Organizational Politics and Performance Appraisal Decisions of Firms in the Oil and Gas Industry in Rivers State, Nigeria

This study examined the relationship between organizational politics and performance appraisal decisions in selected oil and gas firms in Rivers State, Nigeria. Specifically, the study explored how three dimensions of organizational politics—loyalty, power coalition, and nepotism—influence four key aspects of performance appraisal decisions: employee promotion, training, discipline, and transfer. The study adopted a correlational survey research design and drew its theoretical framework from the Social Exchange Theory and Organizational Justice Theory. Data were collected from a sample of 80 respondents (directors, managers, and supervisors) across 10 oil and gas companies in Rivers State, using a structured questionnaire. Descriptive statistics and Pearson’s Product-Moment Correlation Coefficient were used to analyze the data. The results revealed a significant positive correlation between organizational politics and all four appraisal indicators. Among the political dimensions, nepotism exhibited the strongest correlation with performance appraisal decisions, particularly in areas of employee promotion and discipline. Loyalty and power coalitions were also found to significantly influence decisions related to training and transfer. These findings suggest that performance appraisals in the oil and gas sector are often influenced more by informal political dynamics than objective performance metrics. The study concludes that the prevalence of organizational politics undermines merit-based appraisal systems, with potential adverse effects on employee morale and organizational performance. It recommends the institutionalization of transparent, merit-based appraisal systems, establishment of ethics oversight committees, and continuous training of HR managers to promote fairness and accountability in human resource practices.