EFFECT OF PERFORMANCE APPRAISAL SYSTEM ON EMPLOYEE PERFORMANCE AT PWANI UNIVERSITY, KILIFI COUNTY, KENYA

Purpose of the Study: This study examined the effect of the performance appraisal system on employee performance at Pwani University. The research sought to determine whether appraisal practices such as feedback, transparency, and evaluation procedures significantly influence employee productivity, work quality, and responsiveness to stakeholders within the university’s academic and administrative workforce environment. Methodology: The study adopted a descriptive survey research design. A target population of 540 faculty and administrative staff was considered, from which 230 respondents were selected using stratified and random sampling techniques. Data were collected through structured Likert-scale questionnaires and analysed using descriptive statistics and simple linear regression analysis. Findings: The study achieved a response rate of 96% representing 221 respondents. Findings indicated that employees generally perceived the performance appraisal system positively. Appraisal feedback recorded the highest mean score (M = 4.20, SD = 0.690), showing that employees valued constructive feedback in improving performance. However, appraisal transparency and timeliness received comparatively lower ratings, suggesting areas requiring institutional improvement. Regression analysis established that the performance appraisal system significantly and positively influenced employee performance (B = .618, β = .651, p < .001). The appraisal system explained 42.4% of the variation in employee performance (R² = .424), leading to rejection of the null hypothesis conclusively. Conclusion: The study concludes that an effective and well-structured performance appraisal system significantly enhances employee performance at Pwani University. Strengthening transparency, ensuring timely appraisal processes, and linking appraisal outcomes to career growth and promotion decisions can further improve employee productivity.