Employee performance appraisal and its implication for organizational growth

Abstract

Performance means “a basic instructional method in which the trainee is required to perform, under controlled conditions, the operation, skills, or movement being taught” (Tracey,1998:391). Performance Appraisal has been considered as the most significant and indispensable tool for an organization (Sanjeet,2009). Organizational performance and its resultant efficiency and effectiveness can only be achieved when individuals are continuously appraised and evaluated. The inability of organization to install an effective performance appraisal strategy has hindered them from achieving competitive advantage which they require more now than ever before (Chris,2011). Organizations should stop giving less attention to the evaluation of their employees and recognize that organizational training needs can only be identified from performance appraisal outcomes. It is an invaluable tool but in the hands of human resource management officers to continuously evaluates and audits the performance of its employees in other to help organizations win competitive advantage (Obisi.2011). This paper seeks to assess the impact of employee performance appraisal on the organizational growth and will concentrate on examine the effect of the performance appraisal on the organizations. The data used for the study is primary data collected through the help of questionnaire filled by the samples and the secondary data is collected through audited financial statements. The data will be evaluated with the help of statistical tools that is descriptive statistics, regression, correlation and residual analysis. The importance of findings of this research is to assess whether there is a noticeable effect of the performance appraisal on the organization.