EFFECTS OF EMPLOYEE PERFORMANCE APPRAISAL ON SERVICE DELIVERY

IN PARASTATALS: A CASE OF NATIONAL HOSPITAL INSURANCE FUND,

KISUMU

BY

MONICA ACHIENG AKOTH

A RESEARCH PROJECT SUBMITTED TO THE KENYA INSTITUTE OF

MANAGEMENT IN PARTIAL FULFILLMENTS OF THE REQUIREMENT FOR THE
AWARD OF DIPLOMA IN BUSINESS MANAGEMENT OF THE KENYA INSTITUTE

MAY 2013
 DECLARATION

Declaration by the candidate

I declare that this research project is my original work and has not been presented in any
institution of learning for an academic award.

Sign ……………………………… Date………………………………

TVC NO: 340/DBM

Name: Monica Achieng’ Akoth

Declaration by the supervisor

I declare that this research project has been submitted to The Kenya Institute of Management
with my approval as the candidate supervisor.

Sign: ………………………………. Date: …………………………

Name: Olala, Gilbert Owuor

Declaration by KIM Administrator

This research project has been submitted with approval as the administrative representative of
The Kenya Institute of Management.

Sign: …………………………………. Date: ……………………………

Name: Imelda Odongo

Branch Manager

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 DEDICATION

This research project is dedicated to my entire family, in particular, my husband Haggai Hawi
and children Stanley and Stephany for their love, emotional encouragement and financial support
which enabled me to write this project. I adore you!

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 ACKNOWLEDGEMENT

I wish to accord my appreciation and sincere gratitude to individuals who participated in the
preparation of this research project. In particular, I wish to acknowledge the efforts of my
supervisor and lecturers at The Kenya Institute of Management who taught me the principles of
management and basic research, and without whom this project would have been impossible to
develop. My sincere thanks go also to the Human Resource Manager of National Hospital
Insurance Fund Kisumu, for allowing me to access important information incorporated in this
work from the organization’s data bank.

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 ABSTRACT

Performance appraisal has been received by mixed reactions from workers over the years despite
its main aim of improving performance. It has generated a great deal of anxiety and suspicion
over the years. Both employees and managers perceive it as achieving a rare synthesis of
ubiquity, futility and inevitability. At times when employees find themselves being evaluated by
managers whom they know have broken rules, the entire review process becomes of little
consequence. It was because of this that the study sought to investigate the effects of employee
performance appraisal on service delivery. The study was conducted at National Hospital
Insurance Fund, Kisumu office between April and May 2013. The specific objectives of the
study were to find out the extent clear appraisal processes, continuous review of appraisal results,
providing employee feedback and action plan affect service delivery at National Hospital
Insurance Fund. The study adopted a case study research design which targeted a population of
50 employees of the organization. A sample size of 44 employees was stratified and data
collected through randomization process using a well structured research questionnaire pretested
for reliability and validity. Collected data was then edited, coded and verified in order to detect
and correct any error. Descriptive statistics i.e. tables, pie charts and bar charts were used in the
analyses and presentation of collected data. The study further found out that clear appraisal
processes, continuous review of appraisal results, giving employee feedback and action plans
affect organizational service delivery to a great extent. The study recommended that National
Hospital Insurance Fund, Kisumu office should develop programmes and interventions to offer
employees an opportunity to exercise their leadership competencies, facilitate management
employee communication, improve performance appraisal which will lead to individual workers
feedback about their job performance. The study also recommended that National Hospital
Insurance Fund and sisters insurance providers should ensure that systematic strategic measures
are set up to meet their goals and objectives. The results of the study will be of great importance
to the management because it will enable them to strategize and establish appraisal policies
aimed at establishing a basis for achieving standardized organizational service delivery.

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 TABLE OF CONTENTS

DECLARATION ............................................................................................................................ ii

DEDICATION ............................................................................................................................... iii

ACKNOWLEDGEMENT ............................................................................................................. iv

ABSTRACT.................................................................................................................................... v

TABLE OF CONTENTS............................................................................................................... vi

LIST OF TABLES ....................................................................................................................... viii

LIST OF FIGURES ....................................................................................................................... ix

LIST OF ABBREVIATIONS AND ACRONYMS ....................................................................... x

OPERATIONAL DEFINITION OF TERMS ............................................................................... xi

CHAPTER ONE

INTRODUCTION OF THE STUDY

1.1 Introduction ............................................................................................................................... 1
1.2 Back ground of the study .......................................................................................................... 1
1.3 Statement of the problem .......................................................................................................... 4
1.4 Objectives of the study.............................................................................................................. 4
1.5 Research questions .................................................................................................................... 5
1.6 Significance of the study........................................................................................................... 5
1.7 Limitations of the study ............................................................................................................ 6
1.8 Scope of the study ..................................................................................................................... 6

CHAPTER TWO

LITERATURE REVIEW
2.1 Introduction ............................................................................................................................... 7
2.2 Review of Theoretical Literature .............................................................................................. 7
2.3 Review of Analytical Literature and Gaps to be filled ........................................................... 12
2.4 Summary ................................................................................................................................. 14
2.5 Conceptual Framework ........................................................................................................... 15

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 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction ............................................................................................................................. 16
3.2 Study Design ........................................................................................................................... 16
3.3 Target Population .................................................................................................................... 16
3.4 Sample Design ........................................................................................................................ 18
3.5 Data Collection Procedures and Instruments .......................................................................... 20
3.6 Data analysis Methods ............................................................................................................ 21

CHAPTER FOUR

DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.1 Introduction ............................................................................................................................. 22
4.2 Presentation of findings .......................................................................................................... 22
4.3 Summary of Data Analysis ..................................................................................................... 36

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction ............................................................................................................................. 38
5.2 Summary of major findings .................................................................................................... 38
5.3 Conclusion .............................................................................................................................. 39
5.4 Recommendations ................................................................................................................... 39
5.5 Suggestions for further study .................................................................................................. 40

REFERENCES............................................................................................................................ 41

APPENDICES

Appendix I: Letter of authority

Appendix II: Questionnaire

Appendix III: Work plan

Appendix: IV: Budget

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 LIST OF TABLES

Table 1: Gender distribution of respondents ................................................................................. 22

Table 2: Education level of respondents ....................................................................................... 23

Table 3: Age of respondents ......................................................................................................... 24

Table 4: Effects of clear appraisal processes on service delivery................................................. 26

Table 5: Extent clear appraisal processes affect service delivery ................................................. 27

Table 6: Effects of continuous review of appraisal results on service delivery............................ 29

Table 7: Extent continuous review of appraisal results affects service delivery .......................... 30

Table 8: Effects of employee feedback on service delivery ......................................................... 31

Table 9: Extent Employee feedback affects service delivery ....................................................... 32

Table 10: Effects of action plan on service delivery..................................................................... 34

Table 11: Extent action plan affects service delivery ................................................................... 35

