Factors affecting employee performance appraisal system (A case study of Geothermal Development Company)
Renato, Lenny Mbaabu
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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.