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Impact of Performance Management on Productivity

The study examines the impact of performance management practices, specifically employee appraisal and feedback, on employee productivity at the State Department of Labour in Kenya. It found a strong positive correlation between these practices and productivity, recommending organizations to implement them to enhance employee performance. The research utilized a descriptive design with a sample of 68 respondents, achieving a 67.6% response rate.

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0% found this document useful (0 votes)
33 views11 pages

Impact of Performance Management on Productivity

The study examines the impact of performance management practices, specifically employee appraisal and feedback, on employee productivity at the State Department of Labour in Kenya. It found a strong positive correlation between these practices and productivity, recommending organizations to implement them to enhance employee performance. The research utilized a descriptive design with a sample of 68 respondents, achieving a 67.6% response rate.

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cqaadirsaiid
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

International Journal of Business, Humanities and Technology Vol. 9, No. 4, December 2019 doi:10.30845/ijbht.

v9n4p3

Performance Management Practices and Employee Productivity at State Department of


Labour, Kenya

Ogolla Carol
Oluoch Mercy Florah
University of Nairobi
Kenya

Abstract
Performance Management practices are significant in the assessment of the total production by an organization. It is
critical to evaluate each employee’s skills and knowledge, to secure increased productivity in the work place that
reverberates to achieve organizational goals. Similarly, the feedback for performance of employee is significant in
learning as well as ensuring that the employees understand the required standards, as compared to his or her
performance. This study assessed the effect of performance management practices on employee productivity at the
State department of Labour. The performance management practices were comprised of employee’s appraisal as well
as provision of feedback on employee’s performance. The study undertook a descriptive research design, where
primary data was collected through structured questionnaires on the targeted population of middle and lower level
employees. A population of 278 respondents was identified and random stratified sampling was undertaken to come up
with a sample size of 68 respondents. 46 questionnaires were answered and returned, which comprised of 67.6%
response rate. Data analysis was done by the use of mean, percentages, standard deviation and regression analysis
where the effect of independent variables; employee appraisal, and employee performance feedback was determined on
employee productivity. The study found that there was a strong positive correlation of both employee appraisal and
employees performance feedback on employee productivity. The study therefore recommended that organizations to
undertake both appraisal for their employees as well as offer feedback on their performance as it increased the
productivity of the employees.
1.1 Background of the Study
Performance management entails actions that ensure that the firm’s goals are achieved constantly in an efficient and
valuable way. Fowler (1990) observes that management of performance ensures that a firm is in a position to attain the
best outcome. On the other hand The Institute of Personnel Management (2002)undertakes performance management
as an approach that relate to many organizations’ activities, positioned in the framework of procedures, traditions, style
and system of communication of the human resource . Baron and Armstrong (2007) viewed performance management
as a process that involved a decisive approach that help in improving the firms productivity and employees by uplifting
employee performance through teamwork and personal capabilities. There are people who argue that by using
performance management practices that involves recruitment of employees, training and developing them, employee’s
appraisal and developing a feedback system can increase the knowledge, skills and the capability of a firms employee
meanwhile enhancing their motivation, cutting down malingering and improving maintenance of top performing
employees and their productivity. Productivity measure the workers efficiency, it can be determined by the results that
employee gives at certain duration of time. Normally, certain employee productivity is measured in relation to results
expected if an average employee undertook a similar task. Since achievement of a firm is seen though it work force,
productivity of employees is of much concern to any business to assess therefore performance management in any
given way check on how individuals are motivated and to what level are they of use to a firm. This research is going to
have a clearer view of employees’ appraisal and feedback on production.
The goal setting and the expectancy theory influences this study. Edwin Lock, the founder of this theory said that when
a firm or individual sets difficult goals, there is a better performance. There is always a decrease in performance of an
individual and a firm when performance goals are easy to achieve (Lock & Latham 2006). This theory developed in a
study of psychology of a firm. Organizations goals and aids in improvement of an action plan which intended to help
individuals and firms. Therefore, this assists in creating an important element of individual development and literature
management. It is also clear that setting of goals increases the productivity in a firm as the theory of goal setting entails
all aspect of having efficient firm (Koppes, 2014).