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 LIST OF FIGURES

Figure 1: The effects of employee performance appraisal on service delivery ............................ 15

Figure 2: Distribution of target population ................................................................................... 17

Figure 3: Sample distribution........................................................................................................ 20

Figure 4: Response of gender ....................................................................................................... 23

Figure 5: Education level of respondents...................................................................................... 24

Figure 6: Age of respondents ........................................................................................................ 25

Figure 7: Effects of clear appraisal processes on service delivery ............................................... 26

Figure 8: Extent clear appraisal processes affects service delivery .............................................. 28

Figure 9: Effects of continuous review of appraisal results on service delivery .......................... 29

Figure 10: Extent continuous review of appraisal results affects service delivery ....................... 30

Figure 11: Effects of employee feedback on service delivery ...................................................... 32

Figure 12: Extent employee feedback affects service delivery .................................................... 33

Figure 13: Effects of Action plan on service delivery .................................................................. 34

Figure 14: Extent action planning affect service delivery ............................................................ 36

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 LIST OF ABBREVIATIONS AND ACRONYMS

N.H.I.F: National Hospital Insurance Fund

S.W.O.T: Strengths Weaknesses Opportunities and Threats

C.E.O: Chief Executive Officer

KIM: Kenya Institute of Management

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 OPERATIONAL DEFINITION OF TERMS

Action Plan: A sequence of steps that must be taken, or activities that must be
performed well for a strategy to succeed.

Appraisal Process: It’s a review and discussion of an employee’s performances of

assigned duties and responsibilities.

Appraisal Results: This is the outcome obtained by the employees in his or her job,
not on the employee’s personality characteristics

Employee Feedback: The process in which workers give the effect or output of an an
action to modified the next action.

Performance Appraisal: Evaluation of an employee’s job performance by comparing actual

results with desired outcomes.

Service Delivery: This is the process or the act of rendering or giving a service of any
kind to the client by the organization

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 CHAPTER ONE
INTRODUCTION OF THE STUDY

1.1 Introduction

This chapter consists of the background of the study, statement of the problem, objectives of the
study, Research questions, significance of the study, limitations of the study and scope of the
study.

1.2 Back ground of the study

Performance appraisal originated mainly in the public sector of employment. Now formal
schemes of performance appraisal are widely being used in both the public and private sectors.
The details of these formal schemes vary considerably depending on the purpose and preferences
of individual work organizations. These differences are reflected in terms of the format, report
degree of confidentiality and openness, the appraisee’s level of participation and the nature of
appraisal discussions between those being apprised (Tyson and York, 2002).

Performance appraisal is viewed as potentially the most crucial aspect of organization’s life as it
enables employees to improve their performance (Lawrie, 1990). (Rue and Byars, 1993) point
out that performance appraisal is an output for determining individual and organizational training
and development needs. It is through appraisal practices that individual strengths and weaknesses
can be identified. Performance appraisals is an input for Human Resource Planning, especially
the human resources needs such as determining whether the firm has the right number of
qualified people in the right positions at the right time.

Appraisal has traditionally been seen as mostly applicable to those in management and
supervisory positions. Modern trends show that it is increasingly being applied to manual staff;
particularly those who are skilled or have technical duties (Torrington Hall, 1995). He asserts
that over the past decade there has been a substantial increase in performance reviews for non-
managerial staff, for example, those offering secretarial and clerical duties. He further asserts
that while in certain organizations, the management can decide whether or not to include lower
cadre workers in the appraisal system, others allow those of a certain age to opt out of the system
if they so wish.
Past experience has shown that appraisal is a complex issue and it is evident that for
effectiveness, such a system must be designed and implemented with great care. This is because
a poorly conceived appraisal system will create more problems than it may solve (Fisher, et al
2003). Performance appraisal is a complex task that is often difficult to carry out and in most
cases; it is not done well by most organizations. As a result of this, the implementation process
has been met with a number of problems.

(Delewicz, 1989) suggests that there is a basic human tendency to make judgments about those
he is working with, as well as about one self. According to him, appraisal is both inevitable and
universal such that in the absence of a carefully structured appraisal system, people will tend to
judge the work performance of others naturally, informally and arbitrarily.

Despite the overwhelming support so far received from proponents of performance appraisal
systems, opponents attack it on a variety of grounds. Some seem to feel that the idea of
performance appraisal is sound, but the execution is weak and as a result wrong things are
usually rated. Also, supervisors aren’t trained to prepare accurate elements of performance
appraisals systems. At times they fail to give effective appraisal feedback to those being
evaluated. Others just feel that the very concept of performance appraisal is flawed.

Performance appraisal has been initiated in a number of countries and the appraisal practices
have been shown to improve performance. In India for example, before 1970, wage differentials
were based on position and age rather than performance. Further, making wage structures was
left with top manager in state owned enterprises; and was making two or three time as much as
junior technical workers. Managerial advancement was based more on political beliefs than on
job performance. However after the initiation of performance appraisal in the late 1970’s;
reforms began with human resource practices changing gradually. The government of India
endorsed movement towards fixed term labour contracts rather than lifetime employment and
also encourage more widespread adoption of performance based reward at all levels (Fishers, et
al 2003)

In Kenya, new performance appraisal system in the public service was introduced with effect
from 1st July 2006 to improve performance of employees. However, this programme has not
been fully implemented as was expected. The implementation has been very slow. This has been

2
because of unfamiliarity with work planning and target setting. Despite the failure to properly
implement it, the programme is still in place with the aim of encouraging team work, improving
delegation of tasks, enhancing sharing of information, linking individual performance to the
strategic plan, entrenching continuous assessment of performance and motivating employees
through mutual discussions, setting and review of targets. (Standard Newspaper, 2006)

Organizational performance comprises the actual output or result of an organization as measured

against its intended outputs (or goals and objectives). According to Richard et al (2009)
organizational performance encompasses three specific areas of firm outcomes; a) Financial
performance (Profits, returns on added etc). Specialists in many fields are concerned with
organizational performance including strategic planners, operations, and finance, legal and
organizational development.

In recent years, many organizations have attempted to manage organizational performance using
the balanced score card methodology where performance is tracked and measured in multiple
dimensions such as: financial performance, customer service, social responsibility and employee
stewardship.

We are used to thinking of ongoing performance management for employees, for example setting
goals, monitoring an employee’s achievement of those goals, sharing feedback with the
employee, evaluating the employees performance, rewarding the employees performance or
firing the employee. Organization performance involves recurring activities to establish
organizational goals, monitor progress towards the goals and make adjustment to achieve those
goals effectively and efficiently. When seeking to improve the performance of an organization
it’s very helpful to regulate conduct assessment of the current performance of the organization.

Any or all of the approaches listed later will improve organizational performance depending on if
they are implemented comprehensively and remain focused on organizational results. Each
includes regular recurring activities to establish organizational goals, monitor progress towards
the goals and make adjustments to achieve those goals more effectively and efficiently.

