Title Page




Table of contents



1.1     Background of the Study

1.2     Statement of the Problem

1.3     Objectives of the Study

1.4     Significance of the Study

1.5     Delimitation of the Study

1.6     Limitation of the Study

1.7     Definition of Terms


  • Literature Review
  • Management Appraisal System 18

2.3     Purpose of Performance Appraisal

2.4     Factors Affecting Performance

2.5     Performance Appraisal Process

2.6     Pitfalls in Performance Evaluation

2.7     Definition of Performance Appraisal

2.7.1  Method of Performance Parasail


3.1     Introduction

3.2     Area of the Study

3.3     Research Design

3.3.1  Population of the Study

3.3.2  Sampling Procedure

3.3.3  Research Instrument

3.4     Techniques of Data Analysis

3.5     Restatement Hypothesis


4.1     Presentation and Analysis

4.2     Discussion

4.3     Finding of the Study

4.4     Summary of Findings

4.5     Implication of the Findings


5.1     Summary of Findings

5.2     Conclusion

5.3     Recommendations


Appendix (Questionnaire)



This project examined the impact of performance appraisal system in an organization using Owena international Motel, Akure as the case study. It emphases the various way appraisal is done in the organization, and also the merits and demerits of performance appraisal on employees. In other to achieve this, the work was carried out to critically analyse the impact of performance appraisal on the goals and objectives of both employee and employer, the result of training and development need of every individual in an organization and lastly to investigate and analyze how organization goals could be achieved using good appraisal system.

Relevant literatures were consulted in the course of the study. Data were collected using a well structured questionnaire and information from personal interviews.

Conclusively, after critically examined the result of the study, it was concluded that performance appraisal as a function is a complex function, but an understanding of what the functions entails will definitely serve as a means of ensuring organizational harmony and personal development.





Organisation is the combination of people or individual effort, working together in pursuit of certain common purposes called organisational goals.

In Nigeria various efforts are being made by the government to establish modern industries and to encourage private organisation, both foreign and indigenous to join in the industrialization of the country.

However, these process of industrialization has no effects on the human factor involved, the management team and workers who may have little or no authority over their job but only contribute their own quota by working for the organisation and at the end of it all receive their reward in form of salaries and wages.

Nwankwo (2008) pointed out the knowledge of mass as obtained about human criteria continue to fall behind his phenomenon progress in solving environmental problem. In recognition to the magnitude of these problems of an organisation, several movement and establishments in the advanced countries have passed laws in respect of organisational and institutional management techniques to determine how the interest of human factor, workers in an organisation can be taken care of, so that their morale can be boosted, the result of which will increase the productivity of such on organization.

In Nigeria today, a number of studies has been done by Nigerian behavioural scientist on workers antics to work, unfortunately the impact of performance appraisal on employees still inequitable. Some researchers most especially the renowned industrial psychologists has proved that workers antics to work all over the world and particularly in Nigeria is as a result of their experience on the job.

Nwankwo (2003) believed that it is natural for people to work provided they are enjoying other benefits apart from their salaries. It has equally been discovered that people who claim in public that they only got their position of eminence by steer hard work areleaving out the fact that, they worked harder because they “enjoyed the work”. Since ones career is a major consideration during his or her period in the organisation, therefore, one can say that the contribution of performance appraisal system as a means of guiding employee’s career cannot be over emphasized.

Appraising a staff accurately assist them to reach their desired position that might be available within his or her career standard in the organisation. Apart from good appraising system, being a motivational factor on workers, the organisation will record huge success on the overall, hence, the question is whether an employees were able to achieve their ultimate aim and objective in an organisation clearly determines the extent to which such individual has assisted the organisation in achieving its goals and prevailing in the organisation.

Agagu (2010) in one of his studies relating to the impact of performance appraisal on employee to the personality and characteristic of their supervising officers in an organisation to the antics of their subordinates found constantly different relationship between authoritarianism and equalitarianism of supervisor.

The subordinates has more positive attitude towards equalitarian leaders.

Designing an appraisal programme must be fashioned out in a manner that the employee needs and their aspiration will be considered.