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Expectancy theory on the other hand was based through the works of Vroom (1965) where he suggested that people
conduct themselves in a certain way since they are motivated by desirable outcomes. The performance of an individual
need to be aligned to his/her personal goals by the firm in order to enhance success for the organization (Salamanet al.
2005). The motivation that makes someone to conduct him/herself in a certain way over the forms of conduct is purely
because of personal goals, or individual expectations. This expectation concerns their preferred behavior (Oliver 1974;
Salaman et al 2005).
The reorganization of government in May 2016 necessitated the establishment of the State Department of Labour,
which stemmed from the Ministry of Labour and Social Protection. Prior to the establishment of the department, it
existed in various forms since the independence of the country in 1963; the two ministries that hosted the department
were Ministry of East African Community and the ministry of Labour and Social Services. The main goal for the state
department of Labour is to ensure that the country has attained economic development through the promotion of
harmonious industrial relations, ensures that there is strict adherence to safety and health standards at the work places;
industrial training; planning for human resource development and utilization, productivity management, as well as
registration and regulation of trade unions. The State department of Labour has five technical departments that assist in
implementation of goals and objectives. There are a number of bodies allied to the state department that are vital in
execution of duties for the ministry. Autonomous Government Agency (AGA), The National Social Security Fund
(NSSF), National Industrial Training Authority (NITA) and National Employment Authority (NEA), National Labour
Board and National Council for Occupational Safety and Health (NACOSH) (State Department for Labour, 2019).
The strategic objective of this department is to encourage a balanced industrial labour relation, social dialogue and
labour practices, which are fair, and the second objective is to promote the basic values and rights at work. The
department vision is to ensure it is the leading organization in the promotion of good work for everyone, its mission is
to plan, direct and put into practice sound labour and employment guidelines for the achievement of social justice,
business peace, and ensuring there is a good environment for creation of employment. The state department of labour
ensures that everyone is in a working environment that is free from any sexual harassment, no employment
discrimination by ensuring that labour officers encourage equality of chance, no assistance will be needed in recruiting,
good employee remuneration, therefore this promote high employee productivity (Baron& Armstrong, 2004).
1.1.1 Performance Management Practices
Performance management practices are systematic ways of communicating to employees on what performance and
productivity parameters are expected of them (Marsor, 2011). In different studies conducted by Bead well (2007) and
thereafter another study conducted by Jackson (2009), they envisioned performance management as activities such as
knowing what goals are and how they should be measured, performance evaluation, performance feedback, incentive-
based performance, planning of career, motivation, training and development. The attributes of defining measurable
individual goals for employees, performance appraisal, feedback, incentives tagged to performance, planning as well as
motivation and training and development. There are put in place so as to provide better outcome by having a better
knowledge and management of various performances by employees as compared to the set goals. These goals and
objectives offer direction, control, encourage and examine personal performance. This improves the choosing of goals
that are precise, achievable, as well as goals owned by the employees. In order for employees to own these goals, then
the organizational goals aligned to the employees’ individual goals. This reduces conflicts in the organization and
increases the speed with which the organizational goal are achieved (Armstrong, 2008).
Appraisal of employees is vital as it helps in identifying individual contribution towards achievement of organizational
goals and the strength as well as the weakness of individual employees. It therefore creates an avenue that makes it
possible to focus on improving employees’ weaknesses and encouraging the development of employees’ strengths.
Appraisal is also important as it provides a platform that can be used to reward employees depending on individual
contribution towards achievement of the organizational goals. A study presented by Bloom et al. (2017) on improving
employee performance through appraisal and coaching; concluded that only through strong and effective management
practices being in place is when the organization is able to replicate some code of conduct and harmonize on the
diversity of their work force. In relation to the culture, social status, economic position, region and diversity as
evidenced in multinational firms and large corporations. Feedback is the reflection on past performance against the
objectives set and results given by the supervisor or manager to the employee. It is the process by which managers as
well as the supervisors have the opportunity to reflect on the performance by employees, discuss the gains as well as
the shortfalls, and available opportunities that can be exploited in future to enhance performance (Jackson & Schuller,
2012). Performance feedbacks offers a conversation which motivates employees to have a better knowledge on what
they are doing, offers coaching , feedback and gives a clear expectation on development of a career (Brown &Benson
2013). Performance feedback makes sure that individual is certain on their objective and management process.

