Employees’ Perception of the Effectiveness of Performance Management Practices at Harambee Sacco Ltd

Abstract

The quality of Human resources of an organization is essential to its success. Thus every organization must seek to improve the quality of its work force. The most important area which can be ignored in human resources management is the performance management practices. For the organization to ensure that its objectives are converted into results is through perfecting the performance management practices. These performance management practices include the goal setting, performance review/appraisal, reward, employee training and development, career planning and succession management. The importance of performance management practices can only be appreciated with a clear understanding of its direct impact on employees’ performance. An improvement in organization’s performance is as a result of an employee improved performance which is because of good performance management practices. The objective of this study was to determine employee perception of the effectiveness of performance management practices at Harambee SACCO Society LTD. To meet this objective, the researcher used a descriptive survey which was appropriate to gather all the necessary information. The researcher targeted one hundred and thirty six (136) employees but the respondents were one hundred and twenty seven (127) employees. The primary data was collected using questionnaires dropped to the respondents and picked later. The collected data was analyzed using descriptive statistics which included frequencies, mean, standard deviation and percentages. It was presented in tables and charts. The study established that there is positive relationship between performance management practices and the employees’ perception about the effectiveness in the organization. Performance management practices enhances employee motivation, career, allows employees to take higher responsibilities, enhance commitment to work and promote relations among employees and also between the employees and the management. Performance management practices if well integrated with organizational objectives leads to high efficiencies and effectives in the performance of the employees hence improving quality and productivity