Employee Productivity

Fuoye Journal of Management, Innovation and Entrepreneurship.
ISSN: 2814-2578. Vol. 1. No. 1, June, (2022)

EMPLOYEE PRODUCTIVITY AND PERFORMANCE MANAGEMENT
OF ROAD TRANSPORTATION COMPANIES IN NIGERIA
EBHOAYE Ogiedo Solomon
Department of Business Administration, Faculty of Management Sciences, Federal University
Oye-Ekiti, Ekiti State, Nigeria. [email protected]
+234 8033573214
OLOKOR Chukwuemeka
+234 08033606323
ARILESERE Mustapha Sina
+234 8105759132
Abstract
The study examined employee productivity and performance management in road transportation
companies in Nigeria, which was empirically researched in line with the nature of the
relationship which exists between the variables and by extension, the relationships between two
individual elements of performance management and employee productivity. A survey research
design was adopted in the study and the researchers were interested in the entire number of
drivers of the best five road transportation companies in Nigeria for the year 2019. Research
data were collected using the questionnaire and the correlation coefficient was used to
determine the directions and magnitudes of the variables. The study found that all independent
variables (performance management and its elements) have positive, strong, and significant
relationships with the dependent variable (employee productivity). The correlation coefficient
between employee productivity and the independent variables; employee compensation,
employee appraisal, and performance management were 0.979, 0.929, 0.979 respectively, the
relationships were also found to be significant with P<0.005. Therefore, it is recommended that
operators and managers/supervisors of road transportation companies in Nigeria should
continuously practice performance management and put up huge efforts at improving it from
time to time.
Keywords: Performance Appraisal, Employee Compensation, Vehicle Drivers,
Transportation Companies, Road Insecurity
JEL Classification: M100, M120, M130, M410, M520.
Introduction
Employee productivity is a measure of how effective and efficient an employee is to the
employer. In the of business transportation, the productivity of the driver (employee) to the
transportation company (employer) must be high and remain on the rise for the company to
remain competitive and for the driver to earn income and keep his job. Ensuring that an
employee is productive and sustaining a continued high level of productivity in an employee is
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Citation: Ebhoaye, O. S., Olokor, C. & Arilesere, M. S. (2022) Employee productivity and performance management of road transportation
companies in Nigeria. Fuoye Journal of Management, Innovation and Entrepreneurship, 1(1), 151 – 168.
ISSN: 2814-2578. Vol. 1. No. 1, June, (2022)
very critical for management in this business; this is so because productive staff members get
more work done and make more profits for the organisation (Collier, 2018).
Performance management, which overall benefit is higher productivity among employees, and
improved organizational performance, has continued to be a sound strategy applied by
management to give recognition to employees’ contributions and accomplishments to
companies, as well as to establish and maintain strong relationships between reward and
productivity in many organisations. The transportation industry is one industry worldwide which
is highly competitive due to the importance of the movement of humans and goods from one
point to another. The industry is faced with high risks including those from changing
technologies, weather and human insecurities, and institutional and legal policies.
Survival of any member organisation of the industry depends highly on the employees, most
importantly, the drivers, sailors, and pilots with regards to vehicles, ships, and aeroplanes
respectively, this is so because the income of the organisation depends on this movement of
humans and goods. In the case of road transportation, the driver takes customers and goods from
one destination to another with vehicles (car, buses, and trucks) making use of the roads. He
manages the road networks, faces all forms of insecurity on the road, relates with security/safety
officials and agencies on the road, and ensures vehicles are always in good condition, among
other responsibilities.
The volatility in the transportation industry especially those of road transportation in Nigeria
remains very high, Nigerian roads with regard to the network, insecurity, security operatives, etc,
pose several discouraging factors to users. The high level of uncertainty involved with this
industry places huge bunden on the employee (drivers) to perform highly, hence, employee
turnover could be very high as a result of such factors as accidents, damages to vehicles, seizure
by government agencies, theft or armed robberies, etc. in this regard, this study sought to
ascertain the nature of the relationship between performance management and productivity of
employees in this very industry.
The major objective of this study was to ascertain whether performance management has any
significant relationship with employee productivity in the road transportation companies in
Nigeria and the specific objectives were to:
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1. determine whether performance appraisal has any significant relationship with employee
productivity in road transportation companies of Nigeria; and
2. find out whether employee compensation has any significant relationship with employee
productivity in the road transportation companies of Nigeria.
In line with the research objectives, the following null hypotheses were formulated to guide the
researcher in the course of the study:
H01: performance management does not have a significant relationship with employee
productivity in road transportation companies in Nigeria;
H02: performance appraisal does not have a significant relationship with employee
productivity in the road transportation companies in Nigeria; and
H03: employee compensation does not have a significant relationship with employee
productivity in the road transportation companies in Nigeria.
Literature Review
Performance Management
The study aligned with the definition of a famous business writer who defined performance
management as a continuous process of identifying, measuring, and developing performance in
organisations by linking each individual’s performance and objectives to the organisation’s
overall mission and goals (Aguinis, 2013). In efforts to continuously realign firms’ mission and
goals to enable firms to meet the challenges in the turbulent operating environment, performance
management remains ongoing as no specific management performance tool has remained
permanent (Hearn, 2016).
At the level of the employee, performance management is concerned with how to set targets for
performance, and how to motivate employees appropriately so that they cooperate toward
meeting set targets (Eisenhardt, 1989; Lee & Jimenez, 2011). Consequently, the role which
performance management plays in organizations has remained indispensable; it has aided firms
to attain their goals in terms of productivity (Stevers& Joyce, 2000). According to Aguinis and
Pierce (2008), performance management is much more concerned about the behaviour of the
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employees than their productive output, meaning that an employee with a positive attitude tends
to do well as per productivity on the long run.
Performance Appraisal
Performance appraisal has been called different names by different writers, names such as
“performance review, performance evaluation, career development discussion, or employee
appraisal” (Muchinsky, 2012) have dominated the academic literature. Performance appraisal
enjoys a plethora of definitions as well, this paper considers the two definitions provided by
Sulaimon, Ogunyomi, and Akosile (2000) as reproduced by Iorfa (2014), and that provided
byManasa, and Reddy (2009). In the bookHuman Resources Management,“performance
appraisal (PA)” is defined as a periodic review or evaluation of an employee’s past, present, and
future performance on the job (Iorfa, 2014; Sulaimon, Ogunyomi, &Akosile 2001).
ManasaandReddy(2009) opine that the concept is systematic, general, and periodic, the authors
further explained that performance appraisal is based on preset goals (pre-established criteria )
which are used to determine or measure the performance or productivity of organizational
workers. The definitions are significantly related; the later adds that the appraisal is carried out
based on pre-set goals or objectives. Performance appraisal has become a technique applied by
firms and individual managers and supervisors to document and evaluate the job performance of
their workforce. As part of career development strategy, the concept involves the habitual
assessment or evaluation of personnel performance in organisations.
Employee Compensation
According to McKinney (2016), employee compensation is referred to as the whole amount an

