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AN EVALUATION OF PERFORMANCE MANAGEMENT PRACTICES IN MANUFACTURING ORGANIZATIONS IN SOUTHERN NIGERIA

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Abstract

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 2c) of 63.754 against tabulated chi-square (χ 2t) 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.