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The purpose of this study was to establish the effects of performance appraisal on employee motivation in commercial banks: a case of equity bank, Kenya . The study investigated the effect of objectivity of the performance appraisal and feedback on employees’ motivation. The study applied case design. Census sampling was used which involved all the 12 top level management and 24 middle level management and 112 lower level management. Data was collected using a questionnaire. Data collected was analyzed using Statistical Package for Social Sciences version 22. Descriptive statistics and thematic analysis was used for analysis and data was presented using frequency tables and bar graphs. This study will help in identification of satisfiers and even dissatisfies that can be used to reduce absenteeism, turnover and laxity among employees in commercial banks. The study will be of importance to the management of commercial banks in Kenya in understanding the successes and challenges of the appraisal process and its effect on staff motivation. This will contribute to improvement in the appraisal process in the organization. The study is also of value to the academicians and future researchers as it will add knowledge to the field of staff appraisal and give an understanding on the relationship between performance appraisal and employee motivation. The findings indicated that objectivity of performance appraisal and feedback positively influenced employees’ motivation. The effect of feedback was found to be positively related to employee motivation and had the most statistically significant coefficient. The objectivity of performance appraisal was positively related to the employee motivation. Key Words : Performance Appraisal, Feedback, Employee Motivation, Equity Bank of Kenya
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