THE EFFECT OF EMPLOYEE PERFORMANCE APPRAISAL ON PERFORMANCE OF SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN TANZANIA
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Abstract
This study examined the influence of performance appraisal on performance of Savings and Credit Co-operative Societies (SACCOS) in Tanzania. The study aimed at determining how performance appraisal tools, performance standards, and evaluation process affect SACCOS performance. Further, the study intended to examine the moderating effect of workforce diversity on the relationship between performance appraisal and SACCOS performance. Resource based view theory was used in the study. Quantitative approach was employed. Data was collected by using questionnaires from 317 HR managers or their equivalent (SACCOS Managers). Descriptive and correlation statistics were used for data analysis. Through correlation analysis, it was found that performance appraisal tools, performance standards, evaluation process and workforce diversity positively correlated with SACCOS performance. Further, hypothesis testing revealed that all the independent variables had significant linear relationship with SACCOS performance. Multiple linear regression analysis results showed that among all the three independent variables, only performance evaluation was found to be a significant predictor of SACCOS performance. When moderation effect of workforce diversity was tested, it was concluded that workforce diversity has a significant moderation effect on the relationship between performance appraisal and SACCOS performance. The study recommended SACCOS to have performance appraisal tools to enable them managing employee performance. Further, SACCOS has to establish well known standards to be used evaluating performance of their employees. Lastly, SACCOS should consider having a diverse workforce in terms of gender, age and education level.
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References
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