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Josephine Wangari Kihama - Master of Business Administration (Human Resource Management), Kenyatta University, Kenya

Dr. Lawrence Wainaina - Lecturer, Department of Business Administration, Kenyatta University, Kenya


Performance appraisal acts an important factor in the overall functions of human resource management in both private and public sectors. Performance appraisal has great implications on employee motivation. For instance, staffs are unlikely to want to be open about job difficulties, or to admit that they need more training to do the job, if they feel this will directly affect their next pay increase. This study sought to determine the effect of performance appraisal system on employee productivity in Water and sewerage companies within Kiambu County Kenya. The objective of the study was to determine the influence of appraisal feedback on employee productivity, to assess the influence of appraisal methods on employee productivity, and to assess the influence of appraisal standards on employee productivity. The study was anchored on resource based view theory, Goal setting theory and expectancy theory. The study targeted 972 workers selected from the following departments: human resource, finance, information technology, technical support and customer service. The respondents included heads of departments, section heads and supervisors. The study used structural questionnaire for data collection.  Stratified random sampling was used to determine a sample size of 300 respondents. The study used descriptive research design. Data collected was coded, entered and analysed using the Statistical Package for the Social Sciences (SPSS). Descriptive and Inferential statistics was used to generalize the population. In order to test reliability of the instruments, internal consistency techniques were employed using the Cronbach Alpha Coefficient of 0.7. The study established that managers provided appraisal feedback to their employees. The study also revealed that organizations found it easy to share positive appraisal feedback as compared to criticizing poor performance. Organizations provided adequate feedback on employees’ performance while freedom and independence of employees acted as a motivation tool. Feedback provided by supervisors regarding productivity helped employees to strengthen individual development for superior performance and measuring employee’s actual performance on established standards. The study indicated that all the independent variables had a positive influence on the employee’s productivity.  The study also identified that there are other factors other than appraisal standard, appraisal feedback, appraisal method which affect employee’s performance. The study concluded that managers should provide appraisal feedback to their employees and those organizations found it easy to share positive appraisal feedback as compared to criticizing poor performance. Freedom and independence of employees acted as a motivation tool and setting of objectives helped the employees to be focused. The level of employee productivity in the company was high as compared to the beginning. The study recommended that organizations should have well laid down procedures to be followed in dealing with employees’ feedback and responding to the feedback from the organization surroundings. Organizations appraisal method is known by each members of the organization and ensured that this method does not infringe the employees’ rights and the organizations policies.  Organizations should formulate procedures and policies to be used in identification of employees’ standards.

Full Length Research (PDF Format)