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1.3 Statement of the problem

Performance appraisal has been received by mixed reactions from workers over the years despite
its main aim of improving performance. (Raymond, et al. 1994) points out in his survey of
companies with appraisal systems that few are satisfied with their performance appraisal
programs. Thus, performance appraisal has generated a great deal of anxiety and suspicion over
the years. (Johnson, 2004) suggests that both employees and managers perceive performance
appraisals as achieving a rare synthesis of ubiquity, futility and inevitability. (Boyd, 2005)
suggests that when employees find themselves being evaluated by managers whom they know
have broken rules, the entire review process is little more than a charade. Though some
apprehensions at the thought of being formally evaluated are understandable, there are
unfortunate negative connotations surrounding performance appraisals. This is due to
misunderstanding the purpose, and use of outdated and in appropriate appraisal processes. It is
because of this that this study is set to investigate the effects of employee appraisal on service
delivery with particular reference to NHIF.

1.4 Objectives of the study

In this section, both the general and specific objectives of the stated are stated.

1.4.1 General objective

The general objective of the study is to find out the effects of employee performance appraisal
on service delivery at NHIF Kisumu.

Specific objectives

i. To determine the effects of clear appraisal processes on service delivery.

ii. To determine the effects of continuous review of appraisal results on service delivery.

iii. To determine the effect of employee feedback on service delivery.

iv. To determine the effect of action plan on service delivery.

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1.5 Research questions

i. To what extent has performance appraisal processes been practiced at NHIF Kisumu?

ii. To what extent has transparent appraisal processes improved performance at NHIF
Kisumu?

iii. To what extent has practicing performance standards been effective in improving
performance at NHIF Kisumu?

iv. To what extent has continuous review of appraisal results been applied in the
organization?

v. To what extent has practicing continuous review of appraisal results been effective in
improving performance at NHIF Kisumu?

vi. To what extent has giving employee feedback improved performance at NHIF Kisumu?

vii. To what extent has the use of action plan improved organizational performance at NHIF
Kisumu?

1.6 Significance of the study

The study will provide additional insights into the employee performance appraisal practices at
National Hospital Insurance Fund, Kisumu, and bring out an understanding on the effect of
appraisal practices on performance. This will be of utmost importance for Human Resource
Managers at the organization and other related organizations in improving administrative
performance appraisal tools and creation of winning companies. Further, the study will help top
managers in solving performance related problems. This will provide unique performance
lessons for many organizations since most companies use employee performance appraisal as a
tool for enhancing organizational performance. It will thus encourage companies to continue
practicing employee performance appraisal as a management tool and helps in formulating
policies for growth and development.

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1.7 Limitations of the study

The study was limited in scope as it only focused on effects of employee appraisal practices on
organizational performance at The National Hospital Insurance Fund, Kisumu branch. The study
concentrated on only employee appraisal even though there are certain other environmental
factors such as working facilities, equipments, age and conditions that may affect organization
performance. These were held constant during the study. The employees at the organization had
a tight schedule and limited time for interviews. This was overcome by exercising patience on
part of the investigator, and eventually adequate data was gathered.

1.8 Scope of the study

The study focused on the effects of employee performance appraisal on organizational

performance at National Hospital Insurance Fund, Kisumu branch. The branch has its offices
along Oginga Odinga Street at Re-Insurance Plaza building just opposite Al Imran Plaza in the
central Business District of Kisumu City. The study was carried during March and April 2013.
The major concepts of the study are performance appraisal, organizational performance,
appraisal processes, performance standards, review of appraisal results and employee feedback.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

In the previous chapter a detailed account of background of the study is discussed. In this
chapter, review of theoretical literature, review of analytical literature, summary and conceptual
framework is clearly elucidated.

2.2 Review of Theoretical Literature

In this section, review of theoretical literature is discussed. The areas covered in this section
includes: appraisal processes and organizational performance; performance standards and
organizational performance; review of appraisal results and organizational performance;
employee feedback and organizational performance; and action plan and organizational
performance.

2.2.1 Clear Appraisal Processes and Service Delivery

Performance appraisal does not benefit only employees. Organizations that use the results of
performance appraisal to identify areas of strength and opportunity can benefit as well.
Performance appraisal provides an indication of areas of training needs as well as direction for
leadership development, performance improvement and succession planning. Coates, G. (1994)

The results of performance appraisal can be assessed to identify areas of strong performance
across all employees, by department or by demographics. Standardized performance assessments
allow companies to aggregate, calculate and analyze results to show where performance is
strong. These areas of strength then can serve as benchmarks and opportunities for sharing of
best practices for other areas of the organization. Cole, G.A (2002)

According to Beard well, I and Holden, L (1997) evaluating the results of performance appraisals
processes can provide managers, human resources departments and organizations with an
indication of where additional training and development may be necessary, For instance, results

7
may indicate that employees collectively are scoring low on items related to use of technology or
customer service. These may become target areas for the creation and implementation of training
programs designed to boost employee competence and performance. Results also may be
assessed at the individual, department and division levels.

Performance appraisal processes can provide an indication of employees with leadership

potential or leadership development needs. In both cases, the manager and HR department then
can develop programs and interventions to either offer employees an opportunity to exercise
their leadership competencies or build skills. Performance appraisal can serve as an input to
succession planning by identifying employees with specific competencies that the organization
knows it will need in the future due to turnover and retirement. It can highlight external factors
affecting the need for new skills. To maximize the use of performance appraisals in this manner,
it is important that the appraisals be standardized and that appraisal results be reviewed, assessed
and analyzed to identify competencies and development needs across all department. Lawrie, J.
(1990)

2.2.2 Continuous Review of Appraisal Results and Service Delivery

A performance appraisal is a systematic and periodic process that assesses an individual

employee’s job performance and productivity in relation to certain pre-established criteria and
organizational objectives. Other aspects of individual employees are considered as well, such as
organizational citizenship behavior, accomplishments, potential for future improvement,
strengths and weaknesses, etc. Fisher, C.D. (2003) to collect performance appraisal data, there
are three main methods: objective production, personnel, and judgmental evaluation. Judgmental
evaluations are the most commonly used with a large variety of evaluation methods.
Performance appraisal is typically conducted annually. The interview could function as
“providing feedback to employees, counseling and developing employees, and conveying and
discussing compensation, job status, or disciplinary decisions”. Performance appraisal is often
included in performance management systems. Performance management systems are employed
“to manage and align" all of an organization's resources in order to achieve highest possible
performance. “How performance is managed in an organization determines to a large extent the

8
success or failure of the organization. Therefore, improving performance appraisal for everyone
should be among the highest priorities of contemporary organizations.

Shaw, J.B (2003), some applications of performance appraisal are performance improvement,
promotions, termination, test validation, and more. While there are many potential benefits of
performance appraisal, there are also some potential drawbacks. For example, performance
appraisal can help facilitate management-employee communication. However, performance
appraisal may result in legal issues if not executed appropriately as many employees tend to be
unsatisfied with the processes created.

