Determinants of Performance Appraisal Implementation: A Case of Deposit Taking Saccos in Kiambu County, Kenya

Abstract

Performance appraisal implementation involves designing and executing methods and procedures for collecting, analyzing, and reviewing individual or team performance against predefined criteria or standards. The aim is to provide valuable feedback, make informed decisions about rewards, promotions, and development opportunities, and enhance overall organizational performance. This study sought to investigate the determinants of performance appraisal implementation, among Deposit Taking Sacco’s in Kiambu County. The objectives of the study were to determine the effect of communication, culture, resources, and employee involvement on performance appraisal implementation of Deposit Taking Saccos in Kiambu County. The study was anchored on resource-based view theory, goal setting, and Schein’s model of organization. The study adopted a descriptive research design. The target population of the study was the senior management staff of the 12 Deposit Taking SACCOS in Kiambu County including Chief Executive Officers, managers, and heads of departments at the head offices. This study employed a mixed methods approach by using both closed and open-ended questions to collect primary data. The study further employed a census method to gather data. A multiple linear regression model was used to assess the extent to which the independent variables affect the dependent variable. The researcher carried out a pilot test to check for the validity and reliability of the research instrument. The administered questionnaires tested reliable returning a Cronbach’s alpha coefficient of 0.7. The study targeted 84 respondents with 72 responding thus giving a response rate of 86 percent. Data was analysed using Statistical Package for Social Sciences (SPSS) version 25 and results were presented in tables and figures. From the findings, the study concludes that communication, culture, resources, and employee involvement significantly and positively affect the performance appraisal implementation of The Deposit-Taking Saccos in Kiambu. The study recommends that management of the Deposit-Taking Saccos in Kenya embrace face-to-face communication, ensure the availability of resources to implement appraisal recommendations well, and involve the employee through the performance appraisal processes. The formation and management of a positive culture are key to the success of an institution and management ought to be at the forefront to advocate for a positive culture that ensures the delivery of the institution's objectives. Further research was recommended to replicate a similar study across other financial institutions like commercial banks and microfinance institutions.