Effect of Employee Performance Appraisal on Organisational Commitment in the Banking Sector in Benue State, Nigeria: A Study of First Bank of Nigeria Plc

By: Tsetim James Tersoo, Diaka, Hembadoon and Loveday Ojotu EKEH


To thrive in this competitive age, banks in Nigeria need to continuously improve quality, attract more customers, and become more cost conscious. In other words, banks need to better manage their performance appraisal scheme and increase employee commitment. Over the years, there are many practices, tools, techniques, systems, and philosophies that aim to help organizations to gain the competitive advantage of higher performance. The empirical review showed how different scholars examined the effect of performance appraisal on employee productivity and organizational commitment in particular. Most of the studies reviewed showed a significant relationship between performance appraisal and organizational commitment but very few of the studies were carried out in Nigeria and none in Nigerian banking industry. This study therefore, examined the effect of employee performance appraisal on organizational commitment in the banking sector in Benue State, Nigeria. Specifically, the study sought to examine the effects of performance appraisal standard, performance appraisal communication, performance appraisal feedback and corrective action on organizational commitment in First Bank of Nigeria Plc. The study adopted a survey design and one hundred and fifty-two (152) employees were purposively served with the instrument of data collection. Data were gathered from both primary and secondary sources. The questionnaire was the main research instrument used in collecting the primary data for the study. Out of the 152 questionnaires distributed, 141 valid questionnaires were retrieved for analysis. The hypotheses were tested using regression at 5% level of significance. Findings revealed that performance appraisal standard, performance appraisal communication, performance feedback and corrective action all have significant positive effects on organizational commitment in First Bank of Nigeria Plc. The study recommends among others that employees in the banking industry should develop a positive mindset toward performance appraisal. This way, they will be able reap the benefit of performance appraisal rather than seeing it as witch hunting.

Key Words: Performance appraisal standard, Performance appraisal communication, Performance appraisal feedback, Corrective action and Organizational commitment

URL: https://www.ijcab.org/doi-201800382                                                                                     View Full Article

This is an open-access article published and distributed under the terms and conditions of the  Creative Commons Attribution 4.0 International License, United States unless otherwise stated.

About the Authors:

  • Tsetim James Tersoo– Department of Business Administration, Federal University of Agriculture, Makurdi, Nigeria, jamesttsetim8@gmail.com, +234-8032052465
  • Diaka, Hembadoon- Department of Business Management, Benue State University Makurdi, Nigeria
  • Loveday Ojotu EKEH– Department of Business Administration and Management, Benue Polytechnic, Ugbokolo, Benue State, Nigeria