Effect of Performance Appraisal on Organisational Performance in Public Sector: A Case Study of Ministry of Health Lusaka.

Performance appraisal on organizational performance in public organizations reveals significant insights into how appraisal systems can enhance employee effectiveness and overall organizational success. The purpose of this study was to examine the effect of performance appraisal on organizational performance in the Ministry of Health, Lusaka, Zambia. The study aimed to assess the current performance appraisal used at the Ministry of Health, the influence of performance appraisal design on performance and assess the impact of the numerical scale rating as a performance appraisal. The study-specific research objectives were to examine the impact of management by objective on organisation performance at the Ministry of Health, to determine the influence of performance appraisal design on organisational performance at the Ministry of Health and to assess the impact of the numerical scale rating influence on organizational performance. Guided by the theory of goal-setting theory and expectancy theory and the study used a qualitative research approach and a case study as the research design. Data was collected from the Ministry of Health using an interview guide and focus group. It was analysed using thematic analysis and findings indicated that MBO promotes accountability and motivation, appraisal design aligns performance with institutional goals, and numerical rating helps identify employee gaps. The study concluded that performance appraisal improves organisational performance. The study recommended that policy makers to set achievable objectives as some of the objectives are way too high and not achievable due to limited resources, Policymakers should communicate the importance of undertaking the appraisal. It should be viewed as a tool for growth and improving both the employee and the organisation performance and finally there is a need for the ministry to come up with a uniformity on the rating scale as this will provide clarity on the ratings and purpose of undertaking the design.