INTRODUCTION

1.1 Background of the Study

Performance Appraisal is a major subject of controversy in
management circles. While business leaders see the need for appraisal systems,
they are frequently disappointed in them. One of the responsibilities of
management is to ensure that an organization functions effectively and
efficiently. In order to achieve these goals, managers must be able to
determine and assess performance levels of both an organization and its
individual employees (Kurt 2004).

Modern businesses depend upon measurement and analysis of
performance. Measurements must derive from the company’s strategy and provide
critical data and information about key processes, outputs and results. Data
and analysis support a variety of company purposes, such as planning, reviewing
company performance, improving operations, and comparing company performance
with competitors’ or with ‘best practices’ benchmarks (Averson, 1998).

1.2
Statement of the problem

Performance appraisal provides a good opportunity to
formally recognize employees’ achievements and contributions to the
organization, and to ensure that a clear link is established and maintained
between performance and reward. Employees of First Bank Plc in recent times
have been accused of high level of inefficiencies in the discharge of their
duties by the general public. However, it was recently that research had revealed
the deplorable working conditions under which financial professionals’ work.
Poor infrastructure, inadequate logistics and equipment, poor remuneration and
inadequate reward system have always led to the low level of public confidence
and respect in the financial institutions.

The situation
had further resulted in ripple effects of poor performance, low morale and lack
of discipline in the service vis-a-vis the theories on performance appraisal.
Given the challenges earlier enumerated to be facing employees in First Bank
Plc, particularly employees of Uyo Branch in Nigeria.

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1.4 Objectives of the Study

An effective
performance appraisal programme would assist an organization to achieve its
goals and goals. It would lead to enhanced communication, employees
professional development, improved employee morale and help identify training
needs of the employees. A well-developed staff are more likely to be proactive,
productive and resourceful, all of which help give the organization a competitive
edge from improved customer relations to increased profits.

1.4.0              
The
main objective of the study was to assess the effectiveness of the
Performance Appraisal (SPA) system in First Bank Plc at Uyo Branch.