RAKHAWA
RAKHAWA
RAKHAWA
PERFORMANCE:
BY:
KIM/141999/19
MANAGEMENT.
DECEMBER 2023
DECLARATION
Declaration by Candidate:
I declare that this project is my original work and has not been presented for an award of
a degree in any other institution of higher learning.
Signature Date
…………………………… ………………………..
RACHEL KABOCHI WANGUI
KIM/141999/19
Declaration by supervisor:
I confirm that the work in this project has been done by the candidate under my
supervision as the Lecturer.
Signature Date
…………………………… ………………………..
DEDICATION
I warmly dedicate this research work, first to my family for their unwavering support
during my entire DBM program and most importantly, research journey. Their immense
understanding has propelled me to greater heights of learning. A Big Thank you.
ACKNOWLEDGEMENT
I hereby acknowledge my Supervisor, Mr. Jefferson Kirui for her relentless guidance
and direction with regard to the development and writing of this proposal. His comments
and compliments made this research journey a smooth success. Secondly, I thank the
Kenya Institute of Management Lecturers, beginning with the Certificate and Diploma
Coordinator and all Business Administration Department teaching fraternity. Their
scholarly guidance and provision and dissemination of much-needed knowledge and
materials eased the process and completion of this Diploma program. Third, I recognize the
presence of my Diploam student for spurring me and sharpening me during my low and
high moments. Finally, I recognize the Kenya Institue of Management Nakuru Center
Coordinator
for continually offering guidance on many academic matters, which were very essential
for completion of this program.
TABLE OF CONTENTS
DECLARATION.............................................................................................................. II
DEDICATION................................................................................................................. III
ACKNOWLEDGEMENT .............................................................................................. IV
TABLE OF CONTENTS ................................................................................................ V
LIST OF TABLES ....................................................................................................... VIII
LIST OF FIGURES ........................................................................................................ IX
OPERATIONAL DEFINITION OF TERMS ............................................................... X
ABBREVIATIONS AND ACRONYMS ....................................................................... XI
ABSTRACT ................................................................................................................... XII
CHAPTER ONE ............................................................................................................... 1
INTRODUCTION............................................................................................................. 1
1.1 Background to the Study ............................................................................................... 1
1.1.1 Employee Performance .......................................................................................... 4
1.1.2 Performance Appraisal ........................................................................................... 6
1.1.3 Kibabii University .................................................................................................. 7
1.2 Statement of the Problem .............................................................................................. 8
1.3 Objectives of the Study ............................................................................................... 10
1.3.1 General Objectives ............................................................................................... 10
1.3.2 Specific Objectives ...............................................................................................10
1.4 Research Questions ..................................................................................................... 11
1.5 Significance of the Study ............................................................................................ 11
1.6 Scope of the Study ...................................................................................................... 12
1.7 Limitations of the Study.............................................................................................. 12
1.8 Organization of the Study ........................................................................................... 13
CHAPTER TWO ............................................................................................................ 15
LITERATURE REVIEW .............................................................................................. 15
2.1 Introduction ................................................................................................................. 15
2.2 Theoretical Literature Review .................................................................................... 15
2.2.1 Organizational Justice Theory ..................................................................................15
2.2.2 Goal Setting Theory ................................................................................................. 16
2.2.3 Expectancy Theory ............................................................................................... …17
2.2.4 Management by Objectives Theory (MBO) ......................................................... …18
2.3 Empirical Literature Review ....................................................................................... 19
2.3.1 Evaluation and Employee Performance ............................................................... 19
2.3.2 Management by Objectives and Employee Performance..................................... 21