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The process needs experts competent to understand the required performance and the performance achieved. The expert
is therefore in position to determine the performance gap and advise on alternative course of actions to be carried to
ensure that the employees obtain reliable feedback, with a high level of credibility (Berry, 2003). Providing feedback to
employee is acknowledge as an important practice that aspires self-development and productivity of employee that are
helpful for the victory of the firm (Baruch, 2006)
1.1.2 Employee Productivity
Gummesson (1998) defines employee productivity as the ability of a worker to produce quality outputs with limited
inputs. Sells et al. (2006) further suggests that one of the major components that affects the profitability of an
organization is employee productivity, as it determines the level of production that needs to be reported by the
organization with its level of inputs. Human services represent one of the key components of production factors and
cannot be ruled out in any organization. Employees who are deemed productive are able to transform limited inputs to
high quality output that generates revenue for the organization. This therefore warrants organization to be tasked with
the responsibility of motivating the workforce to achieve desired goals (Stark, 2018). Organizations are concerned on
how they can best maintain a sustainable performance and achieve best results from their employees by exploring on
the best alternative solutions to engage, develop teamwork and encourage employees to give their best input in what
they work in (Walters, 2015). Not only financial rewards are deemed the best motivator towards enhanced employee
productivity but also non-financial incentives. Inkinen (2016) presented an oversight, which reviewed the effectiveness
of performance management and organizational performance.
1.1.3 State Department for Labour
The government of Kenya faced much reorganization in the year 2013 after the country’s top leadership changed in the
year 2012. There was formation of ministries, of which the state department for Labour was placed under the newly
formed ministry of Labour and Social Protection. It combined the former Ministry of Labour and former Ministry of
Gender, Children and Social Development that were in existence since independence. The State Department for Labour
is currently led by Eng. Peter Tum with the vision to promote and enhance competitiveness in the workforce and
increased just system in the society. They aim to increase productivity by empowering the vulnerable groups. The State
Department of Labour contributes to the nation’s GDP, by ensuring that there exists a harmonious relation in the
working population, safety and health measures observed in places of work, as well as establish mechanism for
ensuring that employees are empowered, trained, promoted and better remunerated. The Department also ensures that it
undertakes productivity management, and helps in the planning for development of human resources and human
capacity through provision of social security and registration of the employees in trade unions.
State Department for Labour constitutes of five departments that are tasked with the mandate to ensure that they
achieve the mission and vision of the Ministry. It is from this background, that the State Department for Labour
promotes training and development of employees and ensures that it pays attention towards ensuring that the health and
safety for all employees is regarded with utmost urgency by all the organizations. It also ensures that all the hurdles that
may compromise on the productivity of employees are attended to accordingly.
1.2 Research Problem
Performance management practices studies show that a firm’s productivity is simply a function of human resource
practices it employs. There is a unique global change in organizational management over the few years. Performance
management has become a crucial firm process and it has increased pressure to achieve high performance levels, and
raised the bar for various work practices (Armstrong, 2009). A motivated work force also assists in reduction of
turnover rate and improves the productivity in the firm. Hence successful performance management has essential part
in human resource. Organization’s human resource practitioners are being forced to rethink on the appropriate model
to adopt to build a sustainable employee productivity as well meeting the institution’s demand. This does not come
easy as the organizations are forced to embrace and develop the capacities of its workforce, to retain competitive edge
over competitors. Key consideration of employee management entails defining performance agreements, appraisals,
performance feedback, rewards, training and growth. These aids in specification of the expected organizational goals,
support to the management personnel and democratic style of leadership that supports all cadres of management.
The State Department for labour was established to identify ways in which employees would be empowered in
obtaining adequate training, good remuneration and conducive working conditions among other activities that are
geared towards enhancing productivity. This is done through formulation and execution of the National Labour
Legislation and procedures through the National Labour Board and sectoral wages councils as well as the National
Tripartite Consultative Council. The Department is also responsible for operationalizing the tripartite mechanism in
managing labour matters through a tripartite discussion, which entails meeting between employees, employers and
government legislature.
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The department vision is to assist in being the leading organization in the promotion of good work for everyone and it
mission is to plan, direct and put into practice sound labour and employment guidelines for the achievement of social
justice, business peace and ensuring there is a good environment for creation of employment (Baron& Armstrong,
2004). According to Muriithi (2015), the State department has been accussed of harboring corruption and internal
wrangles among various leaders. This may therefore compromise the ability of the State department of labour to
execute its mandate satisfactory. The NSSF corruption scandals such as Ksh 13 billion housing scandal, Ksh 1.6 billion
shares scandal and leadership wrangles that led to resignation of the board chairman are some of the incidences that
have dented the success stories in the ministry. The state department for labour therefore struggles to execute its
mandate and deal with all the fanfare that arise from corruption related dealings. The performance and productivity of
employees are therefore compromised and may not be supported to the extent they would have deserved if the ministry
was scandals-free.
Inkinen (2016) studied practices for performance management, knowledge management and firm performance in US.
This was necessitated by the need to rank knowledge management as an emerging issue to new management models
with a systematic review process. The findings demonstrated that knowledge management as part of performance
management practices had a positive and significant association to organization performance. According to Hanaysha
(2016) presentation on effects of performance management aspects of teamwork, employee training and employee
empowerment on organizational commitment in Malaysia. The study sampled 242 employee’s university employees
and established that employee empowerment at workplace was significantly related to organizational commitment.
A study presented by Okeke, Onyekwelu and Akpua (2019) that was undertaken in South East Nigeria, with the view
of establishing the impact of performance management on the productivity of its employees. The study specifically
considered how 360-degree feedback appraisal, self-assessment, performance review and evaluation has on employee
productivity using a sample size of 366 respondents. Findings indicated a 360-degree feedback appraisal had a positive
and significant influence on the productivity of employees.
Locally, a study presented by (Murithi, 2015) relating to empirical investigation of continuous improvement relating to
performance based compensation emphasized on the need for the leaders to champion in effective and efficient
platforms meant to uplift organizations and employees through training, recognition and reward system. Omusebe and
Musiega (2013) presented a study relating to strategy to effect performance management to improve performance and
productivity of organizational employees in Kenyan banks. The study indicated that performance appraisal system is
paramount in undertaking HRM (Human Resource Management) and must be adhered to if organization is to achieve
and make use of it human resources.
2.1 Literature Review
According to Cook, (2014), performance appraisal refers to the process of identifying, examining, measuring and
growing performance of employee in the firm. This gives an embedment to the key composition needed for an
appraisal to take effect in performance management and performance of employee. The criterion of gauging the
performance appraisal is very relevant given the significant components enshrined in it to help examine employee
performance related criteria. The examining factor for employee appraisal observation is aligned to the role that
supervisor have in assessing and molding employees in a win scenario to register higher productivity. The supervisor
has the duty of translating the observable features in an employee workplace administration to judgmental ratings
relevant and comparable across the organizations.
Kim (2016), presented a study titling the effect on performance evaluation system implied to civil service performance
to have a better pay. The study targeted human resource directors in the United States after civil reforms in
performance appraisal of 30 state agencies. The study was motivated by the need to have perceived justice of
evaluation of performance and established out those macroeconomics factors on politicization of perceived evaluation
of employee productivity was unhelpfully and considerably associated with the pay for usefulness of performance The
aspect of the importance of appraisal was of relevant and considerably correlated to pay for usefulness of performance.
The pay for performance was found to be affected by variation in demographic features example; gender, age, level of
experience and education in state differences.
Singh and Rana (2015) presented a study relating to influence of performance appraisal on organizational commitment
to bank employees in India. The study randomly sampled 172 employees from 10 public sector financial institutions.
This was because of establishing how appraisal influences productivity given that the model has been the oldest and
ubiquitous practices of employee management in organizations when assessing their performances. This research study
came into conclusion that performance evaluation had a helpful association to the firm’s obligations of the employees.

