Performance Appraisal Interface with Productivity in Selected Nigerian Public Enterprises

Abstract

In this research, the interconnection between Performance Appraisal (PA), its methods, and efficiency in two selected Nigerian public sector enterprises was appraised to identify the PA methods adopted and evaluate how such methods influence the enterprises' overall performance for their sustainability.

Data was sourced from varied employee categories (277) of the enterprises sampled using a structured quantitative survey questionnaire. Analysis was done quantitatively with descriptive (e.g., cross-tabulations, means, and standard deviations) and inferential (e.g., Categorical Regression [CATREG] analysis) statistics.

From the findings, the model for individual employee productivity explained about 69% of the variation in their output (Adjusted R²=68.9%), while that for overall organisational productivity explained 70.8% of the changes in the enterprises' output. More specifically, only two of the eight PA methods adopted by the enterprises were significant in explaining the changes in both employees and organisational performance. In descending order of importance, the PA methods are Management By Objectives [MBO] F=13.715 and F=94.900, respectively, and Behavioural Rating Scale F=5.837 and F=7.344 respectively; all four results at p<0.05). The other three PA-related issues impact employees' performance. In addition, in descending order, are employees' belief that PA outcomes influence their ultimate productivity (F = 47.581), clarity in explaining the PA standards to employees (F=4.778), and employees' belief in the adopted PA system's validity (F=3.342) all at p<0.05. As for the organisations' productivity, six additional issues influence this; in descending order, they are employees' belief of PA linked to improved organisational performance (F=180.406), their promotion (F=48.202), improved salary (F=34.204), opportunities for training and development (F=12.720), better people management from supervisors (F=5.150) and the importance of rating employees in line with their individual responsibilities (F=4.613).

The study concluded that an effective PA system that employees and management believe in can enhance employees' productivity and boost the public enterprise's bottom line.