The Effect of Performance Appraisal System on Employees’ Work Performance; in National Tobacco Enterprise (Ethiopia) Share Company

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Addis Ababa University


This research was about performance appraisal system and their effect on employees’ work performance satisfaction. The major purpose of the research was investigated the effect of performance appraisal system on employees’ work performance of NTE share company employees and also their reactions towards the overall performance appraisal system depends on the distinctiveness, consistency, and consensus as well as its major factors such as fairness, employee-manager relationship, rewards linked to appraisal, specific  accurate feedback, clearly defined goals, confidentiality and mutually set goals, towards the performance appraisal system. In conducting this study, the required data is obtained through closed ended structured questionnaires. The questionnaire was adopted and adapted from three prior related studies. To determine the sample from the total population of 520 employees, first, the target population was stratified in to four stratums and then to select respondents from each stratum simple random sampling technique was applied; having this, the researcher uses formula based-sample size determination. Basically, a total of 226 questionnaires were distributed to the sampled employee, among these 182 were returned. Thus, 182 returned questionnaires (i.e. representing 80.5%) % of response rate) are analyzed using statistical package for social science (SPSS version 20). In the analysis descriptive statistics, correlation analysis and; linear regression analysis was performed. The descriptive finding of the study shows that in NTE Share Company employees had low level satisfaction existing performance appraisal practice of criteria(factors). Employees of NTE Share Company have low level of work performance. The analysis of result indicated that there is no performance appraisal satisfaction in the Company and employees’ work performance relationship that is weak or low level of the employees’ work performance. The response about the effect of performance appraisal System on level employees’ satisfaction with Distinctiveness the respondent to some extent was positive. And also Consistency and Consensus low level of satisfaction .the correlation analysis result also indicates employees’ work performance of performance appraisal System had positive and significant (Very strong association) relationship with employees’ work performance whereas the finding of linear regression analysis indicates that performance appraisal System had positively and significantly influence work performance. Therefore,. In doing so, human resource department should play a vital role in the overall process of performance appraisal System influence employees’ work performance. Finally, it is forwarded that further research has to be done in more completed and comprehensive way. Keywords: Factors affecting of PAS and Effective PA elements, Employees work performance.



Factors affecting of PAS and Effective PA elements, Employees work performance