EFFECTS OF PERFORMANCE MANAGEMENT ON ORGANIZATIONAL PRODUCTIVITY
(A STUDY OF INNOSON TECHNICAL AND INDUSTRIAL COMPANY LIMITED, ENUGU)
ABSTRACT
This research work examined Effects of Performance Management on Organizational Productivity. A study of Innoson Technical and Industrial Company Limited. The objectives of the study include to: determine the extent to which performance management affects unit of output of Innoson Technical and Industrial Company Limited, ascertain the relationship between performance management and efficiency of Innoson Technical and Industrial Company Limited, Enugu, examine the effect of performance management on effectiveness in Innoson Technical and Industrial Company Limited and identify the extent to which performance management affects sales turnover of Innoson Technical and Industrial Company Limited. The major instrument of data collection was the questionnaire. The sources of data were the primary and secondary sources. The population of the study was 602 while the sample size of 240 was determined using the Taro Yamane’s formula. The data collected was presented in tables, of frequencies, percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that performance management affects unit of output of Innoson Technical and Industrial Company Limited to a large extent, there is a relationship between performance management and efficiency of Innoson Technical and Industrial Company Limited, there is positive effect of performance management on the effectiveness in Innoson Technical and Industrial Company Limited and Performance management affects sales turnover of Innoson Technical and Industrial Company Limited. The research concluded that performance management has a significant effect on organizational productivity and it was recommended that for performance management to affect productivity to a large extent, performance management system should ensure that the managers of employees or teams know and understand what is expected of them, and have the skills and ability to deliver on these expectations, for performance management to have a relationship with productivity, organizations should adopt performance management practices that best fit the nature of the work performed and the mission of the organization, The Management of organizations should create a conducive work culture and climate that will help the employees to perform at the optimum.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                        
1.9     Operational Definition of Terms                    
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.2     Theoretical Framework of the Study                
2.3     Empirical Review                             
2.4 Summary of Review of Related Literature            
2.5 Gap in the Review of Related Literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1     Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                            
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.3.4 Research Question Four                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.4.4 Test of Hypothesis Four                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
4.5.4: Discussion Based on Hypothesis Four            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5    Suggestions for further Research                
List of References                             
Appendix                                    
Questionnaire                                
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
Many organizations desire the optimum performance of their workers. The management of such organizations are interested in the conformance of actual performance. In the words of Bassey (2011:6) performance is a systematic process and involves the establishment of some factors to be effective. These factors include, well designed jobs and written job description, effective supervision, comprehensive employees orientation, training and supportive work environment. Performance management helps to ensure that the performance of employees contributes to the goals of their teams and the business. It is an effective tool that can help an organization to get the best out of its workers, in terms of performance.
    Armstrong (2012:21) opined that performance management can be seen as a strategic and integrated approach to increase the effectiveness of companies by improving the performance of the people who work in those organizations by developing the capabilities of teams and individual contributions. Hence, Baron (2012:78) posits that the fundamental goal of performance management is to promote and improve employees’ effectiveness.
    Inyang (2012:60) states that the production and profitability of an organization is a function of the performance level of its employees. So there is need for the management to ensure that the objectives of workers are aligned to those of the organization. To McDonald and Smith (2012:31) performance management facilitates the implementation of business strategy by indicating what to measure, determining appropriate means of measuring, setting target and linking the measure with organization performance.
    Moreover, Brach (2011:98), states that there are so many benefits, to be obtained from performance management. They include that performance management improves processes within the organization, improves team performance, eases implementation of change in the organizational culture, improves customer’s satisfaction, improves quality of supervision and leads to attaining competitive advantage for the organization.
    In the Nigerian Private organizations, the performance of the employees has been questionable. So many of these organizations, have collapsed as a result of the actual performance, not meeting up with the expected performance and this has contributed to the poor performance of these organizations. Barry (2011:30) states that the private sector in Nigeria is a highly competitive sector with so many organizations not being able to match up with the pace. Managing the performance of the workers of these organizations has been attributed to the poor performance of these organizations.
    Pollit (2013:24) states that performance management is a relatively new concept in human resource management and there is a lot of controversy on the extent it has contributed to organizational productivity. Hence, this research seeks to examine the effect of performance management on organizational productivity with Innoson Technical and Industrial Company Limited as a case study.
