Effect of Performance Appraisal on Employee Productivity in Nigerian Banking Sector

The Study examined the effect of Performance appraisal on Employee productivity in Nigerian banking sector using Eco Bank of Nigeria Abakaliki Branch, Ebonyi State. The specific objectives were to determine the effect of performance appraisal design and method (PADM)on employee productivity (EP) in Nigerian banking sector, examine the effect of performance appraisal process (PAP) on employee productivity (EP) in Nigerian banking sector and evaluate the effect of performance-based reward (PBR) on employee productivity (EP) in Nigerian banking sector. The independent variable performance appraisal proxied by performance appraisal design and method (PADM), performance appraisal process (PAP) and performance-based reward (PBR) while dependent variable, employee productivity (EP). The descriptive research design was used for the study. The main theories that under pinned the research were the equity theory, goal-setting theory and hierarchy of needs theory. The SPSS version 20 software statistical package was used to run the Panel ordinary least square (OLS) for the study. The multiple regression model was applied in determining the extent of the effect of independent variable (performance appraisal) on dependent variable (employee productivity) of banking sector under investigation. The regression result indicated that performance appraisal design and method (PADM) and performance-based reward (PBR) have positive and insignificant effect on employee productivity while performance appraisal process (PAP) has positive and significant effect on employee productivity (EP) in banking sector. The implication of this finding is that a percentage increase of performance appraisal design and method (PADM), performance appraisal process (PAP) and performance-based reward (PBR) will lead to an increase on the employee productivity. Based on the findings, the researcher recommended among others that the organization should reduce the impressio n given to the employee on the design and method of measure appraisal if they are not sure of the methods. Also, performance appraisal process should however be evaluated periodically to determine how they conduct performance appraisals.