Measurement Of Employees’ Perception Of The Effectiveness Of Performance Management System And Fairness Of Performance Appraisal System In Malawi: Case Study Of Central Medical Stores Trust.

Abstract

The implementation of performance management system and performance appraisal system in both the public sector and private sector in Malawi is a common phenomenon. It is a principal instrument used by organizations to manage and assess various critical aspects of the employer-employee relationship. Plentiful literature is available which has discussed the effectiveness of performance management systems and the fairness of performance appraisal systems at length with focus on different dimensions of the same either collectively or respectively. However, there is limited information on measurement of the perception of employees on the performance management system effectiveness and the fairness of performance appraisal system in Malawi. The aim of this study was to assess the perception of employees on the performance management system effectiveness and the fairness of performance appraisal system. The cross-sectional design was used where 119 respondents from Central Medical Stores Trust were given a self-administered questionnaire, and one key informant interview was conducted. All employees from Central Medical Stores Trust were respondents in the study and the data were analyzed Analysis of Variance, Pearson Chi-square test and descriptive statistics through SPSS 20.0. Correlation was also applied to determine the relationship between performance management system effectiveness and fairness of performance appraisal system. The findings indicated that employees perceived performance management system and performance appraisal system to be ineffective and unfair. The study also found out that employees were not fairly involved in performance management system, the organization lacked performance-oriented culture, management was not committed to performance management system, and there was lack of performance appraisal system knowledge of the appraisers. In conclusion, the employees perceive performance management ineffective and performance appraisal unfair.