An analysis of factors influencing performance appraisal of staff in the tourism sector in Kenya : case of selected firms in Mombasa

Abstract

The tourism industry is important to the Kenyan economy as well as many other economies the world over. In Kenya, the industry accounts for 13.3% of Gross Domestic Product (GDP), 14.7% of foreign exchange earnings and generates 138 000 jobs directly and 360, 000 indirectly (www.kenyatourism.org ).Tourism earnings trend has been rising with the sector earning 25.8, 39.2 and 48.9 billion shillings in 2003, 2004 and 2005 respectively (www.kenyatourism.org ). This shows that this industry is important and a lot should be done to promote it. Tourist hotels should strive to improve their performance through performance appraisal among other activities. The researcher therefore intended to analyse the factors that affected effective performance appraisal. This study set out to identify those factors that affect employee performance appraisal exercise, analysed them and made recommendations as to how best the exercise should be carried out for maximum benefits. Primary data was collected using open ended and closed ended questionnaires. Two sets of questionnaire were prepared: one for the employee and another for the human resource manager and any other person who was in charge of the performance appraisal exercise. Interviews were also used to collect the data. Secondary information from books, magazines, newspapers and the electronic media was also used. The data collected was analysed using descriptive statistics and recommendations made. Research findings indicate that performance appraisal is an important exercise and that it is carried out in all the organizations that were covered by the research. The findings also indicate that some managers do not involve their employees in setting targets to be achieved. This explains why some of the employees do not find the exercise beneficial. There are factors that were found to affect the performance appraisal exercise among them the method used, top management support, personal goals, organizational politics and employee perception of the process. Based on the findings, the researcher has suggested that the employee and the supervisor/ manager should collaborate in the setting of targets and that performance should be used as the main consideration during the performance appraisal exercise.