Developing an Effective Employee Performance Appraisal System

Abstract

This study focuses on developing an effective employee performance appraisal system and employees’ perception of justice with the appraisal outcome. The study tries to identify the various techniques used in the appraisal process, the error(s) associated with each technique, all known metrics of performance measurement, and best ways of capturing appraisal data. This study is imperative in view of the fact that most existing appraisal system limit staff performance to competence only. The current system uses generic ratings for all workers irrespective of their job roles and do not employ biometrics in the appraisal process. Leveraging on the potentials of information and communications technology (ICT) helps to harmonize all issues embedded in the current appraisal system. Data was collected from both primary and secondary sources in order to elicit information from stakeholders. Some hypotheses were adopted. Questionnaires were also used to help in data collection from both stake holders and workers in general. Hypothesises were tested using chi-square with degree of freedom (d.f.) = (n-1) = 4 and level of significance (α) is 0.05. Pie chart was also use in the analysis. Results show that there is a high level of perception of injustice with the present appraisal system by stakeholders. Result also shows that existing appraisal systems limits workers performance to competence only. It was revealed that an effective appraisal system should be technology-driven. Technology-driven employee performance appraisal system utilizes all known matrices of performance measurement in the appraisal process. This approach to workers appraisal would bring about transparency and efficiency in the system. It would also bring about wide participation in the appraisal process. Furthermore, it would create room for increased productivity, proper monitoring of workers performance and increased workers satisfaction.