employee can expect to receive when working for an organization. The total could be broken into
salaries or wages, commission or bonus, sick leave allowance, health and life insurance, and
retirement plan (Mondy, 2008). Undeniably, for an organisationto be productive, its employee
must be productive first, and the productivity of firms’ employee is a function of the
compensations attached to their services, the reason employee turnover is high in certain firms
and low in certain others (McCollum, 2001). Organisations by way of policies, create
satisfactions for their workforce with certain packages such as incentives, bonuses, promotion,
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recognition in addition to basic salaries, and compulsory allowances (Sheriff, Alibaba, & Aliyu,
2012). Salaries, wages, commission, bonuses, overtime work, and holiday premium constitute
direct compensation for employees while shift allowances, housing allowances, utility
allowances, meal allowance, medical benefits, out of station allowance, vehicle loan benefits,
and annual leave allowances constitute indirect compensation (Osinbajo, Abiodun, &Fadugba
2012; Osibanjo, Adeniji, Falola, & Heirsmac, 2014).
Employee Productivity
Employee productivity captures discussions on how employees make use of the resources of
their firms to attain the goals of such firms in an effective and efficient way. These resources
could be materials, equipment, space, time, people, knowledge, information, finance, and energy
but not limited to them and depending on the size and nature of the firms’ operations.
Productivity usually is measured by dividing the output of employees by the resource input they
used in a given period. Increasing productivity is indicative of producing more goods and
services with same amount of resources, at the organisational level, these resources are most
referred to as labour and capital (Calabrese, 2012; Gronroos&Ojasalo, 2004). In the service
sector where the transportation industry is situated, employee productivity is not measured by the
unit of items produced by individual employee per resource; the manager needs to know how the
service is rendered and the degree to which the customer is satisfied (Wright, 2018).
Theoretical Review
Hertzberg’s two-factor theory
In the 1950s, a psychologist named Frederick Herzberg developed the Two-Factor Theory of
motivation. This theory which is also referred to as the “dual-factor theory” or “motivation-
hygiene theory” is differentiated by two factors namely; motivator factors and hygiene factors.
The factors which appear independently of each other assist in influencing motivation and
productivity.
The theory emphasised that employee satisfaction is a function of two sets of concerns:
“hygiene” concerns and motivators. Once the hygiene concerns have been addressed, he posited,
the motivators produce satisfaction among employees. Management should ensure that
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employees are given due reconditions for their successes and encouraged during setbacks.
Responsibility entails allowing employee have ownership of their job designations.
Advancement comes through promotions and reward for loyalty. Encouraging pursuing further
education also play huge role in ensuring satisfaction and motivation for all employees.
Empirical Review
In a cross-sectional survey design conducted in Kenya by Gichuhi, Abaja, and Ochieng (2014) to
determine the effect of performance appraisal on employees’ productivity in a supermarket, it
was found that performance criteria, feedback and frequency have significant influence on
employee productivity. They therefore recommended that employee with positive feedback be
given appropriate reward and that the strengths and weaknesses of employees should be
discusses and made available to the actionable.
On their part,Oshode, Alade, and Arogundade (2014) researched on the performance appraisal in
the Nigerian banking sector; with concentration on the individual and joint variables analyses,
drawing respondents from Ado Ekiti, Ekiti State. In that study, it was found that “a very strong
and positive relationship exists between performance appraisal criteria and employees’
productivity” prompting the researchers to recommend that bank management should adopt
conscious effort towards the improvement of performance appraisal criteria so as to earn sound
employees’ performance for their employees.
Omusebe, Gabriel, and Douglas (2013) examined performance appraisal (PA)

