The Influence Of Performance Appraisal System On Staff Motivation At The Lion’S Sight First Eye Hospital

Abstract

Performance appraisal has great implications on employee motivation. In order to reach the required performance level, it is necessary for any organization to develop better motivation in the mind and spirit of employees through an effective Performance Appraisal System. This study assessed the influence of performance appraisal on employee motivation at Lion’s Sight First Eye Hospital. The study set out to evaluate the relationship between performance appraisal systems and employee extrinsic motivation, determine the extent to which appraisers affect employee motivation, investigate the impact of performance appraisal systems on employee intrinsic motivation and determine the challenges in appraising employee performance. A descriptive research design was adopted in the study. It targeted two hundred and forty three (243) employees working at the Lion’s Sight First Eye Hospital. The sample size comprised of 48 employees. Stratified random sampling was used as the respondents were drawn from different levels or strata within the hospital. Structured questionnaires based on a five-point Likert scale format was used for data collection as they were easy to administer and cheap in terms of cost and time. Data was collected and analyzed by use of scientific package for social sciences (SPSS). A regression model was used to determine the co-efficient of the effect of performance appraisal on employee motivation. It was established that there was a positive relationship between performance appraisal system factors and employee intrinsic and extrinsic motivation (p=.001). Additionally, a positive significant relationship was noted between Appraiser-Appraisee relationship and employee intrinsic and extrinsic motivation (p=.000). The influence of appraisal system pitfalls on employee intrinsic and extrinsic motivation was significant (p=.016). The study recommended that there is need to provide training on the performance appraisal system. The management or appraisers need to be adequately trained on how to utilize the appraisal systems for the purpose of improving the motivation of their staff. Moreover, through the training the leaders can be able to spot any pitfalls of the appraisal system that may pose a challenge to the effectiveness of the system in enhancing motivation among the employees. Another recommendation is on the review of the organizational policy of performance appraisal. The policy should clearly state the areas the leaders should pay attention to when carrying out performance appraisal. There is need for further research to examine the factors affecting the effectiveness of the appraisal system at the Lion’s Sight First Eye Hospital.