It would be naïve to assume that all employees want the same things on their aspirations remain constant over a career. It is momentous to note that their aspirations remain constant over oriented employee’s endeavour to prove themselves through assuming and constantly bonus while other may put job security and easier work first, as a result, appraising job should be carried out deligently as dedicated staffs could are allowed to function in the organisation.

Managers or supervisors should not pressure to known their employees desire by sight. A situation where an employee feels that he or she is an active member of a team contributing to the achievement of an organisation not only with his hand but attitude, experience and personality.

In consonance with this, is the view of Obadan (2003), that can employee above will have more favourable job satisfaction. He also added that supervisors who make decisions in appraising employees without communicating with them or any prior consultation would make job less satisfying for workers than supervisors that make such discussions with the workers.

Also, Wayne (2000), said that, the greater the amount of felt participation in performance appraisal by the subordinates the greater the organisation achieve its goals and objectives.


Many organisation with un – experienced management team has gone back to the filed of study and research as a means of finding lasting solutions to the problems of low productivity and workers dissatisfaction, which often result from poor apprising of employees.

Perhaps, the school system is a bureaucratic organisation with many roles, which must be considered for effective functions of the school. The need for coordination for cooperation for the achievement of common goals gave rise to the question of interpersonal relationship.

It is certainly a fact that cordial human relation is an indispensable factor on effective management of personnel.

These types of situation makes one wonder or doubt the effectiveness of performance appraisal in such department where there is no cooperation among staff. Where numbers of staffs set the stage for discipline by quarrelling with or disagree with their boss and at the same time affect individuals career plan.

The existence of such unfortunate situation in our organizations therefore, forms the motivating factor for this research work.

This proper understanding of the discussion variable as impact of performance appraisal on employee shows that a worker’s attitude to work is a function of many things and the way they has been appraised from empirical evidence.

Therefore, the concept should not be treated without full attention to at least some of the variable considered bringing about the impact of performance appraisal on employee.

In a nutshell, the impact of performance appraisal is hereby defined under two heading as impact and performance appraisal.

Impact can be said to be effect or influence on something, while performance is the way of doing thing, whenever appraisal can be described as a statement or opinion, judging the worth, effectiveness, success and value of something. It involves using the criteria developed through job analysis to assess employees development on their job and their contribution to organisational goal

Performance appraisal is the process of reviewing and individual performance, progress in job and assessing his potential for future promotion. It is a systematic method of obtaining analyzing and recording information about a person. This is needed running of an organization by the managed and to help improved the performance of his workers and also develop the organisation.

In order words, the study intend to investigate the impact of performance appraisal on employees using Owena International Motel as a case study. Therefore, the related problems, thus arises within various organisation in the following aspects.

  • Is there any need to enhance staffs dignity to make them have some sense of belonging to the organization in where they work?
  • Will the impact of performance appraisal ensure a happier home and social life to workers through removal of disagreeable and worrying factors in the evaluation form?
  • Will there be need to ensure that bad organization and poor management do not deprived the most imperative precursor to productivity?
  • Is there any need for coordination and cooperation for the achievement of common goals?
  • Is there any element of external and internal forces, which jointly prepares the workers on the performance appraisal system?
  • Will the uses of performance appraisal has the employee bearable to acquire outstanding skills and resourcefulness to perform variety of jobs?
  • What could be the aftermath effect or result of good appraising system?
  • What could be the result or effect of bad appraising system?

Considering the above outlined facts/questions, effect should be geared towards examining the industrial organization as a whole with the view of putting things right.



1.3              OBJECTIVES OF THE STUDY

This has been undertaken to give an overview impact of performance appraisal using Owena international Motel as a case study.

Many studies and research has been done to understand the problems and a horde of theories that exists on the approaches to this problems.

However, the most distinguishing trait of a good theory is that:

(i)      It shows how to analyse an organisational problems so that appropriate techniques can be chosen to solve the problem.

Therefore, the desire to inscribe on the topic impact of performance appraisal on employee work motivation does not arise by accident, it was developed due to the need to acquaint my target audience on the need for effective performance appraisal system.

(ii)     The various management appraisal system process of procedures has equally be highlighted to improve personnel function of staffs.

