Comparative Study of Performance Management and Reward Practices Between Privatized and Public Enterprises: Cases of Addis Ababa Tannery S.C. and Anbessa Shoe S.C.

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Addis Ababa University


This comparative case study compares the performance management and reward practiced being followed by Addis Ababa Tannery Share Company (privatized enterprise) and Anbessa Shoe Share Company (state owned). Its main objective was to investigate the differences in applying the different performance management and rewarding mechanisms. It also addressed the similarities and deviations in what the policy documents in those enterprises show. The data collection was made through questionnaire filled by employees, review of policy documents and interview with general managers of both enterprises. The sample respondents for administration of questionnaire were selected on random basis from each work units as groups in each enterprise. These were 32 in the privatized and 68 in the public enterprise which constitute 10% of employees in each. This case study contributes empirical information about performance management and rewards in privatized and public enterprise. Findings show that, in many instances, performance management practices are not significantly different between these enterprises. In some parameters of performance management, the privatized enterprise is found better than the public enterprise. However, this study has limitation in that a case study is not conclusive for all other similar organizations. The study concludes within a set of recommendations for improved practice in all sub sets of performance management and rewards. . Among others, both enterprises are recommended to make their PMS one that contributes for employees’ performance. Moreover, improved mentoring, giving autonomy for employees, to use 360 degree feedback appraisal and to consider individual performance while rewarding are the most important points recommended



Anbessa Shoe S.C.