ANALYZING
PERFORMANCE APPRAISAL TECHNIQUES IN UNION BANK
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
In any evaluation of the condition necessary for
the growth and survival of an organization, the role of performance appraisal
is a strategic factor. It is believed that both the individual and the organization
need to know how well actual performance is contributing to the accomplishment
of the job plans, the staffing plan, and ultimately the overall strategic plan
of the organization. In addition, the individual employee requires feedback
relative to his or her own goals development, as well as that relative to
management’s expectations.
Performance appraisal is a formal and systematic
assessment of an employee to determine the degree to which the employee is
performing his/her job effectively. It is usually made in a prescribed manner
of specific intervals such as quarterly, bi-annually or even annually. Each
employee at one time or the other wants his immediate boss or more still his
employer to assess his on-the-job performance, and where necessary give him
guidelines or advice for improving his efficiency.
An effective performance review system serves
these general purposes. In other words, as Nwachukwu (1985)
puts it, “the essence of performance appraisal is to give information for the
promotion, demotion, transfer, pay increase, training and development and
discharge of an employee”.
Secondly, it provides employees with constructive
on how they are performing in their jobs as viewed by their managers, thus
leading to increased productivity.
Therefore, in any organization, manpower remains
the most prominent and the most valuable assets among other factors of
production. It is this reason performance appraisal is given recognition as a
tool to improve organizational activities.
1.2 STATEMENT
OF THE PROBLEM
Since the study seeks to examine performance
appraisal as management tool for increased productivity in Union Bank Nig Plc.
It therefore attempts to identify various employee appraising techniques, some
common appraisal problems and how proper performance appraisal can enhance
increased productivity in Union Bank Nig Plc.
1.3 OBJECTIVES
OF THE STUDY
The purpose of writing this project is to
investigate into how performance appraisal can enhance increased productivity
in Union Bank Nig Plc. The study will among other things try:
i.
To find out the
various performance appraisal techniques used.
ii.
To examine the
implications of performance and productivity.
iii.
To provide bases for
reward employees in relations to their contribution to the organization.
iv.
To identify some
common appraisal problems of employees and how proper appraisal can enhance
increased productivity.
v.
To make some used
recommendations to management.
1.4 STATEMENT
OF HYPOTHESIS
A hypothesis is a conjectural statement of
relationship between two or more variables. They are always in declarative
sentence form, and they relate either generally or specifically, variable or
variables. They are particularly necessary in the studies of this nature where
cause and effect relationships are to be discovered.
H1: Performance appraisal techniques provide formal management
procedure used in the evaluation of work performance in the organization.
H0: Performance appraisal techniques do not
provide formal management procedure used in the evaluation of work performance
in the organization.
1.5 SIGNIFICANCE
OF THE STUDY
i)
The study is of
vital importance to organization’s effectiveness, hence the result will be
useful to the organization in developing effective and efficient performance
appraisal plans and programmes to aid the organization in its goals attainment.
ii)
The importance of
this study therefore is to research into those benefits that performance
appraisal could bring to the organization, employer and the employees alike.
iii)
The study could also
be valuable as source of reference to students of management studies who mighty
carry out similar or further research in this area.
iv)
The study will help
the researcher to fulfill the requirement for the award of HND in management
studies.
1.6 SCOPE
OF THE STUDY
The study would squarely concentrate in analyzing
performance appraisal techniques in Union Bank Nig Plc. The researcher has
related the study only to the areas that are related to the topic such areas
are: performance appraisal, techniques for performance appraisal.
1.7 LIMITATION
OF THE STUDY
In a developing country like Nigeria, students
are normally faced with grave shortage of relevant facts necessary for their
research work and mine is not an exception.
However, confidence and ability are best assets
every human being must possess. The following are some of the constraints
encountered during this project work.
1.
Insufficient
Textbooks and High Price Tags: In
Nigeria nowadays, in purchase good and comprehensive textbooks for reading to
further research on a typical issues. It will cost an average of three thousand
naira and an average student cannot lay their hand on it as a result of the
economic situation.
2.
Time Factor:
In this part of the country and due to classroom lecturers, it often hinders
someone to concentrate more one it project writing because part of the time are
used in classrooms and to further participate in classroom group discussion and
assignments.
3.
Finance:
This project work involves huge financial expenses such as photocopy, typing
and movement from one point to another to gather information. The financial
problems not only hindered movement but also discourse ones enthusiasm in
learning.
4.
Personal Limitations:
Personal time available for recreation resting and washing are partly engulfed
by this study in attempt to beat the expiration time for submission.
1.8 HISTORICAL
BACKGROUND OF THE CASE STUDY
Union Bank is one of the five leading banks in Nigeria, ranking with the
First Bank Plc, UBA Plc, Zenith Bank and Guaranty Trust Bank before and after
recapitalization of banking industry. Union bank plc is a commercial bank that
has been existing from 1917 as the then Barclays bank DCO, New Union Bank of
Nigeria Plc came into the country. Barclays bank is a subsidiary of Barclays
International was incorporated in Nigeria when the banking decree of 1969 was
promulgated. It changed its name to Union Bank of Nigeria Limited in March
1972, when the indigenization decree came into existence.
The federal government held 52% of the banks share 40% for the Barclays
international which sold 30% of its share to Nigerian in 1979, ten years later
they sold the remaining 20% to Nigerian making it a wholly indigenes bank.
When the banking reforms introduced by Central Bank Governor Prof.
Charles Soludo, that all banks operating in Nigeria to shore up their
shareholders funds by sum 1150 percent from N2 billion to N25 billion
(equivalent of 192 million dollars) before December 2005, the Union bank go
into merger and acquisition with the following banks for consolidation. The
bank merged and acquired Broad Bank Plc, where the capital base rose over N25
billion.
The staff strength of the bank is about 1000 people of various professional
backgrounds well trained and carefully selected to attend to customers need
with the highest standard of personal attention, confidentially and competence.
Union Bank is active in all Commercial Corporation and investment
banking as well as international transaction. The bank operations are varied
with specialized products for different aspects of banking. The bank also
involve within the same industry. The stock in which the bank trade in is
banking services and currency as its major raw materials.
The bank has a tradition for responsive and quick decision making her
service delivery is backed with the latest technology including computer system
and software are constantly updated to ensure that all transactions are handled
with speed and efficiency.
The corporate vision of Union Bank Nigeria Plc is to be the most strong
and reliable bank and most profitable banking the commercial bank and most
profitable bank in the commercial industry.
These dreams are already being unmanifested through volume of assets,
merger and acquisition of various commercial banks that cannot meet the
mandatory N25 billion capital base laid down by the Apex bank (CBN). Her impact
on the economy and society in general employment roll have felt nationwide.
1.9 DEFINITION
OF TERMS
Ø
Performance
Appraisal: It is a process or series of
formalized discussions with an employee about performance over a specified
period of time.
Ø
Manager:
A person with the task of planning, organizing, directing, coordinating and
controlling organization’s resources to attain the objectives of the
organization.
Ø
Productivity:
It is the “quantity or volume of the product or service that an organization
provides” (Decenzo and Robbins, 1989).
Ø
Effectiveness:
This is concerned with the art of getting the right things done, in the right
way, at the right time and for the right purpose.
Ø
Efficiency:
It is concerned with achieving an objective or producing product at the least
cost to enhance organization achieves the main objective.
Ø
Organization:
An enterprise established by a person or group of individuals; government in
order to provide goods and services for the satisfaction of human needs.
Management:
This is the process of planning, organizing, directing and controlling both
human and non-human resources effectively and efficiently towards the
attainment of organizational goal.