(a)     Promotion: which in most organisation is done quarterly, half a year or annually to enhance employee morale in achieving organisational goal and objectives, like high production. Which reduce loss and increase profit inevitably.

(b)     Transfer is one of the momentous personnel function which on its own part express the organisational activities to boost employee morale and have greater sense of belonging.

(c)      Training and development will inevitably enhance their communication skills performance will be minimal

(iii)    The study tends to emphasize that one of the prerequisites for effective and efficient work process lies on effective appraisal techniques and procedures. It is an exercise which can only be achieved, if all management staffs are adequately involved.

(iv)    Performance appraisal is designed to investigate and analysed how organisational goals could be achieved through the uses of a good and effective appraisal system by the management.

It is however, envisaged that the outcome of the study, if the above terms are followed and applied consistently, will make the management and workers improve both efficiently and effectively in their standard of performance which at the same time help in achieve their targets.

At the end of the work, an organization will be able to anaser the following question.

  • Which appraisal should be carried out?
  • How should appraisal be done?
  • When should appraisal be done?
  • Who should be appraise?
  • Who are to be appraise?
  • What could be the result of good appraising?
  • What could be the result of bad appraising?
  • Why do we need performance appraisal?


          Organization problems has become a phenomenon that pervades all the industrial organizations and parastatal in Nigeria.

Since appraising precedes and happens to be the bedrock on which promotion lies than it is necessary to look at it critically the way it is being handed either with or without bias.

The most important among these problems is the impact of performance appraisal on work motivation of employees which is very pertinent to industrial organisation in achieving their goals.

It is also obvious that manipulating the structure and atmosphere of the organization is more realistic and efficient way of dealing with organizational problems.

However, this aspect of promoting employee performance has received not too much attention in this country as expected.

It is also obvious that the nature of the study will be useful to anyone who likes or needs to manipulate the variables of organizational climates in order to promote the survival and effectiveness of an enterprise in Nigeria.

From the foregoing the essence of the evaluation is to assess employees character, attics, potentials and past performance on the job.


          This research work impact of performance appraisal on employee’s work motivation are targeted to the point of various series of services in all sectors and various activities involved, such as economic activities, social activities, agricultural activities, commercial service, religion service, as well as civil service, even domestics services, and transportation service.


During the course of the study some problems were encountered which includes.

(a)     Poor Response to Questionnaire:

          Most of the respondents that were served with questionnaires never returned them and some were return out of fear could not disclose what they term official secret

(b)     Reluctant to grant interview:- Majority of the respondents complain of having tight schedules but it was evident that they were ignorant of the whole matter.

(c)      Time factor:- Much time was wasted on collection of data because officials have to be chased here and there to gathered information.

(d)     Finance:- This is one of the major problems facing Nigeria today, with the economic depression ravaging the country. The cost of gathering or collecting data, analyzing, typing binding etc has gone up astronically resulting in extra sacrifice to be made.

(e)      Non – availability of materials:- Access to current books, journals and other relevant materials would have made a positive outcome but the reverse is the case, which led to little or outdated materials in sight, so there was little or no relevance to the work. Even the official gazette could not be adequately reached due to bureaucracy. Nevertheless, the data collected was still adequate for this type of research work.


EMPLOYEE:- This is a person paid either in wages or salaries in order to work under an organizational body.

EMPLOYER:- This can be body, group, organization, company or an individual who recruits people to an agreed wages.

PERFORMANCE:- This means how well the particular employee carried out their duty accurately or inaccurate.

APPRAISAL:- This is a statement or opinion which judges the worth, value and condition of an employee.

CONDITION OF SERVICES:- This could be an agreement paper that specifies the dos and don’ts of an organisation, implication of financial materials and remuneration will be stated. Also, hour to work free period or days, allowance for additional services, penalty for failure to oblige with organisational regulation and reward for excellent performance will be stated.

SERVICES CHARGES :- This is a certain percent added to the selling price of every services rendered in the motel. Those services ranges from accommodations, foods, drinks, laundry, telephone etc.

MOTIVATION:- This is an inducement apart from wages and salaries given to the employee to make them more productive than ever, this may be in form of cash, it boost the morale of the employees which make them have a sense of belonging (Pearse 2005)



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