Abstract:
Performance Management System is an essential tool for enhancing an employee’s productivity and facilitating organization productivity. However there is no consensus on whether performance management system can automatically enhance employee productivity. In addition, it has been observed that performance management systems has had limited success due to a number of challenges that include lack of expertise, subjectivity and evaluation criteria given the absence of adequate performance baseline data resulting from non-existent job descriptions, terms of reference and certain schemes of service. The main objective of this study was to assess the role of performance management systems on employee productivity amongst employees of KALRO-Sugar Research Institute in Kisumu. The specific objectives of the study were to: examine the effect of Staff Development Plans, Performance Appraisals and Reward and Recognition Systems on Employee Productivity. The study was guided by Institutional, Contingency and Goal setting theories. Descriptive research design was adopted for the study. A census of the whole population of 140 was used. Data was collected using questionnaires. Expert judgment was used to determine the validity of the instruments and split half method used to determine reliability. Measurements were done by use of Cronbach alpha coefficient which produced an acceptable value of 0.883. Quantitative data was analyzed using both descriptive and inferential statistics. The study established that staff development plans and performance appraisals was not different from zero thus from the full model perspective the null hypothesis was not rejected and concluded that both variables did not have any significant effect on employee productivity. Rewards and Recognition Systems had a positive and significant relationship on employee productivity with a p-value of 0.037 and thus the null hypothesis was rejected. The study concluded that the KALRO – SRI should optimize the use of performance management systems to achieve both organizational and employee goals which then could enhance productivity of both human and capital resources. The study recommends that KALRO Sugar Research Institute should strive to promote their employees once developed so as to enhance greater output of productivity and employee satisfaction. Use of objective performance evaluation that provide employee with clear understanding of their goals, in what areas they have excelled in, and what areas need more focus.
