| dc.description.abstract | Performance appraisal system is important to any organizational work performance; it determines the organization's success or failure. The aim of this study was to evaluate the factors that influence the effectiveness of performance appraisal system at National Bank of Kenya. A series of financial underperformance while an enhanced Performance Appraisal System was in existence formed the basis of the statement of the problem.
The research objectives included to; establish whether the attitude of the appraiser and those who are appraised influence the effectiveness of performance appraisal in NBK, Head Office Nairobi, determine whether the appraisal design and the process of conducting affect the effectiveness of appraisal system used in NBK, Head Office Nairobi, find out if employee preparedness and training influence the effectiveness of performance appraisal in NBK, Head Office Nairobi, establish whether performance feedback influence an effective performance appraisal exercise and to find out if linking payor rewards to performance appraisal system influences its effectiveness.
The dependent variable was effectiveness of performance appraisal system while the independent variables included; attitude of the employees, performance feedback, the design of the appraisal system, training and linking rewards to Performance Appraisal System. The target population was the employees of National Bank of Kenya Head Office Nairobi. Structured questionnaires and interview schedules were used to collect data and later analyzed using SPSS. The researcher used descriptive research design and a sample size of eighty employees was used out of the possible two hundred and forty at Head Office Nairobi. proportionate stratified sampling was the appropriate sample design applied.
The key findings were:Firstly;the attitude of the supervisors and the appraised which needs. to be changed.Majority of the subordinate staff disagreed and remained neutral on attributes related to their attitude while managers agreed with these attributes in a way to justify on how they deliver on their managerial duties. Secondly, is the design of the appraisal form.Analysis results revealed that the appraisal form was designed without participation of employees and its goals were not meaningful measures to the employees.
From this description, it was possible to infer that the standards against which employees'performance were judged were vague and highly subjective if these employees did'nt understand its goals as meaningful measures. Thirdly was training of employees. Lack of sufficient training across all cadres of employees was revealed through the analysis which the researcher carried out. The other important factor that affected effectiveness of performance appraisal system at National Bank of Kenya was performance feedback. A good number of respondents strongly agreed that they hardly received meaningful feedback therefore they could not capitalize on their strengths and improve on the weak areas.
Finally; it was linking rewards to the performance appraisal results. The analysis of the results revealed that although this practice existed, employees were given bonuses related to performance on a flat rate. This in particular showed that the system could not distinguish between performers and non performers. Majority of the respondents also claimed that the performance results were biased and that these particular bonuses will not be enough to motivate them to perform better or sustain the same performance in future. | en_US |
