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Impact of Performance Evaluation on 

Employees’ Productivity in Deposit Money 

Banks in Lagos State, Nigeria 

Odunayo, H. A. PhD 

 

 

 



European Journal of Human Resource   

ISSN 2520-4697 (Online)        

Vol.6, Issue 2, pp 1 - 17, 2022                                                                    www.ajpojournals.org 

                                                                                                                                 

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Impact of Performance Evaluation on Employees’ Productivity 

in Deposit Money Banks in Lagos State, Nigeria 

Odunayo, H. A. PhD 

Lagos State University of Education, 

Oto-Ijanikin, Lagos, Nigeria 

Email: adewaleodunayo26@gmail.com 

 

Abstract 

Purpose: Performance evaluation is an element of performance management which is planned 

to increase productivity and provides an opportunity to continuously review business 

objectives. Some researchers have indicated that many managers felt that performance 

evaluation did not add value or help achieve business objectives while many workers found it 

a bother.  In Nigeria, performance evaluation has been embraced by both the public and private 

sectors as a tool for performance improvement. The assessment of its effectiveness, however, 

has been hampered. This study sought to determine the effect of performance evaluation on 

employee productivity in deposit money banks in Lagos State.  

Methodology: The study adopts survey research design. The population of this study consist 

of 192 employees of two selected Deposit Money Banks in Lagos State. The study adopted 

total enumeration method in determining the sample size. The study collected primary data 

with the help of questionnaire. Data was collected from respondents using a structured 

questionnaire. Ordinary least square regression model was used to assess the nature and degree 

of relationship between dependent variable and independent variables.  

Findings: Findings from the study indicated that the use of performance appraisal has 

significant effect on employee productivity. Specifically, findings revealed that managerial 

review and peer review have significant effect and enhanced employee productivity.  

Recommendation: The study recommends that management should adopt successful 

management styles which involve building teams, networks of relationships, and developing 

and motivating others which would instil skills to the employees and which have a critical role 

in improving the level of productivity of the employees. 

Keywords: Performance evaluation, Employee Productivity, Banks, Managerial Review, Peer 

Review 

 

 

 

 

 

 

 

 

mailto:adewaleodunayo26@gmail.com


European Journal of Human Resource   

ISSN 2520-4697 (Online)        

Vol.6, Issue 2, pp 1 - 17, 2022                                                                    www.ajpojournals.org 

                                                                                                                                 

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1. Introduction 

Employees have long been seen as essential contributions to an organization's growth and 

productivity. Their productivity is crucial in ensuring that businesses progress from one level 

to the next. Despite this important contribution, staff productivity has recently been dropping 

in several organizations. Employees in Nigerian banks exhibit low levels of satisfaction, 

declining performance, low efficiency, and poor service quality as a result of this. As a result, 

these factors influenced the study's design. 

Employee productivity has piqued the curiosity of researchers around the world, as well as 

company stakeholders. As a result of the Covid 19 pandemic, employee productivity has 

decreased in the United States (Quade, McLarty, & Bonner, 2020). As a result of the lockdown, 

which has damaged practically every industry in the United States, including the financial 

sector, workers are no longer displaying passion and vitality on the job, which has become a 

subject of concern. Before the resumption of a national (partial) lockdown in early November 

2020, unemployment in Europe, particularly Germany, had soared by 25% from the previous 

year. As evidenced by the banking sector, Germany experienced issues with employee 

efficiency prior to the Covid 19 concerns (Eichhorst, Marx, & Rinne, 2020). However, this 

increase has not been accompanied by a commensurate fall in pay, which is certainly due to 

the considerable expansion of short-term jobs.  

Employee productivity is also a concern for African banks, due to a variety of circumstances. 

Tanzanian deposit money institutions, in particular, have adopted a variety of techniques to 

boost employee productivity, yet it continues to fall (Msisiri & Juma, 2017). Despite these 

strategies and programs, finding desirable employees continues to be difficult. This could mean 

that the work culture and climate of these banks aren't well understood, or that they need to be 

changed to the Tanzanian context. Despite the crucial role that banks play in Bostwana, these 

institutions have encountered severe issues in terms of employee outcomes, with at least 60% 

of them failing to attain the required level of dedication and engagement at work (Made, 2018) 

Despite the critical role that employees play in increasing the performance and productivity of 

Botswana's businesses, research has revealed that their ultimate productivity levels are 

influenced by a number of factors. Furthermore, research reveal that low employee satisfaction, 

declining dedication, and a lack of interest in extra-role activities are causing poor employee 

results in Ghanaian organizations. (Marina, 2018). Organizations have been unable to attain 

better levels of efficiency as a result of these problems, particularly in the area of employee 

results (Majama & Magang, 2017).  

