the impact of performance appraisals on the growth and development in an organization. Case of Sonedis Douala Cameroon

ABSTRACT
The study set out to examine the impact of performance appraisals on the growth and development in an organization. Case of Sonedis Douala Cameroon, the specific objectives of the study were:

To examine objective-based appraisal influences organizational growth and development? and to examine effect of 360-degree appraisal on organization growth and development? From these objectives, two research questions were formulated and hypotheses state in both null and alternative forms were equally formulated.

The study adopted a survey research design with a sample of 11 management staff of Sonedis Douala Cameroon, through a Purposive sampling technique and stratified random sampling.

The study used a questionnaire for data collection. Results of the finding revealed respondents agreed to a large extent that objectives set to achieve organizational goals are clearly understood, also it was revealed that the performance appraisal system helps identify the strengths and weaknesses of the employee.

In addition, from the findings, respondents agreed that objective-based appraisals contribute to organizational performance.

The null hypothesis was rejected in favour of the alternative hypothesis. It was therefore, concluded that there is a significant impact of Performance appraisal on the growth and development of an organization.

some recommendations were made: there is a need for proper documentation to ensure the area of reference if needed and that the entire management of Sonedis Douala Cameroon should ensure that required to follow up is done and the mechanism of capturing and storing evidence for the future should be fully understood by all.

CHAPTER ONE

INTRODUCTION

• Background to the Study

The current economic atmosphere characterised by globalisation of markets and constant change in customer and investor demands competition has become vital for the survival of any organisation. Competitiveness is the core of any business organisation (Denis and Pritchard,2006) the market experiences savage competition and only those who offer better products than the best will survive. Organisations must incessantly improve performance through cost reduction, product and process innovation to improve quality and speed to market. The organisation greatest asset, is the human resource. Managing the workforce is vital in improving competence and performance through increased individual performance the ability of an organisation to achieve its target is its competitiveness especially through is labour force.

An improvement in the performance of an organisation accrues when its workforce is competent and performs at an optimum level. The human resource as a strategic level has a significant economic effect on the firm and there is need to shift the focus to valve creation. performance appraisal and management are the essence of organisation growth. A performance evaluation is a systemic process through which managers determine job relevant strength through identification, observation, measurement and development. An accurate appraisal helps to diagnose the level of job performance through integrating human resource policies with the firms strategic plain. Training and development programs are conducted to ensure that each task description is executed efficiently to improve the performance level of the human resource.

Performance appraisals allow managers to make appropriate adjustments in the current performance levels. performance management is a tool for directors to advance competitiveness for organisation through creating a competitive edge with a highly skilled labour force training and development, employees can performance efficiently and prepare for future challenges (Thurstonrmane, wells, & Mcnall, (2010) through performance appraisals, managers (Cameroon 2001) through e also able to make decisions on compensation adjustments and promotion for their human resource (walker, Damanpour & Devece, 2011)

Performance appraisals is a formal and systematic assessment of their performance of employees by managers and directors to understand the labour force regarding abilities to further growth the process involves managers measuring and evaluating job related behaviours of their employees and the outcome to determine the level of employee performance and ways to improve the current level of performance in future for the benefit of the   organisation (walker, Damanpour & Devece, 2011)

However, in large organisation, the degree of interaction is so remote that made employees find it difficult to predict what the manager think of them and what the outcome of their performance appraisal could be. In contemporary business environment we keep competition among firms and economic down turn, and many firms use performance appraisal to scale down the use of their workforce inorder to retain only those once who are more productive. Downsizing the workforce helps the organisation to reduce the total cost of labour and to top up the profit of the enterprise. If performance appraisal is properly utilising it will go a long way in assisting it organisation in human resource planning and development (Dipboye,2001) modern organisation   are taking more interest in determining the quantity and level of performance of their employees. Assessing the present productivity of the workforce help an organisation to; prepare the ground for future training and development of the workforce. The process of assessing and appraising the performance of employees is made difficult by the fact criteria of effective and ineffective performance are frequently difficult to define. One of the ways that organisation can apply development performance appraisal is by using performance appraisal activities in relation to determining of strategies, purpose and organisational performance.

1.2 Problem Statement

Performance appraisals are critical component of human resource management. Recent years have seen an increase in their use among organisation motivated by the desire to drive employees’ behaviours and ultimately the team performance. Establishment of goals and objectives at the beginning of financial years for organisation provide employees with clear performance targets and enables the managers to monitor performance during the cycle. performance appraisals help reinforce good performance, alert managers to the need for training and development in certain area or the need to offer assistance to a poorly performing personnel and establish system and promotions all geared toward improving performance.

Two separate studies one conducted by Wang and Min (2001) and the other by Singh (2011) focus on the effects of performance appraisals on organisational performance and both conclude that the system motivates employee’s attitudes towards improved performance.

The study is different from other existing studies as it focuses on an organisation with renowned performance ethic. The study concentrates on the impact performance appraisals has had on the fulfilment of the organisation. The study concentrates on the impact performance appraisals has had on the fulfilment of the organisation. The scope of the survey is also broad to allow the researcher the chance to collect more information needed to answer the research question for the study.                                                                   

Research Question

1. How does objective based appraisal influence organisational growth and development?
2. What is the effect of 360-degree appraisal on organisation growth and development?

1.3 Objective of the Study.

The main objective of this study is to examine the role of performance appraisals on the growth and development of an organisation.

1. To examine objective based appraisal influence organisational growth and development?
2. To examine effect of 360-degree appraisal on organisation growth and development?

1.4   Hypotheses   

H0: There is no significant impact of performance appraisal on the growth and development of an organisation.

H1: There is a significant impact of Performance appraisal on the growth and development of an organisation.

1.5 Significance of the Study

The meaning of this study to academicians and researchers is that it helps determine the knowledge among the public and what points the researcher may want to make known and emphasize to the ²audience.The study contributes to ascertain if the ideas put forward in this research are supported by previous studies. It also helps to build and improve knowledge in the study of organisational performance while narrowing the knowledge gap on the effect of performance appraisals on performance of organisations.

There is often a concern about existing policies and their ability to meet current and future challenges. strong policies make for stable government and prosperous countries. Failed policies cost the state a significant amount regarding monetary and have potential to stunt economic growth. The research conducted in this study provides decision makers with adequate information on performance appraisal and organisational performance to improve existing policies and their functions. The study also allows decision makers to define, rationalise and develop policies for organisation to improve economic growth.