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Mostly, the attentiveness of the performance appraisal, fairness in the appraisal procedures and payment associated
with performance practices were extensively determined by the firm’s commitment of the financial institutions
employees. A study presented by Owili and Isaac (2018) on organizational justice in performance appraisal system and
work performance among listed financial institutions came into conclusion that there is a great importance in the
productivity of employee in a good way influenced by performance appraisal criteria. Appropriate appraisal is linked to
effective job administration, promotion, rewards, and bonus and salary increments. Further, performance appraisal has
been associated to the distributive justice with relevant impact on how relation in appraisal improves performance of
the employees. Providing favorable working conditions by the employer to the employees has a positive connotation to
drive to do best and register good productivity as proposed by (Jackson & Schuller, 2012).when an organization
satisfies its employees ,they become very helpful and customer friendly, hence leading to efficient services and high
return. This spills to customer satisfaction, employee responsiveness, innovation in the organization and product
quality. At the end, performance appraisal plays a role in employee’s commitment resulting to increase in revenue
growth (Erdogan, 2012).
The nature of responding to performance feedback between the organizational supervisors and the employees has an
important effect on the firm’s productivity and employee performance. Having regular updates relating to the outcome
of the employees and addressed by the immediate managers on the work activities, way forward and areas of
adjustment bring teamwork in the organization setup. The performance feedback greatly offers discussions, which
assist to understand employee progress gain education and response, clarify prospect and career expansion (Brown &
Benson, 2013).
Enhancing employee productivity through performance feedback is acknowledged in the concept of having clear
specification and flow of information in top to downward communication mostly when the seniors are setting rules,
delegating tasks, passing message that needs clarification and advising seniors. Conventionally, down to top approach
model of communication whereby the employees are seeking to have their issues heard, airing complaints and seeking
clarifications on areas that seem not clear. Such a model revolves around performance feedback that helps to catapult
organization when put in consideration to relevant issues. According to (Caruth, 2018), the need for clear-based
performance feedback to the employees must have a workflow for tracing on the feedback sessions. This is very
relevant in detecting mistakes and immediately setting up remedial steps with less impact to the organization. Providing
employees with the right and decisive feedback is regarded as a crucial avenue towards fulfilling the organization
objectives (Baruch, 2016).
Evidently, successful performance feedback depends on how the employees will accept process and the reactions
generated in the guide when intending to have such critical issues to whether those in the process are satisfied or
dissatisfied with the feedback they receive. A study presented by Bernstein and Li (2017) about employee seeing where
they stand in form of performance feedback to performance transparency with serious concerns in the information age.
The form of advanced technology being used in some of the organizations are tracking on the employees’ activities,
generating and reporting the performance led data without the involvement of the traditional manager or supervisor.
The study integrated a field data to track fifty large corporations in service sector by replacing performance feedback
reviews with high tech system generated performance data on the employee’s productivity. The study findings
indicated existence of a vertical association in supervisor supported and horizontal relation in social comparison. The
study concluded by emphasizing the need to substitute for managers and informal social comparison with transparent
data generated feedback as there is not lenience or personal delightful errors.
2.2 Conceptual Framework
Conceptual framework represents diagrammatic information that illustrates the nature of the association of independent
variables and those of dependent variable. Conceptualization model helps to have an abstract figure out of the
determinant variables being; performance appraisal and performance feedback verses the response variable on
employee productivity as shown in the figure 2.1 below. Figure 2.1: Conceptual Model
Independent Variable Dependent Variable

