The Impact of Employee Performance Appraisal on the Achievement of Organizational Goal in the Banking Industry

The Impact of Employee Performance Appraisal on the Achievement of Organizational Goal in the Banking Industry.

ABSTRACT

Imxpact of Performance Appraisal on Employees’ Job Performance using Keystone Bank Limited as case study. The main objective of the study was to determine whether performance appraisal has any impact on job performance of employees and the extent of such impacts.

In service industries e.g. Bank s, the service is fast, more efficient, and product are delivered on time leading to customer satisfaction and more profit are achieved.

The researcher adopted the primary method of data collection through the use of structured questionnaire. Research show that performance appraisal has positive impact on employees’ job performance. Moreover, the respondents all agreed that the Behavioural Checklist and Scales Appraisal System was the best appraisal system to be adopted by an organization.

Based on the-research findings, the researcher recommends among others that organization and employees must have a clear idea of where the organization is going and employees must understand how their job contributes to the goals of the company.

Besides, employees must be given the needed trainings to ensure they have the skills needed to perform their work. Finally, the researcher further recommends that supervisors must give feedback to employees about their performance on regular basis not just at formal appraisal times.

TABLE OF CONTENTS

Title Page … … … … … … … … … i
Approval … … … … … … … … … ii
Certification … … … … … … … … iii
Dedication … … … … … … … … … iv
Acknowledgement … … … … … … … v
Abstract … … … … … … … … … vi
Table of Contents … … … … … … … … vii
List of Tables … … … … … … … … ix
List of Figures

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study … … … … … … 1
1.2 Statement of the Problem … … … … … 5
1.3 Objectives of the Study … … … … … … 6
1.4 Research Questions … … … … … … 6
1.5 Research Hypotheses … … … … … … 7
1.6 Significance of Study … … … … … … 8
1.7 Scope of the Study … … … … … … 9
1.8 Limitations of the Study … … … … … … 10
1.9 Operational Definition of Terms … … … … 11
Profiles of Keystone Bank Limited … … … … 11
References … … … … … … … … 13

CHAPTER TWO: REVIEW OF LITERATURE

2.1 General Framework on Performance Appraisal … … 14
2.2 History and Evolution of Performance Appraisal … 15
2.3 Objectives of Performance Appraisal … … … … 25
2.3.1 Potential Rating Scale Appraisal Errors/Problems … … 27
2.4 Techniques of Performance Appraisal … … … … 30
2.5 Performance Appraisal and Job Performance … … 41
2.5.1 Determinants of Performance Capacity … … … 41
2.6 Performance and Managerial Leadership Styles … 42
2.6.1 Basic Managerial Philosophies … … … … … 43
2.6.2 Golden Rule Management … … … … … 45
2.7 Classification of Appraisals … … … … … 45
2.7.1 Performance Appraisal Method in Keystone Bank Ltd … 49
2.8 Advantages of Performance Appraisal to an Organization… 51
2.9 Summary of Review of related Literature … … … 55
References … … … … … … … … 56

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction … … … … … … … 61
3.2 Research Design … … … … … … … 61
3.3 Sources of Data … … … … … … … 62
3.4 The Population of the Study … … … … … 63
3.5 Sample Size Determination and Sampling Technique … 63
3.6 Description of Research Instrument … … … … 64
3.7 Method of Data Analysis … … … … … … 65
3.8 Validity of Research … … … … … … 65
3.9 Reliability of Research Instrument … … … … 66
References … … … … … … … … 69

CHAPTER FOUR: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1 Data Presentation and Analysis … … … … … 71
4.2 Testing of Hypotheses One … … … … … 82
4.3 Testing of Hypotheses Two … … … … … 84
4.4 Discussion of Findings … … … … … … 85

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Summary of Findings … … … … … … 87
5.2 Conclusion … … … … … … … … 88
5.3 Recommendations … … … … … … … 89
5.4 Contribution to Knowledge … … … … … 91
5.5 Area of Further Research… … … … … … 91
Bibliography
Appendix A
Questionnaire

INTRODUCTION

Background of the Study

Employee’s performance appraisal is one of the most critical functions of a leader/manager and is a basic expectation of anyone in a supervisory role. In many organization staff are being appraised to ascertain how much each person contributed to the achievement of corporate goals and objectives.

The major objectives are usually profit maximization and service delivery. Performance Appraisal System has been found to act as strong and indispensable Machinery for increase in organizational productivity, organizational peace and harmony and organizational position in its environment Brown, M., J.S. Heywood (2005:43).

According to Schoenfeld and Shaw (1996) “the evaluation of performance is the control mechanism that provides not only feedback to individuals but also an organization assessment of how things are progressing.

Without performance information, managers of the organization can only quess as to whether employees are working towards the right goals, in the correct way and to the desired standard.

Performance Appraisal according to then is a means of knowing if employee behaviour is consistent with the overall strategic focus and a way for bringing to the fore any negative consequences of the strategy behavior link” Kuvaas, B. (2006:17).

In their own view Hicks and Gullet (1973 states that “all persons in organization have   personal   objectives    and   each    person   expects    that participation in the organization will help him achieve his personal objectives. Therefore performance appraisal becomes a means of aligning the objectives of the individual employees with the organizational objectives.

According to Frankline (2003), there are several reasons for performance appraisal exercise they are to:

BIBLIOGRAPHY

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