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.