Performance  Employee Productivity


Management Practices
 Performance
Appraisal
 Performance Source (Author, 2019)
Feedback
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3.1 Research Design


Research design is a well-developed plan that gives a guide on how data should be interpreted, analyzed and gathered
results via a dialect and inference on data relations (Mugenda, 2012). The research uses the explanatory design of
research inform of a survey and outline on the association that exist among determinant and response variables for the
study by inferring on when, where, what, why and how.
3.2 Target Population
Mugenda (2012) stated that right population involves all set of people, elements, and groups or items that that has
certain characteristics and the researcher wants to generalize the information about them. The target population in the
study involved the employees from top management cadre, middle level management and lower management cadre.
The mix of all the categories of the employees helps in understanding underpinning issues to all employees in a fair and
justifiable manner.
Table 3.1 Target Population
Category Target Population Percentage presentation
Middle Management Level 115 41.37%
Lower Management Level 163 58.63%
Total 278 100%
Note. Data for management Structure at State Department Adapted from HR State Department of Labour data
(2019).
3.3 Sampling Size
A sample is a subject that is categorically selected from the target population with salient features for investigation
(Mugenda, 2012). According to Garg and Kothari (2014) stated that a sample must be at least 20% of the target
population is acceptable for the study. The basic idea is that by selecting a sample, conclusions can be drawn about the
entire population. A proportionate stratified sampling will be used and the respondent from every subgroup will be
selected for inclusion in the sample size by selecting 20% of the target population.
Table 3.2 Sample Size
Cadre Target Population Sample Percentage of
Population sample population
Middle Management Level 115 27 39.7%
Lower Management Level 163 41 60.3%
Total 278 68 100%
Note. Data for management Structure at State Department Adapted from HR State Department of Labour data
(2019).
3.4 Data Collection
Data collection methods are structured tools, which collect respondent’s information. The study will use questionnaire
that will be developed to capture on the demographic information of the respondents and the descriptive analysis of the
study variables relating to performance appraisal, reward system and performance feedback. Questionnaires were used
for data collection due to the convenience in their administration, easy to collect data, less costly and little biases.
3.5 Data Analysis
The questionnaire statement will be extracted and interpreted in demographic information that deals with age, gender
and work experience and education level. The descriptive response data will be examined in terms of occurrences,
percentage, mean, standard deviation and variance while inferential statistics will be generated to specify on nature of
correlations, coefficient of determination, analysis of variance and regression models
Data Analysis and Presentations of the Findings
Table 4.1 Response rate
Category Target Response Non response
Middle management 27 12 15
Lower management 41 34 7
Total 68 46 22
The study response in table 4.1 above showed that out of 68 sample size, 46 returned their questionnaire representing
67.6% response rate which was statistically acceptable for generalization.

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The rate of response ensures that the field data collection is more representative in answering the aim of the study.
According to Mugenda 2012, a response rate that is above 70% gives excellent information on the representative of the
sample population.
4.2 Performance appraisals and employee productivity
Table 4.2 Performance Appraisals and employee productivity
Descriptive Statistics
N Min Max Mean Std. Deviation Variance
Am contented with performance
46 1 5 2.91 1.132 1.281
appraisal at State Department for Labour
Performance appraisal makes me work
46 1 5 3.85 1.282 1.643
towards company goals
Implementation of performance appraisal
has a positive impact on my work 46 1 5 3.89 .971 .943
productivity
State Department for Labour has
performance appraisal implementation 46 1 5 3.91 1.170 1.370
plan
Performance appraisal makes me work
46 3 5 4.41 .652 .426
better than expected
Valid N (listwise) 46
The study analysis in table 4.7 was to assess on descriptive response on how performance appraisals affects employee
productivity. It was evidenced that performance appraisal makes employee work well that expected as it had a mean of
4.41 and standard deviation of 0.652. The statement followed this on State Department for Labour having planned to
implement performance appraisal in place, which had a mean of 3.91 and standard deviation of 1.170. Statement on the
implementation of performance appraisal having a positive impact on employee work productivity was ranked third
with a mean of 3.89 and standard deviation of 0.971. Performance appraisal making employees work towards company
goals was ranked fourth with a mean of 3.85 and standard deviation of 1.282. Contrary, statement relating to employees
being contented with performance appraisal in the organization had the lowest mean of 2.91 and standard deviation of
1.132.
The findings of this study are in agreement with the findings by Cook (2014) who found that employee appraisal had
positive impact on employee productivity. However the findings indicated a great concern on the criteria that was
employed in undertaking employee appraisal, where criteria that focused on witch hunting and did not apply free and
fair procedures had a direct opposite results. Cook (2014) therefore, suggested that the supervisors appraising their
employees were key determinant in ensuring whether the process led to improve employee productivity or not.
Owili and Isaac (2018) found a positive correlation between the variables, while Singh and Rana (2015) in their study
assessed the influence of employee appraisal on organizational commitment by employees. They agreed with
provisions by Cook (2014) that the type of supervisors undertaking employee appraisals were vital in determination of
whether employees were motivated to individually commit themselves to the banks.
4.4 Performance Feedback and Employee Productivity
Table 4.3 Performance Feedback
N Min Max Mean Std. Deviation Variance
Performance feedback helps me
46 1 5 3.22 1.315 1.729
evaluate my results
My manager provides me with fair
46 1 5 3.57 1.455 2.118
performance feedback information
Performance feedback has helped me
to improve my productivity at 46 1 5 3.59 1.166 1.359
workplace
My organization embraces
46 1 5 4.07 .904 .818
performance feedback
Valid N (listwise) 46
The study assessment on the influence of performance feedback on employee productivity was established as shown in
table 4.8 above.

