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This research paper explores the relationship between performance appraisals and employee performance in kenyan community based organizations (cbos). It examines the role of performance assessments in enhancing employee motivation, job satisfaction, and productivity, highlighting the challenges and opportunities associated with implementing effective appraisal systems in this context. The study draws on existing literature and desktop research to analyze the impact of performance appraisals on employee outcomes, emphasizing the importance of transparent, fair, and constructive feedback mechanisms.
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Role of performance assessment on employee performance in Community Based Organizations in Kenya. EVERLYNE WAMBUI 56/ A Concept Paper Submitted in Partial Fulfillment of the Diploma in Business Management Centre for Leadership and Management Tangaza University JULY 2024 NAIROBI
I hereby affirm that this proposal is a product of my effort, and it is devoid of any activity carried out in collaboration with another. It has never been submitted to another institution for the award of a degree. Every resource has been duly acknowledged I, therefore, accept that it may be accessible as reference material and for duplication according to the directives of the Institution. STUDENT’S NAME: EVELYNE WAMBUI NDUNG’U Student’s Signature: …………………………… Date: ……………………....…… This research proposal has been presented for inspection with our authorization as the Supervisor of the University. SUPERVISORS NAME:Ms.CAROLINE WANYOIKE. Supervisor’s Signature: ……………………………… Date: …………………….………….
Organization - A group of people who work together towards common goals and objectives within a structured framework Organizational effectiveness -refers to the extent to which an organization achieves its goals and objectives while maximizing the efficient use of resources. Appraisal- systematic evaluations of employees’ job performance, conducted by their supervisors or managers. Appraiser -people who carry out evaluation or performance appraisals to give feedback, pinpoint areas of strength and room for development. Appraisee -is the individual who is being evaluated or assessed during a performance appraisal or review process. Performance -refers to the effectiveness and efficiency with which individuals, teams, departments, or the entire organization achieve their objectives and goals Motivation - actors that drive employees to perform well, engage in their work, and strive for excellence Job satisfaction - refers to the extent to which employees feel content, fulfilled, and positively engaged with their work and the overall work environment Employee development- the systematic efforts by organizations to invest in their employees’ professional growth and development through various learning and training initiatives and opportunities
1.1.Introduction This chapter provides an overview of the research and comprises an outline of the problem's background, statement of the problem, purpose, research questions, objectives, significance of the study, boundaries and scope, and assumptions. Finally, the chapter provides a summary. 1.2BACKGROUND OF THE STUDY Performance assessments, also referred to as performance appraisals or reviews, are a systematic process used by organizations to evaluate an employee’s job performance and contributions. These assessments are typically conducted periodically, such as annually or semiannually, and involve feedback from supervisors, peers, and sometimes subordinates. Performance appraisals (PAs) are critical tools used worldwide to assess worker performance, coordinate personal aspirations with company goals, and promote career advancement. The approach of performance appraisals can vary significantly across different countries and cultural contexts. In Western countries, particularly the United States and Europe, performance appraisals are often formal and structured processes. They focus on individual performance indicators, goal setting, and continuous feedback. In the United States, the emphasis is on measurable outcomes and competency-based assessments. For example, according to Grote (2002), performance appraisals in the US often include detailed evaluations of specific job-related skills and achievements, with a strong focus on future performance improvement and career development. The way that performance reviews are conducted in many Asian nations is shaped by cultural ideals including harmony, collectivism, and respect for authority. For example, in Japan,
Miller, L. (2016) explained that PAs are crucial in organizations for assessing and managing employee performance, identifying areas for skill enhancement, and promoting professional growth. They serve several purposes, including alignment with organizational goals, employee development, feedback and communication, decision making, and legal compliance. Development planning involves identifying opportunities for skill development and career advancement. Recognition and rewards are given for exceptional performance. Documentation and record keeping help maintain a record of employee performance history. In the Kenyan public sector, performance assessments are guided by policies aimed at improving service delivery and accountability. The introduction of performance contracting in the early 2000s was a significant milestone. Performance contracts are agreements between the government and public agencies or ministries that set specific performance targets and evaluate outcomes based on predefined criteria. The performance contracting system has been credited with enhancing efficiency and accountability. According to a study by Kobia and Mohammed (2006), the implementation of performance contracts has led to improved service delivery in various government ministries and departments. The study highlights that these contracts have introduced a culture of results-oriented management and accountability, which was previously lacking in the government sector. Within the private industry, performance assessments in Kenya are influenced by both global best practices and local business environments. Many organizations use a combination of traditional appraisal methods and modern performance management systems. The Balanced
