The Impact of Employees’ Performance Appraisal on Productivity

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The Impact of Employees’ Performance Appraisal on Productivity



In every business organization, the performance of the employees is important in achieving organizational goals. The success of every business organization can therefore be attributed to performance appraisal. Performance appraisal is one of the basic tools that make workers to be very effective and active at work. A critical look out on this may bring about the need for motivation, allowances, development, training and good human relationship in an organization.

Performance appraisal is defined as “a structural formal interview between subordinate and supervisor, that usually takes the form of periodic interview (annually or semi-annually), in which the work performance of the subordinate is examined and discussed, with the view of identifying the weaknesses as strengths as well as opportunities for improvement and development” (DEcENZO and Robbins, 1995: 358).

The output of every organization depends on how well and how much the performance of the employee is appraised and evaluated.

Productivity can therefore be defined as “quality or volume of the major product or services that an organization provides”. In short, productivity is what comes out of production. Managers of every business organization are charged with the responsibility to motivate their employees to achieve organizational goals.

Without a good product to sell, problems in an organization are bound to rise.


The basic aim of every business organization is to achieve its objectives, goals or targets successfully. Goals set by organization will only be in vain if much attention is not paid to employees’ effort or performance for successful accomplishment. In other to achieve set goals and objectives successfully, there is the need to focus on performance appraisal. Performance Appraisal should be linked to attractive incentive to employees, enabling workers to demonstrate higher productivity.

Most organizations in the competitive market fail since their workers perform below standard for they are not encouraged to work harder. Managers and employees are the life blood of every business organization. If management does not invest much into the welfare of their workers, problems are bound to rise leading to industrial strike actions, low commitment to work, low morale and low productivity of goods and services.

Attractive appraisal systems are established by some business organizations to help motivate their employees to strike hard to be recognized and rewarded. Once employees are motivated, their performance reflects on productivity. Employees strive hard by pooling together skills, knowledge and efforts to achieve maximum output. Hence the essence of this paper is to find out the part played by performance appraisal.


The aims of this study are;

  • To help managers assess training development needs of employees.
  • To make it possible for management to be able to attract and retain suitable employees through performance appraisal.
  • To help managers review past performance and improve current performance.
  • To provide employees with necessary information pertaining to recognition of their work.


The findings of the study will not only be beneficial to the personnel of the chosen organization, but also to every individual. It will also;

Ø Help managers in other organizations in setting goals and targets for employees to achieve through proper supervisory control by line managers.

Ø Aid in identifying and improving the training and development needs of workers.

Ø Assist in motivating employees who contribute effectively to the attainment of organizational goals and objectives.

Ø Help managers to know how to appraise the performance of their workers.


This Section elaborates in details the procedure the researchers will use in collecting data. It entails how the topic under review will be examined and why some techniques will be preferred to others. It must be noted that a good data must be reliable, credible and relevant. So as to achieve a good result of this research, techniques or methods which will be convenient to use are employed under specific situations to give an accurate, valid, logical and satisfactory analyses of the data.

In lieu of this, the researchers wish to discuss the topic under the following headings;

  • Area of Study.
  • Population.
  • Sampling Size and Techniques.
  • Techniques or Methods of Data Collection.
  • Order or Tools of Data Presentation.


Ghana Water Company Limited (GWCL), Ho.


The following are the problems faced by the researchers whilst carrying out the research;

  • Inadequate orientation about the study.
  • Inadequate time to carry out the research or study.
  • Reluctance on the part of the respondents to give all the needed information with fear of being reprimanded by their superiors.
  • Inadequate funds to support the study or research.

and evaluating an employee’s performance, recording the assessment and providing feedback to the employees” (Daft and Marcic, 1998:368).

Performance appraisal is “a formal assessment of how well employees are doing their job”. Thus employees’ performance should be evaluated regularly for many reasons. Some of these reasons are;

  • It may be necessary for validating selection devices or assessing the impact of training programs.
  • It is administrative- that is it aids in making decisions about pay raises, promotions and training.
  • To provide feedback to employees to help them improve their performance and plan future careers. (Griffin,1999:430)

easy. It is a matter of evaluating employee’s behaviour to see if it matches standards.

  • Discussing result with employees:

Initially, most people will make mistakes and fail to meet expectation, as it takes time to learn a new job and does it well.

Discussing an employee’s success and areas that need improvement can provide managers with an opportunity to be understanding and helpful and to guide the employee to better performance.

Moreover, the performance appraisal can be good source of suggestion on how a particular task could be better performed.

As an appropriate part of the performance appraisal, a manager can take corrective action or provide corrective feedback to help the employee perform his or her job better. The primary purpose of conducting this type of appraisal is to improve employee performance if possible.

  • Using the Result to Make Decision

Decision about promotion, compensation, additional training and firing are all based on performance evaluation. An effective performance appraisal system is a way of satisfying certain legal concerning such decision.

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