Performance Analysis and Improvement of Ethiopian Leather Footwear Factories:

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Addis Ababa University


Nowadays there is a need for business enterprises to measure, analyze and improve performance as they encounter increasing competition from an ever-changing business environment. Performance is the valued productive output of a system in the form of goods and services and performance measures are the lifeblood of organizations, since without them no decision can be made, as it is the first step to control and improvement. Though the Government of Ethiopia is promoting the leather footwear industry as a priority area and the sector has a huge potential for developing an economy, its performance is unsatisfactory due to external and internal problems that hinders its competitiveness. Thus, the aim of this study is to assess and evaluate performance management practice of Ethiopian Leather Footwear Factories, identify critical problems and propose a firm level total performance improvement method and suggest roles of stakeholders or improvement directions towards the external problems. To undertake this research, primary and secondary data are collected through a survey questionnaire, interviews (in the form of discussion) and physical observation in the case factory (Anbessa shoe share company), as well as referring previous research works and case company records. To analyze and present the data, pie charts, bar graphs, and cause and effect diagram are used. In addition, to see the performance gap of the case factory, benchmarking is done. From the research, it is concluded that the leather shoe factories have both internal and external problems resulting low performance and competitiveness. To alleviate the internal or firm level problems, a total performance improvement method called Total Performance Scorecard (TPS) is proposed. In addition improvement directions are forwarded towards the external or sector level problems. Regarding the proposed method, a performance measurement framework/scorecards and its implementation guideline is developed for Anbessa S.C. TPS is a combination and also an extension of the concept BSC, TQM and Competences Management which is being defined as a systematic process of continuous, gradual and routine improvement, development and learning. The process focused on the solid increase of both the personal and organizational performances. This method has an important aspect in maximizing the involvement and loyalty of all involved person, as well as encouraging individual and team learning and creativity via its Personal Balanced Scorecard (PBSC). Key words: Performance, Performance improvement models, ELFFs, footwear manufacturing, Total performance scorecard



Performance; Performance improvement models; ELFFs; footwear manufacturing; Total performance scorecard