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Performance Appraisal System (PAS) which can be defined as the process of determining and communicating to an employee how he or she is performing on the job. In Kenya, PAS within the Civil Service was introduced around 2006 and has over the years become a popular staff management system driven via the popular government performance contracting initiative. The system is being embraced in the Kenyan public service for tracking employees’ performance in service delivery. PAS has signaled possibility for improved performance in civil service productivity and employee motivation. Despite the impressive performance and staff motivation signals elicited by PAS in civil service, no detailed description of the situation has been done. This study then sought to assess the effect of PAS in job performance and employee motivation in the Ministry of State for Public Service. The study adopted stratified random sampling. Staff were randomly sampled from also randomly selected departments who were interviewed using pre-tested questionnaires and through focused group discussions. Data was analyzed using appropriate statistical applications in SPSS. The researcher concluded that employees at the MSPS are usually involved in the setting of performance targets. They are also substantially appraised against the targets set at the beginning of the appraisal period. The study revealed that employees were given feedback to enable them improve their performance. This shows that PA has a positive impact on the employee’s performance which leads to motivation. The Ministry was for example number seven in the recent performance rankings released by the President and Prime minister. Based on the findings of this study, the following recommendations among others are made for consideration by the MSPS so as to enhance the employee’s work performance. PA is a good management tool but is should be subjected to continuous reviews in line with the changing trends. This is because HRM is dynamic and for PA to be Relevant, it has to keep up the pace. All stakeholders should be consulted during the PA process. This should include use of 360degree feedback.
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