In Nigeria, there has been a drop in staff productivity resulted in an 85 percent turnover rate 

among bank employees (Eromafuru & Aigboimian, 2020), and work discontent among bank 

staff have been blame for poorer productivity and profitability (Madu, 2019). Banks in Nigeria 

are attempting to achieve a balance between employee satisfaction and corporate social 

responsibility. As a result, unwholesome attitudes among bank personnel and poor customer 

relations are common problems in Nigerian banks (John, & Kelechi, 2020). According 

to Ololade et al., (2018), performance evaluation can lead to job discontent and the 

development of negative employee attitudes toward their firm, resulting in poorer productivity. 

If the appraisal technique is badly planned or implemented, it may have a detrimental impact 

on motivation, role perceptions, and turnover. Most performance evaluation exercises 

programs in Nigeria are poorly organized and focused, as some organizational management 

views them as a punitive measure, as may be the case with a few deposit money institutions in 

Lagos State. Performance evaluation that requires managers to grade employees on subjective 



European Journal of Human Resource   

ISSN 2520-4697 (Online)        

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criteria like customer service skills or leadership capacity lack precise outcomes that can be 

used as a foundation for quantitative outcomes. With this in mind, the purpose of this study 

was to assess the effect of performance evaluation on worker productivity at a number of 

deposit money banks in Lagos State, Nigeria. 

Studies have been carried out on performance evaluation and employee productivity in 

different organisations, countries and also in different contexts but it has not been established 

the extent to which performance evaluation improve employee productivity in the banking 

sector of the country (Mwema & Gachunga, 2014; Qamar & Asif, 2016, Chang, & Tsai, 2016). 

The issue of worker’s productivity has suffered from a high level of neglect because of 

poor worker’s output, worker’s efficiency and worker’s commitment and this is as a result of 

the lack of performance evaluation of workers in the organizations (Gerhart & Milkovich, 

2016). The level of worker’s productivity in Nigerian banking sector has been on the decline 

over the years and this could be ascribed to poor performance evaluation strategies put in place 

by these deposit money banks. Also, there is a lack of universally accepted appraisal system 

applied by every firm and that is a problem in itself. This research is, however, conducted to 

fill this gap by examining the extent to which performance evaluation impacts worker’s 

productivity of selected deposit money banks in Lagos State, Nigeria. 

2. Literature review 

2.1 Performance Evaluation 

Performance evaluation is a process by which the job performance of a worker is documented 

and evaluated (Muchinsky & Marchese, 2016). It is a very methodical and periodic procedure 

which measures individual worker job performance and efficiency in relation to pre-established 

criteria and objectives (Abu-Doleh & Weir, 2017; Manasa & Reddy, 2019). Also, performance 

evaluation is a review based upon an individual’s job performance and assigned duties; it 

involves a supervisor typically looking at an employee’s skills and accomplishments during a 

specific time period and tracking whether the employee has lived up to expectations, exceeded 

them, or failed to meet desired results (Villanova, 2021). Dessler (2017) state that an effective 

appraisal also requires that the supervisor set performance standards and it requires that 

employees receive the training, feedback, and incentives required to eliminate performance 

deficiencies. 

The purpose of an employee evaluation is to measure job performance and many evaluations 

provide quantitative measurements essential for a production-oriented work environment 

(Mayhew, 2019). Gerber (2020) opines that the most important points to consider when 

evaluating a team member includes; level of execution, quality of work, level of creativity, 

amount of consistent improvement, customer and peer feedback, sales revenue generated, 

responsiveness to feedback, ability to take ownership, percentage of tasks completed on time 

and being on time and on budget. In this study, performance evaluation is divided into three 

dimensions and they are; self-appraisal, managerial review, customer review, and peer review. 

Self-Appraisal 

Self-appraisal is an act of evaluating one's own worth, significance, or status and the use of 

self-appraisal as a performance information basis is an established practice in which people are 

regularly called upon in their daily lives to provide information about their own behaviour. The 

ultimate objective of the self-appraisal process is to ensure that the employee and the 

management team are on the same page regarding the employee’s performance (Sprigg, 2021). 

However, many employees fall into the trap of thinking of the self-appraisal process as an 



European Journal of Human Resource   

ISSN 2520-4697 (Online)        

Vol.6, Issue 2, pp 1 - 17, 2022                                                                    www.ajpojournals.org 

                                                                                                                                 

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opportunity to widen the scope of evaluations and go overboard when citing their own 

accomplishments. Furthermore, a good, thorough self-appraisal is one in which you are able to 

highlight your positives but also honestly mention your points of weaknesses too and the self 

is an ever-present observer of one’s activities and research showed that self-appraisals of 

performance tend to be more lenient than either managerial or peer appraisals (Landy & Farr, 

2020). Moreover, information is available to suggest that the intended purpose of a self-

appraisal may influence the degree to which clemency exists.  

