The Effect of Performance Appraisal on Employee’s Performance Improvement: the Case of Ethiopian Management Institute

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The study aims to examine the effect of performance appraisal process on employee performance improvement in the case of Ethiopian Management Institute. The objective of the study is to examine the effect of performance appraisal process on employee’s performance improvement. The research is explanatory type and the study used quantitative approaches. Primary data were integrated to be able to provide adequate discussion and to get current information about what has already been discovered. The sampling technique that the researcher used in addressing the research problem was probability and stratified random sampling. The sample for the study was consisted of 93 respondents. The data collection instrument for this study was questionnaire. Survey instruments developed in this study were structured questionnaire that contained 34 items. Data was analyzed using descriptive statistics (percentage, mean and standard deviation) and inferential statistics (t-test, anova-test, correlation and multiple regression analysis). The findings of the descriptive analysis revealed that there is a wide gap in the application of all the components of performance appraisal process such as, establishing performance targets/standards, communicating established standards, appraisal process/measuring actual performance/, discussing the appraisal results with the employee and giving feedback and initiating corrective action. It implies that performance appraisal programs should relate to the theoretical issues of managing appraisals in order to utilize and improve employee’s performance improvement. Thus, this study recommends the appraisal system to be standardized and communicated. The study also recommends strengthen capacity building programs on appraisal system.


A Thesis Submitted To Addis Ababa University College of Business and Economics Department of Management in Partial Fulfillment of the Requirement for Masters in Business Administration


Employee performance, Performance appraisal