Assessing the Contribution of Performance Appraisal on Organizational Performance in Tanzania

Abstract

The aim of this study was to assess the contribution of performance appraisal on organizational performance in local government authorities in Tanzania, using Butiama District Council as a case study. More specifically, this study explored the effect of performance appraisal on organizational performance, identified the challenges facing implementation of performance appraisal and find out how to overcome the challenges facing implementation of performance appraisal. The study was guided by Goal Setting Theory of Performance Management System. A case study research design and a qualitative research approach were used in this study. The study was conducted at Butiama District Council Headquarters office. The study population included the Council Management Team, and other employees in Butiama District Council. The sample size was 33 employees who were selected using a purposive and convenience sampling techniques. The interview and focus group discussions were used to collect data. Content analysis was used to analyse the qualitative data for all specific objectives of this study. The research findings identified three key strategies; eradicating biases, improving communication, and establishing clear appraisal standards to enhance the effectiveness of performance appraisal. Positive correlations were uncovered between performance appraisal and organizational performance, manifested in improved job performance, motivation, and overall efficiency. However, challenges such as biases, poor adherence to guidance, and recent errors were identified, emphasizing the need for targeted interventions. The study recommends future researches should include exploring the long-term effects of performance appraisal interventions, the role of technology, and comparative analyses across public institutions or sectors.