Scorecard (BSC) and Management by Objectives (MBO) are popular frameworks adopted by several companies. A study by K’Obinyo ,Gathingu and Awino (2015) found that the use of the Balanced Scorecard (BSC) in Kenya firms led to significant improvements in organizational performance. The BSC framework allows organizations to assess performance from a variety of angles, such as learning and development, internal business processes, financial, and customer. This thorough approach helps organizations align their strategic objectives with operational activities. Despite the advancements, several challenges hinder effective performance assessments in Kenya. These include limited resources, inadequate training, resistance to change, and the complexity of aligning individual performance with organizational goals. For instance, Wanjohi (2011) notes that one of the biggest problems facing sectors is that managers are not given enough training on how to conduct efficient performance reviews. This often results in subjective evaluations and a lack of employee motivation. Performance assessments in Kenya are essential for driving organizational performance and accountability. While considerable progress has been made, particularly with the introduction of performance contracting in the public sector as well as the acceptance of modern frameworks like the balanced scorecard was utilized in the private sector, challenges remain. Addressing these challenges through enhanced training, adoption of technology, and fostering a culture of continuous improvement can further enhance the effectiveness of performance assessments in Kenya. Therefore, to improve performance, Community based Organizations in Kenya should provide training, regularly evaluate the process, and ensure transparency. The acceptance and use of the
employees can give supervisors feedback on their own behavior and share their thoughts with one another. Lastly, assessments can better understand the objectives and priorities of the organization and are (hopefully) assisted in developing plans to enhance behavior. (Mwema,N.W and Gchunga,H.G 2014) The study found that using performance reviews to determine employee awards and provide them a chance to create personal development plans and motivates the individual. Therefore, performance assessments have an excessively significant impact on the performance of the employee in terms of the feedback as well as systems used. They have an impact on the motivation and commitment of the employee towards their work. Some employees become highly motivated while others become discouraged and less motivated towards work. The reaction of the employee helps them either improve or decline in their performance. 1.3. STATEMENT OF THE PROBLEM The goals of performance appraisals (PAs) are to support staff growth and offer input in line with the performance management system. They ought to be beneficial and productive, ideally. However,for a variety of reasons, PAs in Kenya’s community-based groups are frequently ineffective. The procedure is hindered by inadequate training for appraisers, unclear expectations, and unfavorable appraisee thoughts about PAs. Furthermore, the feedback given is usually vague, which discourages emNployees. The perception and execution of assessments are further influenced by organizational culture and leadership style. Ineffective or unfair PAs result in employee disengagement and decreased productivity. Inconsistent, unclear expectations, and limited training negatively affect the effectiveness of PAs. Moreover, organizational culture and leadership styles influence the implementation of
assessments, creating a negative work environment characterized by low morale, distrust, and resentment. This study, therefore, aims to address the challenges and improve the effectiveness of performance appraisals in community -based organizations in Kenya. 1.4. PURPOSE OF THE STUDY The purpose of this study is to determine how employee performance in Kenyan CBOS is affected by performance evaluations. 1.5. OBJECTIVES OF THE STUDY 1.5.1. GENERAL OBJECTIVES To examine the role of performance appraisal (PAs) on employee performance in CBOs in Kenya. 1.5.2. SPECIFIC OBJECTIVE i. To identify the challenges that occur when assessing employees’ performance in CBOs. ii. To establish how raters affect workers’ drive in CBOs in Kenya. iii. To examine how CBOs in Kenya use the performance Appraisal (PA) process in relation to worker productivity, job satisfaction and employee motivation. 1.6. RESEARCH QUESTIONS i. What are the challenges that occur when assessing employees’ performance in CBOs in Kenya?
at PA procedures and how they affect local employee performance.Hence,secondary data from the early 2000s to the present year(2024) will be the study’s focus .This is due to the fact that it will provide a broader range of data that is essential for this desktop study. Expanding the scope of information and facilitating the collection of greater amounts of data. 1.9. ASSUMPTIONS OF THE STUDY The assumptions of this study will be: i. The researcher assumes that existing literature and secondary data sourced provide comprehensive and accurate information regarding employees’ perceptions and experience with Performance Appraisal (PAs) ii. The researcher assumes that the data available from organizational reports, case studies, and other secondary sources regarding PA processes and employee performance indicators are accurate and reliable. iii. The research assumes that organizations in Kenya have documented their PA processes and employee performance indicators in publicly accessible reports and studies. 1.10. SUMMARY. This chapter examines the impact of performance Appraisal Techniques (PAs) on employee performance in Kenya’s CBOs,focusing on their effectiveness,motivation,and job satisfaction. It contributes to existing knowledge on performance appraisal in Kajiado County, using quantitative methods.