Self-appraisal process paves way for two-way communication between employer and 

employee. This helps in revealing the overall performance of employees and it gives deeper 

insights and a clear picture of employees’ accomplishments as well as weaknesses in certain 

areas. According to Thompson (2021), the benefits of the self-appraisal process to the 

employees include it helps them; feel more engaged in the appraisal process, gain greater 

insights and set future goals for improvement, feel more confident about their abilities., 

enhance capacity building (learn to make corrections quickly), select training programs that are 

most suited to needs, develop an inquiring mind for problem solving, become more 

accountable., feel more valued, feel more motivated to learn new skills. Importantly, when 

employees feel heard through the self-evaluation process, they are more likely to listen to 

feedback from their managers and the appraisal process becomes much more of a two-way 

discussion when it revolves around regular self-evaluation (Thompson, 2021). 

Managerial Review 

Management review is the routine assessment of whether management systems are performing 

as intended and producing the desired results as competently as possible and it is the due 

diligence review by management that fills the gap between daily work activities and periodic 

formal audits. For most companies with employees today, performance reviews are an 

important –and in many cases, necessary aspect of doing business and while the words 

“managerial review” often elicit a negative reaction from the team, the fact is that performance 

reviews don’t need to be a frustrating, or stressful process because when implemented as part 

of an ongoing process and done regularly, they won’t catch your team by surprise or cause 

them to think that you’re holding a review in an attempt to crack down on them for a specific 

issue (Czerwonka, 2021). Furthermore, in order to stay competitive, it’s important to ensure 

that your systems are allowing your company to operate as smoothly and efficiently as possible 

and to evaluate and measure performance on an individual level as well; since your managers’ 

performance will have an impact on the company’s profitability as well as the performance of 

the entire team. 

Customer Review 

Baker (2020) defines a customer review as a written reflection of a customer's experience with 

and feedback on your company’s products or services and consumers use customer reviews 

during the purchasing process to understand how your product works and if it’s worth the 

investment. A customer review is a review of a product and service made by a customer who 

has purchased and used, or had experience with, the product or service. Customer review is a 

form of customer feedback on electronic commerce and online shopping sites. When 

consumers search for online customer reviews of a given product, they often encounter reviews 

for preceding generations in the similar product series. In many cases, the previous generation 

is available for purchase in the new product market, making these reviews a source of 

information about both the current generation and an optional choice in the form of the previous 



European Journal of Human Resource   

ISSN 2520-4697 (Online)        

Vol.6, Issue 2, pp 1 - 17, 2022                                                                    www.ajpojournals.org 

                                                                                                                                 

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generation (Krishnan & Ramachandran, 2019; Borkovsky 2017). Reviews not only have the 

power to influence consumer decisions but can strengthen a company’s credibility (Anderson, 

2018). Furthermore, reviews have the power to gain customer trust, and they encourage people 

to interact with the company.  

Peer Review 

Peer review is a process used by management team in different organizations to check on the 

performance of those in an organization (Ahmed, 2020). It is the actions of checking the work 

performed by one's equals (peers) in an organizational setting to ensure it meets specific criteria 

and the standards are set by the management or are stated in the organizational policy manual. 

Ahmed and Palermo (2020) posited that peer review play important role in development of 

soft-wares through development of codes where groups of coders will convene meetings and 

read thoroughly through code systematically in between lines to identify the errors. In general, 

peers help in verification of whether the work is satisfactory to the specified review and it also 

helps in detection of deviations from the set standards and provides suggestions for 

improvements. Furthermore, peer review entails one employee evaluating the evaluation of 

tasks done by another employee of the same competence (McGowan, Sampson and Lefebvre, 

2020).  

Peer performance reviews are when those who work most closely with you on day-to-day tasks 

review your performance (rather than managers who have more of a high-level, bird’s-eye 

view). In peer review, teammates, colleagues, and peers are anonymously asked to provide 

input on specific aspects of an individual’s performance (Caruso, 2014).  

Workers Productivity 

Workers productivity is defined as the capacity of a employee/worker to create quality outputs 

with inadequate inputs. It was further suggested that one of the major components that affects 

the profitability of an organization is worker productivity as it determines the level of 

production that needs to be reported by the organization with its degree of inputs. Organizations 

are worried on how they can best maintain a sustainable performance and achieve best results 

from their workers by exploring on the best alternative solutions to engage, develop teamwork 

and encourage employees to give their best input in what they work in (Walters, 2015). 

