Effects of performance appraisals on employee productivity in the banking sector in Kenya

Abstract

Banks have implemented performance appraisals to enhance employee productivity whichwas triggered by the high targets set across the industry. The aim of this study was todetermine the effects of appraisals in line with the impact of performance appraisal criteria,feedback, and reward and competence assessment on employee productivity in these banks.The significance of the study is therefore of great importance to the Banks managementteams and the Banks employees. This research was based on three theories which include theAdam‘s Equity Theory, Goal Setting theory and the implicit theory which underpins thisstudy. This research applied descriptive research design. The target population was all commercialbanks in Kenya. The sampled banks were selected from a list of banks in Kenya as per theCentral Bank Classification using the systematic sampling technique. Primary data was collected using aquestionnaire which was coded and entries made into Statistical package for social sciencesfor analysis. Both descriptive and inferential analyses were carried out. The study concludedthat the main performance appraisal indicators used significantly influence employeeproductivity in Kenya‘s banking sector. It is therefore recommended that the salary receivedby the employees be commensurate with their job description and employees should receivepromotion based on their productivity and that they should be taken for further trainingfrequently.