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PERFORMANCE APPRAISAL IN ORGANISATION: BUILDING COMPETENT

EMPLOYEES

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Asian Journal of Current Research
2(3): 89-94, 2017
ISSN: 2456-804X

PERFORMANCE APPRAISAL IN ORGANISATION:

BUILDING COMPETENT EMPLOYEES

MICAH DAMILOLA JOHN1*, OMOLAYO, EZEKIEL TUNDE1

AND IMOUDU, MONICA ANITA2
1
Department of Sociology, Adekunle Ajasin University, Nigeria.
2
Department of Sociology, Igbinedion University, Nigeria.

AUTHORS’ CONTRIBUTIONS
This work was carried out in collaboration between all authors. Author MDJ was the main editor of this work.
He oversaw the analysis of data and interpretation of data. Author OET was responsible for literature review and
type-setting of the work. Author IMA was designed the tables of the work and was also responsible for editing
introduction of the work. All authors read and approved the final manuscript.

Received: 1st July 2017

Accepted: 20th July 2017
Published: 12th October 2017 Policy Article
__________________________________________________________________________________

ABSTRACT

Appraisal of employees is an important aspect of management which determines many factors regarding
employees’ job commitment and largely productivity. However, this technique of management is sometimes
abused by managers in organisation. In line with this background, this paper examined some of the problems of
appraisal techniques in a beverage designated company. The paper is based on Homan’s Exchange Theory as
basis of theoretical explanation. The paper relied on secondary quantitative data and analysis using tables,
percentage and frequency. There were 97.3% respondents that held that appraisal tool is one of the determinants
of promotion criteria in their organisation. Also, 86.0% agreed that appraisal tool can influence job performance
where it is used without prejudice. There were 64.0% respondents that believed that managers sometimes used
appraisal tool to witch hunt perceived enemies in organisation, while 71.3% believed that appraisal tool is a
major factor in the rating of employees for annual salary review. Consequently, 54.7% had negative perception
of the use of appraisal technique in their organisation. Appraisal technique is an integral factor in employees’
job commitment and it is often used as criteria in promotion. Managers sometimes employed appraisal tool to
settle scores with perceived enemies and this elicits negative perception among employees. There is need to
ensure that appraisal tool is objectively done in organisation and it is not only subject to implicit decision of
managers who could be mischievous with the tool.

Keywords: Appraisal tool; job commitment; productivity; organisational management.

1. INTRODUCTION AND PROBLEM position that exist in organization and these

STATEMENT
Employees represent important element that keep
survival of any organisation. They are aspect of
human resource built to facilitate attainment of goals.
Specifically, there are hierarchies and level of
hierarchies are occupied by individuals who are
rationally empowered with authorities of the position
[1,2]. The essence of this hierarchy is to reduce
complex organisation into departments and units
where workers converge to carry out specialized
tasks. It is expected that each department or unit is

_____________________________________________________________________________________________________

*Corresponding author: Email: damilolamicah@yahoo.com, damilola.micah@aaua.edu.ng;


