ABSTRACT
This paper analysed factors that determined effective performance
appraisal in organisations. The analysis relied heavily on those
factors that makes performance appraisal in an organisation
effective.
This paper also looked at the purposes and benefits of
performance appraisal as well as its challenges to organisations.
The chi-square analytical techniques were used to determine factors
that makes performance appraisal effective and whether
performance appraisal was beneficial to the organisation. It was
also used to determine the challenges faced by organisations in
appraising performance.
The findings of the study suggested that
factors such as set standard, communication, documentation,
feedback and personal bias significantly determine an effective
performance appraisal and motivation/satisfaction, training and
development, employees, evaluation and recruitment/selection as
benefits of performance appraisal to organisations. It also suggested
that criteria for rating, evaluation techniques, competence raters and
error in rating were the challenges faced by organisation. To
conclude, the study recommended that system procedures and its
administration should be standardized and uniform in their
application especially when the information generated by the
appraiser is used to compare employees.
