Staff Appraisal and Sustainable Organizational Performance: An Analysis of Hospitality Sector in 3–5-Star Hotels in Nairobi City County, Kenya
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Date
2025-10
Authors
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Publisher
Kenyatta University
Abstract
Human resources remain the most critical asset for firms seeking sustainable competitive
advantage, particularly in the service industry, where performance is tied directly to
employee effectiveness. Among the essential human resource practices are employee
evaluation tools, which shape recruitment, performance management, and employee
development. In Nairobi City County, 3–5 star hotels face pressing challenges, including
intense competition, customer retention, satisfaction, and organizational performance. This
study investigated the role of employee evaluation frameworks in enhancing organizational
effectiveness, focusing on how evaluation methods impact the operations of 3–5 star hotels in
the Nairobi region. The study pursued four specific objectives: to analyze the influence of
management by objectives on organizational effectiveness; to examine the relationship
between 360-degree feedback and corporate performance; to assess the contribution of
performance metrics to organizational outcomes; and to evaluate the implications of
confidential appraisal methods on operational efficiency. A descriptive cross-sectional
research design was adopted, targeting 44 hotels with a population of 44 human resource
managers and 4,500 employees. Using the Kline (2016) model, a sample of 411 respondents
was drawn, comprising all HR managers and 367 randomly selected employees. Data was
collected through structured questionnaires and HR manager interviews, then analyzed using
descriptive statistics, Chi-square tests, and simple regression analysis. The findings revealed
that management by objectives, 360-degree feedback, graphical rating scales, and
confidential evaluations significantly influence hotel performance. Notably, 360-degree
feedback proved most effective in enhancing personal growth and improving overall
operations. Statistical results (p < 0.05) confirmed that employee evaluation methods strongly
affect organizational effectiveness. The study concludes that fair and well-aligned evaluations
are essential for positive outcomes in star-rated hotels. The study recommended that hotels
establish clear objectives, effectively apply feedback systems, and continuously review
branding strategies to remain competitive
Description
A Research Thesis Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Hospitality Management in the School of Business, Economics, and Tourism of Kenyatta University, October 2025
Supervisors:
1.Rahab M. Mugambi
2.Monica A. Wandolo