CHAPTER ONE

INTRODUCTION
1.1 General Introduction:
The effects of performance appraisal on employee productivity stand as a central area of
exploration within the context of organizational management and human resource practices.
Within Orange Cameroon, a comprehensive understanding of the impact of performance
appraisal on employee productivity holds significant relevance. This study delves into the
interplay between performance appraisal processes and employee productivity, seeking to
uncover the elements that shape the dynamic relationship between these two critical facets of
organizational effectiveness.
1.2 Background of the Study
Performance evaluation is one of the great paradoxes of successful human resource
management, as its primary aim is to increase the job performance quality and effectiveness.
Miller (2007) suggested that there are diverse results that can be obtained from the
performance assessment program, including ongoing open contact, enhanced morale of
workers, job satisfaction, decreased employee turnover, increased employee participation,
increased motivation for both individuals. Beardwell and Thompson (2014) described
performance appraisal as a performance measurement toolkit that is employed to acquire an
individual’s performance information and compares them with the already established
standards. DeNisi (2000), alternatively, saw performance assessment as a company-wide
practice that assigns individuals scores to indicate their performance against pre-determined
goals in order to improve job performance. Fletcher (2001) delineated performance appraisal
as “the actions through which personnel in a company are evaluated in order to provide
rewards, elevate their performance, and enhance their competence.” Aquinas (2009) states
that performance appraisal as a mechanism assesses the employees‟ contribution in all levels
of the organization in the course of certain performance duration, and they are able to know
their performance strengths and weaknesses.
Annual work performance assessments are conducted by companies to delineate an
employee’s overall contribution to the company’s success (Bezerra et al., 2015). Performance
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is assessed using elements like time management at work, job quality, amount generated, and
cost to produce outcomes, and any other practical and mutually agreedupon standard or
criterion (Invancevich, 2003). According to Mutsuddi (2012), performance evaluation is an
organized and formal approach that is employed to assess an employee’s current performance
and formulate strategies for them to improve in the future so that both the person and the
business benefit. According to Mutsuddi (2012), performance appraisal also evaluates
employees‟ performance and then provides comments on past performance, current
performance, and future performance objectives. Poor performance can occasionally be
improved through performance appraisal, which answers numerous concerns about the job
and provides solutions and a path to follow.
Bernadin and Wiatrowski (2013) asserted that an increase in an organization’s efficiency
occurs when its workers are professional and perform at an acceptable level.
Complementarily, Walker, Damanpour, and Devece (2011) posited thatthe current interest in
human resources as a strategic lever have a major economic impact on the business and the
emphasis on value creation needs to be changed. The core of organizational development is
performance assessment and management. A performance assessment is a systematic
procedure in which managers, in recognition, observation, measurement, and development,
evaluate job-relevant strengths (Kuvaas, 2006). It helps to recognize, assess and then improve
employee vulnerabilities by combining human resource practices with the business strategy
of the company, an effective evaluation assists in diagnosing the level of job efficiency.
Performance reviews help managers to make necessary changes to the existing degree of
performance. Cameron (2001) perceived performance management as a vital instrument for
managers to enhance their firm’s productivity by establishing a competitive advantage with a
highly trained workforce. Employees can perform effectively and plan for future challenges
through training and growth (Thurston, Wells, & McNall, (2010). Managers may also
formulate decisions on salary changes and promotion for their human resources through
performance evaluations (Walker et al., 2011). These findings infer the influence of job
performance appraisal to career advancement.
A defined path of development through the ranks of an organization is what career
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advancement includes (Mullins, 2007). Regardless of race, gender, age, or ethnicity, career
advancement is merit-based (Mullins, 2007). Priority is given to cases that deserve to be
developed. Job performance appraisal utilizes merit-based evaluations to assist in
determining the ideal candidates for career advancement. Murerwa (2017) asserted that
organizations use job performance appraisal data regarding current performance to aid in
plans for future career development. From these career development opportunities, some
employees obtain career advancement chances. Additionally, the career development process
enhances the employees‟ motivation (Murerwa, 2017).
