Extent of adoption of 360-degree performance appraisal by commercial banks in Kenya
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Date
2013-11Author
Sigei, Beatrice C
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Performance appraisals have become a common and important practice in various
organizations carried out to improve employee and organizational performance. For firms
to survive in a global economy, they need to exploit all the available resources as a
means of achieving competitive advantage. One resource recognized as providing a
source of competitive advantage is the human resources of the firm whose performance
needs to be monitored for optimum results. The method adopted by an organization to
conduct performance appraisals may differ but there is an emerging trend of use of 360
degree feedback for performance appraisals. The main objective of this study was to
establish the extent of adoption of 360 degree performance appraisal by commercial banks
in Kenya. The research used a cross-sectional design. The target population of this study
was all the 43 commercial banks in Kenya. Quantitative data collected from 31 banks
using questionnaires was analyzed by the use of descriptive statistics using Statistical
Package for Social Sciences (SPSS, V.20) and was presented through percentages and
frequencies. The findings show that majority of the banks’ human resource policies
recommend the use of 360 degree performance appraisal hence it is used to a great extent.
The study also found that the common sources of evaluation used by most banks are self
evaluation, immediate supervisors, peers/ heads of other departments and
clients/customers. The use of subordinates and consultants as a source of evaluation in
360 degree feedback appraisal is not common. The study recommends that the banks
should assess and seek to understand the effectiveness of the 360 degree feedback as part
of a performance management system to enhance productivity and organizational
performance. It further recommends on the need to embrace subordinate assessments of
supervisors’ performance so as to provide valuable developmental guidance in the various
institutions. The study concludes that majority of the commercial banks in Kenya have
adopted the 360 degree performance appraisal system and that it has positively impacted
on employee job satisfaction as it allows for an all round gauge of an employee’s
performance.
Citation
Master Of Business Administration (mba) School Of Business, University Of Nairobi,2013Sponsorhip
Performance appraisals have become a common and important practice in various organizations carried out to improve employee and organizational performance. For firms to survive in a global economy, they need to exploit all the available resources as a means of achieving competitive advantage. One resource recognized as providing a source of competitive advantage is the human resources of the firm whose performance needs to be monitored for optimum results. The method adopted by an organization to conduct performance appraisals may differ but there is an emerging trend of use of 360 degree feedback for performance appraisals. The main objective of this study was to establish the extent of adoption of 360 degree performance appraisal by commercial banks in Kenya. The research used a cross-sectional design. The target population of this study was all the 43 commercial banks in Kenya. Quantitative data collected from 31 banks using questionnaires was analyzed by the use of descriptive statistics using Statistical Package for Social Sciences (SPSS, V.20) and was presented through percentages and frequencies. The findings show that majority of the banks’ human resource policies recommend the use of 360 degree performance appraisal hence it is used to a great extent. The study also found that the common sources of evaluation used by most banks are self evaluation, immediate supervisors, peers/ heads of other departments and clients/customers. The use of subordinates and consultants as a source of evaluation in 360 degree feedback appraisal is not common. The study recommends that the banks should assess and seek to understand the effectiveness of the 360 degree feedback as part of a performance management system to enhance productivity and organizational performance. It further recommends on the need to embrace subordinate assessments of supervisors’ performance so as to provide valuable developmental guidance in the various institutions. The study concludes that majority of the commercial banks in Kenya have adopted the 360 degree performance appraisal system and that it has positively impacted on employee job satisfaction as it allows for an all round gauge of an employee’s performance.Publisher
University of Nairobi, School of business,