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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Date
2011-07
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Addis Ababa University
Abstract
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
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Anbessa Shoe S.C.