Abstract

Performance appraisal is one of the most important human resource activities that help in improvement of employee performance. It is designed to help employees improve their performance by identifying their strengths and weaknesses. When performance appraisal (PA) is carried out properly employees feel empowered and this will have a positive impact on their morale. Employee morale is crucial in that it will determine how much effort employees put in their work which may lead to increased or decreased production. This study has looked at performance appraisal as one of the factors that have an impact on employee morale, specifically, the study has considered the effects of performance appraisal on employee morale at the National Bank of Malawi. The objectives of the study were to investigate: the manner in which performance appraisal is conducted, employees’ perceptions about the conduct and use of the results of the PA process and the effects that the PA exercise has on employee morale. Being a qualitative research, questionnaires were used to collect primary data. Face to face interviews were also done with a few purposely-selected respondents. To substantiate findings, literature review was done. Data analysis was done using SPSS. Results reveal that performance appraisal results are used for the intended purposes except for promotion because vacancies are not always available. This brings in mixed reactions to the extent that some employees’ morale is affected. It was therefore concluded that performance appraisal affects employee morale either positively or negatively. It is therefore recommended that performance appraisal be conducted purposely and seriously so that employees’ morale is not affected after the results are put into use.

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School	: School of Law, Economics and Government
Issued Date	: 2008

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