CHAPTER ONE

OVERVIEW OF THE STUDY

For growth and survival of any organization the role of performance appraisal is a strategic factor that cannot be over emphasized. It is believed that both the individual and the organization need to know how well, actually performance is contributing to the accomplishment of the job plans, the starting plan and ultimately the overall strategic grand plan of the organization. In addition the individual employee requires feedback related to his or her own goal, development as well as the related management expectation. Performance appraisal is a structured formal interaction between subordinate and employee. The relationship between performance appraisal and organization is that, it can bring positive impact to the performance of the employee. Performance appraisal can also be seen as a developmental process since it seeks to identify the strength and weakness of the employee as a guide for further development. It is usually made in prescribed manners at a specific intervals such as quarterly, biannually or to asses employee on his or her job performance and when necessary, giving guidelines and advice to the employee for improving efficiency and effectiveness. An effective performance appraisal review system service these general purpose in other words the essence of performance appraisal is to give information for promotion, pay increase, training and development. It can also be used to discharge employee. Furthermore it provide employee with constructive feedback on how they are performing their jobs as viewed by their manager thus leading to increase in productivity. Flipo (1980- 2004) identified the following three appraisals as follows 1.       A casual and unsystematic approach 2.       The traditional and higher systematic measurement of -        Employee’s characteristic -        Employee’s contribution -        Both 3.       Mutual goal setting through a management by objective programme (MBO) that effective performance appraisal system have the potential to provide opportunity for manager and employee to communicate and agreed upon what is expected to each of them and to plan performance based on the overall objectives of the organization. Legal implication often dictate the need for jobs to be defined explicitly for objectives to the set and agreed manager and employee performance based on the criteria that include more than just the judgement of the manager but also include the judgement of individual.

1.2     STATEMENT OF THE PROBLEM This is to assess the extent to which performance appraisal impact on employee performance in Delta Line Ltd. As we all know the primary aim of every established company including the Delta line ltd, is to maximise profit, and this could easily be attained through staff productivity, to assess if the company has adequate appraisal system that can lead to promotion, pay increase training and development. Therefore it was due to the above, that this study is been carried out.

1.3     OBJECTIVE OF THE STUDY The specific objectives of this study include;

1. To describe the various performance appraisal techniques used by the organization.
2. Technique used in Delta line limited.
3. Problems associated with different approved techniques.
4. To determine some common performance appraisal problems of the employees and how it could be solved.
5. To determine the extent to which performance appraisal impact on employee’s performance at Delta line limited.

1.4     RESEARCH QUESTIONS The following research question will help in achieving the objective of the study

1. What is the relationship between performance appraisal and employee’s productivity?
2. What are the techniques used in performance appraisal?
3. How effective are the techniques in ensuring increase in productivity?
4. What are the problems of performance appraisal?