THE EFFECT OF PERFORMANCE MANAGEMENT SYSTEM ON PRODUCTIVITY OF EMPLOYEES OF PUBLIC SERVICE INSTITUTE OF NIGERIA

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THE EFFECT OF PERFORMANCE MANAGEMENT SYSTEM ON PRODUCTIVITY OF EMPLOYEES OF PUBLIC SERVICE INSTITUTE OF NIGERIA

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

In a broader sense, the practice of appraisal is ancient; it starts in the early 20th century by Taylor. In the scale of things historical, it might well lay claim to being the world’s second oldest profession. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured management system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance management systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. As a result, the traditional emphasis on reward outcomes was progressively rejected (Clardy, 2013).

Performance appraisal or performance review is a process for individual employees and those concerned with their performance, typically line managers, to engage in a dialogue about their performance and development and the support they need in their role. It is used to both assess recent performance and focus on future objectives, opportunities and resources needed.

While performance appraisal is an important part of performance management, in itself it is not performance management: rather, it is one of a range of tools that can be used to manage performance (Greenberg & Haviland, 2008). Performance management is a holistic process bringing together many activities that collectively contribute to the effective management of individuals and teams in order to achieve high levels of organizational performance. The process is strategic, in that it is about broader issues and long-term goals, and integrated in that it links various aspects of the business, people management, individuals and teams (Julnes, 2008)

One of the most challenging components of Human Resource is performance appraisal. All involved parties supervisors, employees, and Human Resource administrators typically are dissatisfied with their organization’s performance management system and view the appraisal process as either a bureaucratic exercise or a destructive influence of the relationship between the employee and the supervisors.

Performance appraisal traditionally involved documentation and communication of performance between staff members and their supervisors (Foss, 2007). Informal approach was used and at times less record keeping. Currently, the process has been formalized and there is some seriousness that accompanies the procedures including record keeping for future reference.

Today’s organizations implement recognition programs to bring out cultural change. They create budgets for employee incentives in the attempt to win their loyalty. Performance management is a strategic approach to delivering successful results in organizations. This is done through improving performance and developing talents as well as building capacity of staff. Performance Management is supposed to be a continuous process between supervisors and employees. This is important as it helps to review the previous findings and encourage gradual improvement (Bruce, 2014).

A performance management system rewards excellence. It helps to align employee achievements with the organizations objectives. Others maintain that to encourage knowledge sharing, organizations should design reward and recognition systems that stimulate sharing of all kinds: goals, tasks, vision as well as knowledge. This will help to bring cohesiveness between team members. One factor that contributes to an effective performance management system entails ensuring that the system focuses on performance variables as opposed to personal traits (Lawrie, 2004). Whereas experts disagree about whether performance should be measured in terms of the results produced by employees (Garber, 2011) or in terms of work-related behaviors (Sparrow, 2012), they agree that personal traits has several drawbacks. The validity and reliability of trait-based performance appraisals is highly suspect because the rater’s perceptions of the traits being assessed are affected by their opinions, biases, and experiences that may have little to do with the particular employee (Varma et al, 2008).

In addition, appraisals based on personal traits have little value for providing diagnostic feedback to employees or for designing training and development programs to ameliorate identified skill deficiencies (Trakoli, 2011). Furthermore, based on his review of the findings from several court cases involving performance appraisal, (Wellington, 2011) concluded that, to be legally sound, appraisals should be job-related and based on behaviors rather than traits.

For a management system to be effective, employees must believe that they have an opportunity for meaningful input into the appraisal process (Berry, 2004). They should have the freedom to challenge the evaluation they get especially when it’s contrary to how the appraise themselves. It is important to allow employees to share their opinion in order to encourage fairness in the appraisal procedure. When this is adhered to, staff members will agree with the management system that has been put in place as a legitimate and productive way of accessing their performance. As noted by (Cooper, 2005) without the perception of fairness, “a system that is designed to appraise, reward, motivate, and develop can actually the opposite effect and create frustration and resentment”.

The earliest studies on performance management in the literature were pioneered by Warren (1972), when he defined the features of performance management.

Although performance management re-emerged in the United States as a new approach in the 1980s, it was not published until 1988 (Plachy & Plachy 1988). By the 1990s, performance management had entered the literature of human resources management in the United Kingdom as well as in the United States. However, the research project conducted by the Institute of Personnel Management provided it full recognition (Armstrong 2009), which defined it as:

a strategy that relates to every activity of the organization set in the context of its human resources policies, culture, style and

1.2 Statement of the problem

Confronted with rising citizens’ discontent over public service delivery, new technological challenges, cultural changes and globalisation, public organisations everywhere in the world are seeking means of improving their performances. Their quest is not new; rather, the concern is more with improving the performance of government. Performance management systems are effective at improving organisational performance on service delivery to citizens.

