The implementation process of performance appraisal in large manufacturing firms in Nairobi

Abstract

This study was carried out between September and November, 2003. The research sought to determine the implementation process of Performance Appraisal used in large manufacturing firms in Nairobi. It also sought to determine the extent to which employees are involved in the design and implementation process of the appraisal system. The study further sought to determine the extent to which performance appraisal maintenance systems exist in the firms studied. The target population consisted of line managers and employees drawn from the large manufacturing firms in Nairobi which have appraisal systems. The response rate to the questionnaire was 93.3% for employees and line Managers respectively. Data was collected using a structured, standardized and uniform questionnaires. Fifty six line managers and fifty six employees participated in the study. The data was analysed using descriptive and inferential statistics. -. The results of the study revealed that 93.3% of the manufacturing firms under study have PA systems. In regard to the design and implementation of the system, fewer employees (30.4%) are involved compared to line managers (62.5%). Concerning the maintenance of the appraisal system, majority of the respondents reported that their firms have poorly maintained PA systems. One third of them had not even revised their systems since inception. The study concluded that most manufacturing firms have appraisal systems but few of them are well maintained. This was expected, considering that few of the firms neither trained nor involved employees and line managers in the design and implementation of these systems. The study recommended that for successful implementation, maintenance and ownership of the appraisal system in the manufacturing firms, the line managers and employees should be actively involved. Secondly, the study also recommended that another study, preferably at the national level, be carried out involving other categories of firms that were not covered in this study.