Assessment of Performance Appraisal Practices Affecting Employee Performance at Kenya Medical Research Institute Kisumu, Kenya

Abstract

Performance appraisal practices affect organizational strategy. Social justice theory views social exchanges as fair when individual's contributions are recognized with rewards. Effective performance appraisal practices require constant feedback to' an employee outside formalized system. Kenya Medical Research Institute has formal appraisal system where employee and supervisor agree on targets to be achieved. However, 65% of the filled out exit questionnaires between years 2011 to 2014 reveals dissatisfaction on appraisal results. It is further noted that out of thirty appraisal forms seen, twenty remained unsigned by employees and supervisors. Prior studies on employee appraisal have majorly focused on formalized appraisal systems hence ignoring inclusion of achievements realized outside agreed performance targets, consideration of employee characteristics and supervisor's versatility in the appraisal process and therefore the extent to which these affect employee performance are not known. The purpose of the study sought to assess performance appraisal practices affecting employee performance at Kenya Medical Research Institute, Kisumu. Specific objectives being to examine extent to which non-inclusion of employee achievements, nonconsideration of employee characteristics and supervisors' versatility affects employee performance. The study adopted social justice theory in a self- conceptualized framework that relates performance appraisal practices to employee performance in a descriptive research design. The target population was 220 employees. A saturated sample size of210 employees was investigated. Primary data was collected using validated questionnaire. A pilot study of 10 employees was used to assess reliability and validity of the instrument. Validity was tested through expert opinion while Cronbach alpha was used to test reliability where a = 0.914 was obtained against a threshold of a = 0.7. Data was analysed using SPSS version 20 and results presented in descriptive statistics. To test for significance, a one sampled t-test was used with a cut-off of 2.5 at 5% level of significance. With exception of employees characteristics, the results showed that non-inclusion of employees' achievements and supervisors versatility had' a significant influence on performance with p-values of all variables <0.05. It is therefore concluded that achievements by employees outside agreed targets, supervisor's versatility and to some extent, employee characteristics be considered while evaluating performance. This will increase motivation and self-development. The study recommends performance review be pegged against actual output. The significance of the study is to enhance performance appraisal practices and advance knowledge in human resource management. Further research should however be done on appraisal practices and effe~ts on employee and organizational performance.