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The findings indicated that the organization embraces performance feedback which had a highest mean of 4.07 and
standard deviation of 0.904. Secondly, statement relating to performance feedback has helped the employees to
improve their productivity at the workplace had a mean of 3.59 and a standard deviation of 1.166. Thirdly, statement
relating to the manager providing fair performance feedback information had a mean of 3.57 and standard deviation of
1.455. The assessment on performance feedback is relevant to employee in evaluating results had a mean of 3.22 and
standard deviation of 1.315.
These findings are related to a number of findings other studies. Jackson and Schuller (2012) in their study found out
that effective feedback system after employee appraisal, enhanced productivity. Baruch (2016) noted the effectiveness
of feedback mechanism in enhancing productivity as it provides direct response on areas employee need to focus to
improve performance that enhances effectiveness as well as efficiency in the organization.
4.5 Employee Productivity
Table 4.4 Employee Productivity
N Min Max Mean Std. Deviation Variance
There is corporation and teamwork in the
46 1 5 2.78 1.381 1.907
organization
Employee concentrates at the workplace 46 1 5 2.87 1.376 1.894
Employee efficiency at workplace is very
46 1 5 3.11 1.386 1.921
high
There is increased output and quality work 46 1 5 3.28 1.409 1.985
Valid N (listwise) 46
The aspects of employee productivity was assessed and presented as shown in the table 4.9. Statement relating to
increased output and quality work was ranked the best with a mean of 3.28 and standard deviation of 1.409. Statement
relating to employee efficiency at work place being high came in second with a mean of 3.11 and standard deviation of
1.386. The aspect of corporation and team work in the workplace was ranked third with a mean of 2.87 and standard
deviation of 1.376. Lastly, employee concentration at workplace had a mean of 2.78 and standard deviation of 1.381.
Employee productivity has been assessed in various studies to be affected by a number of factors. Kim (2016) noted
that the level of performance evaluation influenced productivity in employees. The evaluation of employees was
therefore encouraged, but caution was advised on evaluation as extreme measures of evaluation were found to border
micro-management of employees that led to demotivation of employees. Cook (2014) associated employee productivity
with performance appraisal. The type of appraisal on the employee affected either negatively or positively employees’
productivity.
4.6 Regression analysis.
The regression model used in the study is Y=B0+B1X1+B2X2+E
Whereby; Y = employee productivity
B0 = constant term
B1 and B2 = coefficient of X1 and X2 respectively
X1= performance appraisal
X2 = performance feedback
ε = error term
Table 4.5: Correlations
Employee Performance Performance
productivity appraisals feedback
Pearson Correlation Employee productivity 1.000 .183 .724
Performance appraisals .283 1.000 .346
Performance feedback .724 .346 1.000
Correlation analysis was used to establish on the nature of connection between the independent variable and dependent
variable. From the assessment, employee productivity had a positive association to performance appraisal with r =
0.283. Performance feedback had a positive association to performance of employee with r = 0.724.
Table 4.6: Coefficient of determination
Std. Error of the
Model R R Square Adjusted R Square Estimate Durbin-Watson
1 .727a .529 .507 .78775 2.556

