CHAPTER ONE
INTRODUCTION
1.1    Background to the Study
One of the most popular tools used in the contemporary productivity enhancement programme is the application of performance appraisal systems. However, since appraising is considered to be a particularly controversial management practice anywhere it is being practiced, its adoption in the manufacturing industry in Nigeria faces numerous challenges and obstacles (Musi, 2015).
Appraisal system provides a rational medium or instrument for measuring individual worker contribution to corporate goals achievement and success. It is a complex management function which demand for extra-maturity, fairness and objectivity in assessing individual worker job performance based on explicit job related criteria (Onyije, 2015).
Appraising performance is important because since it helps to ensure that the organization system will be easily understood by employees and effectively put into action by managers. Appraisal structures that are complex or impractical tend to result in confusion, frustration, and nonuse. Likewise, systems that are not specifically relevant to the job may result in wasted time and resources. Indeed, most successful appraisal programs identify and evaluate only the critical behaviors that contribute to job success. Systems that miss those behaviors are often invalid, inaccurate, and result in discrimination based on nonrelated factors (Mwema and Gachunga, 2014).
Performance appraisal system is a critical component of the overall human resource management function in both private and public sectors. The use of performance appraisal systems is generally motivated by the desire to influence employee behaviors, attitudes and subsequently productivity. The quest for methods to motivate employees and thereby improve efficiency in the organisation has for a long time been influenced by persisting fiscal constraints, declining employee productivity and disenchantment with the delivery of public services (Musi, 2015).
Performance appraisal should be conducted periodically to evaluate an employee’s performance measured against the job’s stated or presumed requirements. It is important that members of the organization know exactly what is expected of them, and the yardsticks by which their performance and results will be measured. Mullins (2002) substantiated the necessity of an effective appraisal scheme by saying that it can identify an individual’s strengths and weaknesses and indicate how such strengths may best be utilized and weaknesses overcome (Mwema and Gachunga, 2014).
The appraisal system should be formalized especially in supporting decisions on salary and wage increases, transfers, promotions and dismissals, as well as communicating information toappraise through a review of their progress. Results of performance appraisal are used to discuss performance and progress of personnel in relation to goals (Wolf, 2005; Armstrong, 2012).
Performance appraisal as an element of performance management is often carried out to reveal individual employee’s contribution to the overall organizational objectives. To drive this notion home Biswajeet (2009) asserted that people do not learn unless they are given feedback on the results of their actions. For corrective actions to take place feedback must be provided regularly and it should register both successes and failures.