Effect of Performance Appraisal on Organizational Productivity: A Case of Nigerian Institute of Leather and Science Technology, Zaria

It is very vital to ensure the quality of performance appraisal reports to enable managers to make timely and correct decisions. Performance appraisal of employees has the advantage of helping an organization to position the workforce on the jobs for which they are best suited and thus leading to improved productivity and increased organizational profitability. When employees are engaged in the performance of different tasks in an organization, it is essential to appraise their actual performance on the job to ensure that their effort is positively contributing to the achievement of organizational objectives. It is no longer fashionable to deploy employees to tasks without determining their suitability for each job. Modern organizations are no longer comfortable with just remaining competitive in their industries. They aspire to establish competitive superiority over their competitors and to post increasing profit figures for their shareholders. To achieve these objective, NILEST Zaria requires thorough performance appraisal of the entire workforce to enable the firm position the right skills in the right tasks for optimum productivity. Descriptive research design was adopted in this study. Sample of 50 respondents were drawn from NILEST Zaria. Data for this study were gathered from primary sources and through the use of structured questionnaire from respondents. The study employed Pearson Product Moment Correlation analysis to measure the relationship between variables tested using SPSS 20. The result showed that performance appraisal aids NILEST Zaria to position employees to right tasks thereby enhancing organizational productivity. A p-value of 0.00 is less than 0.05. It summarily means that Performance appraisal increases the productivity of NILEST and also shows that there is a significant relationship between performance appraisal and employees output in NILEST Zaria. Organizations are therefore advised to take the issue of performance appraisal seriously and to encourage the appraising managers to remain objective about the assessment of subordinates in the interest of increased productivity in the organization and Multiple appraisal method” should be introduced to encourage objectivity and eliminate bias in the appraisal of workers in an organization.