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International Journal of Business, Humanities and Technology Vol. 9, No. 4, December 2019 doi:10.30845/ijbht.v9n4p3

a. Predictors: (Constant), Performance feedback, Performance appraisals


b. Dependent Variable: Employee productivity
Coefficient of determination was used to test on the model of fitness of the study variables. From the analysis, it was
clear that an R square of 0.529 was attained. This indicated that; performance feedback and performance appraisal had
a joint significant impact to employee productivity by 52.9%
Table 4.7: Analysis of variance
Model Sum of Squares df Mean Square F Sig.
1 Regression 29.936 2 14.968 24.120 .000b
Residual 26.684 43 .621
Total 56.620 45
a. Dependent Variable: Employee productivity
b. Predictors: (Constant), Performance feedback, Performance appraisals
The analysis of variance was used to present on the model of significance, from the assessment a p values of 0.000bwas
obtained which is lower that margin of error of 0.05 hence the model is statistically significant.
Table 4.8: Multilinear regression analysis
Unstandardized Standardized Collinearity
Coefficients Coefficients Statistics
Model B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) .201 .904 .222 .825
Performance
.245 .209 .123 1.173 .042 .734 1.952
appraisals
Performance
.956 .142 .750 6.722 .000 .880 1.136
feedback
a. Dependent Variable: Employee productivity
Y=B0+B1X1+B2X2+E
Whereby; Y = employee productivity
B0 = constant term
B1 and B2 = coefficient of X1 and X2 respectively
X1= performance appraisal
X2 = performance feedback
ε = error term
The linear regression model showed that when holding all factors constant (performance feedback), performance
appraisal increases employee productivity by 0.245 units. Secondly, when holding all factors constant (performance
appraisals), performance feedback increases employee productivity by 0.956 units.
Summary of the Findings Conclusion and Recommendations
5.1 Performance appraisals and employee productivity
The establishment on performance impact on performance of employee, the findings indicated that evaluation of
employee causes a raise in their productivity. It was evidenced that performance appraisal makes employee work well
that expected as it had a mean of 4.41 and standard deviation of 0.652. Review of performance focuses on the
engagement of employee to the firm’s goals. Staffs have the chance to communicate their thoughts and their
expectations in the accomplishment of the strategic goal of the firm. Performance appraisal might be an important
source of managing information in decision-making. A good performance appraisal can improve the importance and
employee performance causing achievement of particular work or for achieving a particular performance goal.
Employee productivity had a positive association to performance appraisal with r = 0.283.
This finding therefore indicates that performance appraisal has positive influence on employee performance. These
findings agree with the findings by Brown and Benson (2013) who found that evaluation of employee performance
enhanced performance procedures for the employees.
5.2 Performance feedback and employee productivity
The objective assessment on how performance feedback does impact employee productivity was established with
strong emphasis for organizations to embrace feedback to its employees as it registered a highest mean of 4.07 and
standard deviation of 0.904. Similarly, the correlation between employee productivity and performance feedback had a
strong positive r = 0.742.
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ISSN 2162-1357 (Print), 2162-1381 (Online) ©Center for Promoting Ideas, USA [Link]

Jackson and Schuller (2012) suggests that adequate performance feedback in the workplace helps to build
responsibility, because employees and supervisors contribute in goal development, knowing your competencies,
having conversation on how to develop your career and employee motivation. Nevertheless, some firms do not offer
feedback. Banket (2011) explains that even some managers deliberately fail to feedback their employee; other
managing work engulf the employee hence taking their precious time.
5.3 Conclusions
The study results showed that employee evaluation has a helpful effect on their productivity. Similarly, it found out that
feedback for employee performance was positively correlated with their productivity. This was explained to result from
the avenue that the employees were able to understand the organizational goals and understand areas in which they fell
short to achieving the goals. It therefore provides a chance to share their thoughts and their anticipation on
accomplishing the planned goals of an organization. Good appraisal system improves the employee performance and
motivation causing attainment of set goal by the firm (Derven, 2015). Results of the finding showed that employees
could be updated on the feedback concerning their performance at the workplace. To have a good work motivation, a
manager needs to recognize employees’ good performance. In addition, employees get to be creative and more
innovative
5.4 Study Recommendations
From the foregoing, it is recommended that the management of the organization studied consider quarterly reviews and
appraisal. Appraisal techniques should be diversified to include Peer appraisal, Essay appraisal and Ranking method.
Equally, appraisal practices should be expanded to include 360 degrees feedback, balanced scorecard, self-review and
upward reviews. Training and development programmes from various departments should be coordinated by the HR
function. Appraisal feedback should take shorter periods. Development programmes should be expanded to include
lower cadre employees. Other non - monetary rewards like acknowledgements, promotions to the next job group and
letters of commendations should also be explored.
5.5 Limitations of the Study
Regardless of the study being successful, there were more shades of boundaries. Some respondents failed to unveil
information needed to secure their institutions information and for securing areas known to be normally, confidential. It
was not possible to verify independently, the information gives the respondents and reliability was on the officials who
in any case could choose to distort information.
5.6 Suggestions for further studies
This study indicates that in future a study should be carried on the effect of other performance management practices
on the firm’s performance. In addition, it recommends that researcher in future can carry a study in the performance
management practices in public organizations to compare with the findings.

