5            References                                                                                                  62       CHAPTER ONE 1.1     BACK GROUND Performance appraisal is perhaps a programme in personnel management that is very fundamental to individuals and origination growth and yet seldom given enough attention, the dictum that people make up an organization is fact universally acknowledged organization, big or small need the services of people to attain set goals. According to Patrick A. Omoile (2005:235) performance appraisal is one of the method by which management can ascertain that work are properly utilized by manager in achieving the co-operation objectives. This personnel department, Appraised subordinate is not an easy task as it put the superior in an enviable position of judging his subordinates. Every manager must therefore aquire the necessary skill for performance appraisal. Appraiser must seek to  perform their task with pen minds and with a view assisting staff to improve their performance. To this end, judgment and decision must be objective and devoid of bias and prejudice so that appraiser would not be seen as the accuser, prosecutor , and judge at the same time this is the time general attitude where adverse report is given about an appraisal, simply because the superior sets the targets, delegate authorities and assesses performance. Performance appraisal should not look for failures but while an employe perform exceedingly well in one area and failed in others, its potential and training needs necessary to take remedial actions that will lead to the improvement of its performance and develop its potentials. Performance appraisal will also indicate how an employee should be rewarded. Appraised is an evaluation of the performance of workers in their respective responsibilities. It start out with a statement of the major contributed expected from a man in his past and present position, record of his performance against these goals. Appraisal actually takes a much with what a man do. Weaknesses are seen as limitations to the full use of strength and his non-achievement, effectiveness and accomplishment. To appraise simply means to judge the quality or find out the value of something. Michael (2001:30&), in this view referred to performance appraised as to review of employee’s performance based on objectives agreed. On this basis of the evaluation of the objective agreed, it is certain that areas of weakness and strength could be identified and improved performance taken. The concept is at time referred to as staff appraisal, performance rating, performance review and among others what  ever name it is called, the main idea is that it helps to find out where the employee is compared to where he expected to be. From this perspective of the management, appraisal exercise is to identify the employee’s areas of strengths and weaknesses. The ultimate aim is to make the employee improve on its performance and eventually make it possible for the organization to achieve its goal and objectives. Further more based on the review management often taken action. Which would likely make it possible for employee to realized his expectation at works. Charles Duke (1999:100-102) in book the effect executive in this concept of management by objective (MBO), the manager or superior sets and agreed with the employee or his subordinate, target and objectives of the department within the frame of work of corporate objectives. Each in achieving those objectives and then work toward them. Based on this  premise, the employee performance ca\n be appraised to detect if he has done well enough or he has performed below the standard set. 1.2            OBJECTIVE OF THE STUDY The study is directed toward: (a)              Identifying the  characteristics of an effective appraisals system. (b)             Evaluate and examine performance –appraisal system in Michelin Nigeria limited, and how it relates to the efficiency of worker in the organization. (c)              Examine how performance appraisal identifies employees subsequent remedial measures to rectify such weakness (d)             Draw attention to the employees’ present performance in their job and the determination of fair reward (monetary and non-monetary) for them. (e)              And recommendation as appropriates. 1.3            STATEMENT OF PROBLEMS The annual evaluation of employees through the use of performance appraisal in almost every organization has come to stay. Since the system is becoming an essential function of human resources management, it has become necessary to assess how it is contributing to organizational growth and the development of the employees. It is against  this background that this study hopes to determine the effects of the use of performance appraisal on the efficiency of Michelin Rubber Estate Employees. More specifically, the problem which the study hopes to investigate are as enumerated below: (a)              How can the effective use of  performance appraisal be used to determine the level of efficiency and output of an employee in Michelin Rubber Estate at Utagba-Uno . (b)             Does the use of performance appraisal effectively reflect the strength and weakness of the employee? (c)              How does the use of  performance-appraisal help the employee to achieve greater productivity? (d)             How organization target setting, and feed back informational in Michelin rubber estate effect the management of the employees performance? 1.4            RESEARCH QUESTIONS                    The following question could be identified in the study : (1)     Is there any positive relationship between performance appraisal and employee development? (2)     Does effective performance appraisal reveal employee’s weaknesses and purpose measures for correction? (3)     How can the employee achieve the improvement, and how are opportunities for development providers? (4)     SCOPE OF STUDY                                                                        the study is focused primarily on the private sector, particularly in extraction industrial. Michelin Nigeria limited was chosen because of the realization of dynamic and efficient human resources department on the believe that it provide the insight into achievement of the purpose of this study, and how to show appraised system as it. It will embrace both junior, senior and management staff categories of employees. 1.5     LIMITATION OF STUDY           A work of this nature would certainly have numerous obstacles on its way. I certainly met some . There include the following.            {1}    TIME CONSTANT             A study of this nature normally requires years to put together, I never had the luxury of such time. In fact this work had to put together in a few months and it was always a race against time. This was certainly a constant. (2)     AVAILABILITY OF FUNDS Even though only the staff of Michelin Rubber Estate at Utagba-Uno where the respondent populations, the difficulty of going there incessantly only to hear that they were yet to fill the questioner was not cheap at all. (3)             THE ATTITUDE OF RESPONDENTS The indifferent attitude of respondent was a serious stumbling block. (4)             DEARTH OF MATERIALS Though the topic in the board area of human resources managements, getting recent text-books other research materials like journals and periodicals that addressed the issue of study was extremely  difficult. Visits to various libraries within and outside delta had to be undertaken before adequate material could be assembled. 1.6     SIGNIFICANCE OF THE STUDY           It is a universal belief that a fundamental objective of management is the optimization of business profit and hence stakes holder value. In doing the optimization of labor efficiency is crucial. In an effort therefore, to ensure the maximum efficiency of labor, various incentive schemes, are established among which are promotion increment and non-pecumary benefit that the employee may enjoy. It is  a vital tool by which management get a feedback on the employee’s perception of how the human resources available to it are working. It essentially focuses on the effort of appraisal on the employees whether it is effective or non effective on employee efficiency. Finally, the essence of this study is to show if performance appraisal in Michelin Rubber Estate is serving as a tool for generating improved employee performance but if  not determine why and to provide recommendation for a more efficient appraisal system. 1.7     DEFINITION OF TERM           CHECKLIST: This is a method where by the rate  selected words or statement that describe the employee’s performance and characteristics. CRITICAL INCIDENT: This is a method where by the rater record statement that describe the employee’s behavior in term of extremely good or bad to his job. FEEDBACK: It is the information passed to the employees on the rate of their performance in the organization. HALLO EFFECT: when an aspect of employees performances influence his appraisals. FORCE CHOICE: An aspect of choosing one or two statement out of three or four that best suits the employee’s performance. PAIRED COMPARISON: It is a way of pairing employees and choosing as superior in overall job performance.  LENIENCY: This is when superiors who are de3ficient, rate their employees high as an easiest way to covering up their deficiencies. LOW DIFFERENTIATION: The evaluates others  based on his style rating behavior. SINGLE CREATION: a work is appraised based on one variable whereas there are other variable present in course of doing his job.             SIMILARITY ERROR: Giving special consideration when rating other to those qualities that the evaluator perceived in himself or herself. INDIVIDUAL RANKING: An evaluation method t hat ranking order employees from best to worst. MREU: Michelin Rubber Estate Ugba-Uno OBJECTIVES: The term means what the organization is set out to accomplish JOB: This term refers to employees task. PERFORMANCE APPRAISAL: This means a process by which worker is periodically evaluated so that human activity can be coordinating to accomplish objective. APPRAISEES: This refers to employees who are appraised periodically by their superior officers. APPRAISERS: This refers to the management that appraises employees periodically.




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