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International Journal of
Management and Economics
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VOL. 5, ISSUE 2 (2023)
The effect of performance appraisal on employee motivation at PACRA in Lusaka
Authors
Lucy Chisha, Attridge Mwelwa
Abstract
The study investigated the impact of performance appraisal on employee motivation at PACRA, Lusaka. Hence, the purpose of this study was to analyse the effect of performance appraisal on employee motivation at PACRA in Lusaka. It employed a mixed research approach, collected data from 114/118 participants, analysed it using SPSS and Excel, and ensured reliability and ethics. The findings indicate that employees' trust in PACRA's PA system's rationality and fairness varies, with 37.50% neither agreeing nor disagreeing, 27.10% disagreeing, 25.0% agreeing, and 6.30% strongly agreeing. Key informants emphasize the role of the supervisor's objectivity in determining fairness. Additionally, 45.83% of respondents express satisfaction with the current reward system linked to performance appraisal, particularly among those with 7 to 9 years of service. Performance gaps are identified for appropriate training programs for most employees, indicating the effectiveness of the PA system in this regard. Effective performance appraisal (PA) systems significantly impact employee motivation. While positive aspects include competent appraisers, supportive supervisors, and two-way communication, mistrust in the PAS remains a concern. The study offers recommendations to enhance the PACRA PA system and boost employee motivation. Firstly, improving consistency in performance feedback for all employees can enhance fairness perceptions. Conducting comprehensive fairness evaluations, including soliciting employee feedback and conducting audits, is advised. Building trust and transparency through clear communication and fairness measures is crucial. Encouraging employee participation in setting objectives and shaping the PA system is recommended. Capitalizing on the existing reward system linked to performance appraisal and effectively identifying and addressing performance gaps through targeted training can further motivate employees. For future studies, it is suggested to explore how a well-functioning PA system can enhance service delivery and reduce employee turnover. Additionally, analysing the policy changes leading to the PA system's implementation would provide a comprehensive understanding of its organizational impact.
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Pages:5-14
How to cite this article:
Lucy Chisha, Attridge Mwelwa "The effect of performance appraisal on employee motivation at PACRA in Lusaka". International Journal of Management and Economics, Vol 5, Issue 2, 2023, Pages 5-14
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