PERFORMANCE EVALUATION AND ITS EFFECTS ON EMPLOYEES EFFICIENCY IN NIGERIAN MINERAL WATER LIMCA ONITSHA ANAMBRA STATE

CHAPTER 1

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

It is a very clear fact by both definition and common understanding that every organization is formed for an objective. Through two objectives may be profit or non profit commonly for any organization to succeed, the efforts of its employees must be directed towards the realization of their individual set objectives. The efforts of each of the employees or group of employees in each organization may be directly or not and normally varies in degrees and relevance to the corporate objective, but should not for any reason be rejected in the interest of the corporate objectives. Out performance by any employee or group of employees in a department will surely result to underachievement of the co-operate organizational goals.

In recognition of the importance of one employee to the corporate existence and goal attainment, the need to have a set goal or standard at each level of the organizational structures becomes imperative. This arrangement will make it possible and help in checking and appraising of the employee by various superiors in the organization. This objective standard will be proportionate and appropriate to the level and position of the employees in the organizational structures as the expectations of each employee depends on his position and level in the organizational hierarchy.

It was in recognition of this Fredrick will show Taylor, the father of scientific management in his article in the journal transaction urged for the establishment of performance standard. This was with this aim to determining the employee’s productivity as their performance evaluation could be measured if standards are set. He added that he could perform up to the established standard will be rewarded. He that performs above the standard will be entitled to bonus. On the other hand, employees that failed to perform up to subjecting him to training to improve. But where this effort to improve this fail the next line of action will be punish the employee either by demoting or firing him. These were with the intention that the employees might be motivated to high performance and discouraged from under achieving.

As was urged by Taylor (1968) in his article in “transaction” to reward the worker who performed up to the set standard; to give bonus to those who are above the standards and demote or fire the employees who performed below the standard and failed to improve after training. The question that calls to mind is how do you know the employees who performed above or up to or below the set standard. It is aimed that at objectively deciding which employee deserves which treatment from management praise or course.

By definition, performance evaluation could be the analysis and appraisal of individual workers performance and productivity based on the objective set.

Sluck (1970) in his own, defined performance evaluation as a personnel activity by means of which the enterprise determines the extent of which the employees is performing the job effectively.

Evaluation system are systems that have ultimate connections within all forms of organization set up that aim at determining the employees effectiveness and reward fairly made accordingly. Failure to administer regards in consistence with the performance will undoubtedly bring some sets back in an organizational productivity this is the case when the most efficient employee is not reward accordingly. Many evaluation methods have been critical as not suitable designed to yield the position result that could be a fair guide to compensating the efficient employees.

Effective implementation is another problem that is associated with performance evaluation. A good evaluation system or institution has to be effectively implemented or executed to yielding a reliable result. A person desirous of good plant the good species, he also aims the duties of tending, feeling watching the plant grow to give the expected good yield/performance evaluation is live is that, when a good and suitable system is installed in an organization to give a fair and reliable result it has to be strictly and objectively implemented by the appraisers.

In carrying out the exercise the lowest level employees are evaluated by their immediate supervisor. Their performance against each set objective should be assessed and perhaps graded setting an objective is therefore an element in carrying out the evaluation exercise. Regarded less of what method adopted, the primary objectives are the same. It aims at developing the employees so that the best could be obtained from them for the benefit of the entire organization.

Nigeria mineral water Limca is located in No. 1 Limca road, P.M.B 1549 Onitsha Anambra state Nigeria. Mineral water Limca company is working on water treatment business activities – It is a multilateral organization. It has branches all over the states in Nigeria. It was established in Nigeria enterprises Gold sport, Limca fairly soda and Paani table water. The company has branches all over Nigeria with its corporate headquarters in Lagos and offices and Depot in Enugu, Onitsha and Port-Harcourt. They engaged in selling of various Limca products to Nigeria and also involved in water serving the company provide employment to Nigerian thereby helping in the country. Through its staff strength is about one hundred under sales and less that the under general trade. No doubt limca Nigeria is working a good impact water treatment as the name limca is not new to many household in Nigeria. 

1.2   STATEMENT OF THE PROBLEM

Performance evaluation is universal and its universality undoubtedly epitomize it importance to many organizations. Every organization, ministry or department has a peculiar function it carries out or performance to encourage efficiency and effectiveness.

Ideally performance evaluation result should e unquestionable, undoubtful guide to improve and developed the performance of the employees who are appraised. The rewards and promotion of the employees if based on the result of performance evaluation should not be doubted by the employees and should not discourage them putting in more effort to achieve the best. The essence of performance evaluation in any organization, ministry or department is to achieve the organizational goal by making plan and looking for a way to actualize what they have planned for effective performance result to harmony in any organization and this constitutes to increase in productivity of both human and material resources in any given organization.

Emphasis in this research will be hand the best way of encouraging the Nigeria water Limca to consider performance as essential tool for central in an organization and as a matter of fact Nigeria water Limca Onitsha is faced with many problems as a result of not having adequate personnel’s who can have out effective performance which will enable the organization to carry its functions successfully.

It is intended in the research to go into these analyzing and discussing them with a view of facilitates performance in the organization.

These problems although is difficult to go into solved, will make the organization to be in a better position to attain its aims successfully. 

1.3   PURPOSE OF THE STUDY

The general purpose of this study is to examine the performance evaluation and its effect on employee efficiency.

Other purposes include:

• To examine the effect of performance evaluation on employees efficiency.
• To identify the problems associated with staff career development in Limca.
• To find out workable solution for an effective evaluation.

1.4   SIGNIFICANCE OF THE STUDY

The significance of this study is to find out how the employee is performing in his responsibility.  Hence many workers in different organization do not attain the organization goal required of them. Employee performance evaluation provides legal, ethical and visible evidence that employees were actively involved in understanding the requirements of their jobs and their performance. The accompanying goal setting, performance feedback and documentation ensure that employees understand their required outputs. In the event that an employee is not succeeding or improving in his job performance, the performance evaluation documentation can be used to develop a Performance Improvement Plan (PIP). This plan provides more detailed goals with more frequent feed back to an employee who is struggling to perform. The goal is improvement but non performance can lead to disciplinary action up to and including employment termination.

1.5   RESEARCH QUESTION

This study sought answers to the following research questions:

1. To what extent does performance evaluation affect employee’s efficiency?
2. What are the problems associated with staff career development in Limca?
3. What are the workable solutions for an effective evolution of Limca employee?

1.6   SCOPE OF THE STUDY

The study of performance appraisal in Nigeria public enterprises will not deal with all aspects of annual performance appraisal; it will treat mainly the area where mistakes and mismanagement most commonly occur. Concentration will be the degree of achievement of objective result, the reliability of the result and the effectiveness of the result on future performance of workers.

1.7   DEFINITION OF TERMS

The terms used in the study, which have unique meaning that could be subjected to different interpretation by different readers of this project report are defined as follows:

Effective: An exercise or action is said to be effective when it realized its intended result or purpose.

Performance: In the context of the study performance could be look at as the execution and going on work towards the achievement of objectives.

Evaluation: This means estimates of values among and quality.

Negative Evaluation:  This means that employees are negatively evaluation does not favour them.

Appraisal: To evaluate especially in an official capacity, to estimate the quality amount size, and other features of judgement.

Performance standard: The aim to determining the employee’s productivity as their performance evaluation could be measured is standards are set.

Employees: A person or group of person who is paid to work for somebody.

Efficiency: The quality of doing something well with no waste of time or money.