Effects of employee performance appraisal on service delivery in parastatals: A case of national hospital insurance fund, Kisumu, Kenya

This paper was set to investigate the effects of employee performance appraisal on service delivery. The specific objectives of the study were to find out the extent clear employee appraisal processes, continuous review of appraisal results, providing feedback and using action plan improves service delivery at National Hospital Insurance Fund, Kisumu, Kenya. The study adopted a case study research design with a target population of 50 employees. A sample size of 44 was used. Data was collected randomly using a structured research questionnaire. Collected data was edited, coded and verified. Data was then entered in an excel spread sheet and analyzed using descriptive statistics. The study found out that clear appraisal process, continuous review of appraisal results, giving feedback and using action plan improved service delivery by a large percentage. The results of the study will be significant to the management in strategizing and establishing excellent appraisal policies with a view to achieving standardized organizational service delivery. The study recommended that National Hospital Insurance Fund, Kisumu office should strengthen performance appraisal programmes in order to motivate employees for competency and effective delivery of services.