Performance Appraisal and Employee Performance at Kibabii University in Bungoma County, Kenya
Abstract
This study sought to investigate the influence of performance appraisal on employee
performance at Kibabii University in Bungoma County. The specific focus of the study
was to determine the influence of evaluation, management by objectives, performance
appraisal design and 360 degrees’ appraisal method on employee performance at Kibabii
University in Bungoma County, Kenya. The research variables in this study were
underpinned on the Organizational Justice Theory, Goal Setting Theory and Expectancy
Theory. The study was guided by a descriptive research design. This design was
considered appropriate because the study focused on a survey of employees in one
organization. The study targeted a population comprising of 400 employees working in
various job groups at Kibabii University. Stratified and systematic random sampling was
used in this study, to select a sample size of 200 respondents. The primary data for the
research was collected using a structured questionnaire. Validity of the questionnaire was
assessed and confirmed using expert opinion from supervisors. A pilot study was carried
out on ten randomly selected employees to support the test of reliability of the
questionnaire. Reliability was tested through a test of internal consistency. In order to
test reliability of the instruments, internal consistency techniques were employed using
the Cronbach Alpha Coefficient of 0.7. Descriptive statistics were analysed using mean,
standard deviation and percentages. Similarly, inferential statistics were analysed using
bivariate correlation and multiple regression analysis so as to confirm the relationship
between the research variables. The results of analysis were presented in form of figures
and tables. The results showed that evaluation has a positive and significant influence on
employee performance (β = 0.218; P-Value < 0.05); MBO has a positive and significant
influence on employee performance (β = 0.164; P-Value < 0.05); performance appraisal
design has a positive but not significant influence on employee performance (β = 0.011;
P-Value > 0.05) and 360 degrees Appraisal Method has a positive and significant
influence on employee performance (β = 0.172; P-Value < 0.05). Based on the findings,
the study concludes that an increase in evaluation such as supervisor evaluation, peer
evaluation, self-evaluation, subordinate evaluation, customer evaluation and trainers’
evaluation significantly improve employee performance. The study also concludes that an
increase in Management by objectives practices such as setting objectives and plans,
monitoring progress, rewarding according to performance, linkage: objectives and
results/output and stakeholder participation significantly improves employee
performance. Another conclusion is that an improvement in performance appraisal design
such as rating scales, accurate appraisals, fairness/ lack of bias in appraisal, appraising vs
current job description, goal-oriented appraisal and regularity of conducting appraisals
significantly improves employee performance. The study also concludes that an
improvement in 360 degrees’ appraisal methods such as feedback from all
sections/teams, measurement of employee skills and feedback process and duration taken
significantly improves employee performance.