directly under the control of an individual who is
appointed as head or supervisor that gives directive to
subordinate staff. The head of department rationally
occupies position to supervise subordinates to
accomplish tasks according to organizational goal,
vision and mission. Similarly, the head of department
or supervisor is expected to give detail report about
their subordinates which revolves critical aspect
of job performance, competence, personality
information, punctuality, social relationship and
integrity and son on [3].
The information so supplied is important for many
reasons. This information provides background
knowledge about employee and how they could be
rated in the organisation. The information also
provides knowledge about employee dealing with
their skills and expertise in task accomplishment. At
the same time, this information will help measure
employee on the scale of performance and
productivity [4,5]. This is the performance appraisal
that is critically important to determine the growth
and development of employees. However, while it is
possible that performance appraisal has been used
positively as fair tool of organizational management
[1,6], on the other hand, some managers employed
the tool to deal unfairly with perceived rivals in the
organisation [7,8]. Yet performance appraisal is
supposed to be veritable tools to assess employees
on predetermined scale of performance to encourage
in area of strength and advise to improve in area of
weakness. Unfortunately, managers/supervisors now
use this tool indiscriminately to deal with perceived
enemies [9,10]. Nevertheless, if performance
appraisal determines promotion and development of
employees in organisation, it is necessary that there
is need for check and balance to prevent the use in the
hands of prejudiced individuals. This is the main
focus of this paper.
1.1 Objective of the Paper
The specific objective of the paper is to examine
utilization of performance appraisal in a beverage
designated company and how this helps to
explain feelings of employees about appraisal tool.
This objective will identify what appraisal tool is
used to achieve and how this influences perception of
employees in organisation.
1.2 Scope and Significance of the Paper
This paper relied on extracted quantitative secondary
data from a study conducted in coco-cola company,
Lagos by KPMG Resourcing Organisation in 2015.
Secondary data on performance appraisal was
utilized for this paper. The significance of this paper
draws on the possibility of problem and bottleneck
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John et al.; AJOCR, 2(3): 89-94, 2017
created by performance appraisal and how this can be
mitigated to improve job performance of employees
through the uses of the tool.
1.3 Operational Definition of Concept
Performance appraisal: This concept is used in this
paper to mean a tool in the hand of managers,
supervisors, Head of Department, which serves to
measure job performance of employees. This tool
often listed items which relate to tasks and sometimes
given to subordinates to fill out. The scoring and
grading are computed and approved by Head of unit or
department.
2. LITERATURE REVIEW
2.1 Performance Appraisal in Organisation
A performance appraisal allows constructive feedback
on employees and determines increase in
compensation. By using a set of standard rating
criteria for each employee, it helps to ensure fairness.
However, a number of challenges must be overcome
to maximize the effectiveness of the appraisal
process. A way to overcome this is to follow a
standardized review format that will be used for every
employee. This will help ensure that employees are
treated equally [11].
An appraisal process can make employees
uncomfortable, as they may not enjoy the close
scrutiny or view the whole procedure as a negative
endeavor. This can be alleviated by explaining the
procedure at the beginning of the appraisal. Managers
can consider giving the appraisal guidelines to
employees ahead of time so that they have a better
idea of what to expect [3]. A manager may be
subject to personal biases. Such managers can also
be swayed by an employee's recent performance
while overlooking actions that may have taken place
earlier in the appraisal period. The problem of bias
can be overcome by making notes of employee
actions throughout the appraisal period so that the
information can be used when preparing evaluation
[12].
An employee may have done an excellent job during
the appraisal period, which managers acknowledge
during the review. However, organsation may be
experience tough times or have limited resources to
offer a significant pay raise. This can create
disgruntlement and reduced productivity, as the
employee may feel that there's no point in making an
extra effort if work is not properly rewarded.
Managers may have a tendency to focus on areas that
need improvement during appraisal but fail to provide

suggestions as to ways the employee can improve
[13]. As a result, the employee may feel that the
purpose of the appraisal is to point out only what is
wrong. If there are negative points in the review,
manager is expected to work with the employee to
develop an improvement plan [1]. Performance
appraisal is bedeviled by many factors which can be
identified.
2.2 Perceived Unfairness
In an ideal world, incentives lead to enhanced
motivation, effort, and performance says Nancy R.
Katz of Harvard University's Kennedy School of
Government [12]. In the real world, however,
incentives can have dysfunctional effects. This is
when incentives and rewards are based on
performance. Workers become finely attuned to
issues of fairness and any system that is perceived as
unfair can cause real problems for an organization. It
is important to replace individual incentives with
group-based ones. Incentives based on the
performance of a group lead to increased self-esteem,
lower anxiety and more job satisfaction for the
employee as well as more respect among group
members [11].
2.3 Excessive Criticism
It is a challenge to avoid coming off as overly
critical. Positive encouragement and affirmation are
crucial to worker performance [11]. This is good-will
deposits and without them, withdrawals cannot be
made. Constructive feedback can take place only in
an environment of caring and listening. Ideally,
affirmations should not occur only during a
performance evaluation. Employees should be aware
of how their employers regard their performance at
all times during the year [1]. Being aware of the
challenges of employee performance evaluations, and
overcoming them, can help managers to face the
dreaded task with more confidence and may even
create a more positive, enriching and productive
work environment.
2.4 Performance Appraisal Problems in
Organisation
Organization's goal is to maintain a work force that is
energetic, motivated and fully engaged in the work.
Employers sometimes chart the path to this goal by
designing an elaborate performance management
system that only addresses one segment of employee
performance. Therefore, some of the keys to solve
problems in appraisal tool as suggested by [11] are
identified below.
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John et al.; AJOCR, 2(3): 89-94, 2017
2.5 Beginning
Schedule a time with your new employee to reach a
mutual understanding of the job's duties and
responsibilities. Failure to take these initial steps
may create issues upon completion of an
introductory period or a year-end appraisal. The first
several weeks of employment are critical for your
new employee--the mutual agreement you reached
earlier is solidified and you can then hold your new
employee to the performance standards established for
her role with your company.
2.6 Accountability
A prevalent issue pertaining to performance
appraisals is the manager's inattentiveness to the
process and deadlines. Regardless of the expected
outcome of a performance appraisal, employees are
usually anxious to know what their fate holds in
terms of meeting company expectations--they may
expect a pay increase for the quality of their work
or simply want to know if they're performing up to
par. Delay in the evaluation process causes
frustration among employees that leads to
dissatisfaction with company management. Hold
managers accountable for preparing their employees'
performance appraisals in a timely manner.
2.7 Adequate Feedback
Employers that provide regular feedback generally
get high approval marks from their employees.
Workers feel good about managers who are
genuinely appreciative of employee efforts, even if
it's just an informal "thanks for your hard work."
With supervisors and managers who understand the
importance of feedback, you can maintain a work
force that is motivated to achieve high job
performance. Providing feedback on just an annual
basis tends to focus mainly on the most recent
accomplishments. Unless there is a method for
tracking performance throughout the year, only a
portion of an employee's accomplishments are
evaluated during the appraisal.
2.8 The Right System
Utilizing a performance appraisal system that's right
for your company size, work environment, business
and industry is important. The wrong type of
performance appraisal can work against you, and
employees will not look forward to the process. A
small work force may benefit from a less formal,
more interactive appraisal system where managers
encourage employees to play an integral role in