2.3.3 Performance Appraisal Design and Employee Performance ............................... 23
2.3.4 360 Degrees Appraisal Method and Employee Performance .............................. 24
2.4 Summary of Literature and Research Gaps ................................................................ 24
2.5 Conceptual Framework ............................................................................................... 27
CHAPTER THREE ........................................................................................................ 29
RESEARCH METHODOLOGY .................................................................................. 29
3.1 Introduction ................................................................................................................. 29
3.2 Research Design.......................................................................................................... 29
3.3 Target Population ........................................................................................................ 29
3.4 Sampling Design ......................................................................................................... 30
3.4.1 Sample Size .......................................................................................................... 30
3.5 Data Collection Instruments .......................................................................................30
LIST OF TABLES
Table 2.1: Summary of the Studies and Knowledge Gaps ............................................... 25
Table 3.1 Target Population .............................................................................................. 30
Table 3.2 Sample Size Stratification ................................................................................. 31
Table 3.3 Reliability Results ............................................................................................. 33
REFERENCES
APPENDIX;
QUESTIONNAIRE
BUDGET
TIME FRAMEWORK
DATE;
LIST OF FIGURES
CHAPTER ONE
INTRODUCTION
An organization is established to perform certain in tasks and use a different cadre of staff to achieve its
objectives. To maintain standards and anticipated outputs organization has to keep abreast with both
new knowledge and technological advances. This fast-growing challenge requires that organizations
engage or update their staff so that they can cope with the rate of generation of new changes in these
areas. Some of the coping mechanisms applied by organizations are the recruitment of trainable staff,
reproofing of present staff, in-service training in certain disciplines, and on-the-job training including
exchange programs.
For an organization to achieve its objectives, planning the appraisal process is an important subject that
should be undertaken to enable it to achieve objectives like workforce development, including
improvements, promotions and assignments in managerial positions, persuasion and punishment, salary
increase, personnel performance feedback and determining their educational needs. Therefore, an
appraisal can be considered as an important factor in identifying the people's talents and capacities and
its results can make them aware of advancements, plans, and goals. An organization, itself, needs to
detect the employees' efficiency to improve the manpower's status, increase the volume of the
production and services, and make positive changes in its trend. Appraising performance is important
because it helps to ensure that the organization system will be easily understood by employees and
effectively put into action by managers. Appraisal structures that are complex or impractical tend to
result in confusion, frustration, and nonuse. Likewise, systems that are not specifically relevant to the
job may result in wasted time and resources. Indeed, most successful appraisal programs identify and
evaluate only the critical behaviors that contribute to job success. Systems that miss those behaviors are
often invalid, and inaccurate, and result in discrimination based on nonrelated factors.
This study seeks to establish a way in which the employees' performance is evaluated in terms of
quality, quantity, cost and time help in understanding employee ability to perform assign tasks.
Employee performance is a critical concept in most organizations and hence the findings
of this study is critical not only to the county of Nakuru but also other organizations in both the
private and public sectors.
The County may benefit from the recommendations of the study regarding the best
approaches of performance appraisal which can bring about higher productivity. Other
county can similarly benefit from the findings of the study in a similar manner
Human Resource practitioners may also find the recommendations of the study useful in
their pursuit of employee productivity. They may be able to follow up on the
recommendations to achieve high employee productivity given various performance
appraisal techniques as discussed by the study
It is hoped that this study will be useful in their pursuit of employee productivity.
The stakeholders and management may be able to follow up on the recommendations to achieve high
employee productivity given various performance appraisal techniques as discussed by the study.
The topic of performance appraisal remains important in the modern world and hence it is
vital to the county fraternity to build more on the research gaps by this study.
Considering that this study may have limitations, other researchers can build more on it
and focus more on an in-depth analysis of the subject matter
The study was based in Nakuru County, where it was limited to studying the influence of performance
appraisal on employee performance at Nakuru County.
The target population was 400 employees working in various job groups in Nakuru County.