Furthermore, not only financial rewards are deemed the best motivator towards enhanced 

employee productivity but also non-financial incentives.  

Productivity benefits are obvious and widely felt when implemented in a business environment 

and these benefits include; increasing profitability, lowering operational costs, optimizing 

resources, improving customer service, seizing the opportunity for growth, reducing waste and 

environmental impact, improving competitiveness, reducing employee burnout, enhancing 

wellbeing, improving morale and increasing engagement (Conlon, 2018). Also, being 

productive in the workplace is an essential part of the business in the organization and at the 

end of every working hour; the workers should produce and deliver quality outputs. However, 

when a crisis arises like the state of the Covid 19 pandemic, this might vary. Furthermore, 

research by Tetteh and Attiogbe (2019) found that schooling and working at the same time 

results in less time for studies which affects academic performance negatively. Battaglio and 

French (2016) found in their study that the effect of organizational factors showed higher levels 

of self-sacrifice. Negative approaches also affect productivity as posited by Siltala, (2019) that 

neglecting basic work affects the sense of self-efficacy of the workers which can affect the 

organization in several ways. 



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ISSN 2520-4697 (Online)        

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2.2 Theoretical Framework 

This study was anchored on Resource based view. The reason for using this theory is that it 

shows the relationship between environmental factors and employee performance. It shows 

how the environmental factors in an organization can led to the negativity or positivity of 

employee’s performance. Barney (1991), suggests that the position of strategic resources 

provides an organization with a golden opportunity to develop a competitive advantage over 

its rival; this competitive advantage, in turn, can help organizations enjoy strong profits, 

particularly over time; and this theory also combines concepts from organizational economics 

and strategic management. 

Two main assumptions underpinned the Resource based view. The first assumption is that 

skills, capabilities and other resources that organizations possess differ from one company to 

another. If companies would have the same amount and mix of resources, they could not 

employ different strategies to outcompete each other, what one company would do, the other 

could simply follow and no competitive advantage would be achieved (Ovidijus, 2021). The 

second assumption of Resource based view is that resources are not mobile and do not move 

from company to company at least in the short run, due to this companies cannot replicate 

rivals’ resources and implement the same strategies (Ovidijus, 2021). 

The supporters of this view argue that organizations should look inside organizations should 

look inside the company to find the sources of competitive advantage instead of looking at 

competitive environment for it. Truijens (2013) feel the advantages of resource-based view 

outweigh the disadvantages and that with minor modifications to the theory; it will uphold its 

historical advantage over other theories and continue to contribute to the advancement of 

research in other disciplines such as project management. Barney’s resource-based view 

reflects the fact that rival organizations may not perform at a level that could be identified as 

considerable competition for the organization’s that have been well established in the market 

because they do not possess the required resources to perform at a level that creates a threat 

and competition.  

An organization should exploit existing business opportunities using the present resources 

while generating and developing a new set of resources to sustain its competitiveness in the 

future market environments; hence, an organization should be engaged in resource 

management. There is always high uncertainty in the environment and for organizations to 

survive and stay ahead of competition, new resources become highly necessary. Crook, (2008) 

Strategic planning process will give the organization the needed opportunity to analyze the 

environment effectively and be able to prepare for any eventuality that may affect the plans 

therefore negatively affecting the performance of the organization.  

2.3 Empirical Review 

Bassett and Meyer (2021) investigated a self-rating appraisal process at General Electric 

Company (GE) in which only workers completed performance evaluation forms and the 

subsequent discussion between managers and their subordinates was based only on the 

subordinates’ self-appraisals. This was compared with GE’s traditional supervisor appraisal 

approach and the results indicated that (1) the self-appraisals were judged more satisfying and 

constructive by the supervisors than the traditional supervisor-prepared performance 

interviews, (2) there was less subordinate defensiveness regarding appraisals, (3) discussions 

based on self-appraisals more often resulted in future superior job performance than did 

traditional supervisor appraisals, and (4) low-rated subordinates were especially likely to show 



European Journal of Human Resource   

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improvement in performance after a self-review discussion. Additionally, researchers have 

noted several possible advantages that may result from incorporating self-appraisals into 

traditional performance appraisal processes as reported by (Carroll & Schneier, 2019). 

