The impact of performance appraisal on the performance of Tanzania's work organisation: case study of Tanzania Postal Bank.

The most critical resource in any organization is the human resource. However, for the human resource to be meaningful there has to be a mechanism for evaluating its contribution in order to improve its contribution and take remedial measures for any weaknesses observed. The mechanism adopted is the performance appraisal system which measures the efficiency and effectiveness of employees working in an organization. Performance appraisal is a systematical evaluation of the individual employees with respect to his/her potential for development, which later on increase his commitment to the work. The objective of this study was to assess whether the performance appraisal exists in parastatals, how it is executed and whether it leads to performance improvement as studies show and also to identify and examine factors that inhibit effective execution of performance appraisal system at the Tanzania Postal Bank. Case study approach was used to collect data and principal methods of data collection were document reviews and observations. The historical approach guided the literature review. Deductive and inductive methods are used to test the hypothesis. Stratified and purposeful techniques were employed to select the respondents. The study findings are that: the current performance appraisal system need to be updated to conform with new business environment. The transparency surrounding the appraisal exercise including the absence of feedback mechanism has much to offer in respect of participatory discussion between employees and their supervisor. That, employees are not effectively involved in the performance appraisal process at the bank. This has been attributed to among other things, lack of thorough briefing sessions to appraisers so as to remove uncertainties, reduce anxieties, reduce subjectivity, attain the necessary confidence and increase understanding of the appraisal scheme, its objectives and benefits arising thereof. The study concludes that there should be improvements in the performance appraisal instruments to cater for the new business environment needs. The study, therefore, recommends that in order for Tanzania Postal Bank to obtain the full benefit of performance appraisal function it should conduct specific training to supervisors and employees being appraised in order to impact special skills on appraisal process and to encourage altitude of mind over the exercise so that they give due emphasis to this important aspect. The Tanzania Postal Bank should further improve the appraisal instruments so that the appraisal system become more open and participative which will facilitate work improvement hence, increase productivity.