The Effect of Performance Management on Organizational Performance - in the case of Ethiopian Airlines

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Addis Ababa University


The objectives of this study were to attest the effect of performance management on organizational performance in Ethiopian Airlines. In addition, the study intended to determine whether a relationship exist among the variables; Integration (between organizational performance matrices and individual performance measures), Cascading (organizational objectives to individual level), Alignment (strategic objectives with key performance indicators) and Awareness (about organizational performance matrices). In order to capture the logical structure of the study, the researcher used both descriptive and explanatory research designs. A questionnaire was administered to 370 employees. The respondents were selected using simple random sampling method. The questionnaire was tested for its reliability and found to be reliable enough to study the research questions. The data collected from the survey was analyzed using SPSS software version 20.0 and presented in the form of descriptive statistics, Pearson Product Moment Correlations and Linear Regression Analysis. The results of linear regression analysis shows that Integration, cascading, and alignment significantly influence organizational performance of Ethiopian airlines. But Awareness is found to be not significant to influence organizational performance. The effectiveness of Integration between organizational performance matrices and individual performance measures, proper cascading of organizational objectives to individual level, and high alignment of strategic objectives with KPI’s directly affects organizational performance. Recommendations are also made based on the overall findings for possible action which will help further improvement based on the researcher view.



Performance Management, Alignment, Integration