A central reason for the utilization of performance appraisals is performance improvement at the
level of the individual employee, and ultimately at the level of the organization. Other
fundamental reasons includes a basis for employment decisions e.g. promotions, terminations,
and transfers as criteria in research, an aid to communication (e.g. allowing employees to know
how they are doing and organizational expectations), establish personal objectives for training
programs, and for transmission of objective feedback for personal development. It also helps as a
means of documentation to aid in keeping track of decisions and legal requirements particularly
in wage and salary administration. Additionally, performance appraisal can aid in the
formulation of job criteria and selection of individuals who are best suited to perform the
required organizational tasks. It can also be part of guiding and monitoring employee career
development. Latham, G.P (1981)

2.2.3 Employee Feedback and Service Delivery

There are a number of potential benefits of organizational performance management conducting

formal performance appraisals. There has been a general consensus in the belief that
performance appraisal leads to positive implications of organizations. Furthermore, performance
appraisal can benefit an organization’s effectiveness. One way performance appraisal can lead to
giving individual workers feedback about their job performance. From this may spawn several
potential benefits such as the individual workers becoming more productive. Buzzota,V .R(1998)

Facilitating communication in organizations is considered an essential function of worker

motivation. It has been proposed that feedback from performance appraisal aids in minimizing

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employees’ perceptions of uncertainty. Fundamentally, feedback and management-employee
communication can serve as a guide in job performance. Enhancement of employee focus
through promoting trust, behaviors, thoughts, and/or issues may distract employees from their
work, and trust issues may be among these distracting factors (Long, P. 1986). Such factors that
consume psychological energy can lower job performance and cause workers to lose sight of
organizational goals. Properly constructed and utilized performance appraisals have the ability to
lower distracting factors and encourage trust within the organization.

Greenberg, J. (1986) Goal setting and desired performance reinforcement find it efficient to
match individual worker’s goals and performance with organizational goals. Performance
appraisal provides room for discussion in the collaboration of these individual and organizational
goals. Collaboration can also be advantageous in employee acceptance and satisfaction of
appraisal results. Performance improvement can also be realized in a well constructed
performance appraisal system. This serves as valuable tools for communication with employees
as pertains to how their job performance stands with organizational expectations.

Employee training and development are crucial components in helping an organization achieve
strategic initiatives. It has been argued that for performance appraisal to truly be effective, post-
appraisal opportunities for training and development in problem areas, as determined by the
appraisal, must be offered. Performance appraisal can especially be instrumental for identifying
training needs of new employees and in the establishment and supervision of employees’ career
goals

2.2.4 Action Plan and Service Delivery

Systematic strategic thinking helps to find, and decide what to do about the handful of really big
issues facing the business or any other organization. It is the size and impact of these strategic
issues that gives rise to the importance of the strategic plan.

Few formal management practices have been proven by hard won experience, and confirmed by
research, to enable organizations to improve their performance, and a logical formal strategic
planning process is one of them. Organizational performance is about creating value for the
primary beneficiaries of the organization. Strategic thinking and planning can help you keep the

10
focus of your team on this value creation, and not on management tools or practices for their own
sake. Cole, G.A (2006).

According to Dulewicz, V. (1989), it has been found out that from long and sometimes painful
experience to effectively plan strategically requires only a handful of essential procedures. Make
sure that any system of planning that you use, or corporate planning process that you follow, has
formal, well documented, clearly communicated, and simple procedures for these five essentials.
This is how you Start and ensure support for planning, and the implementation of the plan. The
people you need to include are primarily the Chief Executive Officer and their immediate
reporting managers, and the layer of staff or management at one remove from the Chief
Executive Officer (CEO).

In turn the CEO must engage with the governing body, who in turn engage the beneficiary
groups they are there to represent. Other stakeholder groups may possibly be affected by the
implementation of the strategic corporate plan in the operation of the enterprise. Their interests
must be respected. It must be remembered that the processes for engaging people operate in
various ways in all the other stages of the planning process.

. Firstly, an attempt should be made to provide comprehensive strategies; that is, the plan should
consider all the truly important factors - the strategic elephants.

Secondly the strategies should not exhaust all available resources. Something should be held in
reserve. This recognizes uncertainty and adds flexibility to the plan. Alternative strategies can
improve the adaptability of the organization in two ways. First, by explicitly examining
alternatives, it is likely that the organization will find alternatives that are superior to the current
approach. Second, the organization will encounter environmental changes; if alternative,
contingency, plans have been considered for these changes, the organization can respond more
effectively. Korman, K.A and associates (1994)

Processes of finding all the relevant significant strategic factors will be covered on other pages
about SWOT analysis, and methods for generating the alternative strategies will be under
Business Strategy, for companies, or nonprofit strategy making for other kinds of organization.

11
It is all too easy to go with the bright ideas that emerge from brainstorming strategic alternatives.
Effective formal planning uses systematic methods for evaluating the various alternatives .i.e
evaluate to ensure that they do not violate any constraints, rate the strategic options against the
objectives, and ensure that all major strategic issues are addressed. Hutchinson, S. (2003). At this
stage, you are in a position to design a set of strategies, based on a few key decisions. With this
done you can proceed with some confidence to get approval from the governing body, and
convert the strategic intentions into specific work assignments for individual managers, prepare
budgets and project plans, and generally prepare to implement the strategic plans.

Having planned the work of implementing or executing the strategic plan, you need a system in
place for working the plans as they get implemented. The plan should provide for formal
reporting at agreed intervals. To allow for corrective action, the monitoring system should
address the same objectives and factors determined as significant through the planning process.
Too often there is disconnect between the plans and how it is managed into reality.

2.3 Review of Analytical Literature and Gaps to be filled

Organizational performance refers to how an organization achieves its goals and objectives. Rue
and (Byars1993) point out that performance refers to how well an employee is fulfilling the
requirement of the job. Basically, the quality of an employee’s performance is determined by a
combination of three factors; effort (how hard a person works), ability (the person’s capability)
and direction (how well the person understands what is expected on the job). An employee’s
performance can be influenced by certain environmental factors that are not under the
employee’s control. Such factors include inadequate work facilities and equipments, restrictive
policies that affect the job, lack of cooperation from other people and departments and even luck.
According to Robbins (1982), performance is doing a job effectively and efficiently, with a
minimum degree of employee created disruptions. Therefore, to ensure that an employee is
properly directed towards achieving good performance, there must be a well developed job
description and performance appraisal system.

To understand the concept of performance appraisal, fisher et al (2003) defines employee

appraisal as that part of the management process in which an employee’s contribution to the
organization during a specified period of time is assessed. Besides, the author asserts that a

12
critical factor related to an organization’s long term success is its ability to measure how well
employees perform and then use that information to ensure that performance meets present
standards and improves over time, a process called performance management. It is hardly an
umbrella term for all the organizational activities involved in managing people on the job. The
measurement portion of the system is called performance assessment, performance appraisal or
performance evaluation. It is a complex term that is difficult to do and it is usually not done well
by most organizations. (Robinson 1982), states that since organizations exist to achieve goals,
the degree of success that individual employees have in reaching their individual goals is
important in determining organizational effectiveness. The assessment of how successful
employees have been at meeting their individual goals, therefore becomes a critical part of HRM
and hence the need for performance appraisal.

