The influence of performance appraisal systems on employees’ job satisfaction: A study of selected hotels in Victoria Island, Eti-Osa Local Government Area, Lagos State.
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Background of the study
Performance appraisal systems are integral to modern human resource management, serving as a tool to assess, motivate, and develop employees. In the hospitality industry, particularly within selected hotels on Victoria Island, these systems play a crucial role in shaping job satisfaction among staff members (Adebayo, 2023). The rapid growth of the tourism and hospitality sector in Lagos has intensified competition, making it essential for hotels to adopt efficient appraisal methods that align individual performance with organizational goals (Balogun, 2024). This study examines the design and implementation of performance appraisal systems, focusing on fairness, transparency, and feedback mechanisms. It explores how these systems influence job satisfaction and career development opportunities in a fast-paced service environment. The study also considers the impact of cultural factors and organizational policies on the appraisal process, providing insights into both employee perceptions and managerial practices (Chukwu, 2023). Through a comprehensive review of current practices and empirical data, the research aims to propose improvements that could enhance employee morale and performance. By bridging the gap between theoretical frameworks and real-world applications, the study contributes to the broader discourse on performance management in the hospitality industry.
Statement of the problem
Despite the widespread implementation of performance appraisal systems in hotels on Victoria Island, employees often report dissatisfaction due to perceived biases, lack of constructive feedback, and unclear performance metrics (Okeke, 2023). These issues hinder professional development and reduce overall job satisfaction. The disconnection between appraisal outcomes and employee expectations creates a challenge for hotel management, potentially impacting service quality and staff retention. This study aims to identify the specific shortcomings of current appraisal systems and their effect on job satisfaction, offering recommendations for more effective performance management (Ibrahim, 2024).
Objectives of the study:
- To evaluate the effectiveness of performance appraisal systems in selected hotels.
- To determine the impact of appraisal systems on employee job satisfaction.
- To propose enhancements for appraisal systems that promote transparency and fairness.
Research questions:
- How do current appraisal systems affect job satisfaction among hotel employees?
- What are the key challenges in the existing performance appraisal processes?
- How can performance appraisal systems be improved to enhance employee satisfaction?
Research Hypotheses:
- H₁: There is a positive relationship between effective appraisal systems and job satisfaction.
- H₂: Perceived fairness in appraisals is associated with higher employee morale.
- H₃: Improvements in feedback mechanisms can significantly boost job satisfaction.
Significance of the study
The study is significant as it uncovers the link between performance appraisal systems and job satisfaction in the hospitality industry. Its findings provide practical insights for hotel management to optimize appraisal processes, thereby enhancing staff motivation and service quality. The research supports strategic human resource development and contributes to the academic literature on performance management (Olu, 2023).
Scope and limitations of the study:
This study is limited to examining performance appraisal systems and their impact on job satisfaction in selected hotels within Victoria Island, Eti-Osa Local Government Area, Lagos State. It focuses solely on current appraisal practices in this geographic area.
Definitions of terms:
- Performance Appraisal Systems: Formal processes used to evaluate employee performance.
- Job Satisfaction: The level of contentment employees derive from their job roles.
- Hospitality Industry: Businesses involved in providing lodging, food, and related services.
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