assessing their own performance. On the other hand,
larger organizations may benefit from a more
structured one that rates employees and designates
wage increases in a more systematic way.
2.9 Explain Your Purpose
Explain to employees how your organization invests
time and effort in professional development.
Performance evaluations are not intended to be
punitive--rather, the purpose of evaluating job
performance is to uncover strengths, identify
weaknesses and work on striking a balance between
the two. In an article published in "Public Personnel
Management," contributor Gary Roberts cautions
managers to remember the intent of performance
evaluation is to provide helpful feedback. Train your
supervisors and managers on how to conduct
performance appraisals that instill pride in individual
accomplishments and contributions to the company.
2.10 Theoretical Framework
This paper is hinged on exchange theory of George
Homans. Homans’ version of exchange theory lies in
the explanation of elementary social behaviour in
terms of rewards and costs [14]. Homans was keen
to show the link between Person and other in
an exchange relation. The person-other relation was
the example given to illustrate social exchange [11].
This is better understood in the proposition advanced
by the theorist. Homans (1974) in his success
proposition stated:
For all actions taken by persons, the more often a
particular action of a person is rewarded, the more
likely the person is to perform the action.
This proposition means that a person is more likely to
ask others for advice if he or she has been rewarded
in the past with a useful advice. The more often a
person received useful advice in the past, the more
often he or she will request more advice. Similarly,
the other person will be more willing to give advice
and give it more frequently if he or she often has
been rewarded with approval in the past [14].
Therefore, it follows that where appraisal tool is
filled with bias and prejudice, it is likely that such
may not be seen as beneficial where employees are
reluctant to the usage by managers. This is mainly
because it only serves to reward employee negatively
and subsequently there is possibility that there is
little or no cooperation between employees and
manager to effectively become committed to
organisational goal. The exchange in this context is
the willingness of employees to seek advice and
cooperation from manager to get task done properly
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John et al.; AJOCR, 2(3): 89-94, 2017
and add to productivity. However, where manager is
biased in appraisal tool, employees are reluctant to
cooperate.
3. METHODOLOGY
This paper relies on the use of secondary data
extracted from previously conducted study in coca-
cola company. Quantitative data were extracted to
provide explanation of performance appraisal tool
in organisation. Further analysis of data and
interpretation, inferences were done to achieve the
objective identified for this paper.
4. DATA RESULTS
4.1 Performance Appraisal of Employees
The information in the above table reveals some
feelings of employees about performance appraisal in
organisation of work. Respondents were asked to
indicate availability of use of performance appraisal
in the organisation. Only 96.7% of the respondents
reported that there was availability of appraisal tool
used to evaluate task performance of employees.
The table further shows that 97.3% of the
respondents maintained that performance appraisal
determines promotion for staff. Some inferences can
be deduced from the preceding information. It is true
that employees are promoted in some organizations
by virtue of performance appraisal. Again, it is
possible that some biased managers could seize the
use of performance appraisal to retard the promotion
of employees who are not in good record book.
Therefore, this encourages poor job commitment and
low morale of employees. The statement above is
buttressed in the context of the information in the
table which shows that 86.0% of respondents agreed
that performance appraisal determines job
commitment and performance. In some cases where
employees feel that they were unfairly appraised and
prejudiced by biased mangers, it could lead to desire
to seek for alternative jobs. This usually creates
problems and serious financial implication for
organisation especially where skills lost are difficult
to replace in a tight labour market.
The table shows that 73.3% of the respondents
disagreed that managers use performance appraisal
appropriately. Although 26.7% agreed that managers
use performance appraisal appropriately, most of the
respondents in the table vehemently believe that
most managers are biased and concealing when it
comes to use of performance appraisal. The
experience of employees in the table is similar to
the finding of Ajileye [3] which also saw
inappropriate use of appraisal tool in organisation.
 John et al.; AJOCR, 2(3): 89-94, 2017