Performance appraisal is a process that involves communicating to an employee how well he/she
is performing the job and ideally involves establishing a plan for improvement. (Rue and Bryars,
1993, Dulewicz 1989) suggests that there is a basic human tendency to make judgments about
those he/she is working with, as well as about oneself. According to them, appraisal is both
inevitable and universal and in the absence of a carefully structured system of appraisal, people
will tend to judge the work performance of others, including subordinates, naturally, informally
and arbitrarily. However, a number of potential problems associated with performance appraisal
are acknowledged. (Torrington and Hall 1995) suggests that appraisal systems require that each
line manger appraise the performance of their staff on an annual, half yearly or even quarterly
basis but some organizations have a flexible approach where by individuals in some grades, for
example, secretarial and clerical, may not to be included in the appraisal system.

However, appraisal systems remain controversial with a few scholars believing they do more
harm than good. McKenna and Beech(2002) point out that appraisal has many strong points
when is well conceived and executed as a process for providing systematic judgments to support
pay reviews, promotions, transfers and for the provision for feedback on actual performance.
They asserts that these acts as pointers for performance improvement through changes in
attitudes, behavior and skills.

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2.4 Summary

Based on the past studies, it is evident that employee performance appraisal has gotten a drastic
shift in all perspectives. Organizations has done all they can to improving organizational
performance over their competitors. From appraisal process to action plan, all these have been
practiced by organizations to retain its standards. Employee feedback and review of appraisal
results have been applied by organizations on improving performance appraisal. These factors
are viewed as important and it will only depend on how they are managed so as to determine the
organizational performance.

14
2.5 Conceptual Framework

Figure 2.1 shows a conceptual framework on how employee performance appraisal affects
service delivery.

Employee performance
Appraisal

 Clear Appraisal Processes

 Continuous Review of
Appraisal Results Service Delivery
 Employee Feedback Affects
 Action Plan

Figure 1: The effects of employee performance appraisal on service delivery

Source: Author (2013)

Figure 1 show that employee performance appraisal is the independent variable while service
delivery is the dependent variable. The elements of performance appraisal which are believed to
affect service delivery are clear appraisal processes, review of appraisal results, employee
feedback and action plan.

15
 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

This chapter describes the research procedures and techniques that were used in the study. It
provides an explicit description the study design, target population, sample design and sampling
procedure, data collection instruments, validity and reliability of the research instrument, data
analyses and presentation.

3.2 Study Design

The study design is a basic research, which entails field survey through self administered
questionnaire. The study was basically a fact finding research and therefore adopted a case study
research design. Mugenda and Mugenda (2002) describe case study design as a report of study
which requires the collection of quantifiable information from the sample. The design is deemed
appropriate as it enables an in-depth search of information from the respondents on their attitudes
and opinions as related to performance appraisal at N.H.I.F, Kisumu Branch.

3.3 Target Population

According to Cooper and Shindler (2000), a target population is the total collection of elements
about which we wish to make inferences. The target population for the study was employees
from all the departments and projects of NHIF. These are employees who perform different tasks
in different departments of the organization. The research targeted 50 employees of the
organization drawn from administration, registration, finance and I.T departments. This is
distributed as shown in table 3.1.

16
Figure 2: Distribution of target population

Departments Number of employees % number of employees

Registration 14 28%

Management 4 8%

I.T 2 4%

Accounts 4 8%

Customer Care 2 4%

Inspectorate 10 20%

Claims 5 10%

Stores and Supplies 2 4%

Supportive Staff 3 6%

Security 1 2%

Transport 3 6%

TOTAL 50 100%

Source: Research Data (2013)

Table 2 above shows that the organization consisted of 50 staff members i.e. 14 in registration, 4
in management, 2 in I.T, 4 in accounts, 2 in customer care, 10 in inspectorate, 5 in claims, 2 in
stores and supplies, 3 in supportive staff, 1 in security, and 3 in transport.

17
3.4 Sample Design

A sample is a small proportion of the population selected for observation and analysis. The
researcher used stratified sampling method to draw the sample size. This is because stratified
sampling technique is easy to use and is more accurate (Mugenda 2003 & Yamane 1967). NHIF
Kisumu office has 50 staff that was stratified into eleven strata, namely departments from which
samples though randomization was selected. (Mugenda & Mugenda 2003) adds that for accurate
information a researchable large sample is necessary for the study. The study therefore
considered 44 (88%) employees in the study. Denscombe (1998) poised that the sample must be
carefully selected to be representative of the population and the research also needs to ensure that
the sub-divisions entitled in the analysis are accurately carried for. To determine the sample size,
we used the formula

z 2 pq
n
d2

n = desired sample size (if the target population is greater than 10,000).

z = the standard normal deviate at the required confidence level.

p = the proportion in the target population estimated to have characteristics being measured.

q  1 p

d = the level of statistical significance set.

According to Fisher et al, we took p=0.5, at 95% confidence interval. The desired sample
size was therefore

(1.96) 2 (0.5)(0.5)
n
(0.05) 2
 384

Since the target population was less than 10,000, the formula

18
 n
nf 
n
1
N

where

n f = desired sample for population less than 10,000

n = desired sample size for target population of more than 10,000.

N = estimate of population size

was used determine the desired sample size.

384
 nf 
384
1
50
 44

This was distributed as shown in table 3

19
Figure 3: Sample distribution

Departments Target population Sample size per department

Registration 14 12

Management 4 3

I.T 2 2

Accounts 4 3

Customer Care 2 2

Inspectorate 10 9

Claims 5 4

Stores and Supplies 2 2

Supportive Staff 3 3

Security 1 1

Transport 3 3

TOTAL 50 44

Source: Author (2013)

3.5 Data Collection Procedures and Instruments

The researcher collected a letter of introduction from the manager of Kenya Institute of
Management (KIM) and then proceeded to NHIF manager in order to collect data. The major
data collection instrument was a structured research questionnaire. Thereafter, under the
questionnaires were distributed to the respondents. Questionnaires were then collected duly filled
after two weeks from the respondents.

20
3.5.1 Validity and Reliability of Research

To authenticate the rigor of the research instrument, it was first tested for validity and reliability.
Validity is the degree to which results obtained from the analysis of the data actually represents
the phenomenon under study. Reliability is the degree to which research method yield consistent
results after repeated trials. To ensure validity and reliability, the questionnaires was pretested
and re-tested within a time lapse of two weeks between the 1st and the 2nd test with the initial
conditions remaining constant. These instruments therefore were important in this study with the
basic assumption that they gave desired information of high quality. Nominal and ordinal scales
were used as codes for most questions. This was because most of questions were measuring
knowledge, feelings and experience.

