CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The primary source of information concerning a firm’s performance is their financial statement that include the income statement, balance sheet, and cash flow and accompanying note. Also a company’s performance could be appraised on the basis of profit made in the year, the output level of the company and increased turnover and more efficient use of resources, in terms of input and output relationships. Critics argue that performance appraisal distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window- dressing; others also argue that it is in an attempt to pre-empt the role of government as a watchdog over powerful manufacturing companies (Armstrong, 2001). Performance appraisal system assists management to plan and control activities, and to make decisions which enable the objectives of the organization as a whole to be met. Performance evaluation could also be seen as the periodic review of result against set objectives and goals to reveal result, if there is any deviation if need be, corrective measures be put in place.
Performance appraisal is also a method by which the job performance of an employee is evaluated. Performance appraisals are part of career development and consist of regular review of employee performance within organizations. (Quchi, 2007). A number of models or framework for conducting an organizational performance exist, the choice of which framework (or combination of frameworks) to use depends on the nature of the organization, on the purpose of the assessment and on the context in which the assessed organization operates (Mzenge, 2003). Simons (1987) defines corporate performance using an approach of market mechanism by which the company actively interacts with the financial, factor and customer product markets. In the financial market, corporate performance strives to satisfy shareholders and creditors in the form of financial indicators. Dierent aspects of corporate performance have been important in strategic management and accounting research.
1.2 STATEMENT OF THE PROBLEM
Following the prevailing economic melt-down in the country, the performance of manufacturing companies has been on the decline, reported profit and sales is also on the decrease, expansion and growth is on the decrease too, and some factory went into extinction completely. In practice, the operation and performance of manufacturing companies are evaluated and appraised to enable the management of such company take well informed decision. The study, an appraisal of corporate performance of selected companies in the manufacturing sector is designed to evaluate, appraise the operations and performance of DN MAYER PLC.
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