Ochidi and Suleiman (2019) examined the effect of performance appraisal on employees’ 

performance of selected deposit money banks in Lokoja. The study established that appraisal 

techniques have a significant effect on employees’ productivity in selected deposit money 

banks in Lokoja, Kogi state. Also, appraisal feedback system has a significant effect on 

employees’ productivity in selected deposit money banks in Lokoja, Kogi State. The 

conclusion of the study showed that performance appraisal techniques must be designed by the 

management of the deposit money banks in Lokoja, Kogi State with inputs from employees’ 

representatives in order to make them more objectives. In addition, Wagacha and Maende, 

(2017) examined the relationship between performance appraisal systems and employee 

productivity in commercial banks in Nairobi County, Kenya. The study revealed that 

employees in commercial banks in Kenya were appraised by personnel in higher ranking 

positions than them. It was also established that performance appraisal problems are dealt with 

as they arise. In addition, most employees in the banking sector have a positive attitude towards 

performance appraisals since they create job confidence and this maximizes output. The study 

concluded that performance appraisals are largely a success in commercial banks in Kenya. 

Oshode, Alade, and Arogundade (2014) explored performance appraisal in the Nigerian 

banking sector using individual and joint variables analyses. The study revealed that sound 

management of performance appraisal system will guarantee good employee productivity. It 

was also found that a very good performance appraisal system will explain 70% of degree of 

changes in employees’ productivity. Likewise, Nnamani, Yusuf, and Shuaibu (2022) explored 

the effect of performance appraisal on employee productivity at federal secretariat Abuja. The 

results revealed that that the use of performance appraisal has significant effect on employee 

productivity and performance. The study therefore recommends that multiple appraisal method 

should be introduced to further encourage objectivity and eliminate biasedness in the appraisal 

of employees and employee feedback method of performance appraisal should be a pre-

requisite for the directors as this will assist supervisors and employees to discuss weakness, 

productivity standards and areas of improvement that enhance productivity. In addition, Kirai 

and Kisang (2016) examined the effects of performance appraisals on employee motivation at 

Equity Bank in Kenya. The key finding was that objectivity of performance appraisal and 

feedback positively influenced employees’ motivation. The study, however, did not explore 

the link between motivation and employee motivation. Based on the mixed findings, this study 

hypothesizes that: 

H0: Performance evaluation has no significant effect on the employees’ productivity in deposit 

money banks in Lagos State, Nigeria. 

3. Methodology 

The research adopted a survey research design for the study. The population of this study 

consist of 192 employees of two selected Deposit Money Banks in Lagos State. The population 

comprised top management staff, middle and lower-level staff. These categories of staff were 

assessed because they have a role to play in the implementation of performance evaluation on 

worker’s productivity. Guaranty Trust Bank and First Bank Nigeria were used as the selected 

Deposit Money Banks. The study adopted total enumeration method in determining the sample 

size. The study collected primary data with the help of questionnaire. The questionnaire had 



European Journal of Human Resource   

ISSN 2520-4697 (Online)        

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close ended questions and employs the Likert scale methodology. The primary data on the 

dependent and independent variables were collected using a structured questionnaire, the 

questionnaire was presented to the respondents under a forwarding letter accompanied an 

introduction letter of introduction. The reliability of the instrument was determined by internal 

consistency method using Cronbach alpha coefficient. The values obtained were higher than 

0.70 alpha benchmark. This confirms that the questionnaire and its variables passed the internal 

consistency test. Data collected from the returned questionnaires were analyze using 

descriptive statistics and regression analysis. 

4. Data Presentation and Analysis 

The researchers distributed a total of 192 copies of questionnaire to the respondents, out of 

which 183 copies were rightly filled and returned to the researcher. The response rate of the 

participants to the questionnaire administered is 95.3%. The high response rate was traced to 

the data collection method of prior notification of the selected banks, use of research assistants, 

researcher’s personal follow up calls to clarify issues and prompt the participants to fill and 

return the research instrument early. The analysis was conducted by using the descriptive 

statistics and regression analysis. and the results of the analysis are presented in Table 1-4. 

Descriptive Statistics of Performance Evaluation Criteria 

Table 1: Descriptive Statistics on Self-Appraisal 

Items 

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Attention to 

Detail 

83.1% 15.8% 1.1% 0.0% 0.0% 0.0% 0.0% 5.82 0.413 

Good Time 

Management 

37.2% 48.1% 13.7% 1.1% 0.0% 0.0% 0.0% 5.21 0.714 

Consistency 56.3% 25.1% 16.4% 2.2% 0.0% 0.0% 0.0% 5.36 0.832 

Initiative 40.4% 39.9% 18.0% 1.1% 0.5% 0.0% 0.0% 5.19 0.804 

Timeliness 43.2% 32.2% 18.0% 6.6% 0.0% 0.0% 0.0% 5.12 0.93 

Average        5.34 0.7386 

Source: Researcher’s Field Survey, 2022 

The results in Table 1 show the descriptive analysis of respondents’ opinions on self-appraisal 

and its items. 83.1% of the respondents indicated that attention to detail is very high, 15.8% 

indicated high and 1.1% indicated moderately high. On average, the respondents indicated that 

attention to detail is very high with a mean of 5.82 and standard deviation of 0.413. Results 

also indicated that 37.2% of the respondents responded very high to good time management, 

48.1% indicated high, 13.7% indicated moderately high and 1.1% indicated moderately low. 

