ABSTRACT

In every business enterprise, the need for effective management of

organizational policies and procedures is very important and can never be over-emphasized. To achieve this goal, there is need to adequately measure the input / performance of employees and to what extent it aligns to the overall aim of the organization. This work is designed to expose and equip managers with the necessary tools needed to effectively measure their employee performance on the job. In generating the data needed to achieve the objectives of this study, cross sectional survey was used. Questionnaires were also used as a major instrument for primary data collection. To broaden the researcher’s depth of knowledge in the study area, the researcher embarked on review of the very minimal related literature with data drawn from secondary sources. Data generated in the study was presented on frequency tables and analyzed using simple percentage while the hypothesis was tested with chi-square. It was discovered from the research that most organizations could not measure the performance of their employee because of poor performance measurement tools, and in some cases, none at all.  From the findings, it is clear that the existence of policies and procedures is one thing, while the measurement of compliance to these policies is another. There is therefore the need for effective management of the performance measurement tools of the organization in order for the organization to execute its aims and objectives.

                                        TABLE OF CONTENTS.

Title page                                                                         i

Certification                                                                     ii

Dedication                                                                       iii

Acknowledgement                                                            iv

Table of Content                                                              v

CHAPTER ONE

INTRODUCTION 

1.1 Background of the study                                            1

1.2 Statement of problem                                                4

1.3 Purpose of study                                                                4

1.4   The Significance of the study                                   5

1.5 Scope of the study                                                     6

1.6 Limitation of the Study                                              6

1.5 Research of hypothesis                                              6

1.7 Definition of terms                                                     8

References

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1   The need for performance measurement                  10

2.2   key performance indicators                                      11

2.3   How an organization defines and measures

 progress towards its goals.                                      13

2.4   What are key performance indicators                       13

2.4.1        Key performance indicators reflect the organizations

goals                                                                                14

2.4.2        Key performance indicators must be quantifiable.   15

2.4.3        Key performance indicators must be key to

 organizations success                                             16

2.4.4        Good key performance indicators versus bad          17

2.4.5        What to do with key performance indicators            19

2.4.6        How to use key performance indicators                   19

2.5   Performance measurement as a process.                 22

2.6    Profile of Zenith Bank Plc                                               26

2.7    Origin of KPI in Zenith Bank Plc                             27

References

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research design                                                         30

3.2 Area of the study                                                                30

3.3 Population of the study size                                               31

3.4 Sampling and Sampling procedure                            31

3.5 Instrument for data collection                                    32

3.6 Method of Data Collection                                         33

3.7 method of the analysis                                               34

References

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA                                  

4.1   Introduction                                                            36

4.2   Test of Hypotheses                                  

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION

AND RECOMMENDATION

5.1   Summary                                                                 48

5.3 Conclusion                                                                        50

5.2 Recommendation                                                       50

Bibliography

Appendix one

Appendix two

References

                                        CHAPTER ONE.

INTRODUCTION

BACKGROUND OF THE STUDY

From the beginning, it is important to understand why measuring an organization’s performance is both necessary and vital. An organization operating without a performance measurement system is like an airplane flying without a compass or a CEO operating without a strategic plan. The purpose of measuring performance is not only to know how a business is performing but also to enable it to perform better. The ultimate aim of implementing a performance measurement system is to improve the performance of an organization so that it may better serve its customers, employees, owners, and stakeholders. A performance measurement system enables an enterprise to plan, measure, and control its performance according to a pre-defined strategy.

Managers at all levels in an organization can track key performance indicators to assess how well their groups are meeting their business objectives, whether performance is improving or declining, and how their group’s performance compares with that of other units or groups within the company and in rival organizations.

Consider these examples:

• A CEO examines return on investment (ROI) by division, or her

company’s cash flow, by month and quarter, and compares the results to those of competitors.

• A customer service manager tracks customer service quality using surveys.  If the surveys suggest that service quality is dropping, he might need to add more account representatives to improve service levels.

The Balanced Scorecard (BSC) is a strategic performance   

management tool for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy. By focusing not only on financial outcomes but also on the operational, marketing and developmental inputs to these, the Balanced Scorecard helps provide a more comprehensive view of a business, which in turn helps organizations act in their best long-term interests. Organizations are encouraged to measure, in addition to financial outputs, those factors which influenced the financial outputs. For example, process performance,

market share / penetration, long term learning and skills development, and so on. The underlying rationale is that organizations cannot directly influence financial outcomes, as these are “lag” measures, and that the use of financial measures alone to inform the strategic control of the firm is unwise. Organizations should instead also measure those

areas where direct management intervention is possible.

Implementing Balanced Scorecards typically includes four processes:

1. Translating the vision into operational goals;

2. Communicating the vision and link it to individual performance;

3. Business planning; index setting

4. Feedback and learning, and adjusting the strategy accordingly.

The Balanced Scorecard provides managers with the instrumentation they need to navigate to future competitive success.

1.2   STATEMENT OF THE PROBLEM