Moreover, providing public services to needy citizens is an indicator to assess the sustainable delivery of efficiency and effectiveness of government. Public service delivery allows government to link with citizens in general and needy citizens in particular, so that effectiveness of public services can be qualitatively assessed.

There is a lot of research has been made in the performance appraisal but unfortunately it did not give any satisfactory results as Thomas B. Wilson, (1994) tends to describe the performance appraisal as it did no work for the employees as well as on for the organization except developing the dissatisfaction or expiation. Same Wendy K. Soo Hoo, (2004) concluded two of his researches that 90% of the employees found the performance appraisal as an ineffective. The reasons he deduced from his research are like the Managers avoid giving honest critiques because they don’t want any conflict. Often time’s managers dread the appraisal process as much as employees do, so they procrastinate and don’t prepare adequately. Employees can be demoralized by ratings and statistics from the research said that 80% of people see themselves in the top 25% of all performers. So 55% will be really demoralized by honest feedback about where they stand.

We come to know from all above discussion that performance appraisal is not doing something extra for the organization and the organization awarded employees based on the appraisal unable to get the required result. Reward does not change the performance of individuals who work exclusively for reward. Better remuneration system can never be a good option for the organization for achieving its objectives. On the counter part it can demotivate the employees due to unequal distribution of rewards on the basis of performance appraisal.

On the whole, consequences of performance appraisal may lead to the decline of overall performance of the organization. On the other side, Performance management of the employees is the system which enable the organizations to achieve their goals by utilizing the fully skill level of their employees. It begins when an employee joins the organization and ends when he leaves your organization. Glendinning, (2002) suggest that performance management is the system which is supposed to be the need of the hour for organizations and a replacement of old performance appraisal system. He further argued that an organization without a performance management system has no vision for its future.

It is on this background that this paper examines the impact of performance management on civil servants’ performance

1.3 Objectives of the study

1. To examine the performance management systems adopted for public service delivery.

2. To identify and explain the impact, problems and challenges of performance management systems in public service delivery.

3. To suggest solutions or the way forward to improve and sustain performance management systems and public service delivery in

4.To determine whether Performance management system application and enhancement to existing systems adequately support corporate goals and objectives.

5.To determine the real time in change in information policy affecting change in public service institution?

6.To examine the corporate posture of the organization by the application of performance management system.

7.To examine the relationship between quality information and decision making

1.4 Research Questions

1. What is the performance management systems adopted for public service delivery

2. What are the impact, problems and challenges of performance management systems in public service delivery

3. What are the solutions or the way forward to improve and sustain performance management systems and public service delivery.

4.How can we determine whether Performance management system application and enhancement to existing systems adequately support corporate goal.

5.How do we determine the real time in change in information policy affecting change in public service institutions?

6.How do we examine the corporate posture of the organization by the application of performance management system.

7.How do we examine the relationship between quality information and decision making

1.5 Research Hypothesis

H01: There is no relationship between performance management system and productivity of employees of public service institute of Nigeria

H1: There is a relationship between performance management system and productivity of employees of public service institute of Nigeria

H02: Performance management system does not have a significant positive impact on productivity of public service institute of Nigeria.

H1: Performance management system have a significant positive impact on productivity of public service institute of Nigeria.

1.6 SIGNIFICANCE OF THE STUDY

The significance of this study are as follows;

The study will help educate management, workers and other connected persons who have stake their resources and livelihood on the organization as they would remain at information equilibrium.
The study will also be of great usefulness to students carrying out a further research on this topic or related field.
Information provided and stored concerning staff, customers, production, marketing, accounting and so on can easily be retrieved when needed through this study.
To various organizations, this study will serve as a form of review or appraised of the performance management system in business operations.
To the general public, the research is very useful to the extent that it will improve their understanding of the impact of performance management system on productivity of employees of public service institute of Nigeria.
The shift from performance appraisal to performance management has been a recent topic in the Human Resource world as employee performance is of great importance and focus to organizations both public and private. As a result, this work would help the government and those entrusted with the role of overseeing performance management in the civil service (i.e. personnel management) on how to go about it. Private organizations also would benefit from understanding its area of lapse and make appropriate correction on the issue of performance management. This study will also help the government in achieving success in its present effort to increase performance of civil servants.
Lastly, it would also help or serve as a basis for further researcher and those who will want to undertake similar studies.

1.7 Scope of the study

The application of performance management system is practicable in both public service and manufacturing sector. However, for the purpose of this study we focus the study on public service institute of Nigeria.

1.7 Limitations of the study

The study limited to the data and information made available by public service institutions. And this includes the following:

Time constraint with respect to gathering needed data for the research work.
The unwillingness of some staff to reveal some information due to fear of revealing to competitors is also a limitation.
Finance: Insufficient finance lead to challenges to effectiveness of this research work.

However, all these limitations are mot given as a plat form to reduce the intellectual acceptance and provisional guidance that the research offers.

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