Analysis of Performance Appraisal Implementation on Organization Performance in Saccos: Case of Kisii County, Kenya

Abstract

Performance management is one of the important key activities performed by organizations to monitor the performance of their employees. Organizations must regularly evaluate the performance of their employees in order to understand their current and future abilities. The purpose of this paper is to assess the impact of performance management on employee and organizational performance. The study adopted a cross-sectional survey research design and involved a sample size of 120 human resource officers and managers from selected private organizations in Tanzania. Data was collected using structured questionnaires and interviews and analyzed using descriptive and inferential statistics and the results presented using tables. The findings of the study reveal that private organizations practice performance management and have effective performance management system to evaluate/appraise the performance of their employees. Moreover, the findings reveal that there is a significant relationship between performance management and employee performance as well as between performance management and organizational performance. The study recommends the need of the private organizations to maintain and continue practising and implementing effective performance management systems, also to continue evaluating the performance of their employees frequently because it helps to determine training needs and at the same time acts as a motivational strategy hence leads to a better performance of employees and organization.

Performance appraisal is the basic tendency to make an evaluation of an individual's work performance in order to arrive at objective personal decisions. It systematically reviews a person's work and achievements over a recent period, leading to plans for the future in personnel psychology. Savings and Credit Co-operative Societies (SACCOs) are voluntary associations to which members contribute regularly their pooled savings and from which they obtain loans for provident and other purposes. Generally, SACCOs are established with the objective of promoting savings and credit with training opportunities on the wise use of their funds. An extensive use of performance appraisal in SACCOs helps in the improvement of individual job performance, promote employee training and development, focus on SACCO goals, encourage teamwork, promote co-operation, improve ability of SACCOs to hire' qualified employees and enable employees determine what it takes to be successful in SACCO movement. The general objective of the study was to investigate the extent of implementation of performance appraisal in SACCOs in Kisii Central district. A descriptive survey design was adopted to conduct the study. It was relevant because it is used to assess attitudes and opinions about events, individuals or procedures. The study focused on employees of active SACCOs in Kisii Central District, Kenya. The data was collected using questionnaires, arranged and grouped according to particular research questions, tabulated and analyzed using descriptive and inferential statistics by Software Package for Social Sciences (SPSS). The study showed that a large proportion of SACCOs (76.0) lacked performance appraisal. Those SACCOS that had performance appraisal (24), carried it out once a year and it was largely conducted by the general manager. To a less extent, the performance appraisal helped the SACCOs to rate the workers strengths and weaknesses. Although it was revealed that performance appraisal helped SACCOs in overcoming challenges at work; unfortunately, many SACCOs did not use it in implementing decisions that concerned workers welfare and job mobility.

Keywords: Performance Appraisal Implementation, Organization Performance in Saccos, Kisii County in Kenya.

DOI: 10.7176/EJBM/11-29-08

Publication date:October 31^st 2019