As a way of establishing the study population, the study targeted the management team
(comprising senior management, middle management, and lower-level management) as
well as other personnel involved in administration, governance, teaching, and nonteaching
positions. The four major variables that were covered in the study include
evaluation, management by objectives, performance appraisal design, and 360 degrees’
appraisal method. The time was between November 2022 and 2023. The study
adopted a descriptive survey design
One of the major limiting factors was the unwillingness of the respondents to supply the right responses
as required by the researcher due to their perceived sensitive nature.
Secondly, some of the respondents were not honest enough to give the right and truthful answers that
would aid in reliable findings. Failure by some respondents to 13 enumerate detailed responses to
questions raised posed a negative scholarly impact on the subject matter under study.
The third limitation facing the researcher and the research process was limited access to relevant data
from the targeted management levels regarding the topic under study. For instance, the management
levels lack a centralized system where all information on project identification approaches and
sustainability is stored and can easily be retrieved.
To counter the above limitations, the researcher guaranteed all participants total
confidentiality and privacy of every piece of information, as a measure to facilitate
participants to give only accurate and honest answers. In addition, the researcher obtained
a letter from the county and a research permit from the Government; these two
documents enabled the researcher to allay their fears. Most importantly, the researcher
assured the respondents that the information collected was purely for academic purposes.
This automatically built and restored
CHAPTER TWO
2.1 Introduction
The chapter presents a review of other empirical works on the topic under study. In this
chapter, theories building up the theme as well as an interrogation of other scholarly
works have been presented. A critique has also been presented and the research gaps
are summarized in a Table.
2.2 Theoretical Literature Review
The study was anchored on the Organizational Justice Theory, Goal Setting Theory,
Expectancy Theory and Management by Objectives Theory (MBO) as discussed in the
subsection.
2.2.1 Organizational Justice Theory
Greenberg in 1987 proposed the theory to enable a personal evaluation of moral standing
regarding managerial conduct. The theory simply argues that the organization also needs
to take the perspective of the employee when making justice. The control model posits
that employees prefer justice because they can control the outcomes that they
expect to receive from the organization. Technically, the theory argues that even though
we may feel that our personal decisions can go either way, people need certainty
regarding their future benefits (Greenberg, 1987).
Greenberg (1987) thus applied the theory to performance appraisal in answering the
question of what makes performance appraisal fair as to whether it is who receives it or
how the decision-making process is. Starting from procedural and distributive justice, the
theory went ahead to propose what constitutes fairness and importance in decision
making the supervisors seek input before using an input evaluation method,
two-way communication, provision for the employee to challenge or dispute a rating given
as well as a show of consistency in making decisions and ratings.
The theory supports the management by objectives variable. The relevance of this theory
is exhibited in the management of human resources. Since human resource management
is an important and complex process in County government, organizational justice theory
reinforces performance management systems in terms of retaining the talents within
the organization. The theory enables the performance management process of the
institution to appear more transparent, trustworthy, and reliable. The theory therefore supports
management by objectives variable.
2.2.2 Goal Setting Theory
Locked in the 1960s the proponent of the theory, argued that human actions are motivated by a
goal. The theory argues that reward is the central reason why people would be motivated
to act (Edwin Locke, 1960). An efficient goal, according to the theory must have the
characteristics of proximity, difficulty, specificity, and feedback. A good goal must have a
short turnaround time and be moderately difficult to make success more possible
(Fried & Slowik, 2004).
A good goal is also supposed to be clear and specific and individuals must be able to
understand their expectations from the goal. The goal should also be identified with a
particular performance appraisal system to ensure its optimum functioning.
Locke praises goal setting and argues that apart from the fact that it has been found to
inspire people, it has also been used to create a challenge that enables people to
overcome even the most daring of tasks. Studies have proved in the past that efforts are
mostly directed toward the most difficult tasks (Fried & Slowik, 2004).
Some of the factors that have been highlighted to affect the effectiveness of this theory
are improper management techniques, not factoring in the individuals’ subconscious
actions because sometimes people can do things without being aware of what motivates
them to do such things (Pennsylvania State University World Campus, 2015).