Performance evaluation boost the motivation of employees especially when the results does
not meet with the required standards. In this regard, employees are motivated or forced to be
more productive and thereby increasing productivity.
In cases where employees perceive the evaluation as not well established, it causes
dissatisfaction and thereby turn to demotivate employees.
In order for performance evaluation to be effective and increase employee motivation and
productivity, it has to be well administered.
1.3 Statement of the problem.
The effectiveness of performance reviews will determine the organization’s ability to produce
favorable 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 organizations 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 formalized
appraisal system, people’s propensity to evaluate can lead to major motivational, moral, and
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legal issues at work. Without a formalized 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 centered 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 Orange Cameroon. By identifying the impact of the performance appraisal
procedure on the productivity of employees in Orange Cameroon, this study thus appears to fill
this information gap.
1.4 Research Questions
The research sought to answer the following questions:
For the purpose of this study the main research question is;
What impact does performance evaluation have on the productivity of employees in Orange
Cameroon?
Other specific research questions include,
What problems are faced by Orange Cameroon 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 Orange Cameroon?
1.5 Research Objectives.
The general objective of the study is to determine the effects of performance appraisal on
employee productivity in Orange Cameroon.
The study is guided by the following specific objectives
To establish the extent to which performance appraisal process affects employee productivity.
To determine the extent to which appraisal affects employee motivation.
To establish the effects of performance appraisal feedback on the productivity of employees.
To examine the effect of performance appraisal criteria on employee productivity.
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1.6 Research Hypothesis.
There is no significant relationship between the effectiveness of performance appraisal
processes and employee productivity within Orange Cameroon.
There is no significant relationship between performance evaluation and employee motivation
within Orange Cameroon.
1.7 Scope of the study.
The scope of the study on the effects of performance appraisal on employee productivity in
Orange Cameroon encompasses a comprehensive evaluation of the appraisal processes
employed within the organization and their direct and indirect impact on employee
productivity. This entails an exploration of various constructs such as the types of performance
appraisals used, the frequency and methods of performance feedback, the alignment of
appraisal criteria with organizational goals, and the influence of managerial practices on the
overall appraisal process.
Additionally, the study may delve into the perceptions and experiences of employees,
managers, and other stakeholders regarding the effectiveness and implications of the
performance appraisal system on their productivity and well-being.
Furthermore, the research may consider the contextual factors unique to Orange Cameroon,
such as industry dynamics, organizational culture, and regulatory frameworks, that could
interact with the performance appraisal processes and employee productivity.
1.8 Significance of the Study.
The results of this study will benefit academicians, researchers, policy makers, and the
industrial-organizational psychologists, human resource managers, and audit firms. For
instance, to educators and researchers, it will help assess the awareness of the public and the
facts the researcher would want to communicate to the audience. The analysis
helps to assess whether previous studies endorse the ideas put forward in this research. In
addition, the research will benefit policy makers and human resources managers will provide
data on
performance evaluation and organizational performance assist in strengthening current
policies and their functions. In relation to audit firms, the findings will play a critical role in
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organizational progress. By increasing the available data on job performance appraisal results
on productivity and will boost the organizations efficiency, thus increasing
their competitive edge in the market.
1.9 Definition of terms.
Performance appraisal: it is a structured and systematic evaluation by directors or managers
of the performance of employees to understand the skills of the workforce to encourage talent
growth improving the growth of the business. The assessment takes a standardized approach
where applicable Supervisors assess the remuneration of workers against the goals and
strategies set (Walker, Damanpour & Devece, 2011).
Productivity: Productivity is the efficiency of production of goods or services expressed by
some measure. Measurements of productivity are often expressed as a ratio of an aggregate
output to a single input or an aggregate input used in a production process, that is, output per
unit of input, typically over a specific period of time.