Abstract:
This study looks at the effect of performance appraisal system of selected 
banks in Akim Oda. The specific objectives are to examine the relationship 
between performance appraisal and employee commitment, the extent to 
which it affects performance and intention to quit. The study adopted a 
quantitative method with a sample size of 80. Questionnaire was the main 
research instrument which was used in the collection of data. Data was 
analysed with means, standard deviations, frequencies, percentage, correlation 
analysis, and regression analysis. The results of the research revealed that 
there was an overwhelming agreement from the respondents affirming that 
performance appraisal systems exist in the banks. Employees indicated that 
there are appraisal systems that address employees’ strengths and weaknesses 
and that the bank have well-defined policy on appraisal of employees. The 
results showed a positive relationship between performance appraisal and 
employee commitment. The results of the study also showed a very high 
satisfaction with the performance appraisal system across all the banks. A 
relatively higher percentage of the employees indicated that performance 
appraisal information is not used in improving employee salary. The study 
concludes that performance appraisal systems affect employee commitment.