Factors affecting the effectiveness of performance appraisal in Tanzania: The case of orxy oil company Limited

Growing changes and challenges taking place in work organizations have a tremendous impact upon human resources and performance management. Performance appraisal constitutes an important tool of Human Resources Management; but there is a growing body of literature attesting to the fact that, in actual practice, formal performance appraisal programmes often yield unsatisfactory results. Thus, the objective of this study was to investigate factors affecting theeffectiveness of performance appraisal. This is, in principle, a case study which uses a number of techniques that are exploratory in nature methodological triangulation was used in order to supplement information o n the effectiveness of performance appraisal. A survey interview was administered to a sample of 79 employees and in depth interviews and documentary evidence were also used. The results show that, out of the five variables tested, three influence the effectiveness of performance appraisal. The three are ( 1) appraisers’ knowledge of the excursion of the performance appraisal function (2) employees attitude towards the importance of the performance appraisal function and (3)participation of top-level management in the performance appraisal function. The main recommendation derived from the findings is that, despite the difficulties and complications involved in performance appraisal, the issue not be whether to scrap it or not. Rather it should be how to Make it work better. Management should therefore support the execution of performance appraisal both financially and morally