Abstract

Organizations with best systems of performance appraisal usually show higher growth, higher return per employee, less attrition rate and stable platform for new challenges. However, it has been observed that performance appraisal system in Cameroon Development Corporation (CDC) is suffering some defects such as Lack of employee participation in organizational goals setting that clarify organizational goals and expectations, and lack of feedback of performance appraisal.

The main objective of this research is to assess impact of performance appraisal on w orkers productivity in CDC. Specifically the study sought to examine the effect of Management by Objective (MBO) on workers productivity, to assess the effect of Behavioral rating appraisal on workers productivity and to evaluate the effect of 360 degrees appraisal on workers productivity. Using a mixed research approach, this study was analysed quantitatively and qualitatively.

The population of this study was made up of workers of 5000 workers found in the Tiko banaa plantation. This study used a simple random sampling method to select workers to constitute the sample for this study and a sample of 357 was used in this research. Results from the study, revealed that; Management by Objectives enhanced workers productivity in CDC Tiko.

Also, results show that behavioral rating appraisal has an effect on the productivity of workers in CDC and finally, 360 degree Feedback enhanced workers productivity in CDC Tiko. Among many recommendations was the fact that Supervisors in CDC should stop being biase when conducting performance evaluation since the findings showed that they favour some workers to others and Performance appraisal should be a routine. Atleast after every task it should be conducted to know how workers are performing.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Performance evaluation popularly known as Performance Appraisal System (PAS) is amongst the great paradoxes in effective management of Human Resource (HR) in many organizations and its main purpose is to improve efficiency and effectiveness in job performance. Performance appraisal as a system has been in existence for a few decades. Formally, evaluation of employees is believed to have been adopted in the eighteenth (18th) century and it involves assessing performance in relationship to the laid down rules, procedures and objectives of the job (Fletcher, 2004:32).

According to Guest (2001:3) the outcomes of effectual performance appraisal are improved accurateness of performance of an employee and relating it to task performance and obvious likelihood of rewards. Miller (2007:65) states that there are many outcomes that can be attained from having performance appraisal program which include continuous open communication, improved employee morale, job satisfaction, reduced employee turnover, increased employee commitment, increased motivation for both individuals and teams, feeling of equity among employees, and linkage between performance and rewards.

Performance evaluation is a performance measurement toolkit which is used to get performance information of an individual and compares them with the already set standards (Beardwell and Thompson, 2014:34). DeNisi (2000:43) indicates performance appraisal as an organization’s system in which employees are given scores to show their performance against their set targets to bring change in job performance. Fletcher (2001:123) looks at performance appraisal largely as to mean those activities by which employees are assessed in an organization in order to grow their competence, raise their performance and give rewards. Aquinas (2008:638) states that performance appraisal as a mechanism assesses the employees’ contribution in all levels of the organization during a certain performance period of time and they are able to know their performance strengths and weaknesses.

Performance appraisal also measures employees’ performance and growth on a specific job and their prospective for future development (Gupta, 2008:345). Due to rapid growth and changes in today’s organizations to suit the dynamic political, social and economic environments in which they thrive, there is need for employees to align their objectives with those of the organization (Dessler, 2003:23-25).

Performance appraisal is annual exercise conducted by organizations in order to determine an employee’s overall contribution to the organization’s performance. This appraisal of performance is done using aspects such as time management at work, quality of work done, quantity produced and cost incurred to produce results or any other credible and mutually agreed standard or measure (Invancevich, 2003:9).

Mutsuddi (2012:3) shows performance appraisal as a system that is structured and formal and is used to assess the present performance of an employee and come up with ways in which they can improve in future so that the employee as well as the organization can mutually benefit. He also points out that performance appraisal assesses the performance of employees and then give feedback about past performance, present performance and future performance expectations. Performance appraisal answers many questions concerning job; and by coming up with solutions and a path to be followed; poor performances can sometimes be improved.

According to Prasad (2005:12), performance appraisal is the process of assessing an employee’s performance on their job while taking into consideration what the job entails. It is based on the convergence of mutually agreed-upon objectives, knowledge, expertise, and competency, as well as performance improvements and strategies for the personal development of performers. The significance of excellent performance is made clear in an organisation via the use of performance assessment, which is one of the factors that lead to the creation of a performance culture.

According to Mahapatro (2010:234), performance assessment aids in decision making about employment retention, job advancement, job transfer, payment of incentives and pay raises, and enhances communication at all levels of employees. According to Yoder (2003:57), performance assessment serves as a communication tool that demonstrates the abilities, knowledge, and attitude necessary for specific occupations. Through the use of evaluation, the business is able to determine the mentalities and behaviours that they like its workers to have at the various stages of their employment.