Table 1. Distribution of respondents’ views by performance evaluation technique in organisation

Availability of performance evaluation Frequency Percentage

N=150 (100%)
Not available 5 3.3
Available 145 96.7
Performance evaluation determines promotion for staff
It is true 146 97.3
It is not true 4 2.7
Performance evaluation determines job commitment/performance
Agreed 129 86.0
Disagreed 21 14.0
Managers use performance evaluation appropriately
Agreed 40 26.7
Disagreed 110 73.3
Performance evaluation provides for objective appraisal
Agreed 46 30.7
Disagreed 104 69.3
Managers use performance evaluation as witch hunt
Agreed 96 64.0
Disagreed 23 15.3
Not sure 31 20.7
Employees rating on the job has impact on annual salary packages
Rating on the job is linked to salary package 107 71.3
Rating on the job is not linked to salary package 43 28.7
Perception of performance evaluation technique
Negative 82 54.7
Positive 68 45.3
Source: KPMG 2015, Survey of Employees in Coca-Cola Company Lagos

There is consensus between the finding in KMPG
[15] and the finding in Ajileye [3] that performance
appraisals are sometimes abused by managers and
supervisors as a crude way to revenge personal
pains or avenge the pains of close associates. This
therefore subject appraisal tool as false evaluation of
task performance where it not objectively obtained.
Furthers information in the table shows that
69.3% of the respondents maintained that appraisal
tool does not provide for objective evaluations.
This suggests a fact that appraisal tool is only biased
and prejudiced. As a result, 64.0% agreed in the table
that managers use performance appraisal as witch
hunt. Although 15.3% of the respondents in the table
disagreed that performance appraisal tool exists to
witch hunt, this does not however remove the fact
that the tool is described by most respondents to
punish employees whose faces are disliked by
managers.
The table further shows that 71.3% of the respondents
maintained that annual salary package is attached to
ratings on appraisal scale. This implies that salary
package which accommodates increase in salary,
bonuses, allowance and perks improve with rating on
appraisal scale. This explains reason appraisal tool is
an important component of organisation and one of
the determinants of employees’ morale, satisfaction
and retention in organisation. Respondents (54.7%) in
the table express negative perception of utilsation of
performance appraisal technique, while 45.3% express
positive perception. On the whole, there is major
concern by most employees as shown in the table
especially the fear that appraisal tool is used by
managers to witch hunt and punish employees
unfairly.
5. CONCLUSION AND RECOMMENDA-
TION
Performance appraisal or evaluation determines many
factors in organisation especially relating to
employees. It is common place in organisation
especially Coca-Cola company in Lagos to use
appraisal tool to determine promotion of staff, salary
package and allowance benefits. Appraisal tool is
often employed by managers to witch hunt perceived
enemies and objectivity of the appraisal tool is
sometimes prejudiced and biased. Critically speaking,
appraisal tool is supposed to be strategic aspect of
management to improve performance where such tool
is employed effectively without prejudice. However,

93

some managers derive pleasure to utilize appraisal as
personal property and discretion to frustrate
subordinates where such tools determine promotion
of staff and recognition for job well done.
Consequently, the abnormal use of appraisal tools
affects employees’ retention who felt that they have
been unfairly dealt with by prejudiced managers. This
poses significant cost to organisation especially in
tight labour market where professional skills are
difficult to recruit. This paper therefore outlines some
recommendations as panacea to poor utilization of
appraisal in organisation.
i. Performance appraisal should be thoroughly
screened by management to ensure it is 8.
objectively obtained.
ii. Items contained in appraisal tool should not
give room to hide under any information
which promotes prejudice against employees.
iii. Performance appraisal should be bi-annual and
as such it should give room to follow up
performance of employees and where
necessary to identify prejudice report by
managers.
COMPETING INTERESTS
Authors have declared that no competing interests 11. Adams JS. Towards an understanding of
exist.
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