3.6 Data analysis Methods

To ensure easy analysis, the questionnaires were coded according to the research variables of the
study in order to ensure the margin of error was minimized and to ensure accuracy during
analysis. The study applied descriptive statistics as mode of analysis. According to Denscombe
(1998) descriptive statistics involves a process of transforming a mass of raw data into tables,
charts with frequency distribution tables and percentages which are vital part for making sense of
the data. Therefore, data was analyzed using descriptive statistics in the form of tables, pie charts
and bar graphs, which were intended to give a clear picture of research findings at a glance as
was appropriate.

21
 CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.1 Introduction

This chapter deals with a detailed account of data analysis, presentation and interpretations of
major findings.

4.2 Presentation of findings

In the study, out of 44 questionnaires administered, all were returned. This was equivalent to
100% response level. Table 1 below shows the gender distribution of respondents.

Table 1: Gender distribution of respondents

Category Frequency Percentage

Male 24 55%

Female 20 45%

Total 44 100%

Source: Research Data (2013)

The information in table 1 above was further represented in a pie chart figure 4.1 below.

45% Male
55% Female

22
Figure 4: Response of gender

Source: Research Data (2013)

Table 3 and figure 4 shows that out of 168 respondents interviewed, 54% were men and only
46% were women.

Table 2 below shows the distribution of respondents as per their level of education

Table 2: Education level of respondents

Level of education Frequency Percentage

Primary 0 0%

Secondary 40 24%

College 68 40%

University 60 36%

168 100%

Source: Research Data (2013)

The education level distribution was further shown in figure 5 below

23
 50%
45%
Percentage of respondents

40%
35%
30%
25%
20%
15%
10%
5%
0%
Primary Secondary Middle level college University
Level of education

Figure 5: Education level of respondents

Source: Research Data (2013)

From table 2 and figure 5 it was evident that all the respondents had at least secondary level of
education. The distribution showed that 35% of the respondents had secondary level of
education, 45% had college level and only 20% had university level of education.

The age of the respondents were also sought and the findings were as shown in table 3.

Table 3: Age of respondents

Age Frequency % frequency

20-30 years 20 45%

31-40 years 14 32%

41-50 years 10 23%

51 and above 0 0%

Total 44 100%

Source: Research Data (2013)

24
The data in table 3 was further shown by pie chart figure 6. This was done for clarity and visual
appeal.

0%

23%
45% 20-30 years
31-40 years

32% 41-50 years

51 and above

Figure 6: Age of respondents

Source: Research Data (2013)

Table 3 and figure 6 shows that of the 44 respondents interviewed 35% were aged between the
ages of 20 and 30 years, 45% were aged between 31 and 40 years and 20% were aged between
41 and 50 years.

Regarding the specific objectives of the study, the research data was collected about clear
appraisal processes, continuous review of appraisal results, employee feedback, action plan and
their effect on service delivery.

4.2.1 Clear appraisal processes and service delivery

In this case, the researcher sought to find out the extent to which clear appraisal processes affect
service delivery at N.H.I.F Kisumu. To answer the question, the researcher first sought to know
whether clear appraisal processes affects service delivery at N.H.I.F Kisumu office. The
responses were as shown in table 4.

25
Table 4: Effects of clear appraisal processes on service delivery

Category Frequency Percentage

Strongly Agreed 35 80%

Agreed 0 0%

Disagreed 7 15%

Strongly Disagreed 2 5%

Total 44 100%

Source: Research Data (2013)

The response level was further shown in figure 7.

90%
80%
Percentage of respondents

70%
60%
50%
40%
30%
20%
10%
0%
Strongly Agreed Agreed Disagreed Strongly Disagreed
Response

Figure 7: Effects of clear appraisal processes on service delivery

Source: Research Data (2013)

26
Table 4 and figure 7 shows that out of the 44 respondents interviewed 80% strongly agreed that
clear appraisal processes affects service delivery at N.H.I.F Kisumu branch, 15% disagreed and a
paltry5% strongly disagreed. When the question was posed the extent clear appraisal processes
affect service delivery, the responses were shown in table 4.

Table 5: Extent clear appraisal processes affect service delivery

Response level Frequency % Frequency

Large extent 33 75%

Moderate extent 4.4 10%

Small extent 4.4 10%

Does not affect 2.2 5%

Total 44 100%

Source: Research Data (2013)

The response rate in table 5 was further displayed in figure 8 for clarity purposes.

27
 80%

70%
Percentage of respondents

60%

50%

40%

30%

20%

10%

0%
Large extent Moderate extent Small extent Does not affect
Response

Figure 8: Extent clear appraisal processes affects service delivery

Source: Research Data (2013)

From table 5 and figure 8, 75% of those interviewed agreed that clear appraisal processes affect
service delivery at N.H.I.F to a large extent, 10% agreed that it affects to a moderate extent,
another 10% to a small extent and 5% did not agree.

4.2.2 Continuous review of appraisal results and service delivery

In this case the researcher sought to find out the extent continuous review of appraisal results
affects service delivery. The researcher first interrogated the respondents whether they were in
agreement that continuous review of appraisal results affects service delivery. The results were
as shown in table 5.

28
Table 6: Effects of continuous review of appraisal results on service delivery

Response level Frequency % Frequency

Strongly Agreed 31 70%

Agree 0 0%

Disagree 5 12%

Strongly Disagree 8 18%

Total 44 100%

Source: Research Data (2013)

The response level was further displayed in figure 9 below

80%

70%
Percentage of respondents

60%

50%

40%

30%

20%

10%

0%
Strongly Agreed Agree Disagree Strongly Disagree
Response

Figure 9: Effects of continuous review of appraisal results on service delivery

Source: Research Data (2013)

29
Table 6 and figure 9 shows that 70% of the respondents strongly agreed that continuous review
of appraisal results affect service delivery at N.H.I.F, 12% disagreed, while 18% strongly
disagreed. On the extent, continuous review of appraisal results affect service delivery, the
responses were as shown in table 7.

Table 7: Extent continuous review of appraisal results affects service delivery

Response level Frequency % frequency

Large extent 27 62%

Moderate extent 4 9%

Small extent 13 29%

Does not affect 0 0%

Total 44 100%

Source: Research data (2013)

For clarity and visual appeal, the data in table 7 was further shown in figure 10.

0%

29%
Large extent
Moderate extent
9% 62%
Small extent
Does not affect

Figure 10: Extent continuous review of appraisal results affects service delivery

Source: Research Data (2013)

30
Table 7 and figure 10 shows that 62% of the respondents agreed that continuous review of
appraisal results affect service delivery to a large extent, 9% agreed that it effects to a moderate
extent and 29% to a small extent.

4.2.3 Employee feedback and service delivery

In this case the researcher sought to find out the extent employee feedback affects service
delivery. The researcher first sought to know whether employee feedback affect service delivery.
The results were as shown in table 8.

