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Effect of Performance Appraisal Processes on an Employees Productivity: the case of Buea Council

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The purpose of this study was to establish the effect of performance appraisal processes on employee productivity in the Buea Council. Performance Appraisal Criteria (PAC) and Performance Appraisal Feedback (PAF) were used as variables (Proxies) that influenced employee productivity. The study employed a cross sectional survey. The sample size was made up of 21 employees from selected departments of the council. Data was collected using questionnaires, personal observation and interviews, which were further presented using tables, charts and simple percentages. The studies also revealed that majority of the respondents were not counseled after performance appraisal. It is recommended among other things, that the process involved in performance appraisal should be duly followed. Buea council should make sure that feedback is given so as to help employees know they are faring on the job. The study found that there exists a strong relationship between Performance Appraisal and Employees Productivity.

Keywords: Performance Appraisal, Performance Appraisal Feedback, Performance Appraisal Criteria, employee Productivity


1.0 General Introduction

1.1 Background to the Study

Every corporate organisation relies on employee performance to help them meet their objectives. Its origins can be seen in Taylor’s groundbreaking time and motion research from the early 20th century. The performance appraisal system first came into use in the 1940s, and it was with the aid of this system that merit grading was reintroduced as a means of defending employee pay just prior to the commencement of World War II (Iqbal et al, 1913). Asamoah (2012) claims that Lord and Taylor introduced performance evaluation (1914). As a result, Frederick Taylor’s “scientific management” initiatives in the early 20th Century had an impact on numerous businesses. As a result, it held the opinion that each organization’s performance evaluation system is crucial to its long-term success.

Employee performance is crucial to accomplishing organisational goals in every corporate organisation. Therefore, performance evaluation can be credited with the success of every commercial organisation. (2012) Gichuhi et al. One of the fundamental instruments that encourages employees to be highly productive and engaged at work is the performance appraisal. A critical evaluation of this can show that an organisation needs solid human relationships, development, training, and motivation.

The purpose of performance reviews has expanded from that of an instrument for evaluating employees to one that supports desirable behaviour and competent performance (Gichuhi et al 2012). Instruments for a sophisticated and well-managed firm to mobilise employees in order to achieve strategic goals include performance appraisals ( Singh et al, 2010) It is a universal occurrence and a fundamental component of effective work performance, which is necessary for efficient staff management and evaluation. It strives to enhance both individual growth and corporate performance. The performance review process is required to improve employee performance and to monitor the organization’s progress toward its objectives.

The primary goal of the performance review process is to boost employee productivity for the company. Therefore, performance evaluation divides employees to knowledge and the outcome of their work outlets for participation in the formulation of task and goals, providing them with suitable feedback on how employees are functioning. Organizational goals should be specific and doable ( Mullins, 1999). By engaging in these activities, the organisation will become more productive and employee performance will improve.

One of the crucial management functions of the Buea council is performance review. If done correctly, it will increase motivation and productivity, pave the way for workers to develop and perform better. On the other hand, poorly handled According to Blau (1990), performance reviews may cause workers to feel unsatisfied with their jobs and acquire a bad attitude toward their employers, which would reduce productivity.

Performance evaluations are used to decide who will be promoted, retrained, or fired as well as who requires training. In order to obtain the best performance, many firms are switching to short cycles (every quarter or six months), and others have already made the switch to weekly cycles. Performance appraisals are now conducted on a long cycle. The success or failure of an organisation is greatly influenced by how performance is handled inside that company. Therefore, one of the top tasks of modern organisations should be to improve performance appraisal for everyone. However, the procedure is typically required for employee commitment as it establishes an employee’s loyalty and psychological attachment to their position. While performance reviews may have many advantages, they may also have some disadvantages. For instance, it can make management-employee communication easier, but it also has drawbacks, such as the potential for legal problems if improperly implemented and the fact that many people tend to be dissatisfied with the performance review process.

1.2 Problem of the Statement

The effectiveness of performance reviews will determine the organization’s ability to produce favourable results. When badly planned and implemented, performance appraisals can have a negative effect on motivation, role perception, and turnover in addition to being thought to have a good impact on the performance of employees in a company (Bargozzi, 1980). (Churchill et al 1985) The process of performance evaluation is complicated, and there is room for error, especially when the supervisor is asked to make judgments about the performance of the employees and apply the concepts of work planning, performance target setting, feedback, and reporting.

The major difficulty that managers in all kinds of organisations face is how to achieve the best output possible from their staff. Therefore, performance evaluation appears to be unavoidable. Without a carefully designed system of evaluation, people would typically rate the work performance of others, even subordinates, informally and arbitrarily. Without a formalised appraisal system, people’s propensity to evaluate can lead to major motivational, moral, and legal issues at work. Without a formalised appraisal process, there is little hope of guaranteeing that decisions made will be right, just, and accurate. In light of this, the current study seeks to determine how the performance appraisal process affects employees’ attitudes. 2012 (Asamoah).

The majority of important studies had centred on staff evaluation and employee motivation, while others had looked at appraisal procedures and job satisfaction using various case studies. However, no known study had looked at how performance evaluations affected worker productivity in the Buea council. By identifying the impact of the performance appraisal procedure on the productivity of employees in Buea council, this study thus appears to fill this information gap. Additionally, the study will address a few personnel problems. By making long-term suitable recommendations to the council’s management and other pertinent government agencies, the Buea council’s performance is evaluated.

1.3 Research Questions

For the purpose of this study the main research question is, what impact does performance evaluation have on the productivity of Buea council?

Other specific research questions include,

  • What problems are faced by the Buea council in increasing productivity?

  • Does effective performance evaluation reduce cost and wastage of resources?

  • What effect does the different component of performance evaluation have on the productivity of employees?

  • Does performance evaluation motivate employees in the Buea council?

1.4 Objective of the Study

The objective of this study will be broken into the main and specific objectives.

The main objective is to clearly examine the effect of performance appraisal on employee productivity.

The specific objectives include;

  • To establish the effect performance appraisal feedback on the productivity of employees.
  • To examine the effect of performance appraisal criteria on employee productivity.
  • Make necessary recommendations.
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