Abstract:
This study looked at the relationship between performance appraisal and
employee performance of SMEs in Sekondi-Takoradi Metropolis. It
specifically analysed the impacts of performance appraisal method, feedback
and rater accuracy on employee performance by relying on the goal theory and
equity theory. Three research hypotheses were developed and tested to address
the study‘s objectives. This study employed a quantitative approach and an
explanatory research design to collect primary data using 132 valid sets of
structured questionnaires out of the total issued questionnaire of 150 from
selected SMEs in the Sekondi-Takoradi Metropolis. The information was then
analysed with SmartPLS 3 and IBM SPSS Statistics version 26. Partial least
squares structural equation modelling (PLS-SEM) was then used to analyse
the data and evaluate the assumptions. Findings from the study highlight the
significant of performance appraisal method, feedback and rater accuracy roles
in improving all three dimensions of employee performance (i.e., goal
achievement, quality of work and quantity of work). It was concluded that,
performance appraisal method, feedback, and rater accuracy from performance
appraisal play crucial roles in improving employee performance. The study,
therefore recommends that there should be carefulness in selecting the
appraisal method used in appraising, there should be regular training of
appraisers, there should be clarity in rating from appraisers and appraisal
discussion and counselling after results.
