CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY

Performance appraisal is a tool for identification of deficiencies which point out the weaknesses of employees and spot the areas where development efforts are needed in the organization. Performance appraisal also plays a key role to measure the employee’s performance and help the organization to check the progress towards the desired goals and objectives (Ijbmr, 2012). Now organizations are using performance appraisal as a strategic approach by coordinating the human resource functions and business policies. They are focuses on it as it is a broad term that covering number of activities like examines employees, improve abilities, maintain performance and allocate rewards (Fakharyan, Jalilv and Dini, 2012). Performance appraisal help aligns individual goals and objectives with the organization goals. The system engages, motivates employees and thereby directs them toward achieving the strategic ‘goals of the organization (Verhulp, 2006).

The fact remains that good organization performance refers to the employee’s performance, satisfactory performance of employees does not happen automatically. Managerial standards, Knowledge and Skill, Commitment and Performance appraisals have effect on employee’s productivity. According to Lillian and Sitati (2011) opined that the history of performance appraisal is quite brief. Performances appraisal roots can be traced in the early 20th century to Taylor’s pioneering time and motion studies. The performance appraisal system start in practiced mainly in the 1940s and with the help of this system, merit rating was used for the first time near the Second World War as a method of justifying an employee’s wages. There are number of government establishment in Nigeria using the performance management system for making their employee’s productivity better because it leads to achieve organizational performance. However performance appraisal is very important process but it deemed to be the “weak point” of managing human force (Pulakios, 2009). Therefore performance appraisal is important to manage employee’s work effectively.

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