andemployees’productivity with regards to effectof one variable on the other. They used a sugar
company as a case study and they found that performance appraisal exerts positive and
significant effect on efficiency. Ojokuku (2013) conducted a similar study on the subject matter
and their study revealed that performance appraisal system exerts a strong effect on the
academics’ motivation and overall performance. Using commercial banks as case study, it was
established in Turkana County that performance appraisal system, training and development, and
reward system affects employees’ productivity. (Kibichii, Kiptum, &Chege, 2016)
Mollel, Mulongo, and Razia (2017) examined the influence of performance appraisal practices
on employees’ productivity: a case study of Muheza District, Tanzania. Their study revealed that
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performance appraisal tools such as recognition and feedback are vital to employee’s
performance and indeed influence employees’ productivity in the organization. In all these, no
study has yet looked into how performance management influences the all-important drivers of
corporate transportation companies, thereby creating a serious gap that this present study made
important contribution towards filling.
Methodology
A survey research design was adopted for this study, survey research design is suitable as a result
of its usefulness in defining phenomena and variables in the way they exist in the field or as the
researcher observe their behaviour. The population of interest was the five best road transport
companies in Nigeria in the year 2019 which was 1600 (Business List Online (nd); Okunola,
2018; Opara, 2018). The population breakdown is presented in table 3.1
Table 1: Population size by company