In relevance to the study, the theory supports the MBO variable. It argues that those who set
difficult but clear goals are more likely to achieve them compared to those who set
general and easy goals. The theory also demonstrates that goal setting can be a requisite
to enable them to complete their work quickly and effectively. It also leads to an
improvement in performance since it can lead to an increase in motivation and effort
2.2.3 Expectancy Theory
The theory, proposed by Vroom in 1964, posits the importance of mental choices
touching on choices, expectations, and rewards. It presents a connection between the
people’s wants, behavior expected of them, and the organizational goals. The theory
separates effort from outcomes and provides a perception of behavior in that it is a
result of deliberate move among alternatives to maximize pleasure and minimize pain
The theory presents concepts such as expectancy to mean that when the effort increases,
results will also increase, instrumentality means that a valued outcome is a result of
better performance and valence to mean that there is a value which has been placed on an
outcome. The theory posits that people will always adjust the way they behave in regard
to the expected satisfaction of achieving a certain goal (Vroom, 1964).
Vroom (1964) demonstrated that based on the worth with which individuals perceive a
certain goal, they will be motivated to achieve it. The theory indicates that the motivation
of doing something is based on the value and worth with which people consider that goal.
The scholar demonstrates that people are motivated if they feel that their effort will bring
about better performance.
In line with this study, it is considered that people think rationally, and as a result, the way
they perceive the importance of a performance appraisal system matters. A good
performance appraisal system should be based on an entirely rational directive view of
the organization which links articulable HR processes to the organization’s strategic
objectives. The theory was anchored on the variable of employee feedback since
employee expectations are best influenced by managerial actions and organizational
performance.
RESEARCH METHODOLOGY
3.1 Introduction
This chapter gives a review of the methods to adopted in ensuring that the objectives of
the study was achieved. From the design, the chapter also highlighted the population and
sampling as well as how data was collected and analyzed.
3.2 Research Design
The research adopted a descriptive research design of Nakuru county. A descriptive
research design, according to Creswell (2014) is used to analyze a phenomenon, to
generate hypotheses, and to validate a method through data collected using
questionnaires. The rationale behind the adoption of this research design was because of
the need to interrogate a cause effect relationship between the variables.
3.3 Target Population
According to Creswell (2014), a population refers to the total entities targeted in a study.
The study targeted all the employees of Nakuru County. The organization has a total of
400 employees, who are permanent staff and staff on contracts
Target Population
Level of Employment Population
Top Management -56
Middle and Lower level management -128
Subordinate Staff -216
Total 400
Source: Nakuru County HRM
3.4 Sampling Design
The study adopted both stratified sampling procedures. Stratification ensures that the
target population is divided into groups to ensure equal chance of representation. A
sample was then randomly determined from each stratum (Bryman, 2016). In this study,
the employees were stratified into the senate Committee Members, county
Management Board Committees, Administrative staff, and other subordinate staff. After the
stratification, the target sample size was determined randomly. The use of this method
ensured unbiased representation and that each element had an equal chance of being
selected (Cooper & Schindler, 2006).
3.4.1 Sample Size
A sample refers to a subset of an entire target population (Cooper & Schindler, 2006). An
acceptable sample size in surveys differs significantly whereas Mugenda and Mugenda
(2013) indicates that a sample up to 30% is suitable, other scholars such as Cooper and
Schindler (2006) argued that a formula can be used to determine the sample size. This
study therefore used a formula to determine the sample size. Yamane (1957) formula was
adopted in this study at a confidence level of 95% as shown in the equation:
n = N______
1 + N (e)2
Where n is the sample size, N is the population size and e is the margin of error.
n = __ 400_____
1 + 400 (0.05)2
Using the formula, the sample size was 200 employees out of the 400 who were
stratified. The sample size was 50% of the target population which was above the 30%
recommended by Mugenda and Mugenda (2003) hence it is sufficient. Table 3.2 indicates
the stratification method.