Abstract:
This study’s focal intend was to evaluate the effect of performance appraisal on
performance of employees working in the SACCOs in Kisii County with moderating role
of HRM policy. The specific objectives were assessment of the effect of target setting on
performance of employee, evaluation of the effect of monitoring on employee performance,
effect of feedback on employee performance and establishment of the moderating effect of
HRM policy. This study is significant to the future researchers and people who will be
interested. The researcher used two theories: human capital and Goal setting theory. The
study targeted 9 SACCOs within Kisii County with 421 respondents, out of which 293
employees were selected to represent a sample size. The participants in the study were
chosen using stratified sampling, proportionate sampling and simple random sampling.
Self-administered questionnaires were used to obtain primary data from respondents.
Experts in Human Resource Management and supervisors assisted in testing instruments
validity. To evaluate how reliable, the instrument was, a pilot study was carried in the
bordering county of Nyamira with Cronbach’s alpha. The selected statistics was analyzed
using SPSS version 21.0. Descriptive statistics was used and the obtained results were
presented in tabular form, calculated the mean and standard deviation as well as the
frequency. The Pearson correlation moments indicated that there was a connection amid
variables under study. The inferential statistics technique such as simple linear regression
model and multiple linear regression models were involved for easy conclusion. Results
demonstrated that target setting and Feedback had a statistically considerable effect on
worker performance, monitoring had none statistically considerable effect on worker
performance and Human Resource Management policy had statistically significant effect
on employee performance. Recommendation for future study is to explore result of HRM
policy on performance of employees in other business societies.