2.1 Introduction This study investigates the relationship between employee performance and performance reviews in Kenyan CBOs ,focusing on the role of performance Assessments(PAs) in enhancing efficiency and motivation,particularlt i retaining a competitive edge and maximizing efficiency. 2.2. CHALLENGES THAT OCCUR WHEN ASSESSING EMPLOYEES’ PERFORMANCE IN COMMUNITY BASED ORGANIZATIONS IN KENYA. Globally, assessing employee performance in CBO faces numerous challenges that impact effectiveness and outcomes. Research by Aguinis and Pierce (2008) identified issues such as subjective bias in evaluations, where supervisors may favor certain employees based on personal relationships rather than objective performance criteria. This inconsistency undermines the fairness and credibility of performance assessments, leading to decreased employee morale and motivation. Additionally, Cawley and Keeping (2006) argue that inaccurate evaluations and missed development opportunities. In Africa, including Kenya, there are even unique challenges that make it even more difficult to evaluate workers in CBOs. Orodho (2012) examines the cultural elements of PA, where conventional hierarchical systems and social norms could restrict open and constructive comments. The cultural dimensions of this often leads to the people whose assessments must be honest with and confront the issue directly, thus the inadequate efficiency and precision of such valuations ensure. Therefore, the challenges facing the PAs are limited resources in the continent highlight the necessity of producing a culturally sensitive and harmonious resource-based assessment approach to the African CBOs.
In African contexts, the influence of raters on employee motivation within CBOs is shaped by unique cultural and organizational factors.Oghojafor and Arugu (2012) note that in many African organizations, hierarchical and relational dynamics can lead to biased appraisals, where raters may give preferential treatment to employee with who they have personal connections. This can result in perceptions of unfairness and demotivation among other employees.Additonally,studies by Akunnusi and Sonubi (2016) highlight the of limited rater training and awareness in African CBOs, where can exacerbate issues of bis and inconsistency in performance evaluations. These continental perspectives underline the need for targeted interventions to improve objectification and competence in the PA process. In Kenya, the impact of raters on employee motivation in CBOs reflects broader socio-cultural and organizational dynamics. Mwangi and Njanja (2013) found that biased evaluations by raters negatively affect employee motivation, particularly when employees perceive the appraisal process as lacking transparency and fairness. The study emphasized the need for comprehensive rater training programs to enhance the objectivity and effectiveness of PAs. Similarly, Wambugu and Kimani (2017) observed that the relational nature of many Kenyan organizations can lead to subjective evaluations, where personal relationships influence appraisal outcomes. These local studies highlight the critical impact of rater behavior and the importance of addressing biases and inconsistencies to maintain employee motivation and engagement. 2.4. IMPACT OF THE PERFORMANCE ASSESSMENT (PA) PROCESS ON EMPLOYEE MOTIVATION, JOB SATISFACTION, AND PRODUCTIVITY IN CBOs OPERATING IN KENYA PAs is a managerial procedure that connects performance standards, organizational goals, and assessments; performance evaluations are part of this process and performance assessments are
frequently used. PAs in organizations are regarded as a crucial Human resource management (HRM) technique for determining efficacy and efficiency. Performance assessments can also be described as procedures used by businesses to evaluate workers, help them become more competent, improve performance, improve performance, and provide awards (Fletcher 2001). Nevertheless, assessments should be viewed as a participative process which involves raters and rates (Ahmad and Bujang, 2013). Globally, the PA process has often been criticized for its potential to negatively impact employee motivation, job satisfaction, and productivity. Aguinis , Joo, and Gottfredson (2011) argue that while PA have evolved, many organizations still implement them as annual formalities, leading to superficial evaluations and missed opportunities for genuine feedback and development. This lack of continuous engagement can result in employees feeling undervalued and unmotivated. Cappelli and Canyon (2018) highlight that misaligned PA processes, where evaluations are not transparently linked to rewards or career advancement, can foster perceptions of unfairness and bias, diminishing job satisfaction and reducing overall productivity. Such global critiques emphasize the detrimental effects of poorly implemented PAs on strategic Human resource management (SHRM) In the African context, the challenges of effectively implementing PAs are pronounced due to various structural and cultural issues. Chidi and Okpala (2017) note that in Nigeria, PA processes often fail to consider local workforce dynamics. Leading to evaluations that are perceived as arbitrary and demotivating. This misalignment can cause resentment and disengagement among employees. Similarly, Nzuve and Bakari (2012) identify that Kenya, ineffective communication, and lack of employee involvement in the PA process can result in lack of trust in the system,
