The effects of performance appraisal on employee attitude: A case study of First Allied Savings and Loans Ltd.

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The research was intended to determine how performance appraisal affect employees’ attitude and at the long run work performance. The study assessed the performance appraisal process of FASL and whether the process is a fair one. Questionnaires were designed using structured questions to collect primary data from employees of FASL. Population for the research was drawn from management, senior and junior staff from Obuasi and Kumasi Branches (Adum, Roman Hill, Suame, and Asafo). The entire population was used for the research. Personal interview was also conducted with the Head of Human Resource Department and questionnaires were used to collect data. The results indicated that FASL’s employees were not given enough feedback concerning their work performance and viewed the system to be bias. Most of the respondents were of the view that the main shortcoming to performance appraisal was favoritism. It was discovered that, Performance appraisal had an impact on employees’ performance, thus, when appraisal is fairly done, employees tend to be pleased and it reflects in their work output on the other side, when it’s poorly done employees become bitter and it affects their performance. Effective and fair performance appraisal process would enhance employees’ performance. The studies also revealed that majority of the respondents were not counseled after performance appraisal. It is recommended among other things, that the processes involved in performance appraisal should be duly followed; FASL should make sure that feedback is given so as to help employees know how they are faring on the job.
A thesis submitted to the Department of Managerial Science, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION (Human Resource Management Option).