Factors affecting employee performance appraisal system (A case study of Geothermal Development Company)
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Date
2013-12
Authors
Renato, Lenny Mbaabu
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Abstract
The business world has experienced drastic changes over the last decade brought about by
liberalization and globalization. Competition among companies has now become a norm for
survival and hence the need to devise various methods of attaining success in the
organization. Performance appraisal is one of the key elements many organizations are keen
on to enhance better performance. Initially performance appraisal was regarded as a tool of
rewarding employees mainly through pay. The objectives of the study were to determine
whether training, organization management style and employees' capacity influences
performance appraisal systems in Geothermal Development Company. The study adopted a
descriptive survey aimed at investigating factors affecting performance appraisal system in
Geothermal Development Company targeting a population of 450 employees and aimed to
collect data from 45 respondents although only 38 respondents filled in the questionnaire
and returned making a response rate of 84.4% .. The study found out that GDC trained its
staff through training courses and seminars, job instruction, supervisory assistance and
mentoring. The study found out that consultative system management styles and
participative group system were the management styles used by GDC. The study also
established that the attitude of the employees in GDC had effect on the performance and
service delivery to the customers and it affected performance appraisal. The study
concludes that GDC trained its staff through training courses and seminars, job instruction,
supervisory assistance and mentoring which was importance in achieving their objective in
organizations. On the other hand, the study concludes that training affected performance
appraisal to a great extent and setting performance standards; conflict resolution; providing
employee feedback; supervisory assistance and mentoring and consultants were the methods
which used in training staff in organizations and were effective in meeting training
objectives. The study concludes that consultative system management styles and
participative group system were the management styles used by GDC and they affected the
performance appraisal in GDC to a very great extent. The study also concludes that the
attitude of the employees in GDC had effect on the performance and service delivery to the
customers and it affected performance appraisal. The study recommends that the
management at GDC should communicate the importance of performance appraisal to its
employees so as to accept it and see it as a means of improving their performance rather that
punishing them. The study recommends that the management at GDC should adopt
successful management styles which involve building teams, networks of relationships, and
developing and motivating others which would instill skills to the employees and which
have a critical role in improving the level of performance of the employees.
Description
A research project submitted in partial fulfillment of the requirements for the award of the degree of master of business administration in the school of business of Kenyatta University