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BUSINESS ADMINISTRATION UNDERGRADUATE PROJECT TOPICS

EFFECTIVE PERFORMANCE APPRAISAL AS A TOOL FOR INCREASING PRODUCTIVITY

EFFECTIVE PERFORMANCE APPRAISAL AS A TOOL FOR INCREASING PRODUCTIVITY

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EFFECTIVE PERFORMANCE APPRAISAL AS A TOOL FOR INCREASING PRODUCTIVITY

Chapter one

INTRODUCTION

Background to the Study
According to Ngu (2004), performance appraisal is a “integrate approach to management for more productivity or efficiency in organisations”.

Through this strategy, the activities of individuals, units, sections, divisions, departments, or workers are watched, measured, and possibly rewarded in some way.

This management technique is a sort of communication in the sense that it communicates information, ideas, and values from one person to another; employer to employee, and vice versa.

Performance appraisals assist management in identifying loopholes or gaps in employee performance, which provides them with insight into how to implement training to improve the development process.

Performance appraisals are systematic methods of evaluating, reviewing, and analysing employee performance over a set period of time and using the data gained to plan for the employee’s future with the organisation.

This frequent, objective feedback is used to measure employee effectiveness and give appropriate growth and training to increase employees’ contributions to the organization’s goals.

Ihner (2001: 285-9) defines performance evaluation as a formal system for monitoring, evaluating, and influencing an employee’s job-related traits, behaviours, and outcomes.

The goal is to assess an employee’s productivity and evaluate whether it can be enhanced. As such, performance appraisals play an important role in managing people and guaranteeing organisational productivity.

Organisations use performance appraisals to make a variety of personnel decisions, such as salary increases, training needs, and proving documentation to back termination decisions; hence, they function as a control mechanism. As a result, a manager must assess those skills and behaviours in order to estimate performance and make personal decisions.

Performance assessment is a critical instrument in the hands of management for increasing the agility and responsiveness of an organization’s human resources. Many human resource decisions are based on performance appraisals.

As Lisa (2012) points out, it has a wide range of applications. As a result, Lisa (2012) defines human resources as the total knowledge, talents, aptitude, and creative abilities of an organization’s work force, as well as the value, attitude, and beliefs of the individuals involved.

One of the primary reasons that management engages in employee appraisal is to acquire information for promotion, demotion, transfer, wage rise, training and development, and discharge.

For the employee, an appraisal provides feedback on how management perceives his contribution to the organisation. However, for performance to be fully realised, management must use appraisal knowledge for the benefit of both employees and employers.

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