IMPACT OF EMPLOYEE PERFORMANCE EVALUATION ON BUSINESS PERFORMANCE (A STUDY OF FEMTECH ICT OFFA, KWARA STATE)

ABSTARCT This paper theoretically examines the impact of employee performance appraisal on performance of businessorganizations. It notes that well designed performance appraisals is vital to the improvement of employeeperformance and productivity, as well as to assesses achievements and develop plans for individual and teamdevelopment. Some uses and benefits of employee appraisal identified include: human resources planning,promotions, training and development, career planning, compensation programs, among others. The challengesof employee appraisal noted include leniency, central tendency, halo effect, personal bias, recent behaviour biasand manipulation of the evaluation. The paper concluded that employee performance appraisal is a vital inputthat leads to the organization performance, and is an important tool used to assess employees’ efficiency andperformance in the workplace. Additionally, employee appraisal is desirable needed by business organizations inorder to operate profitably and enhance both employee and organizational performances. It is recommended thatmanagers should improve on the training and development needs analysis element of performance appraisalpolicy in order to meet the aspirations of employees as training and development enhances employee performanceand organizational growth. Employees should be properly educated on the purpose of performance appraisalexercise so that they are clearly aware that it is not a weapon of punishment but an instrument designed to assistthem to grow. Management should provide the employees with timely feedback whether results are positive ornegative so that they may know whether their performances are in line with the expectations or goals set by the management. Additionally, managements should set up and adopt employee appraisal systems in order to helpthem identify staff training needs, help employees meet performance targets, offer poor performers the chance toimprove, and assist the managers to make informed decisions about promotions and assignments based on applicablefacts.