Table 8: Effects of employee feedback on service delivery

Response level Frequency % frequency

Strongly agree 35 79%

Agree 0 0%

Disagree 5 12%

Strongly disagree 4 9%

Total 44 100%

Source: Research Data (2013)

Information in table 8 was further shown on a bar graph figure 11.

31
 90%
80%
Percentage of respondents

70%
60%
50%
40%
30%
20%
10%
0%
Strongly agree Agree Disagree Strongly disagree
Response

Figure 11: Effects of employee feedback on service delivery

Source: Research Data (2013)

Table 8 and figure 11 above shows that 79% of the respondents strongly agreed that employee
feedback affect service delivery. 12% disagreed and a paltry 9% strongly disagreed. On the
extent employee feedback affects service delivery, the responses were as shown in table 9.

Table 9: Extent Employee feedback affects service delivery

Response level Frequency % frequency

Large extent 32 73%

Moderate extent 0 0%

Small extent 3 6%

Does not affect 9 21%

Total 44 100%

Source: Research data (2013)

32
The information in table 9 is further shown on a pie chart figure 12.

80%

70%
Percentage of respondents

60%

50%

40%

30%

20%

10%

0%
Large extent Moderate extent Small extent Does not affect
Response

Figure 12: Extent employee feedback affects service delivery

Source: Research Data (2013)

Table 9 and figure 12 shows that of the 44 respondent interviewed, 73% agreed that employee
feedback affect service delivery at N.H.I.F to a great extent, a paltry 6% agreed that it affects to a
small extent, while 21% said it does not affect.

4.2.4 Action plan and service delivery

In this case, the researcher sought to find out the extent action plan, for example, methods for
generating the alternative strategies affects service delivery at N.H.I.F. The researcher first
sought to find whether action plan affect service delivery. The findings were as shown in table
10.

33
Table 10: Effects of action plan on service delivery

Response level Frequency % frequency

Strongly agreed 39 88%

Agree 0 0%

Disagree 5 12%

Strongly disagree 0 0%

Total 44 100%

Source: Research Data (2013)

The information in table 10 was further shown on a bar chart figure 13.

100%
90%
80%
Percentage of respondents

70%
60%
50%
40%
30%
20%
10%
0%
Strongly agreed Agree Disagree Strongly disagree
Response

Figure 13: Effects of Action plan on service delivery

Source: Research Data (2013)

34
Table 10 and figure 13 shows that of the 44 people interviewed, a significant 88% were in
agreement that action plan affect service delivery. Only 12% of the respondents were in
disagreement. When asked the extent action plan affect service delivery, the responses were
shown on table 11.

Table 11: Extent action plan affects service delivery

Response level Frequency % frequency

Large extent 36 82%

Moderate extent 0 0%

Small extent 3 6%

Does not affect 5 12%

Total 44 100%

Source: Research Data (2013

The information in table 11 was further shown on a bar chart figure 14.

35
 90%

80%

70%
Percentage of respondents

60%

50%

40%

30%

20%

10%

0%
Large extent Moderate extent Small extent Does not affect
Response

Figure 14: Extent action planning affect service delivery

Source: Research Data (2013)

Table 11 and figure 14 shows that of the 44 respondents, 82% were of the opinion that action
plan affect service delivery to a large extent. A paltry 6% agreed that it affects to a small extent,
and 12% said it does not affect

4.3 Summary of Data Analysis

In this section, summary of analyzed data is presented. The data summary as presented in this
section discusses the bio data of respondents, clear appraisal processes, and continuous review of
appraisal results, employee feedback and their effects on service delivery

In this study, 44 questionnaires were administered. This was equivalent to 100% response level.
Of the 44 respondents whose questionnaires were returned, 55% were men while 45% were
women. In terms of their education level, all the respondents had secondary education and above.
35% had secondary education, 45% had college education and 20% had university education. In
terms of age the respondents were all above 20 years of age. 45% were in the age bracket of 20
to 30 years inclusive, 32% in the age bracket of 31 to 40 years and 23% in the age bracket of 41
to 50 years.

36
In the case of clear appraisal processes, the researcher sought to know the extent it affects service
delivery. Of the 44 people interviewed, 80% strongly agreed that clear appraisal processes affect
service delivery, 15% disagreed and a paltry 5% strongly disagreed. When respondents were
asked to give their opinion on the extent clear appraisal processes affect service delivery, 75%
agreed that it affects to a large extent, 10% agreed that it affects to a moderate extent, 10%
agreed it affects to a small extent and 5% said it does not affect.

In the case of continuous review of appraisal results, the researcher sought to know whether
continuous review of appraisal results really affects service delivery. Of the 44 people
interviewed, 70% strongly agreed, 12% disagreed while 18% strongly disagreed. On the extent
continuous review of appraisal results affect service delivery, 62% agreed that it affects to a large
extent, 9% agreed it affects to a moderate extent while 29% said it does not affect.

In the case of employee feedback, the researcher sought to know the extent it affects service
delivery. The researcher first sought to know whether employee feedback affect service delivery.
Of the 44 people interviewed 79% strongly agreed that it affects service delivery, 12% disagreed
while a paltry 9% strongly disagreed. On the extent employee feedback affect service delivery
73% agreed that it affects to a large extent, a paltry 6% agreed that it affects to a moderate
extent, while 21% said it does not affect.

In the case of Action plan, the researcher sought to know the extent it affects service delivery.
The researcher first sought to know whether action plan affects service delivery. Of the 44
people interviewed, a significant 88% agreed that it affect service delivery and only 12% were in
disagreement. On the extent action plan affect service delivery, 82% were of the opinion that it
affects to a large extent. A paltry 6% agreed that it affects to a small extent and 12% strongly
disagreed

37
 CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter discusses the summary of findings, conclusions, recommendations and suggestions
for further study.

5.2 Summary of major findings

In this section, major findings related to the study objectives were discussed. The specific
objectives of the study addressed the extent clear appraisal processes, continuous review of
appraisal results, employee feedback and action plan affect service delivery.

The first objective of the study sought to investigate the effect of clear appraisal processes on
service delivery. The study revealed that out of 44 people interviewed, a significant 80% strongly
agreed that it affects service delivery. When the question of to what extent it affects service
delivery was raised a significant 75% agreed that it does to a large extent.

The second objective of the study sought to find out the effect of continuous review of appraisal
results on service delivery. Of the 44 people interviewed, 70% strongly agreed that it affects
service delivery, 12% disagreed and 18% strongly disagreed. When the opinion on extent to
which it affects service delivery was asked, 62% said to a large extent, 9% said to a moderate
extent and 29% said it does not affect.

The third objective of the study sought to find out the effect of employee feedback on service
delivery. Of the 44 respondents interviewed 79% strongly agreed, 12% disagreed while a paltry
6% strongly disagreed. When the opinion on the extent to which it affects service delivery was
sought, 73 % of the respondents agreed that it affects to a large extent, a paltry 6% agreed that it
affects to a moderate extent while 21% said it does not affect.

