Evaluation of Performance Appraisal Tools on Employee Performance: Case of National Bank of Kenya Limited

Abstract

Performance appraisal is one of the major bundles in Human Resource Management. Successful performance appraisal system is one that has resulted from hard work, careful thinking, planning and integrated with the strategy and needs of the organisation. Inaccuracies in appraisal can de-motivate employees forcing them to leave organizations. Due to many challenges within the economy, more demand is put on employees to perform without corresponding returns e.g. pressure to meet the targets without the necessary tools to evaluate their performance by appraising them and this has increased the level of frustration. At National Bank Kenya Limited (NBK), performance appraisal as a tool is utilised. However the quality of performance appraisal and its effect on employee performance cannot be ascertained. The purpose of the study was to analyse the various performance appraisals on employee performance case of NBK. This research adopted a descriptive research design. The target population in the research was 100 employees working in the headquarters of the bank. Stratified random sampling technique was used to select the sample which was 30%. The researcher used the questionnaire as primary data collection instrument. SPSS (Version 21) was used to analyze the data and presented by tables. The study found that performance appraisal is very important in influencing successful job performance. It was deduced that the 360-degree appraisal method and management by objectives (MBO) among others greatly influenced employee performance at National Bank.  It was also noted that the appraisal forms should capture more data such as evaluation of the employees’ communication and interpersonal skills/teamwork, adaptability of the employee to work environment, dependability clause and space for short and long-term goals.

Key Words: Performance appraisal tools, Employee Performance, National Bank of Kenya Limited.