The effects of performance appraisal on employees of small scale medium enterprises in Nairobi : case of workers in small and medium enterprises dealing with clothing and textile within Westlands region

Author: Mburiah, Beth Wairimu

Awarding University: Kenyatta University, Kenya

Level : MBA

Year: 2007

Holding Libraries: Kenyatta University Moi Library ;

Subject Terms: Westlands, Nairobi, Kenya ; Performance appraisal ; Employees ; Small business ; Clothing industry ; Textile industry ;

Pages: 74

Advisors: Department of Business Administration//Mary Namusonge//Dominic Ngaga


The purpose of this study was to establish the effects of performance appraisal on workers in Small and Medium Enterprises in SMEs in Textile Industry in Nairobi.According to Mutenyo (2004) lack of consistent, reliable, automatic and well defined policy on SMEs approval leading to promotion and recognition of achievements has led to a very low morale of workers. This effects of performance has led to dissatisfaction with work and has increased subsequent turnover. The study adopted a descriptive research design. The population consisted of employees in Clothing and Textile Industry in Westlands region of Nairobi. Stratified random sampling was used to arrive at a sample of 150 respondents and data was collected by use of a questionnaire. Data collected was analyzed by use of descriptive statistics. The study sought to determine whether appraisal of workers lead to motivation and improvement of their performance. A total number of 59 workers completed the questionnaire and out of the 150 workers in the four selected SMEs . According to the study performance appraisal offered in SMEs had been a positive effects to those who had been transferred, promoted or demoted. The appraisal is also adequate despite the failure to effectively effect it on workers. From the stud it can be concluded that workers of SMEs have a positive perception towards performance appraisal. The study also concluded that appraisal is not an adequate factor that affects performance of workers, other interventions such as confidential report, working experience and exceptional performance needs to be addressed.