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Common questions

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The State Department of Labour enhances workforce productivity through various initiatives aimed at promoting harmonious industrial relations and adherence to safety and health standards at workplaces. It plays a significant role in planning human resource development and utilization, including providing training and development programs. Moreover, it promotes the registration and regulation of trade unions, which contributes to a more organized and fair work environment . The department also focuses on creating a checks and balances system to ensure fair labour practices, which results in higher productivity . Additionally, by contributing to the nation’s GDP through these efforts, the department indirectly fosters an environment where workers are empowered and encouraged to be more productive .

Performance appraisals and feedback mechanisms affect teamwork and cooperation by promoting clear communication and setting expectations that align individual and team goals with organizational objectives. Appraisals provide an opportunity for team members to understand their roles and contributions to the team's success, thereby enhancing motivation and cooperation . Feedback mechanisms offer a platform for continuous improvement and dialogue, which helps resolve conflicts and fosters a collaborative environment . By acknowledging team achievements and addressing group development areas, these processes enhance overall effectiveness and unity, promoting a more cooperative and productive workplace .

Organizations face several challenges when implementing effective performance management systems, including aligning employee performance with organizational goals, ensuring fair and transparent appraisal systems, and maintaining employee motivation without causing undue stress . To overcome these challenges, organizations can adopt diverse appraisal techniques, such as peer appraisals and ranking methods, ensuring a comprehensive evaluation that minimizes bias . Additionally, continuous training and clear communication regarding performance expectations can help align employee activities with organizational goals. Regular feedback mechanisms also help maintain transparency and motivate employees by acknowledging their contributions and outlining areas for growth . This holistic approach can alleviate issues related to performance management systems.

Aligning individual employee goals with organizational objectives reduces conflict by ensuring that everyone is working towards a common purpose. This alignment helps clarify expectations and responsibilities, reducing misunderstandings and discrepancies that often lead to workplace conflicts . When goals are aligned, decision-making becomes streamlined, as actions are guided by a unified direction, enhancing organizational efficiency . Additionally, such alignment fosters a sense of ownership among employees regarding their contributions, promoting cooperation and commitment, which further enhances overall organizational performance and efficiency .

Motivation is crucial in enhancing employee productivity as it drives individuals to work towards personal and organizational goals. According to expectancy theory, employees are more productive when their personal goals are aligned with organizational outcomes, and they perceive a clear connection between their efforts and rewards . Firms can implement effective motivational strategies by providing both financial and non-financial incentives that meet employees' diverse needs, thus encouraging them to maximize their efforts . Additionally, creating a supportive work environment that recognizes achievements, offers opportunities for career growth, and promotes autonomy can significantly boost motivation and lead to higher productivity .

Performance management practices influence a firm's overall productivity by systematically communicating expectations, providing feedback, and aligning individual and organizational goals. Through performance evaluations, feedback, and incentives tied to performance, these practices provide structure and clarity, directing employees towards target outcomes . The alignment of individual goals with organizational objectives helps minimize conflicts and accelerates goal achievement . Moreover, by identifying and enhancing employees' strengths while addressing their weaknesses, performance management encourages continuous improvement, ultimately enhancing the firm's productivity .

The study results suggest a positive relationship between employee appraisal and productivity. Performance appraisals were found to make employees work beyond expected levels, evidenced by a high mean score for this parameter in the descriptive analysis . The research indicated that performance appraisals significantly enhance employee engagement with company goals and provide a platform for managing information critical to decision-making . Appraisals create an opportunity for employees to discuss their performance, understand their contribution toward organizational goals, and identify areas for improvement, thereby fostering increased productivity .

The State Department for Labour improves industrial relations by promoting balanced labour practices, encouraging social dialogue, and enforcing adherence to safety and health standards in workplaces. By ensuring these standards, it contributes to a harmonious work environment, which is a cornerstone for economic development . Moreover, initiatives such as industrial training, human resource development planning, and promoting fair labour practices enhance workforce capabilities and productivity, further stimulating economic growth . The department's role in registering and regulating trade unions strengthens worker representation, leading to fairer employment conditions and contributing to sustained economic development .

Performance feedback significantly impacts employee productivity by providing a means for employees to evaluate their performance and understand how they contribute to the organization's goals. The research findings indicate that organizations that embrace performance feedback see improvements in employee productivity, as such feedback aids in identifying areas needing improvement and acknowledging achievements . Additionally, effective feedback systems empower employees, enhance their responsibility, and motivate them to align their performance better with organizational standards, leading to an overall increase in productivity .

The principles of goal setting theory suggest that setting difficult and specific goals leads to better performance as opposed to setting easy or non-specific goals, which result in lower productivity. This theory emphasizes the importance of aligning individual and organizational goals to improve work performance and motivation . Expectancy theory, on the other hand, posits that employee motivation is influenced by the expected outcomes of their actions. If personal goals are aligned with the organization's objectives, employees are more likely to be motivated to achieve these goals, enhancing productivity . By integrating both theories, firms can formulate strategies that not only set challenging goals but also motivate employees by aligning individual expectations with desired outcomes, thereby boosting overall productivity.

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