On average, the respondents indicated that expansion into new market is high with a mean of 

5.21 and standard deviation of 0.714. Also, 56.3% of the respondents indicated that consistency 



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is very high in their organization, 25.1% indicated high, 16.4% indicated moderately high and 

2.2% indicated moderately low. On average, the respondents indicated that consistency in their 

organization is high with a mean of 5.36 and standard deviation of 0.832.  

Interpreting further, 40.4% of the respondents responded very high to the application of 

initiative in their organization, 39.9% indicated high, 18.0% indicated moderately high, 1.1% 

indicated moderately low and 0.5% indicated low. On average, the respondents indicated that 

application of initiative in their organization is high with a mean of 5.19 and standard deviation 

of 0.804.  

Conclusively, 43.2% of the respondents indicated that timeliness in their organization is very 

high, 32.2% indicated high, 18.0% indicated moderately high and 6.6% indicated moderately 

low. On average, the respondents indicated that timeliness in their organization is high with a 

mean of 5.12 and standard deviation of 0.93. The grand mean of 5.34 and a standard deviation 

of 0.7386 suggest that respondents agree that the extent to which self-appraisal affect worker’s 

productivity is high and noticeably responses converged around the mean. 

Table 2: Descriptive Statistics on Managerial Review 

Items 

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Ability to 

Manage 

Employees 

79.2% 16.4% 1.6% 2.2% 0.5% 0.0% 0.0% 5.72 0.66 

Performance 

feedback 

35.5% 53.6% 8.7% 2.2% 0.0% 0.0% 0.0% 5.22 0.695 

Level of 

professionalism 

41.5% 28.4% 25.7% 3.8% 0.5% 0.0% 0.0% 5.07 0.935 

Responsiveness 42.1% 38.8% 14.8% 3.8% 0.0% 0.0% 0.5% 5.17 0.913 

Diligence 36.6% 36.6% 15.8% 8.7% 2.2% 0.0% 0.0% 4.97 1.037 

Average        5.23 0.848 

Source: Researcher’s Field Survey, 2022 

Table 2 depicts the descriptive analysis of respondents’ opinion on managerial review and its 

items. The table shows that 79.2% of the respondents indicated that ability to manage 

employees is very high, 16.4% indicated high while 1.6% indicated moderately high, 2.2% 

indicated moderately low and 0.5% indicated low. On average, the respondents indicated that 

ability to manage employees is very high with a mean of 5.72 and standard deviation of 0.66.  

Results also indicated that 35.5% of respondents responded very high to performance feedback, 

53.6% indicated high, while 8.7% indicated moderately high and 2.2% of the respondent 

indicated moderately low. On average, the respondents indicated that performance feedback is 

high with a mean of 5.22 and standard deviation of 0.695. Concerning level of professionalism, 

41.5% of the respondents indicated very high, 28.4% indicated high, 25.7% indicated 

moderately high, about 3.8% of the respondent indicated moderately low and 0.5% indicated 



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low. On average, the respondents indicated that the level of professionalism in their 

organization is high with a mean of 5.07 and standard deviation of 0.935. 

Results also indicated that 42.1% of respondents responded that responsiveness in their 

organization is very high, 38.8% indicated high, 14. 8% indicated moderately high. On the 

other hand, about 3.8% indicated moderately low and 0.5% of the responses were missing. On 

average, the respondents indicated that responsiveness in their organization is high with a mean 

of 5.17 and standard deviation of 0.913. On a final note, results also indicated that 36.6% of 

respondents responded very high to diligence in their organization, 36.6% of the respondents 

likewise indicated high while 15.8% indicated moderately high, about 8.7% of the respondent 

indicated moderately low and 2.2% indicated low. On average, the respondents indicated that 

diligence in their organization is high with a mean of 4.97 and standard deviation of 1.037.  

The grand mean of 5.23 and a standard deviation of 0.848 suggest that respondents agree that 

the level at which managerial review affect worker’s productivity is high and noticeably 

consensus noticed around the mean. 

