Management of performance appraisal practices in Tanzania’s financial institutions a case of Exim bank (T) Ltd

This study provides an overview of Performance Appraisal practices in Tanzania’s financial institutions. Its main objective was to assess the management of Performance Appraisal practices in Tanzania’s Financial Institutions, the case being Exim Bank (T) Ltd. The study population included the Bank’s employees with the sample study of 51 employees at different ranks. The respondents were drawn randomly from the Bank’s Corporate Office and both Dar es Salaam and upcountry branches within Tanzania. Primary data was collected through questionnaires and was run using SPSS 17 software. The research analysed the findings of both primary and secondary data. The study revealed that in order for Performance Appraisals (PAs) to be effective, it is essential to link decisions made on such things as staff promotion, training, punishment and salary review with performance results as to motivate staff to work harder hence improving their performance levels. It was found that there was need to not only follow the established Policy but to revise a few sections on the communicated Policy on Performance Management and Performance Appraisals in particular. There was also need for User-friendly Policies to be put in place. The need to furnish the employees with Key Performance Indicators (KPIs) came out strongly while support from HR during the exercise was deemed important. Hindrances pointed out were the need for raters to continuously communicate to those being rated and to separate PAs from grievance and disciplinary issues