The Effect of performance appraisal systems on employee motivation of fintech companies in Kenya
Date
2022
Authors
Achieng’, Dalphine Carren
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
In order to reach the required performance level, it is necessary for any organization to develop better motivation in the mind and spirit of employees through an effective performance appraisal system. The main aim of this dissertation was to assess the effect of performance appraisal systems on employee motivation among fintech companies in Kenya. The specific objectives of the study were to; determine the effect of performance appraisal methods on employee motivation, analyse the effect of appraiser-appraisee relationship on employee motivation, to establish the effect of perceived appraisal fairness on employee motivation and to assess the effect of perceived quality of appraisal feedback on employee motivation. The research adopted the equity theory and the justice theory. A descriptive research design was used in this research. The study population was the 38 fintech companies registered by Central Bank of Kenya. The unit of observation were three senior managers in each firm who were purposively selected giving a total of 114 respondents. The study utilized primary data collected using a questionnaire. The administration of the questionnaire was done through Google form. The collected data was converted into quantitative format and analysed using descriptive and inferential statistics. The descriptive statistics involved mean and standard deviation while inferential statistics comprised of both correlation and regression analysis. The results of the study were presented in tables and figures followed with pertinent interpretation. The study revealed a significant positive relationship between management by objectives, 360 degrees, peer review, self-review, appraiser-appraisee relationship, perceived appraisal fairness, perceived quality of appraisal feedback and employee motivation among fintech companies in Kenya. This study concluded that performance appraisal systems are essential for fintech companies to use in their endeavor to improve on their employees’ motivation. The study recommends that fintech companies should focus on the key qualities of appraisal system to ensure that the process is well defined and understood, accepted by all participants and the overall performance appraisal system is effective and assists in achieving individual and organizational goals.
Description
A Dissertation submitted in partial fulfilment for the award of a Master of Commerce Degree at Strathmore University
Keywords
Performance appraisal systems, Employee motivation, Fintech companies_Kenya