An assessment of Performance Management System in three private electromechanical manufacturing organizations in Addis Ababa

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Addis Ababa University


Performance management system has several benefits for any organization. It increase self esteem of employees, it provides insight about subordinate, makes organizational goals clear etc. To continuously improve the system, the strength and weakness of the system in the context of organizations should be assessed. In line with the above view, this particular study tried to assess the performance management system of selected private manufacturing organizations. The objective of the research was to assess the performance management system in selected manufacturing organizations in terms of implementation, purpose and best practices of the systems. The research followed a quantitative technique and data gathered through close- ended questioner. Sample size of 252 has been determined by the use of appropriate sample determination formula and stratified random sampling technique was employed to distribute the designed questioner. To address the issue of reliability and validity Cronbach's Alpha and pilot testing was conducted respectively The research found out that the organizations performance management system does not link organizational goal with the personal goal of employees, does not serve for pay decisions and have a problem of serving for organizational maintenance purpose. But the organizations performance management systems serve better with respect to documentation, communication and developmental purpose. The organization performance management systems in terms of implementation can be considered in a better condition with exception of performance review components. Good practices such as appealing procedure, ethics in evaluation, fairness of the systems from distributive justice point of view, evaluation of all employees are some of the good practices exercised in the organizations



Performance management system, selected manufacturing organizations, best performance practices