Effect of Performance Appraisal on Service Quality in Selected Beverage Companies in Southeast Nigeria

Abstract

This study examined the effect of performance appraisal on service quality in selected beverage companies in Southeast Nigeria. The study covered Nigerian Breweries Plc, Seven-Up Bottling Company Plc and Coca-Cola Nigeria Limited. The population comprised 1,500 management, supervisory and operational employees, from which a sample of 500 was selected using a multi-stage sampling procedure. A descriptive survey design was adopted. Out of the 500 questionnaires distributed, 488 were properly completed and used for the analysis. Data were analysed using descriptive statistics and simple linear regression. The findings showed that performance appraisal in the selected companies was generally based on clear standards, job-related criteria and the achievement of set targets. The regression analysis gave a correlation coefficient of R = 0.701 and a coefficient of determination of R² = 0.491, showing that performance appraisal accounted for 49.1% of the variation in service quality. The relationship was positive and statistically significant (B = 0.703, t = 15.09, p = 0.000). The study therefore found that effective performance appraisal can improve service quality by helping employees understand what is expected of them, encouraging accountability and improving service delivery. The study recommends that beverage companies should use transparent and performance-based appraisal systems and link appraisal outcomes to employee development.