Performance Appraisal and Organizational Productivity

ABSTRACT

The study examines the relationship between performance appraisal and organizational productivity. The objective of the study is to examine the relationship between employee training and development, employee compensation, organizational strength, organizational size and organizational productivity.

The study employs a quantitative and longitudinal research design in which secondary data are collected from the quoted food and beverages companies in the Nigerian Stock Exchange for the period of 2012 to 2017. Multiple regression technique, descriptive statistic and Pearson correlation matrix are performed using EViews 8.0 econometric software.

The findings show that employee training and development has a positive coefficient and significant relationship with organizational productivity, employee compensation has a positive coefficient and significant relationship with organizational productivity, organizational strength has a negative coefficient and insignificant relationship with organizational productivity and organizational size has a positive coefficient and insignificant relationship with organizational productivity. The study concludes that performance appraisal is the procedures adopted by management to evaluate the personality and the performance of the employee in organizations. The study recommends that management should engage in regular employee training for improved organizational productivity.