PERFORMANCE MANAGEMENT AND EMPLOYEE PRODUCTIVITY IN THE HEALTHCARE SECTOR IN KENYA: A CASE STUDY OF KENYATTA NATIONAL HOSPITAL

Abstract

The purpose of this research study was to determine the influence of performance management on employee productivity, using Kenyatta National Hospital (KNH) as a case study. Organizations invest billions of shillings annually in managing employee performance The primary objective was to understand how performance management influences productivity among KNH employees. The study specifically sought to evaluate the effects of the performance management process, methods, feedback, and goal setting on employee productivity at the hospital. The study was grounded in Locke’s goal-setting theory and further supported by expectancy and equity theories. A descriptive research design was adopted, with a sample size of 372 participants drawn from the hospital’s 5,300 employees. Data was primarily collected through questionnaires. Additionally, a pilot study was conducted with 60 staff members from Mbagathi Hospital, selected due to its operational similarities with KNH, to refine the research instruments. The research study will be useful to different categories of people because it will assist in understanding effects of performance management on employee productivity at Kenyatta National Hospital. The study findings will guide the government in formulating and reviewing performance evaluation policies in the public service, the research study will provide the Kenyatta National Hospital's top management with insights on addressing performance appraisal feedback from line managers to the staff within their jurisdictions, the research will be important to other researchers and scholars who wish to conduct studies on similar research. The human resource department and administration at KNH will benefit tremendously from this study since they will gain a lot of insights on the current state of the hospital’s services, systems and facilities in order to find ways of ensuring the employees are satisfied and contented with their work. Data collection involved distributing questionnaires, with analysis performed using SPSS Version 25.0. Descriptive and inferential statistics were employed, and a regression analysis was conducted to evaluate the influence of performance management on productivity. The analysis revealed that performance management goals significantly impact employee productivity, with a coefficient of 0.535 and a p-value of 0.019 (p < 0.05), indicating a strong positive relationship. The findings led to the conclusion that effective performance management—through well-structured processes, methods, feedback mechanisms, and goal-setting—positively enhances employee productivity. Consequently, the study recommends that KNH's human resources department ensure a transparent, logical performance management process that accurately identifies staff training needs. It further advises the department to communicate the importance and objectives of performance evaluations clearly and to employ a range of performance management techniques in employee assessments.