EFFECT OF PERFORMANCE APPRAISAL ON THE EMPLOYEES PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS IN OSOGBO METROPOLIS, OSUN STATE, NIGERIA

Abstract

Although performance appraisal is critically important in organizational settings and has been extensively studied, its implementation and effectiveness remain subjects of ongoing challenges and debates. This research explores these issues by examining the effect of performance appraisal on employee performance in selected deposit money banks in Osogbo metropolis, Osun State. The study included 243 permanent employees from eleven banks, with a sample size of 81 determined using Taro Yamane's sampling method. Data were collected through structured questionnaires and analyzed using both descriptive and inferential statistics for hypothesis testing. The findings showed that the combined dimensions of performance appraisal significantly and positively influenced employee performance, explaining 61.6% of the variance. Specifically, the dimensions of 360-degree feedback (0.868), Management by Objectives (MBO) (0.691), and Behaviourally Anchored Rating Scales (MARS) (0.633) were found to significantly enhance employee performance. The results indicated a moderate relationship between performance appraisal and employee performance in these banks. In conclusion, the study highlights the significant role of performance appraisal techniques in improving employee performance and driving sales growth within deposit money banks in Osogbo. Based on these findings, it is recommended that bank management work collaboratively with employees to develop appraisal criteria aimed at promoting substantial sales growth.