Table 3: Descriptive Statistics on Customer Review 

Items 

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Service 

Delivery 

53.0% 30.6% 12.0% 4.4% 0.0% 0.0% 0.0% 5.32 0.852 

Customer 

Relationship 

39.3% 39.3% 17.5% 2.7% 1.1% 0.0% 0.0% 5.13 0.873 

Customer 

Assessment 

42.6% 33.3% 19.7% 4.4% 0.0% 0.0% 0.0% 5.14 0.884 

Quality of 

Encounter 

45.9% 31.7% 15.8% 6.0% 0.5% 0.0% 0.0% 5.16 0.941 

Product 

Evaluation 

38.3% 36.1% 18.6% 4.4% 2.7% 0.0% 0.0% 5.03 0.997 

Average        5.156 0.9094 

Source: Researcher’s Field Survey, 2022 

Table 3 displays the descriptive analysis of respondents’ opinion on customer review and its 

items. The table shows that 53.0% of the respondents indicated that service delivery in their 

organization is very high, 30.6% indicated high while 12.0% indicated moderately high and 

only 4.4% indicated moderately low. On average, the respondents indicated that service 

delivery in their organization is high with a mean of 5.32 and standard deviation of 0.852.  

Results also indicated that 39.3% of respondents responded very high to customer relationship 

likewise 39.3% as well indicated high, while 17.5% indicated moderately high, 2.7% of the 

respondent indicated moderately low and 1.1% of the respondents indicated low. On average, 

the respondents indicated that customer relationship is high in their organization with a mean 



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of 5.13 and standard deviation of 0.873. Further, on customer assessment, 42.6% of the 

respondents indicated very high, 33.3% indicated high, while 19.7% indicated moderately high 

and 4.4% of the respondents indicated moderately low. On average, the respondents indicated 

that customer assessment in their organization is high with a mean of 5.14 and standard 

deviation of 0.884. In addition, the table above also revealed that 45.9% of the respondents 

indicated that quality of encounter is very high, 31.7% indicated high, 15.8% indicated 

moderately high, 6.0% indicated moderately low and 0.5% indicated low. On average, the 

respondents indicated that quality of encounter in their organization is high with a mean of 5.16 

and standard deviation of 0.941. Also, results indicated that 38.3% of respondents responded 

very high to product evaluation, 36.1% of the respondents indicated high while 18.6% indicated 

moderately high, about 4.4% of the respondent indicated moderately low and 2.7% indicated 

low. On average, the respondents indicated that product evaluation in their organization is high 

with a mean of 5.03 and standard deviation of 0.997. The grand mean of 5.156 and a standard 

deviation of 0.9094 reveals the respondent’s affirmation that the application of customer review 

in their organization is high while a convergence around the mean is noticed. 

Table 4: Descriptive Statistics on Peer Review 

Item 

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Expert 

Assessment 

56.3% 27.9% 11.5% 4.4% 0.0% 0.0% 0.0% 5.36 0.852 

Peer Assessment 45.4% 39.3% 14.2% 1.1% 0.0% 0.0% 0.0% 5.29 0.747 

Expert 

Evaluation 

45.9% 32.2% 17.5% 3.8% 0.0% 0.0% 0.5% 5.18 0.947 

Peer Appraisal 42.1% 30.6% 21.9% 4.4% 1.1% 0.0% 0.0% 5.08 0.954 

Evaluating 

Product/Services 

39.3% 36.6% 15.8% 7.1% 1.1% 0.0% 0.0% 5.06 0.967 

Average        5.194 0.8934 

Source: Researcher’s Field Survey, 2022 

Table 4 explains the descriptive analysis of respondents’ opinion on peer review and its items. 

The table shows that 56.3% of the respondents indicated that expert assessment is very high, 

27.9% indicated high while 11.5% indicated moderately high and 4.4% indicated moderately 

low. On average, the respondents indicated that expert assessment in their organization is high 

with a mean of 5.36 and standard deviation of 0.852.  Results also indicated that 45.4% of 

respondents responded very high to peer assessment, 39.3% indicated high, while 14.2% 

indicated moderately high and 1.1% of the respondents indicated moderately low. On average, 

the respondents indicated that peer assessment in their organization is high with a mean of 5.29 

and standard deviation of 0.747. Furthermore, regarding expert evaluation, 45.9% of the 

respondents indicated very high, 32.2% indicated high, 17.5% indicated moderately high, 3.8% 

of the respondent indicated moderately low and 0.5% of the responses were missing. On 



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average, the respondents indicated that expert evaluation in their organization is high with a 

mean of 5.18 and standard deviation of 0.947. The study further shows that 42.1% of the 

respondents indicated that peer appraisal in their organization is very high, 30.6% indicated 

high, 21.9% indicated moderately high, 4.4% indicated moderately low and 1.1 % indicated 

low. On average, the respondents indicated that peer appraisal in their organization is high with 

a mean of 5.08 and standard deviation of 0.954. In conclusion, results also indicated that 39.3% 

of respondents responded very high to evaluating product/services, 36.6% of the respondents 

indicated high while 15.8% indicated moderately high, 7.1% of the respondent indicated 

moderately low and 1.1% of the respondents indicated low. On average, the respondents 

indicated that evaluating product/services is high with a mean of 5.06 and standard deviation 

of 0.967. A grand mean of 5.194 and a standard deviation of 0.8934 suggest that respondents 

agreed that peer review in their organization is high with convergence noticed around the mean. 

