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Chapter one


An organisation that follows excellent business regulations and prioritises client happiness must have a department to assure the business’s progression and continuity.

There are other types of departments in an organisation, but we are focusing on the personal department. The department is in charge of managing people to ensure the success of any organisation.

The department has evolved over time as a result of the realisation that the people who work for an organisation are a common resource that should be used to the fullest.

One of the functions of a personnel department is to appraise employees, often known as staff performance appraisal, staff evaluation, merit rating, and so on.

Someone begins a performance review when an employee is hired into an organisation, whether as a secretary or as the organization’s CEO.

Organisations must survive in today’s ever-changing competitive market, which is characterised by risk-taking, and the key to such survival is a revitalised human resource base.

Employees with the necessary skills, talents, capabilities, experience, qualifications, and a true work culture, as well as problem solvers, are in short supply. It is critical that organisations nurture, nourish, and develop their employees through performance appraisal.

Performance appraisal is intended to meet the needs of the organisation by providing systematic judgements to support salary increases, transfers, demotions, or terminations, as well as the needs of the individual by informing him or her of his or her performance and suggesting needed changes in his or her behaviour, attitudes, skills, and creativity.

1.1 Background of the Study

Every organisation should prioritise the performance appraisal of its employees. The head of department (H.O.D.) or personnel department must meet with the other departmental heads to prepare recommendations and ideas on a broader view of performance appraisal.

In recent years, performance appraisal has received significant attention in the world of management. The focus is no longer on personality qualities and abilities, but rather on current performance, future potential, and goals.

Killen (1977) described performance appraisal as a structured evaluation of an employee’s job performance, as well as a set of procedures used by superiors, peers, subordinates, and employees themselves to grade, rank, or explain their work effectiveness.

According to Richard A. Enion, the Supervisor writes an appraisal of the subordinate’s job performance, which the superior then submits to a committee for examination and approval; this should not be overlooked when adopting performance appraisal.

According to Stalz (1966), the performance appraisal process follows a series of patterns, similar to how a man’s performance is reviewed by his superior on a regular basis.

Willima F. Laide stated that the personnel manager is in charge of creating and implementing the appraisal programme. The person who conducts the appraisal differs by company.

However, direct participation of the line manager in the programme’s functioning is required for the firm to progress and expand in the future.

In most companies, the immediate superior or supervisor is responsible for the performance appraisal. The optimum technique is to aggregate the appraisal from many sources, with the time span being either annual or semi-annual.

1.2 Study Objectives

1. To improve communication between superiors and subordinates in the workplace.

2. Acknowledging and motivating exceptional performance.

3. To be able to tell staff how well they are doing. A good appraisal system gives employees with the appropriate feedback while also guiding their overall environment, growth, and improvement.

4. Provide the employer with data that can be used to deploy staff to service in a larger capacity.

5. Provide an ideal opportunity for both sides, the employee’s supervisor and the employee, to voice their thoughts about job performance.

6. To identify employees’ unique needs for extra education, training, and development, which will result in enhanced performance for them and the organisation as a whole.

7. To advise management or organisations on significant decisions like transfer, promotion, career planning, and termination.

8. Performance appraisals aid in the removal or adjustment of an individual’s erratic behaviour inside the organisation.

1.3 Importance of the Study

1. It ensures uniformity in the evaluation process, allowing individuals with comparable competencies to receive the same rating.

2. It provides an opportunity for self-appraisal and regeneration.

3. Keeping track of ratings will allow management and individuals to plead their arguments against any double speak or sharp practices on the side of the organisation.

4. Information provision for managing and carrying out critical manpower planning subsystems such as training, promotion, selection, transfers, layoffs, and so on.

If advance knowledge is available as a result of the performance appraisal outcome, this component may aid in the resolution of problems arising from immediate decisions or judgement.

5. It assists management or supervisors in making judgements regarding their subordinates.

6. The waywardness of an individual in the organisation could be contained or removed by assisting him or her through performance review to adjust or be shoved out.

1.4Statement of the Problem

1. There is a widespread misunderstanding that managers and other participants responsible with conducting performance appraisals have already mastered the necessary abilities.

This can be misleading because many assessors have been found to lack the necessary skills, training, and capacity to properly manage performance rating systems and approaches.

2. Many performance rating approaches lack objectivity. To emphasise objectivity, employee evaluations must consider job-related variables rather than personal attributes.

3. Many evaluators may have biassed views against certain employees about anything, and some evaluators may also show favouritism for a member of a specific tribe, ethnic group, religion, or gender.

4. Evaluators purposely rank personnel at the average or middle of the scale in order to avoid controversy or criticism for their actions.

5. Many bosses have been accused of “high-handedness” towards their personnel. In this example, the rating supervisor takes unfair use of the appraisal to victimise their “perceived enemies”. The prejudiced approach to evaluation typically results in antagonism, tension, distrust, and a lack of faith in the appraisal.

6. The performance assessment system is a control device that measures an employee’s achievement against the standards and goals agreed upon by the employer and the employee.

However, experiences have revealed that in many organisations, employees have not been supplied with the requisite wherewithal, the enabling resources in terms of materials, tools, equipment, money, and manpower required for effective performance review.


Of the numerous statements made concerning staff appraisal, it has been seen and determined that they strive to improve employees’ ability, skills, capabilities, and creativity in order for the organisation to run smoothly.

The more attention a manager or supervisor devotes to counselling his subordinates, the more time he is likely to save in the long run as a result of his subordinates’ enhanced capabilities.

Employees understand the value of performance. Appraisal because of the improvement of their capabilities and where they stand, i.e. they will know whether they will be degraded, promoted, or moved because the appraisal informs them of their performance in the organisation. It is determined that a performance appraisal is incomplete unless the appraisee is informed of what is happening.

Staff appraisal is often viewed as the process of monitoring an employee’s performance, conduct, and attitudes in order to ensure the organization’s success.

Monitoring an employee entails focusing on his or her overall performance, including tasks and behaviour, as well as counselling the employee; counselling must be immediate and constant due to the positive influence it has on employees.

1.6 Limitations of the Study

Time constraint: This study write-up was completed in a restricted amount of time while also working on challenging academic assignments.


1. How do employees feel about staff appraisals?

2. How do managers feel about performance appraisals?

3. Are rewards misplaced in performance appraisals?

4. Are the appraisal system’s objectives apparent to all employees?

5. Does performance appraisal provide a chance for the appraiser and appraisee to discuss expectations, accomplishments, failures, constraints, and necessary improvements?

6. Does the performance evaluation system allow for open communication between each appraisee and appraiser pair during performance review discussions?

7. Is performance appraisal used for additional development activities such as work rotation and enrichment?

8. Is management serious about performance appraisal?

1.8 Definition of Terms

(i)Organisation: The process of forming an organised group of people with a common goal.

(ii) Staff appraisal/performance evaluation: This is the undiluted technique by which any organisation assesses its human resources in terms of current performance, including each individual’s likes and dislikes, strengths and weaknesses.

(iii) Personnel department: This is the department in charge of managing people to ensure an organization’s success.

(iv)Personnel manager: Someone who has authority over others in order to get things done.

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