The Effects of Performance Appraisal Practice on Organizational Performance and Job Satisfaction in Ethiopian Civil Aviation Authority: The case of Air Navigation Department
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Date
2020-07
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Addis Ababa University
Abstract
Many studies have been conducted on the relationship between performance appraisal practices and its impacts on employee job satisfaction and organizational performance. The findings differ as there are different performance appraisal approaches. Besides, indicators of employee job satisfaction and organizational performance vary from industry to industry. This research was designed to address the gap of knowledge about performance appraisal and its role on organizational performance and job satisfaction in the Ethiopian Civil Aviation Authority Department of Air Navigation. Quantitative and qualitative research method was employed to address the research questions. The result shows that the most frequently used types of performance appraisal were forward-looking approach and incident reporting method in combination as indicated by the respondents. Employees reported that the performance appraisal practice is biased and that they lack confidence in the process of performance appraisal since it is unsystematic and irregular. The results of performance appraisal are not only unreliable but also not communicated to employees timely. The study revealed that organizational performance is hardly related to the nature of performance appraisal. The activities done to increase job satisfaction produced poor level of job satisfaction. In short, there is a converse relationship between performance appraisal practices and organizational performance and job satisfaction. Therefore, it is concluded that the idea and practice of performance appraisal in the Ethiopian Civil Aviation Authority deserves serious reconsideration. To that end, the researcher recommends the Ethiopian Civil Aviation Authority should introduce a multi-source feedback or 360 degree performance appraisal method
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Performance Appraisal Practice, Organizational Performance, Job Satisfaction