Abstract:
Purpose – The main purpose of this paper is to investigate the effect of performance appraisal mechanisms on
employee productivity in public hospitals in Mbeya – Tanzania, when mediated by working environment and
management style.
Design/methodology/approach – Using a sample of 338 employees, a cross-sectional design was adopted;
questionnaires and interviews were used to collect primary data. Partial least squares structural equation
modelling (PLS-SEM) was used to determine the relationship between the variables, and Sobel’s test was
performed to test the mediation effects.
Findings – Astudy found a strong association between performance appraisal mechanisms and employee
productivity (p < 0.05). Goal setting significantly enhanced employee productivity (p < 0.05). Performance
planning negatively impacted employee productivity, especially when combined with the working environment
(p < 0.05). Assessment criteria had a significant positive effect on employee productivity when mediated by
working environment and management style (p < 0.001).
Originality/value – This is the first study to examine how a performance appraisal system influences the
productivity of public hospital employees in Tanzania. The study further explores the potential mediating effects
of the work environment and management style on this relationship. By analysing the interplay between these
variables and their impact on productivity, organizations can develop targeted strategies to boost employee
performance and achieve superior results.
