In the same veinArmstrong (2005) pointed out that over the years most organizations haveoperated what basically is called performance appraisal, but the concept ofperformance management is a recent development in the world of management,unlike the performance appraisal which is not strategically focused, the newconcept of performance management is futuristic and strategically oriented.
Performance management is used in most organizations particularly on individualemployees with the primary aim of utilizing on their current performance andleveraging on that to boost their future potentials. In addition, Armstrong (2005) opined that theconcept of performance management was not utilized until 1970, however sincethe utilization of the concept in 1970 it has been constantly used in mostpublic and private firms to set standards of performance among managers andindividual employees as well as establish criteria for assessment of desiredresult, outcome or conformance to organizational standards (Boland and Fowler,2000). Boland stressed that “performance management is aimed at establishmentof set of activities that ensures that organizational aims and objectives,visions, management patterns, management incentives and rewards, performanceframework, team goals, employee needs are efficiently and effectively achieved.
Performance management is a managerial activity which involves regularemployee’s performance appraisal” (Armstrong and Baron, 2005). Fowler (2000) inhis own view posited that the concept however, is not limited to employees onlyit also encompasses an overall management and organizational appraisal to settarget objectives which the organization intends to achieve per time. Performancemanagement is beneficial to organizations in varied ways as it helps to boostthe morale of employees to achieve the set target of their organization, italso provides an avenue for organizations to appraise its performance andethics to make provision for improvements for improved performance (Armstrongand Baron, 2005). According to Fenwick (2004), globalization andincreased competition among different firms around the world has compelledcompanies’ top managements to adopt and apply performance measures in theirorganizations to improve on their competencies, capacities, talents and aboveall thrive over and above other competitors. Therefore; an effective performanceappraisal system has great capacity to improve on the human capital of anorganization where as a good performancemanagement system works towards the improvement of the overall organizationalperformance by managing the performances of teams and individuals for ensuringthe achievement of the overall organizational ambitions and goals.
An effective performance management systemcan play a very crucial role in managing the performance in an organization.In any organization,manpower remains the most prominent and the most valuable assets among otherfactors of production/productivity. It is for this reason performance appraisalis given recognition as a tool to improve organizational productivity.
Therefore, it is onthe premise of the above introduction that the rest of the study willcomprehensively examine performance appraisal on organizational productivity, acase study of Baze University.