PERFORMANCE APPRAISAL AND EMPLOYEE PERFORMANCE IN THE KENYAN HEALTH SECTOR: A CASE STUDY OF PHARMACY AND POISONS BOARD

Abstract

This study sought to determine the effect of performance appraisal on employee performance in the Kenyan health sector, with a specific focus on the Pharmacy and Poisons Board. The study was guided by objectives which included determining the effect of performance planning, regular feedback, performance diagnosis, and best fit compensation on employee performance. To achieve the objectives, both primary and secondary data were collected. A descriptive research design was employed, and the target population included managers and employees of the Pharmacy and Poisons Board in Kenya. The data was analyzed using descriptive and inferential approaches with the Statistical Package for Social Sciences software (SPSS). Questionnaire instruments were used to collect quantitative data, and the findings were presented using various tables, charts, and graphs. The findings revealed that performance planning had a significant positive effect on employee performance (β = 0.174, p < 0.05). Additionally, the study found that regular feedback positively influenced employee performance (r = 0.659, p < 0.01). Furthermore, the study revealed that performance diagnosis had a significant positive effect on employee performance (r = 0.70, p < 0.01). Regarding best fit compensation, the study found a strong positive relationship between these factors and employee performance (β = 0.790, p < 0.001). Based on these findings, it is recommended that organizations prioritize effective performance planning, establish mechanisms for regular feedback and coaching, ensure alignment between employee skills and job requirements, and implement fair and motivating compensation structures.