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Chapter one


1.1 Background of the Study

Growth is vital for an organization’s survival. Without it, the organization’s competitive position will deteriorate as competitors get a stronger foothold in the market; eventually, it will either lose market share or be acquired. Furthermore, expansion provides more opportunities to meet the different interests within the organisation.

It is important to note that simply wanting to grow is insufficient. If this is to be accomplished, the environment both inside and outside the organisation must be conducive to growth. Human resources have been regarded as a vital component in organisational growth.

Since Abraham Taylor (1856-1951), increasing organisational productivity has been a major priority (Idemobi and Onyeizugbe, 2011). It has been observed that group dynamics have a negative impact on performance.

As a result, Abraham Taylor broke down informal group activities using spatial and work-flow designs, as well as an individual piece rate pay system.

Taylor had built his management approach around production-line time studies. Instead than using typical labour procedures, he studied and timed steelworkers’ actions on a variety of jobs.

He pushed firms to give more productive workers greater wages than others, adopting a “scientifically correct” rate that would benefit both the company and the worker.

As a result, employees were encouraged to exceed their previous performance requirements in order to earn higher pay. Rather than fighting over profits, he felt that both management and workers should strive to expand productivity, and that by doing so, profits would rise to the point that labour and management would no longer have to compete for them.

This argument appears to imply that an organization’s productivity is jointly determined by the efficiency with which it uses various available factors of production, all of which are invariably scarce in relation to demand. In other words, organisations can only get a competitive advantage through people (Obisi, 2011).

However, the significance of a good employee performance appraisal system cannot be overstated. In today’s ever-increasing and competitive environment, organisations might expand to the point where employees are encouraged to advance.

According to researchers, many Nigerian business organisations pay less attention to performance appraisal systems, despite the belief that management and labour share a common interest in increasing employee productivity in the organisation.

Evidence in the literature also suggests that 44% of organisations worldwide use performance measurement systems as a mechanism to improve employee performance (Idemobi and Onyeizugbe, 2011).

However, many Nigerian organisations see and conduct performance appraisal purely in terms of evaluative aspects, ignoring its potential to assist employee growth and development through training, coaching, counselling, and feedback on appraisal information (Obisi, 2011).

Nigerian businesses must see performance appraisal as a key management strategy for determining their employees’ immediate and long-term value. Employees will contribute more to the attainment of their company’s goals and objectives.

However, it should be noted that a performance appraisal system enhances communication between employees and their immediate supervisors by giving a structure for feedback on performance. Employees must grasp the importance of performance appraisals in order to increase productivity.

Once this is recognised, employees and supervisors or managers must describe the expectations using the job description. Supervisors should also conduct reviews on a regular basis throughout the year to discuss the employee’s progress towards the targeted outcomes and address any persistent difficulties. Good employee relations are based on fair and equitable treatment.

Employee treatment must be based on specific norms that are applied equitably and without discrimination. There are seven performance variables established for all employees, plus one additional optional component.

Z They are communication, customer service, cooperation/teamwork, quality, productivity/core organizational/business abilities, job knowledge/technical competency, and professionalism (Wikipedia contributors, 2014).

When it comes to performance, keep in mind that the manager will rate each performance component on a scale of 1 to 5 based on employee performance. Specific, objective remarks might be given to support the ratings.

Managers and staff must have a clear knowledge of what each rating means and apply it consistently. The extant literature documents four performance levels. The first performance level is outstanding, which is reserved for those whose work performance clearly and regularly exceeds the requirements necessary for the position.

This level of performance is immediately identifiable by those in related fields as well as those outside of the individual’s own group or role. The individual succeeds in unique and unpleasant conditions, overcomes enormous business challenges with little or no coaching, and sets a good example for others.

Results consistently exceeded performance standards/objectives. The second expectation shows how the individual exceeds most of the position’s standards, including all major areas. This rating indicates a level of accomplishment that exceeds fair and rigorous expectations, particularly in important knowledge, skills, and talents.

Performance is distinguished by high achievement, and the individual exhibits planning and execution of all regular and most key duties with minimal supervision.

Third, “achieves expectations” explains how an individual exhibits a degree of accomplishment that obviously meets and sometimes exceeds expectations. It demonstrates good, robust, and consistent performance.

Has exhibited the ability to execute and control routine and important functions with periodic direction. Four, minimally meets expectations, depicts how an individual achieves a degree of competence that falls short of performance standards and does not or only marginally satisfies the requirements. This person performs at an uneven level and requires more direction and guidance than is typical for routine tasks.

In the developed world, performance appraisal has been utilised to uncover the strengths and weaknesses of employees on the job, particularly in the developed world (Per. Com, 2013. In these countries, performance appraisal procedure is carried out without the appraisers being involved, as opposed to emerging countries where the exercise is seen useless and detrimental to organisational aims.

To ensure that every organisation consistently achieves its goals, performance appraisal must become a regular practice and occupy a central role/or function within management. The fair practice of performance appraisal will expose all organisations to fierce competition and challenges at the local, national, and international levels.

That is, performance appraisal must become a tool for measuring an organization’s overall status. As a result, the purpose of this study is to look at performance appraisal as a management tool, activity, or practice for determining employee retention, promotion, and productivity at Nigeria Bag Manufacturing Company (BAGCO).

The company pioneered the production of woven polypropylene sacks, so contributing to economic growth and progress. The company appears to employ its resources efficiently.

According to Oluwo (2014), BAGCO’s In-Plant Training has already met 95% of its middle-level workforce requirements. External training packages are also offered to handle current industrial challenges.

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