An Evaluation of Performance Management Practices in Manufacturing Organizations in Southern Nigeria.


This research is an evaluation of performance management practices in Manufacturing Organizations in Southern Nigeria.

The study sought to achieve six main objectives, including how performance relates to productivity level leading to improved result; the extent performance management is inhibited by inadequate training.

Comparison of performance management system with results as well as best practices; performance management challenges amongst others.

In carrying out this study, the theoretical framework used was the process theories which focused on a person’s desire or readiness to perform a given task or responsibility.

The research design used was survey design, with questionnaire developed and data collected represented with the aid of frequency tables, percentages and charts. Two hundred and eighty-five (285) manufacturing firms from southern Nigeria was studied.

Utilizing the rest instruments of Friedman’s chi-square test, and one sample Kolmogorov-Smirnov test of normal distribution, six major hypotheses formulated for the study were tested accordingly.

At 95% confidence interval and 4 degrees of freedom, at a critical χ2t of 9.488 against a computed χ 2c of 251.333, the study found that there is significant relationship between performance management and productivity level as perceived by staff of manufacturing firms in Southern Nigeria.

Similarly, the chi-square again confirmed at critical χ 2t of 9.488 and against computed χ 2c of 264.246 that there is an association between quantitative performance appraisal and performance management effectiveness.

Further, result from the chi-square test which showed computed chi-square (χ c) of 754 against tabulated chi-square (χ t) of 9.488 confirmed that performance management system is significantly inhibited by inadequate training.

Another chi-square result: χ 2c = 47.825 > χ 2t = 2.765 confirmed that current performance management practice in Nigeria significantly deliver effective result.

The ks-z of 4.872 compared to one (1) and a mean response of 1.7920 justified that performance management practice in Nigeria manufacturing firms do not conform to best practice.

Lastly, the ks-z of 5.347 and a mean response of 3.8491 results in the conclusion that there is a relationship between performance management challenges and organizational success.

The study showed that proper performance management practices is vital in the growth of manufacturing organisations in southern Nigeria, as well as its productivity and survival.

The results of this study provide basis for better appreciation of performance management practices among manufacturing firms in southern Nigeria. Among other things, the results enhance our understanding of the roles performance management plays in area of growth and productivity of manufacturing firms.

The application of performance management evaluation model (PMEM) used in some organizations benefited them as there was an increase in productivity level thereby achieving reduction in production cost.

With proper implementation of the designed model, vis-à-vis employee commitment and wellbeing, it will ensure the availability of competitive high quality products, improved schedule compliance. This would lead to customers satisfaction as a result of adequate service delivery.

It is highly recommended that adequate training programmes for staff of manufacturing organizations in southern Nigeria should focus on managerial skills to the employees especially those at strategic management level.


Title Page        i

Approval Page          ii

Certification     iii

Dedication          iv

Acknowledgments           v

Abstract      vii

Table of Contents                 viii

List of Tables           xii

List of Figures          xiii

Abbreviations             xiv


  • Background of the Study 1
  • Statement of the Problem 4
  • Objectives of the Study 4
  • Research Questions 5
  • Hypotheses 5
  • Significance of the Study 6
  • Scope of the Study 7
  • Limitations of the Study 7
  • Definitions of Terms 9

References    12


  • The Concept of Performance Management 17

2.3.1    The Impact of Performance Management and Best Practices for Better Results 20

2.4.1 A Way an Organization Handles Performance Management System to Ensure that it Adds Value to the Business: A Case Study Example of the AFROX Performance Management System  23

  • Elements of Performance Management 26

2.5.1     Nigerian Organizations and Performance Management                       28

  • Key Performance Indicators 30
  • Impacts of Business Environments on Performance Management 33
  • Standards Set for Performance Management 36
  • Incentive Scheme as a Technique for Productivity/Performance Enhancement in


  • Introduction 73
  • Research Design 73
  • Setting/Area of the Study 73
  • Sources of Data 74
  • Primary Sources 74
  • Secondary Sources 74
  • Population of the Study 74
  • Sample Size Determination 75
  • Instrument for Data Collection 76
  • Establishing the Validity of the Instrument 77
  • Reliability of the Instrument 77
  • Data Collection Procedure 78
  • Method of Data Analysis 79

References    81


  • Introduction 83
  • Data Presentation 83
  • Analysis of Data 84
  • Test of Hypotheses 104
  • Conclusion 114


  • Introduction 116
  • Performance Management and Productivity Level 117
  • Performance Management System and Staff Training 118
  • Quantitative Performance Appraisal & Performance Management Effectiveness 119
  • Performance Management Practice and Effective Results 119
  • Performance Management Conformity with Best Practice 120
  • Performance Management Challenges and organizational success 121

5.2       Conclusion 121

Reference     122


  • Introduction 124
  • Summary of Research Findings 124
  • Findings on Objective one 125
  • Findings on Objective Two 125
  • Findings on Objective Three 125
  • Findings on Objective Four 125
  • Findings on Objective Five 125
  • Findings on Objective six 126
  • Policy Implication of the Findings 127
  • Conclusion 128
  • Recommendations 129
  • Contribution to Knowledge 129
  • Suggestions for Further Studies 132

Bibliography    134


1.1 Background of the Study

Organizations exist to fill the felt needs of the society. Individuals are engaged by organizations with the hope that they will contribute in fulfilling these felt needs.

There is, therefore, the need for an established mechanism for ascertaining whether the organization and individuals are doing well in their own part of the bargain. In this way evaluation of individual and corporate performance has become imperative and assumed heightened significance in the scheme of things.

Thus, a holistic approach to performance evaluation is now rapidly becoming the norm as contrasted to the practice in the past when it used to be relegated to the background. A change in perspective-from employment to performance-has been recorded (Torrington et al, 2005:224).

Contract for performance is emphasized because both parties have a stake in performance, thus calling for the need to develop integrative schemes.Performance connotes how well or badly a work is done, how well or badly something works (Hornby, 2006:1080).

Thus, performance cannot be effectively divorced from the  twin words of efficiency and effectiveness or from the three concepts of economy, efficiency and effectiveness, both at the macro and micro levels; performance is a critically important factor.

Ewurum (2006:1) states that performance occupies a strategic place in the organizational scheme of things, positing that both sides of the internal environment have a stake in performance for obvious reasons.

The employer expects the employees to deliver effective performance so that the organization would meet its short term and long term commitments to stakeholders, also grow and remain viable.


Akpala, A. (1993), Management, An Introduction and the Nigerian Perspective: Precision Printers and Publishers, Enugu.

Alberts, F. (1999), Management. London: Longman Group.

Andah, T. (2002), Strategic Management: Strategy Formulation and Implementation, Irwin. Bailey, K.D. (1982), Practical Research, Planning and Design, (N.Y.) Macmillan Publishing Co. Inc.

Bordens K.S. and Abbott, B.B. (2002), Research Design and Methods; A Process Approach, McGraw-Hill Companies, Inc.

Carroll, S.J. Jr. and Schneier C.E., (1982), Performance Appraisal and Review (P.A.R.) Systems. Glenview, 111 Scott-Foresmen.

Cole, G.A (1994), Management Theory and Practice UK. DP.

De wit, B. and Meyer, R. (2005), Strategy: Process, Content, Context, 3rd Edition, London: Thompson Learning.

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