School of Business and Economis

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Browsing School of Business and Economis by Subject "Appraisal report"

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    Influence of performance appraisal on employee retention at equity bank head office in Nairobi, Kenya
    (Mount Kenya University, 2024-06) Otieno, Eugenia
    Even with the critical role of retention of highly qualified employees in the organization, banks have been losing employees all cadres of employees. Staff retention is important in the success of banking organizations. The study therefore sought to evaluate the influence of appraisal of performance on employee retention at equity bank head office, Kenya. In this study, vroom expectancy theory, goal-setting theory and equity theory were adopted to underpin the relationship between study variables. Descriptive research type will be adopted. The research was carried out in the capital city of Kenya and specifically at equity bank head office. The target population was the 306 staff attached to Equity bank head office in Nairobi Kenya. The staff targeted fall in two distinct levels including management and non-management staff. The researcher adopted stratified random sampling where the target population were segmented into mutually exclusive sub-groups called strata including top managers, middle managers, first line managers and non-management staff. To determine the exact sample size, the study adopted a formula suggested by YaroYarmjne where the sample size was 173 employees. Questionnaire were adopted to collect primary data. The questionnaires were structured and segmented into sections including demographic information, performance appraisal and employee retention. The study was carried out a pilot study at Family bank of Kenya head office where 17 employees participated in the pre-study. The filled questionnaires collected from the filled were checked for completeness to determine the response rate. The questionnaires were then coded and the data entered into SPSS for further analysis. The study first run descriptive statistics analysis using tools such as mean, standard deviation, frequency distribution and percentages where necessary. The study then carried out inferential analysis comprising of bivariate pairwise correlation and multivariate OLS regression analysis to evaluate the association between performance appraisal and employee retention at equity bank head office. The analysis was presented inform of tables accompanied by associated explanations. The objectives were examined at 5% level of significance with p-values less 0.05 showing significant association between dependent and independent variables. Based on regression analysis, the study showed that the influence of target setting on employee retention was positive and Significant. The influence of Performance Measurement on employee retention was positive and Significant. Further, one unit improvement in performance measurement leads to .335 units increase in employee retention. The influence of appraisal feedback on employee retention was positive and Significant. The positive influence means that improving appraisal feedback by one unit leads to improving employee retention by .153 units. The influence of utilization of appraisal report had a positive and significant. The study thus concluded that performance appraisal (target setting, performance measurement, appraisal feedback and utilization of appraisal report) had a significant influence on employee retention at equity bank. The study recommends that management of equity bank to improve performance appraisal through enhancing target setting, putting in place adequate tools of measuring performance level, improving its appraisal feedback loop and improve the utilization of appraisal report to enhance employee retention.