According to Rao (1985:9), a well-designed performance assessment system is essential because it assists workers in recognising the areas in which they excel and those in which they struggle in relation to the roles and responsibilities they play within the firm. In particular, the practise of matching one’s own ambitions with the aims of the firm has been adopted by the vast majority of businesses.

According to Mullins (2010; 100), performance evaluation is a technique that is utilised in organisations to evaluate the personalities of employees and the contributions they make to their respective teams. He contends that performance reviews should serve not just an evaluating function but also a growth purpose in an organisation. Williams (1998:68) defines performance appraisal as a methodical evaluation of staff members by their supervisor in terms of the job performance as prescribed by the job description, specification, and working environment. Performance appraisals are typically carried out against agreed upon criteria or conditions of evaluation.

It is believed that Frederick Taylor, a professor at the Scientific Management School in the United States, began the practise of performance evaluation between the years 1900 and 1930 as part of his research into time and motion. He believed that management and they shared a common interest in increasing productivity, and as a result, after completing his research, he encouraged employers to pay more productive workers at a higher rate than others, utilising a scientifically correct rate that would benefit both the company and the worker. Therefore, in order to earn more money, workers were required to perform above and above their norms (stonner 2002:15).

In addition, the author Stoner (2002:4) defines productivity as the ratio of output to input. Productivity is also a measure of the efficiency with which a management or employee utilises the limited resources available to a company in order to generate goods and services. This ratio’s efficiency may be measured by its numerical value; the higher it is, the better.

There are two fundamental types of productivity ratios and they include total productivity which links the value of all output to the value of all input and partial productivity which relates the value of all output to the value of key categories of input. However, most productivity stated by economists and business leaders are in fact, labour productivity indices as labour is one of the major continuing costs for most firms. Productivity ratios can be used to quantify efficiency gains and losses.

Thus performance assessment with positive comments to employees provides improving productivity (stonner 2000:23). Therefore it is upon the aforesaid foundation that the study will illustrate the link between performance assessment and employee productivity.

The Cameroon Development Corporation (CDC) is one of Cameroon’s largest exporters and employers. The corporation was created in 1947 for the goal of developing and administering plantations of tropical crops throughout the nation. The CDC is an agriculture corporation and its general headquarters are headquartered in Bota, Limbe. Its primary products are rubber, oil palm, bananas, coconuts, tea, and cetera.

The CDC is the largest employer in Cameroon and has aided the “bottle neck” Cameroonians and the country in a cultural sense. Most of the initial labourers in Cameroon worked on its plantations. The CDC cor poration employs a sytem of Pay as you work approach to urge its people to work hard.

From income gained on these plantations, millions of Cameroonians have acquired an education on the corrupt character of the government.

1.2 Statement Of The Problem

For an employee to have motivation to perform, to develop personal capabilities, and improve their future performance this is influenced by continuous feedback on their performance (Invancevich, 2008:89).

Since productivity is influenced by employee motivational level, organizations and particularly their line managers have to realize what inspires employees to reach the highest level of their performance. Organizations with best systems of performance appraisal usually show higher growth, higher return per employee, less attrition rate and stable platform for new challenges (Debemitra, 2008:77).

Aquinis and Kraiger (2009:50) argue that implementation of a well-designed performance appraisal system can strength an organization in several ways such as employee retention, commitment, increase in employee self-efficacy and competitiveness hence increased satisfaction (in areas of recognition and experiencing growth)(Beadwell& Claydon, 2007:345).

However, despite the above emphasis on its importance and the fact that performance appraisal has been embraced and implemented at state structures, no formal evaluation has been done to determine the effect of performance appraisal on employee productivity

However, it has been observed that performance appraisal system in Cameroon Development Corporation (CDC) is suffering some defects such as Lack of employee participation in organizational goals setting that clarify organizational goals and expectations, and lack of feedback of performance appraisal result to employee.

Also, supervisors in CDC use a lot of bias when appraising employees as they try to settle scores with those they have problems with, thereby making performance appraisal to be ineffective. It is for this reason that this study therefore, investigates the effect of performance appraisal on workers productivity in CDC.

1.3 Research Questions

1.3.1 Main Research Question

The main research question of this study is; what is the effect of performance appraisal on workers productivity in CDC?

1.3.2 Specific Research Questions

1. What is the effect of Management by Objective (MBO) on workers Productivity?
2. What is the effect of Behavioral rating appraisal on workers productivity?
3. What is the effect of 360 degrees appraisal on workers productivity?

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