Test of Hypothesis 

H0: Performance evaluation has no significant effect on employees’ productivity in deposit 

money banks in Lagos State, Nigeria. 

Table 5: Summary of Regression Results 

Variables   Coefficients Std error t Sig. value 

Constant 8.567 2.495 3.434 .001 

Self-Appraisal 0.049 .115 .427 .670 

Managerial Review 0.225 .105 2.142 .034 

Customer Review 0.155 .096 1.603 .111 

Peer Review 0.230 .090 2.570 .011 

R-squared 0.265    

Adjusted R-squared 0.248    

F-Statistics (4, 178) 16.027    

SPSS Output 

The results in Table 5 above showed that managerial review (β = 0.225, t = 2.142, p<0.05) and 

peer review (β = 0.230, t = 2.570, p<0.05) have positive and significant effect on employees’ 

productivity in deposit money banks in Lagos State, while self-appraisal (β = 0.049, t = 0.427, 

p>0.05) and customer review (β = 0.155, t = 1.603, p>0.05) have an insignificant effect on 

employees’ productivity as indicated by their p-values. This means that both managerial review 

and peer review were found to have positive effect on employee productivity in deposit money 

banks in Lagos State, Nigeria. This result therefore, implied that as managerial review and peer 

review increases by 1 percent, the employee productivity will increase 0.225 and 0.230 percent 

respectively. The F-statistics was 16.027, which measured the joint significance of the 

parameter estimates, was found statistically significant at 1 per cent level as indicated by the 

corresponding probability value of 0.000. This implies that performance evaluation criteria 

were jointly and statistically significant in affecting the employee productivity in deposit 

money banks in Lagos State. The R2 value of 0.265 percent implied that 26.5 percent total 

variation in employee productivity was explained by self-appraisal, managerial review, 

customer review, and peer review in deposit money banks in Lagos State, Nigeria. 

Coincidently, the goodness of fit of the regression remained high after adjusting for the degree 

of freedom as indicated by the adjusted R2 (R2 = 0.248 or 24.8%). The remaining 75.2% is 

determined by other factors not considered in the study. The null hypothesis (H0) can therefore 



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be rejected as stated above and conclude that performance evaluation has significant effect on 

employees’ productivity in deposit money banks in Lagos State, Nigeria. 

5. Discussion 

The research study focuses mainly on the impact of performance evaluation on employee’s 

productivity. Precisely, the findings of the study showed that managerial review and peer 

review have positive and significant effect on employees’ productivity in deposit money banks 

in Lagos State, while self-appraisal and customer review had no significant effect on 

employees’ productivity. The acquired findings indicate that the use of performance appraisal 

has significant effect on employee productivity. This result is in consonance with the findings 

of Mollel Eliphaz et al. (2017) they discovered a relationship quite significant and positive that 

exist between performance appraisal and employee productivity. Also, the findings support 

supports the findings of Ackah (2015); Bekele et al. (2014); Nwema and Gachunga (2014); 

Igbal et al. (2013) which states that performance appraisal has a significant influence on 

employee productivity and performance. 

6. Conclusion  

It can be concluded from the result of this research that performance evaluation enhances 

employees’ productivity in in deposit money banks in Lagos State. When an objective 

evaluation is carried out, the bank will be in a position to reward the performing employees. 

The study found that out of the performance evaluation indices, managerial review and peer 

review have significant effect and enhanced employee productivity. This will further enhance 

the opportunity for determining deficiencies in the performance of the workforce within the 

banks. the study identified that for Nigerian banks to earn good performance from their 

employees, adequate attention should be paid to the performance evaluation system. However, 

it was noted that banks almost operate a special way of appraisal (by setting deposit target for 

their employees) and that mere meeting the targets often guarantee employee movement to the 

next level.  

7. Recommendations  

This study recommended that the management should adopt successful management styles 

which involve building teams, networks of relationships, and developing and motivating others 

which would instil skills to the employees and which have a critical role in improving the level 

of productivity of the employees. In addition, the performance expectations of the employees 

need to be clearly stated and determinants of performance identified. This would reduce the 

impression that they were not sure of the methods that were to be used to measure their 

productivity. 

 

 

 

 

 

 

 



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