The impact of performance management appraisal on the employee’s morale and job satisfaction in the city of uMhlathuze.

Abstract

The study investigated the impact of performance appraisal on employee morale and job satisfaction at the City of uMhlathuze. The objective was to identify, investigate and determine performance appraisal system in relation to job satisfaction and employee morale. The study was designed to focus on the accessible population (N=251) of the staff housed at Head Office. The research followed a quantitative structured research design using a positivistic paradigm or worldview. A proportional stratified probability sampling was used to randomly select 132 respondents. A survey method and questionnaire were used to gather data. Inferential and descriptive statistics were used to analyze and present data. Internal validity was ensured by piloting the data collecting instrument and the Cronbach’s alpha internal consistency evaluation. Item analysis was used to determine the reliability constructs in relation to the measuring instrument. Summarily, the study has found that City of uMhlathuze implements a performance appraisal system by rewarding performance and correcting unsatisfactory performance. The study further uncovered a significant correlation between performance appraisal methods with employee morale. The performance appraisal’s fairness and purpose was significantly correlated with employee morale (correlation=0.603, p-value<0.001). In terms of correlation analysis of the relationship between the appraiser’s competence and employee’s morale and job satisfaction, the study indicates that there is significant correlation between the appraiser’s competence, as far as his/her conduct is concerned, and employee morale (correlation=0.592, p-value<0.001). Furthermore, there is a significant correlation between appraiser’s competence, as far as his use of the appraisal system is concerned, and employee morale (correlation=0.542, p-value<0.001). The study safely concludes that the City of uMhlathuze is implementing its performance appraisal system which focuses on various aspects such as employee rewards programme. The study has shown that employee’s morale and job satisfaction is significantly impacted on by the way the appraisal system is run, both from the conduct of the appraiser and the way the system is structured. The appraisal system’s fairness and purpose, employee focus, performance enhancement, loyalty enhancement and skills development aspects were found to impact positively on employee morale. The only aspect of the appraisal system that was found not to have any bearing on employee morale was appraisal frequency. Generally, it was found that most of the employees of COU were not happy with the way the system is implemented. This means that if improvements are made in the implementation of the system, then the positive outcomes in the form of employee morale and job satisfaction will be realized. The positive relationship between good implementation of the system and the morale cannot be overstated and a fair implementation will be expected to yield positive results. This relationship is also confirmed by other studies on the relationship between performance appraisal Moreover, the study concludes that appraiser’s competence has impact on the employee’s morale. This means the appraiser’s competence can either motivate or demotivate the employees. It is therefore crucial for proper training to be offered to appraisers before undertaking employee assessments The study recommends future studies on performance appraisal with a focus on a different context or set-up. The study further recommends more studies, with the focus on mixed methods (i.e. combination of qualitative and quantitative). The study is generalized, and management of City of uMhlathuze should note the findings which should inform future decision making processes at the organization.