COMPANY POPULATION
GIGM 600
ABC Motors 500
Chisco Trans. Ltd 500
Total 1600
Source: (Researcher’s construct, 2022)
The Yamane’s formula (Yamane, 1967) was applied to obtain a sample size of 320 which was
used for the study. The calculations for the sample size is;
General formula is …………………………………………. 1
Where: n = sample size; N= population; e = level of significance = 0.05
Therefore;
Based on the sample size, simple ratio was used to determine what number of respondents was
considered from each company;
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Table 2: Number of Interviewee from each Company
COMPAN POPULATIO RATIO SHARE OF ALLOCATIO
Y N SAMPLE N
GIGM 600 600/160 600/1600*32 120
0 0 = 120
ABC 500 500/160 500/1600*32 100
Motors 0 0 = 100
Chisco 500 500/160 500/1600*32 100
Trans. Ltd 0 0 = 100
Total 320
Source: (Researcher’s construct 2022)
Judgmental/convenience sampling methods were used to select from among the five best
transport companies in 2020. Those which have terminals in the Utako district of Abuja and
which number of vehicles vis-a-vis drivers could be estimated via their web sites fit into the
judgmental criteria. Judgmental/convenience sampling methods was best fit because of the
nature and behaviour of the drivers who usually could not be found at the same place and time,
therefore, catching them for survey involved making calculated judgement on their availability
and convenience.
The research instrument is the structured questionnaire. The questionnaire was in two sections A
and B. Section A was used to solicit respondents’ personal information such as age, sex, marital
status, academic qualifications etc. however, scores were not attached to part and as a result, the
part was not considered for analysis. Section B which items were in a 5-point Likert format with
5 representing strongly agree, 4-agree, 3-not sure, 2-disagree and 1 representing strongly
disagree was used to solicit information for the research variables which were used for empirical
analyses.
To ensure the validity of the research instrument, it was subjected to check and recheck by the
researchers and senior colleagues in academics, thereafter, the instrument was administered to
twenty three (23) drivers who operated from GUO Transport Company at the Utako Motor Park,
Abuja. The data from the twenty three respondents were subjected to the Cronbach’s Alpha test
and the results were found excellent (all Alpha figures were > 0.9) in line with George and
Mallery (2003) which categorized the rating of cronbach’s Alpha ratings. Therefore, the
elements of the instrument were found usable for the research purpose. The results of the
reliability test are presented in table 3.
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Table 3:Test for Reliability of Instrument
Scale Scale Corrected Squared Cronbach's
Mean if Variance if Item-Total Multiple Alpha if
Item Item Correlation Correlation Item
Deleted Deleted Deleted
Employee Productivity 12.1316 7.383 .979 . .979
Employee
12.0954 7.171 .973 . .983
Compensation
Employee Appraisal 11.9435 8.548 .942 . .992
Performance
12.0195 7.809 .997 . .975
Management
Source: (researchers’ construct, 2021)
Descriptive and inferential statistics were applied for the research analyses, the percentage and
the mean score were the used for the descriptive while the correlation coefficient and probability
scores were the inferential statistics which were used for interpreting the results from the test
tools (the statistical Packages for Social Sciences SPSS).
Results and Discussion
Table 4: Descriptive presentation of and summary of responses on EmployeeProductivity

