Influence of Performance Appraisal Process on Performance of Kenya Red Cross Society

Abstract

Performance appraisal is one of the very important processes that organizations must undertake to facilitate the achievement of their strategic goals and enhance their performance. It is through performance evaluation exercise that organization can identify the challenges and the gaps they need to address in order to deal with performance issues. The performance appraisal procedure adopted by the organization is therefore important in enhancing the achievement of this success. The main objective of this study was to determine the influence of performance appraisal procedure on the performance of non-governmental organizations. The study examined the processes of goal formulation, performance evaluation, review and feedback, reward and punishment. The study was anchored on two theories: goal setting theory and agency theory. Case study focusing on Kenya Red Cross Society was used and data was collected from the top management using an interview guide. The data was analyzed using content analysis method. The results of the study indicated that performance appraisal procedures have a significant effect on the performance of the organization. The findings highlighted the importance of goal setting in line with strategic goals and plans of the organization. The outcomes also pointed out the need for organization to carry out the appraisal process regularly. The study findings highlighted the importance of feedback in identifying the areas of weakness and skill gaps and the need to address the same for successful performance. In addition, the outcomes pointed out the need for the organization to adopt an appropriate reward system in order to recognize good performers and to sustain good performance. The findings also emphasized the importance of punishment and performance improvement plans in correcting poor performance. The study therefore recommends that Kenya Red Cross Society adopts appropriate performance appraisal procedure to enhance the performance of the organizations. The findings might benefit the management as they adopt the best practices regarding performance appraisal, policy makers may also find the outcomes useful in formulating performance management policies and lastly researchers might find a basis of carrying out future study while leveraging on these findings.