A dissertation submitted to Dar es salaam Campus College in partial fulfilment
of the Requirement of the award of Master In Science in Human Resource
Management Degree of Mzumbe University.
Performance appraisal system is important to any organizational work performance;
it determines the organization’s success or failure. The aim of this study was to
evaluate the challenges encountered in the implementation of performance appraisal
in financial institutions in Tanzania. The focus of the study was on the employees of
the Bank of Africa Ilala District. A cross-sectional survey was selected for this study
because it was cheap to undertake compared to longitudinal survey and the results
from the sample can be inferred to the larger population. The study population was
all the employees of BOA Ilala. The whole populations of staff were selected as
respondents. A structured questionnaire was used to collect the data for analysis. The
analysis of the collected data was done by using of descriptive statistics and
frequency tables. The findings from the study have established that performance
appraisal function in financial institutions face a number of problems brought by
factors such as poor organization systems, personality and leadership. Issues such as
ratting errors, lack of adequate training, performance appraisal schedules, and
biasness just to mention a few have been hindering the performance appraisal
functions. The researcher has also described the recommendations on how the
performance appraisal should be conducted to avoid problems. For example the
ratting standards, qualities of the performance appraisal tools and schedules.
Conclusively the managers should ensure that performance appraisal has an impact
to the employee’s improvement in their job performance.