Performance Appraisal in Private Sector Manufacturing Company

Performance Appraisal in Private Sector Manufacturing Company

Performance appraisal is an important yardstick, which is used to measure individual performance.  When an employee has been evaluated he will then be in a position to know how well or how badly he had done doing a given period of time.

Appraisals are used to estimate the overall effectiveness of trainers of training support personnel in performing their jobs.  It can also be used identify strengths and weakness in job knowledge and stills.

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Furthermore, it is used to determine whether a subordinate’s responsibilities can be expanded and future training and developmental need identified.

Moreover, performance appraisal is used to review progress towards goals and objective to determine readiness for promotion and to motivate and guide growth development.  The overall goal of appraisal system is to improve the organization’s effectiveness.  A compilation of objectives of appraised have been identified in the literature (Sars, 1990; Banjoko, 1996; Hackette 1997; Cole 1990, Flippo, 1979; Werther and Davis 1989; Torngton and Hall, 1987; Bradstreet, 1971) as follows.

  •  Human Resources Planning

In assessing a firms internal supply of human resources, data must be available that describe the promotability and potentials of all employees, especially the executives, management succession planning is a key concern for all firms and performance appraisal yield essential data for this activity.  A well-designed appraisal system provides a profile of the organization in terms of profile of the organization in terms of its human resource.  Strengths and weakness.

  • Performance Feedback

Most employees are very interested in how well they are doing at present, as well as how they can to better in the future.  They wish to have this information not only for personal satisfaction that positive feedback provides but also to help them improve performance in order to qualify for organization rewards such as promotion and will pay.

  • Training and Development

A complete appraisal form should point out employee’s specific need for training and development, which can lead to improved performance.  Deficiency in performance may be attributable to inadequate knowledge or skills.

  • Recruitment and Selection

Performance evaluation ratings may be helpful in predicting the future performance of job application (e.g) it may be found that a significant number from certain schools majored in particular fields.  This knowledge could influence a firm’s approach to recruitment.

  • Career Planning and Development

Career planning and development may be viewed from either on individual or organization print of view.  Appraisal is essential in assessing an employee’s strength and weakness and determining potentials.  Managers may use such information to counsel subordinates and assist them in developing and implementing their plans.

f.       Improving Communication

Appraisal provides a forum for an employee to tell the boss what they are doing and thinking.  The couple of his set aside for the appraisal interview is a unique opportunity to talk frankly and freely.  As such, it provides a valuable channel of feedback and communication.

  • Compensation

The results from appraisal provide the basis for decisions regarding pay increase.  Most managers feel that outstanding job performance could be recorded tangibly through increased financial compensation.

  • Internal Employee Relations

Appraisal data are also frequently used for decisions in several areas of internal employee relations such as promotion, demotion, termination, layoff and transfer.

  •  Dealing with Poor or Marginal Performance

All organizations contain people whose performance is marginal or substandard.  Organizations cannot allow that type of performance to continue but on the other hand, a good employer must find ways of helping such employees to improve.  Marginal performance cannot be left to the annual appraisal, but it does provide the opportunity for the manager and the appraise to agree targets and means of achieving them.

  1. Rumour and Suspicion Dispelling
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Partial or total absence of clear, communicable evaluation system happens to be one of the causes of suspicion and rumours in the work place.  When employees are denied dues to their future through the official organ of evaluation, they resorted to telling themselves what they “feel” is happening.


According to Sikula (1976) appraisals help to maintain a satisfactory level of performances from employees on their present jobs.  He went on to write that workers evaluation help to highlight employee’s need and opportunities for personal growth and development.

In addition, employee appraisal aids decision-making or promotion, transfer, layouts and discharges.

Furthermore, many organizations related the size and frequencies of pay increases to the rating assigned to the employee during the performance appraising process.  Also, the accuracy and validity of predications made in the employee staffing sub-processes recruitment, selection, and placement and in doctrinarian are often determined by comparing or correcting performing ratings with tests scores and interview evaluation.  Sikula also stated that if evaluation is carried out properly, the entire appraisal process can superiors and their subordinates.

Straues et al (1971) stressed that performance appraisal has shifted it’s primary objective in recent years.  Originally, according to them, it used to be a guide to management in selection.  Supervisors for promotions or salary increases, but one now also used as a training and coaching device to help workers on all levels of management to improve their performance.

In industries, an effective performance appraisal provides management with a rational basis for determining who should be promoted or receives salary increase.  In addition, it permits each worker to be considered on the same basis as anyone else and thus fewer changes of favoritism are made selected for promotion.  Proper performance appraisal and workers to work hander so as to win a favourable rating.  It helps long range personnel plan to be facilitated since it is easy promotion after further experience and training.  Also through performance transfer can be more easily channeled to meet the needs of individuals, while managers who need special training can be identified.  Appraisals also help a company to make an evaluation of the overall effectiveness of its programme for management development and selection.

Performance can also be used as a springboard for caching and for helping individuals set goals for their own development, but the procedures which are most useful for selection purpose are less useful for self development.  As a result, many companies have abandoned their traditional procedures, (to be discussed later) which often emphasized the rating of an employee’s personality trait by his boss, than the biased methods.  While some organizations have diverted to some less biased method, others have abandoned ratings at all for result oriented evaluation procedures, which frequently involve the setting of goals by supervisors and subordinates working together.

