Effect of Performance Appraisal Intention on Employee Productivity in Public Hospitals in Mbeya region, Tanzania

Abstract

Studies on the relationship between performance appraisal intention and employee productivity in hospitals are scarce. The study aimed to explore the influence of performance appraisal intention on employee productivity in public hospitals. Specifically, the study explored the effect of appraisal feedback, compensation, promotion, and rewards on employee productivity in six public hospitals in Mbeya region, Tanzania. Simple random and proportionate stratified sampling were employed to get a sample of 338 employees and the actual sample size in each hospital. Data was collected using a structured questionnaire and interview checklist and analysed using Partial Least Square-Structural Equation Modelling (PLS-SEM). The results disclosed a significant positive connection between performance appraisal intention (performance appraisal feedback, promotion, and rewards) on employee productivity in public hospitals. The study concludes that improvement through performance appraisal feedback, promotion, and rewards lead to improved employee productivity in public hospitals. The study, therefore, recommends that the Ministry of Health of the United Republic of Tanzania should provide feedback, promotion, and rewards in time to sustain the performance of employees in public hospitals. Theoretically, this study implies that feedback and rewards enhance performance.  Practically, it implies that transparent appraisal systems are vital. Policy-wise, it implies that improved hospital productivity endorses performance-based policies like MTPP and HR strategies, ultimately strengthening primary health services.