ABSTRACT

The research project the impact of performance appraisal on productivity of employees in microfinance institutions. The research is aimed at assessing the significant relationship between performance appraisal and employees’ productivity in Microfinance banks in Abeokuta, evaluating the factor inhibiting the use of performance appraisal of employees in Microfinance banks in Abeokuta and knowing whether the -favoritisms is responsible for ineffectiveness in the Microfinance banks in Abeokuta. For this study, the survey research design was adopted. The choice of the design was informed by the objectives of the study as outlined in chapter one. This research design provides a quickly efficient and accurate means of assessing information about a population of interest. The population for this study were workers/employees in Microfinance banks in Abeokuta, Ogun State, Nigeria. A total of 134 respondents were selected from the population figure out of which the sample size was determined. From the research findings, the study decided that organizations should evaluate their employees frequently through accomplishments, organizational goals, utilized targets and time management as  it  would  help  increase employees  productivity.  From  the  research  results,  the  study  recommend  that  organizations  should  develop  and implement performance appraisal methods to help provides opportunities to the organization by recognizing employees training needs, help workers on time management through proper planning, offer poor performers are chance to improve, help  employees  meet  performance  objectives,  helps  managers  to  make  cognizant  decisions  about  assignments  and promotions based on appropriate facts and enhance synergies of employees. From the research results, the research study states that organizations should use the behavioural performance evaluation method as it was statistically important in  impelling employee’s relationship through increased interpersonal relationships,  team  work  and  nurtured  integration,  reliability  of  the  workers  who  may  work  without  adequate supervision, adaptation of employees to changing environment and through individual staff improvement plan which help employees plan for their future career development.