S/N EMPLOYEE PRODUCTIVITY SD D N A SA M
(%) (%) (%) (%) (%)
1 I complete my trips at all times. 4.1
3.8 6.3 6.9 40.3
42.8
2 My vehicle is scarcely impounded by 4.05
2.2 9.1 11.9 35.0
government and security agencies. 41.9
3 Customers are always satisfied with 3.46
15.3 15.3 5.3 35.9
my conducts. 28.1
4 My vehicle is always in good 4.31
1.3 2.8 1.9 51.9
conditions b/f embarking on any trip. 42.2
5 My manager promptly responds to my 3.54
requests on vehicle repairs and 10.6 21.6 2.2 34.7 30.9
maintenance.
6 I give and also receive assistance 4.51
from my colleagues when faced with 0.0 .9 47.2 51.9
challenges on the road. 0.0
7 My family members are happy with 3.53
17.8 13.1 38.8
my present company. 7.2 23.1
Source: (researchers’ construct,2022)
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42.8% of the respondents strongly agreed that they complete their trips at all times, 40.3% of
them agreed that they complete their trips at all times, 6.9% were not sure whether they do,
however, 6.3%, and 3.8% disagreed and strongly disagreed respectively that they complete their
trips at all times. The mean score of 4.1 indicates that on average, the respondents agreed that
complete my trips at all times. On the statement “My vehicle is scarcely impounded by
government and security agencies”, 41.9% strongly agreed, 35.0% agreed, while 11.9% were not
categorical, 9.1% and 2.2% said they disagreed and strongly disagreed respectively. A mean
score of 4.05 shows that the respondents agreed that their vehicles are scarcely impounded by
government and security agencies. 5.3% of the respondents were not sure if their customers were
always satisfied with their conducts. 15.3% of the respondents answered that their customers are
always satisfied with their conducts, same 15.3% also strongly agreed that their customers are
always satisfied with their conducts. On the positive divide, 35.9% and 28.1% agreed and
strongly agreed respectively. On the average, with a mean score of 3.46, the respondents agreed
that their customers are always satisfied with their conducts. 51.9% agreed that their vehicle is
always in good conditions before embarking on any trip, 42.2% strongly agreed to the statement,
2.8% disagreed with the statement, while 1.3 strongly disagreed with the statement that their
vehicle is always in good conditions before embarking on any trip. The statement is further
supported by a mean score of 4.31.
Responding to the statement “I give and also receive assistance from my colleagues when faced
with challenges on the road” nearly all respondents 99.1 either agreed or strongly agreed, while
only 0.9% respondents were not sure if they give and also receive assistance from their
colleagues when faced with challenges on the road. The mean score of 4.51 also supported this
position. 7.2% strongly disagreed, 17.8% disagreed, 13.1% were not sure, 38.8% agreed, while
23.1% strongly agreed that their family members are happy with their present company. On the
average, a score of 3.53 shows that respondent’ family members are happy with their present
company.
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Table 5: Descriptive presentation of and summary of responses on Employee
Compensation
S/N COMPENSATION SD D N A SA M
(%) (%) (%) (%) (%)
1 There is a fair level of wage in
2.5 5.9 9.7 35.3 4.18
my company. 46.6
2 My company offers pay based on 48.1
6.6 3.1 12.5 29.7 4.10
my ratings
3 My salary package is satisfactory 21.3 14.1 1.6 28.4 34.7 3.4
in relation to what I do
4 I receive bonuses anytime i 1.6 0.9 0.0 49.7 47.8 4.4
complete a consecutive number of
trips.
5 The rewards system in my 4.4 25.9 0.0 25.9 43.8 3.79
company inspires me to perform
well on my job
6 Salary increase are decided on a 1.3 46.9
0.9 6.3 44.7 4.35
fair manner
7 My manager is supportive in 1.6 46.6
1.3 0.6 50.0 4.39
getting the job done
8 My company provides health 24.7 36.9
23.1 4.4 10.9 3.12
insurance policies for all drivers
Table 5 summarizes respondents’ responses for the performance appraisal variable. 2.5%,
strongly disagreed, 5.9% disagreed, 9.7% were not sure, 35.3% agreed, while 46.6% strongly
agreed that the level of wage payment in their companies is fair enough. Further. A mean score
of 4.18 reveals that almost all the respondents agreed that their level of wage payments by their
firmis fair enough. Responding to the statement “my company offers pay based on my ratings”
6.6% strongly disagreed, 3.1% agreed, 12.5% were not sure, 29.7% agreed, and 48.1% strongly
agreed. On the average, a score of 4.10 indicates that majority of the respondents agree that their
company offers pay based on my ratings. 21.3% strongly disagreed, 14.1% disagreed, 1.6% were
not sure, 28.4% agreed, while 34.7% strongly agreed with the statement “my salary package is
satisfactory in relation to what I do”. A mean score of 3.4 further strengthen the respondents’
position. 1.6% strongly disagreed, 0.9% disagreed, 49.7%, and 47.8% agreed with the statement”
I receive bonuses anytime i complete a consecutive number of trips”. The position of the
respondents is further supported by an average score of 4.4.
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4.4% strongly disagreed, 25.9%, 25.9%, and 43.8% strongly agreed respectively that the reward
system in their company inspires them to perform well on their jobs. A mean score of 3.79
indicates that majority of the respondents’ position. On the statement “salary increase are
decided on a fair manner” 1.3% strongly disagreed, 0.9% disagreed, 6.3% were not sure, 44.7%
agreed, while 46.9% strongly agreed. The mean score of 4.35 indicates that on average, the
respondents agreed that salary increase are decided on a fair manner. 1.6% strongly disagreed,
1.3% disagreed, 0.6% were not sure, 50.0% agreed, and 46.6% strongly agreed that their
managers support them in getting their jobs done. The mean score of 4.39indicates that on
average, the respondents agreed that their managers support them in getting their jobs done.
On the statement “my company provides health insurance policies for all drivers” 79(24.7%)
strongly disagreed, 74(23.1%) disagreed, 14(4.4%) were not sure, 35(10.9%) agreed, and
118(36.9%) strongly agreed. A mean score of 3.12 indicates that majority of the respondents’
position.
Table 6: Descriptive presentation of and summary of responses on Employee Performance
Appraisal.
S/N PERFORMANCE APPRAISAL SD D N A SA M
(%) (%) (%) (%) (%)
1 My company has appraised my 37.7
0.0 0.0 0.0 62.3 4.37
performance many times
2 I am always given the results of my
2.8 2.5 7.8 52.5 4.13
appraisal 34.4
3 My supervisor possesses adequate
knowledge to properly implement
3.4 5.0 14.7 45.6 3.96
my performance appraisal
evaluation 31.3
4 The performance appraisal
instrument has clear and valid 4.7 2.5 9.1 49.4 34.4 4.06
measures of job activities.
5 I feel treated fairly during the
0.9 4.1 9.7 52.5 4.12
performance appraisal process 32.8
6 The performance appraisal process
2.2 14.1 48.2 4.11
usually is clear and unbiased. 1.6 34.1
Source: (researchers’ construct,2022)
Table 6 summarizes respondents’ responses for the performance appraisal variable. While 0.0%
respondent strongly disagreed, 0.0% disagreed, 0.0% were not sure, 62.3% agreed, and 37.7%
strongly agreed that their companies have appraised their performance many times. A mean
score of 4.37 further buttress the position that employees have been appraised several times.
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2.8% strongly disagreed, 2.5% disagreed, 7.8% were not sure, 52.5% agreed, and 34.4% strongly
agreed, with a mean score of 4.13, majority of the respondents agreed that they are always given
the results of their appraisal. On the statement “my supervisor possesses adequate knowledge to
properly implement my performance appraisal evaluation” 31.3% strongly agreed, 45.6% agreed,
14.7% were not sure, 5.0% disagreed, and 3.4% strongly disagreed. A mean score of 3.96
indicates that most of the respondents agreed that their supervisor possesses adequate knowledge
to properly implement my performance appraisal evaluation. 4.7% strongly disagreed, 2.5%
disagreed, 9.1% were not sure, 49.4% agreed, while 34.4% strongly agreed, With a mean score
of 4.06, it is observed that the performance appraisal instrument of their companies has clear and
valid measures of their job activities. 0.9% strongly disagreed, 4.1% disagreed, 9.7% were not
sure, 52.5% agreed, while 32.8% strongly agreed, and the average score of 4.12 shows that
majority of the respondents feel treated fairly during the performance appraisal process. On the
statement “the performance appraisal process usually is clear and unbiased” 5(1.6%) strongly
disagreed, 7(2.2%) disagreed, 45(14.1%) were not sure, 154(48.2%) agreed, and 109(34.1%)
strongly agreed. Further, an average score of 4.11 indicates that majority of the respondents
agreed that the performance appraisal process usually is clear and unbiased.
Table 7: Correlations output

