ASSESSMENT OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEES’ PRODUCTIVITY OF HOTELS IN AKURE, ONDO STATE, NIGERIA

Abstract

The general objective of the study was to assess performance management system on employees’ productivity with a focus on the Hotel sector in Akure Ondo State, Nigeria. The study specifically sought to investigate the performance management system of hotels, examine the influence of performance management system on employees’ productivity of hotels and examine the challenges facing the implementation of performance management system of hotels. This study used the descriptive research design. The independent variables included performance appraisal, training, reward system and feedback, and their effects on employee productivity as the dependent variable. The target population comprised 186 hotels in Akure, Ondo State. Yamane (1967) formula was used to derive the sample size of 127. A structured questionnaire was administered resulting in a response rate of 89.7%. The demographic profiles of the respondents were analyzed using percentages and frequencies. Multiple regression analysis established the relationship between independent and dependent variables. Findings showed that three of the four constructs of performance management had significant influence on employee productivity. The constructs are; performance appraisal, training, performance feedback and reward system. Detailed regression analysis showed that performance feedback (β = 0.298, p < .05) was the most significant predictor of employee productivity followed by reward system (β = 0.215, p < .05) and performance appraisal (β = 0.203, p < .05) respectively, while training (β = 0.143, p >.05) was not significant. Multiple regression analysis indicates that R Square = 0.306, P < 0.05. This implies that it is only 30.6% of the variation in employee productivity can be caused by the predictors (performance appraisal, training, feedback and reward system) and the remaining 69.4% are accounted for by other variables that are not part of the research model. The study concluded that performance management when well implemented improves employee productivity especially when more emphasis is placed on positive feedback and reward system. They were proven to have higher influence on productivity of employees. It was recommended among others, that hotels should encourage their members of staff by giving them regular feedback and reward them fairly to improve productivity. In conclusion, performance management system has a positive influence on employee productivity.