1.2    Statement of the Problem
The consequences of so many organizations, not managing the performance of their employees, may lead to the employees not performing at their optimum, decline in productivity, low workers’ morale, loss of competitive advantage and high mortality rate of private organizations.
    Low employee performance, could be seen or visualized from the fact that when an employee believes that he or she is not evaluated with respect to his or her performance on the job, he will receive his or her salary with or without an additional effort.
    Another consequence or effect of not managing the performance of the employees is the loss of competitive advantage for the organization. When the employees are not performing at their optimum, the resultant effect will be on the products of the organization as the quality of the products, will decline, leading to loss of competitive advantage.
    Finally, the morale of the workers will be affected. When the performance of the employees are not evaluated, there will be no urge to add more effort in their work and this does not augur well for organization’s productivity.
1.3    Objectives of the Study
The general objective of the study is to examine the effect of performance management on organizational productivity. However, the specific objectives include;
1.    To determine the extent to which performance management affects units of output of Innoson Technical and Industrial Company Limited Enugu.
2.    To ascertain the relationship between performance management and efficiency of Innoson Technical and Industrial Company Limited, Enugu.
3.    To examine the effect of performance management on effectiveness of Innoson Technical and Industrial Company Limited, Enugu.
4.    To identify the extent to which performance management affects sales turnover of Innoson Technical and Industrial Company Limited.
1.4    Research Questions    
Based on the objectives of the study, the following research questions were raised.
1.    To what extent has performance management affected units of output of Innoson Technical and Industrial Company Limited, Enugu?
2.    What is the relationship between performance management and efficiency of Innoson Technical and Industrial Company Limited, Enugu?
3.    What is the effect of performance management on the effectiveness of Innoson Technical and Industrial Company Limited?
4.    To what extent does performance management affect sales turnover of Innoson Technical and Industrial Company Limited, Enugu?
1.5    Statement of Hypotheses
Based on the research questions, the following hypotheses were formulated.
Hypothesis One
H0:    Performance management does not affect units of output of Innoson Technical and Industrial Company Limited, Enugu to a large extent.
H1:    Performance management affects units of output of Innoson Technical and Industrial Company Limited to a large extent.
Hypothesis Two
H0:    There is no relationship between performance management and efficiency of Innoson Technical and Industrial Company Limited, Enugu.     
H1:    There is a relationship between performance management and efficiency of Innoson Technical and Industrial Company Limited, Enugu.
Hypothesis Three
H0:    There   is no positive effect of performance management on the effectiveness of Innoson Technical and Industrial Company Limited, Enugu.
H1:    There is positive effect of performance management on the effectiveness of Innoson Technical and Industrial Company Limited, Enugu.
Hypothesis Four
H0:    Performance management does not affect sales turnover of Innoson Technical and Industrial Company Limited, Enugu.
H1:    Performance management affects sales turnover of Innoson Technical and Industrial Company Limited, Enugu.
1.6    Significance of the Study
So many people will benefit from this study. Among them are the management of private organizations, the researcher, the universities and the general public.
    The management of various organizations will benefit from this study because they will understand the relationship between performance management and organizational productivity.
    The researcher will benefit from this study as it is a partial requirement for the award of Bachelor of Science (B.Sc) Degree in Business Administration. The universities will benefit as the research work increases their data bank. The general public will benefit as the study will help in job creation and therefore reduce crime rate in the society.
1.7    Scope of the Study
This research covered the effect of performance management on organizational productivity. The organizational coverage is Innson Technical and Industrial Company Limited. The research study was carried out between 2016-2017.
1.8    Limitations of the Study
The researcher encountered some impediments in the course of carrying out this research work. Among them were finance, time and uncooperative attitude of respondents.
    Finance: The researcher spent some money on transportation and in browsing and printing out relevant materials, related to the research.
    Uncooperative Attitudes of Respondents: The respondents of Innoson Technical and Industrial Company Limited were reluctant with giving out information, but when they confirmed that the research was purely for academic purpose they gave out useful information necessary for the research work.
1.9    Definition of Terms
The following terms were defined to help clarify the work.
    Performance: The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost and speed.
    Performance Management: This is a systematic approach to the management of people using performance goals measurement feed back and recognition as a means of motivation to realize their maximum potential.
    Organizational Productivity: Organizational productivity is about improving the efficiency and effectiveness of public and private sector organizations.