Employee Employee Employee Performance
Productivity Compensation Appraisal Management
Pearson Correlation 1 .979** .929** .979**
Employee
Sig. (2-tailed) .000 .000 .000
Productivity
N 320 320 320 320
** **
Pearson Correlation .979 1 .910 .983**
Employee
Sig. (2-tailed) .000 .000 .000
Compensation
N 320 320 320 320
Pearson Correlation .929** .910** 1 .971**
Employee
Sig. (2-tailed) .000 .000 .000
Appraisal
N 320 320 320 320
Pearson Correlation .979** .983** .971** 1
Performance
Sig. (2-tailed) .000 .000 .000
Management
N 320 320 320 320
The Pearson product-moment correlation was run to determine whether a relationship exists (and
the kind of relationship) between the dependent variable (employee productivity) and the
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independent variables (employee appraisal and employee compensation). Table 7 presents the
detailed results of the SPSS analyses.
Hypothesis One
H01: performance management does not have significant relationship with employee
productivity in road transportation companies in Nigeria.
A correlation value of 0.979 indicates a near perfect positive relationship between the variables,
therefore, there is enough evidence to reject the null hypothesis and conclude that the nature of
relationship between performance management and employee productivity in road transportation
companies in Nigeria is a very strong and positive one. Performance management was an
aggregation of employee performance appraisal and employee compensation indices.
Hypothesis Two
H02: performance appraisal does not have significant relationship with employee productivity
in the road transportation companies in Nigeria.
The result for the correlation of these variables is 0.929; this provides enough evidence to reject
the null hypothesis and conclude that the kind of relationship which exists between performance
appraisal and employee productivity road transportation companies in Nigeria is a positive and a
very strong one. Employee performance appraisal was seen in terms of employee being
appraised several times, employee seeing the results of their appraisal, supervisors possessing
adequate knowledge for such purpose, clarity of instrument, a fair, clare, and unbiased process.
Hypothesis Three
H03: employee compensation does not have significant relationship with employee
productivity in the road transportation companies in Nigeria.
The result of the data analysis reveals a correlation value of 0.979, enough evidence to reject the
null hypothesis and conclude that the type of relationship that exists between employee
compensation and employee productivity in the road transportation companies in Nigeria is a
very strong and positive one. Employee productivity was itemized as existence of fair level of
wage, offer of pay based on employee’s rating, satisfactory salary with regard to job done,
bonuses payout per trip completion, management support for getting job done, and others. The
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various items aggregated were found to positively and significantly correlate with employee
productivity.
Discussion of Findings
The findings of this research work reveal that performance management vis-a-vis its elements of
employee appraisal and employee compensation has positive and very strong relationship with
the productivity of employees, in this case the drivers of the vehicles, in the road transportation
companies in Nigeria. This empirical finding implies that the productivity of the employees will
be on the rise with continues appraisal and improved compensation. The findings is in alignment
with those of Gichuhi, Abaja, and Ochieng (2014) and Oshode, Alade, and Arogundade (2014)
which were set in a supermarket and the banking sector respectively and found out that
performance appraisal through performance criteria, feedback, and frequency have significant
influence on employee productivity.The findings of this study is also in consonant with that of
Omusebe, Gabriel, and Douglas (2013) which found out that a strong and positive relationship
exists between performance appraisal and employees’ efficiency in a sugar company.
This research findings also give voice to the finding by Ojokuku (2013) which found out that
performance appraisal system exerts a strong influence on the academics’ motivation and overall
performance of academics in Nigerian public universities. Further, the findings of this study is in
line with the finding by Kibichii, Kiptum, and Chege (2016) which established that performance
appraisal system, training and development, and reward system affects employees’ productivity
in commercial banks. The finding of this study that performance has a strong and positive effect
on employee productivity aligns with the finding by Mollel, Mulongo, and Razia (2017) that
performance appraisal tools such as recognition and feedback are vital to employee’s
performance and indeed influences employees’ productivity in the organization.
Conclusion and Recommendations
This present study examined the relationship between performance management and employee
productivity in the road transportation companies in Nigeria. The variables of interest included
performance management which was decomposed into performance appraisal and employee
compensation on the independent side while employee productivity was dependent variable. The
results of the study established that performance appraisal, employee compensation and the
parent performance management have a very strong and positive relationship with employee
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productivity in the high risk road transportation business in Nigeria. Flowing from the results of
this study, it is recommended that operators and managers/supervisors of road transportation
companies in Nigeria should continuously practice performance management and put up huge
efforts at improving it from time to time, these, when practiced, will continuously increase the
performance of their employees (drivers) who bear the risks of their business survival and
continuity.
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Fuoye Journal of Management, Innovation and Entrepreneurship.