Torrington et al (1973) in his book wrote that organizations carry out management development so that they will have sufficient supply of managers adequately prepared to meet their predicated needs.  They went on to write that judgment and choices about people’s work have to be made within all organizations and that to do that effectively requires some systematic evaluation procedure rather than casually carrying it out.

The most important reason for carrying out performance appraisal, according to Torriugton et al includes the assessment of past performance to improve performance in the present job and to allocate salary increase in relation to achievement moreover, appraisals are carried out to indicate any need to change the job incumbent, to uncover particular talent of any sort and to evaluate particular talent of any sort and to evaluate selection procedures and training schemes performance appraisal can also be carried out for the encouragement of the deliberate managing of subordinates including the conscious observation of their work.  Furthermore, it is carried out for the improvement of managerial motivation by letting the men know how the company considers them to be progressing and their prospects in the job.  Appraisal also enable employees to express their our carrier interest and encourages a two way communication between subordinates and superiors on whatever either wishes.

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Campbell  (1970) wrote that since appraisal is a development technique, it provides an opportunity for the superior and subordinates to discuss means of improving the subordinate’s performance.

The above, according to him, involves a systematic coaching and it is distinct from the use of appraisal to identify training needs which may be approached using other training and development techniques.

Callhoon (1967) identified the process of performance appraisal as useful because it fulfills the following objectives:

–        It provides a uniform basis for the judgment of employees’

–        It enables the employee to know his ability, achievement and his potentials.

–        It also provides a permanent record of the individual by furnishing information for following on his behaviour trends.

Charles J. Coleman (1979) defined performance appraisal as the systematic evaluation of the individual’s performance of the job and of potential for development.  Through the appraisal organizations evaluate the work of employees, communicate how they are doing and lay plans to help them develop,

Through the appraisal process leaders try to help subordinates understand areas of deficiency and strengths so that performance can be improved.  The plans that emerge from appraisal set employees upon programs to build their abilities.

Appraisal also ties into the organizational side of personnel administration.  Organizations develop system of appraisal that helps them keep track of employee’s performance and development.

Molander and Winterton (1994) defined performance appraisal as the major source of information relating to the development need of employees.  One of the essence of evaluating employees performance is to be able to get a feedback.  Appraisal reflects the outcome of mutual exploration of employee’s strength and weakness through establishing a two-way problem solving discussion on the areas where improvement is needed.  Valuable information is gathered through performance appraisal, which is useful in developing the required training programme for personnel within the organization.

Performance appraisal therefore provides answers to basic questions to employees and employers as:­-

  1. How well am I doing?
  2. How well is our employees doing individual and collectively.

iii.      How can I do better?

  1. What can be done to help our employees do better for us and themselves?
  2. For which employees are various personnel action appropriate?

Advantage and Disadvantage of Confidential Reporting System:-       

The confidential report the employee who is apprised is not allowed to read the report or comments written about his or her performance.  The company or organization regards it as a part of employees file, which is the company property.


The confidential report is objective to a point since the reporting office tries to write everything as they occurred.  Moreover, since the subordinates being reported on those that does not read the report, the appraisal becomes very straight forward and objective.

Conflict is also reduced with this type of reporting system.  This is because, when reports are negative even if they are true, the officer reported on may sometimes react violently when the report is shown to him.

Superiors are also protected from open criticism since; the subordinates have not seen the reports.  Moreover, the confidential reporting system saves time since there is no appraisal interviews conducted after the report has been written.

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The disadvantages hinge on the fact that subordinates are victimized a lot.  This is because, they do not see the report, so becomes an opportunity for the superior to punish the subordinates.

There is also feedback, which helps for correction and improvement.  Also there is a lot of superiors associated with this reporting system.


The main advantages of the open reporting system are that it provides feedback for performance improvement.

It also enables employees to identify their weaknesses.  This is because these subordinates are allowed to read the reports written about them.

They find out why they have been rated low through discussions between them and their superiors, corrections are made.  Also there is no room for victimization since the reports are read by the officers reported on.  Understanding is fastened and relationship improved between the superior and the subordinate with the open reporting system.

The main disadvantages of open reporting system include the colouring.

–        It is prone to conflict, since the appraisal is allowed to read the comments about him, he reacts when the report is negative even if these reports are true.  The superiors live in perpetual fear of being confronted and even attacked as a result of these negative reports.

–        Since the officers know that the subordinates will eventually read the reports, an amount of subjective judgment come in.  these superiors are no more objective because they try to avoid any type of misunderstanding between them and the subordinates.  This is because the appraisal is allowed to read the report and after that, there is an appraisal interview, which involves a counseling session.  All this takes a lot of time.



Appraisal techniques are broken into two:

–        The traditional method which is known to be used but no more commonly practiced; and

–        The modern methods, which are still applied by most organizations today.


The modern method of appraisal include:-


With this method, subordinates to be rated are listed and placed in strict numerical order of merit.  The subordinates are then rated by percentage example.

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