EFFECT OF PERFORMANCE APPRAISAL ON EMPLOYEE PERFORMANCE: A CASE STUDY OF NATIONAL HEALTH INSURANCE FUND
Abstract
The study targeted National Hospital Insurance Fund employees as the respondents. The study specifically sought to establish the effect of goal setting, performance planning, performance review and feedback on employee performance. The study was anchored on goal setting theory, control theory and social cognitive. The target population of the study comprised of 306 employees working in NHIF Head office in Nairobi County. For this study, data was collected using structured questionnaires based on the research hypotheses. Data analysis was done with the help of Statistical Package for Social Science (SPSS) version 23. Descriptive statistics included frequencies distribution, and percentages and mean, while inferential statistical analysis used included correlations, and regression. The study established that there is a positive relationship between performance review and employee performance. The goal setting had a significant influence on employee performance. The coefficients also showed a positive relationship between all the variables and employee performance. The study concludes that the organization develops goals which are realistic and attainable. The study further concluded that the organization involved all employees in every rank when setting up goals and that the organization aligns organizational goals with individual goals to avoid cognitive dissonance.The study recommends that the organization should develop goals which are realistic and attainable. Also the organization managers should involve all employees in every rank when setting up goals as this made the employees own the process and minimize resistance. The study recommended that the employee performance should be reviewed in annual intervals based on performance indicators and the organization should set performance standards which were fair and achievable.
Key terms: Goal setting, Performance appraisal, Employee performance, Performance planning
CITATION: Moraa, A. A., & Datche, E. (2019). Effect of performance appraisal on employee performance: a case study of national health insurance fund. The Strategic Journal of Business & Change Management, 6 (2), 424 – 442.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1121
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