ISSN: 2814-2578. Vol. 1. No. 1, June, (2022)

According to McKinney (2016), employee compensation is referred to as the whole amount an

Hertzberg’s two-factor theory

Omusebe, Gabriel, and Douglas (2013) examined performance appraisal (PA)

Table 1: Population size by company

Where: n = sample size; N= population; e = level of significance = 0.05

Results and Discussion

Table 4: Descriptive presentation of and summary of responses on EmployeeProductivity

Table 7: Correlations output

Aguinis, H. (2013). Performance management (3rd ed.). Pearson Prentice Hall

Calabrese, A. (2012). Service productivity and service quality: A necessary trade-off?

Eisenhardt, K. M. (1989). Agency theory: An assessment. Academy of Management Journal,

Grönroos, C., &Ojasalo, K. (2004). Service productivity: Towards a conceptualization of the

Manasa, K. & Reddy, N. (2009).Role of training in improving performance.The IUP Journal of

Mondy, W. &Noe, R. (2008).Human resource management.Prentice Hall.

Ochidi, Z., Suleiman, O., Olumoyegun, P. &Yusufu, O. (2019).Effect of performance appraisal

Okunola, A. (2018). GIGM is Nigeria’s most technologically advanced road Transport

Sheriff, B., Alibaba, S. &Aliyu, I. (2012).The effect of human resource management on

Stevers, B.P. & Joyce, T. (2000).Building a balanced performance management system.SAM

Sulaimon, A.A., Ogunyomi, P.O., &Akosile, O.K. (2001).Human resources management

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