The Link between Performance Appraisal and Firm Performance

Abstract

The purpose of the study was to investigate the linkage between Performance Appraisal (PA) as a Human Resource Practice and the firm performance of the Kenyan state corporations. The study hypothesized that; there was a positive relationship between PA and OP and therefore the need to investigate the specific linkage between the two variables relate. The study adopted an Explanatory research design. The target population was 232 HRM from which a sample of 142 respondents was selected. The research tool was a questionnaire which constituted structured or closed ended items, unstructured or open ended items and likert items. A pilot study was conducted to help establish the reliability and validity of the research tool. Quantitative and qualitative data was generated was analyzed using SPSS. Qualitative data was operationalized by arranging the data according to emerging themes or patterns with assigned numbers to make them measurable. As far as quantitative data is concerned, Correlation coefficients will be calculated for initial exploration of the relationships between variables. This helped to measure the size and direction of the relationship between the independent and dependent variables. The findings established that there was a significant correlation between PA and Firm’s Performance and therefore recommended to the authorities of the Corporations studied to give main focus to PA function to enhance OP.