The final objective of the study sought to find out how action plan affects service delivery. Out
of the 44 respondents interviewed 88% strongly agreed that it affects and only 12% were in

38
disagreement, 82% were of the opinion that it affects service delivery to a large extent. A paltry
6% agreed that it affects to a small extent and 12% said it does not affect.

5.3 Conclusion

In this section answers to research questions were provided. The study sought to know the extent
clear appraisal processes, continuous review of appraisal results, employee feedback and action
plan affect service delivery.

On clear appraisal processes, the study found out that it affects service delivery to a large extent.

In the case of continuous review of appraisal results, it is clear from the study that it affects
service delivery to a large extent.

The opinion on employee feedback revealed that it affects service delivery to a large extent.

In the case of action plan like implementation of strategic corporate planning and SWOT
analysis, the study found out that they affect service delivery to a large extent.

In conclusion, clear appraisal results, continuous review of appraisal results, and employee
feedback and action plan affect service delivery to a great extent

5.4 Recommendations

In this section, recommendations regarding the findings of the study are presented.

On clear appraisal processes, since it affects service delivery to a large extent, the management
of N.H.I.F should develop programs and interventions to either offer employees an opportunity
to exercise their leadership competencies or build skills. This will in essence improve service
delivery practices within the organization.

In the case of continuous review of appraisal results, since it affects service delivery to a large
extent, National Hospital Insurance Fund should improve on facilitating management-employee
communication so that clientele coverage can improve service delivery.

39
The study also found out that employee feedback affect service delivery to a large extent. In this
regard, N.H.I.F management is advised to improve in giving individual workers feedback about
their job performance so that they can become motivated and increase their productivity. This
will result in improved service delivery.

As regards action plan, which also affect service delivery to a large extent, N.H.I.F should ensure
that systematic strategic measures are set up to meet the organizations goals and objectives.
Alternative strategies recognizing uncertainty and adding flexibility to the plan should be
promoted in order to improve organization performance.

5.5 Suggestions for further study

This study concentrated on four employee performance appraisal variables that affect service
delivery namely; clear appraisal processes, continuous review of appraisal results, employee
feedback and action plan. For better realization of Service Delivery, the study suggests that other
employee performance variables should be investigated and added to this study for full
realization of service delivery.

The study was carried in Kisumu office, which is one out of the many branches of N.H.I.F. The
study, therefore, suggests that similar studies be carried in the other branches for more accuracy
and confirmation of the results. The study also suggests that similar studies should be carried in
other organizations to authenticate the results across the entire organizational horizon.

40
 REFERENCES

Beard Well, I and Holden, L (1997) Human Resource Management: A contemporary approach
(2nd Ed) PITMAN publishing

Buzzota, V.R (1998). Improving your performance appraisals. Management Review

Coates, G.(1994), Performance Appraisal as an icon; Oscar winning performance. International

Jouran of Human Resource Management

Cole G.A (2002), Personnel and Human Resource Management.

Cole, G.A (2006), Management; Theory and Practice, (6th Ed.)TLtd, London

Denscombe, (1998), Improving performance appraisal.

Dulewicz, V. (1989). Performance Appraisal and counseling, in Herriot, Performance

Assessment and in Organizations, Methods and practices for recruitment and Appraisal.

Fisher et al (2003) Appraisal; an idea whose time has gone? Personnel Management, September.

Fisher, C.D, Schoenfeldt, L.F. and Shaw , J.B (2003), Human Resource Management

Greenberg, J. (1986). Determinants of perceived fairness of performance evaluation, Journal of

Applied Psychology,Vol 71, pp 340-342

Hutchinson, S. and purcel, J. (2003) Bringing policies to life; The vital role of front line
managers in people management. London chartered institute of personnel and
development.

Korman, K.A and Associates (1994). Society for industrial and organizational psychology.

Latham,G.P(1981)Increasing productivity through performance Appraisal, Wokingham;

Addiso- Wesley.

Lawrie, J. (1990), A Rue and Byars, (1993) Prepare for a performance Appraisal. Personal
Journal Vol 69, April, pp 132-136

41
Mc kenna and Beech (2002) The Human side of Enterprise New York.

42
 APPENDIX 1

QUESTIONNAIRE

Dear respondents.

The data required is purely for writing a final research project for the award of Diploma in
Business management at the Kenya Institute of Management. The main purpose of the study is to
determine the effects of employee performance appraisal on Service Delivery, with reference to
National Hospital Insurance Fund-Kisumu Office. Your opinions will be treated with
confidentiality and will be highly considered important.

PART ONE: Demographics

Please tick ( ) where necessary

1) Name of the respondent (optional)

……………………………………………………………

2) Gender

Male ( ) Female ( )

3) Education Level

Primary ( ) Secondary ( ) College ( ) University ( )

4) Within which bracket does your age group fall?

20-30 ( ) 41-50 ( )

31-40 ( ) 50 and above ( )

PART TWO: Clear Appraisal Processes.

Clear Appraisal Processes affect Service delivery

Strongly Agree ( ) Agree ( ) Disagree ( ) Strongly Disagree ( )

To what extent does Clear Appraisal Processes affect Service Delivery?

Large extent ( ) Moderate extent ( ) Small extent ( ) Does not affect ( )

PART THREE: Continuous Review of Appraisal Results

Continuous review of appraisal results affects service delivery

Strongly Agree ( ) Agree ( ) Disagree ( ) Strongly Disagree ( )

To what extent does continuous review of appraisal results affects service delivery

Large extent ( ) Moderate extent ( ) Small extent ( ) Does not affect ( )

PART FOUR: Employee feedback

Employee feedback affects service delivery within your institution

Strongly Agree ( ) Agree ( ) Disagree ( )

Strongly Disagree ()

To what extent does employee feedback affect service delivery?

Large extent ( ) Moderate extent ( ) Small extent ( )

Does not affect ()

PART FIVE: Action Plan

Action plan affect Service Delivery in your Organization

Strongly Agree ( ) Agree ( ) Disagree ( )

Strongly Disagree ()

To what extent does Action plan affect the service delivery of an organization?

Large extent ( ) Moderate extent ( ) Small extent ( )

Does not affect ()

Thank you for your contribution!

 APPENDIX III

WORK PLAN

MONTH/ FEB 2013 MARCH 2013 APRIL 2013 MAY 2013

ACTIVITY

Proposal Writing

Research drafting

Data Collection

Data processing And

Analysis

Writing of Research
report

Submitting the final

project

Source: Author (2013)

 APPENDIX IV

BUDGET

ITEMS AMOUNT (Kshs)

1. Stationery
4 pens@ ksh 20 80

1 ream of foolscap 360

Photocopy of literature 700

1 flash disc 500

Secretarial and printing 2,000

costs

2. Internet and telephone Internet browsing 500

3. Travel Transport expenses 1,000

5. Miscellaneous expenses Research assistance 1,000

TOTAL 6,140

Source: Author (2013)