THE EFFECTS OF FAIR APPRAISAL ON EMPLOYEE PRODUCTIVITY IN FOOD-PROCESSING FIRMS IN NAKURU COUNTY, KENYA.

Abstract

As many organizations come to terms with the challenges of attracting and retaining the best talent, coupled with the emerging issue of work life conflicts, it is imperative that managers employ a variety of human resource (HR) practices in order to attain organizational goals. Consequently, managers are now undertaking proven, HR practices that are cost minimizers, contingent motivators, competitive motivators, resource makers and commitment maximizers in order to improve employee’s commitment, increase employee satisfaction and performance. Despite the link between HR practices and employee productivity looking obvious, in the Kenya’s context HR managers have to work under intense pressure in order to identify and implement policies that will prove effective in improving employee performance. However, the extent to which HR practices affect employee productivity in local firms is still unclear. Hence, the present study sought to investigate the effect of fair appraisal on employee productivity focusing on food-processing firms in Nakuru County, Kenya. The study thus was guided by ERG theory, Equity Theory and Cognitive evaluation theory. Descriptive research design was adopted for this study targeting permanent staff in the food-processing firms in Nakuru County, Kenya. Sample size of 79 respondents was obtained using stratified random sampling was used for the study. The researcher developed questionnaires which were used in the study as data collecting instruments. The collected data was analyzed by use of descriptive statistics (frequencies and percentages) and inferential statistics, which included Pearson’s’ product moment correlation and multiple linear regression analysis. The findings revealed that fair appraisal did not have a significant effect on employee productivity. The study, therefore, recommends that the food processing firms ought to make significant investments in employee capacity assessment so as to promote fair appraisal practices and consequently improve employee productivity.