The Effect of Performance Management System on Organizational Effectiveness: In the Case of Ethiopian Roads Authority

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Date

2018-06-02

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Addis Ababa University

Abstract

The general objective of this study was to investigate the effect of Performance Management System (PMS) on Organizational Effectiveness (OE) in Ethiopian Roads Authority (ERA). Mixed of qualitative and quantitative research methodology has been used by the research. Among the total population of 2897 employees in ERA, 200 respondents were selected through stratified sampling design and 13 interviewees were also selected through purposive sampling design. Structured type of questionnaire has been employed, while semi-structured type of interview has been also used to collect primarily data. The study used both primary and secondary sources of data to gather the required information. Thematic, content and comparative data analysis techniques have been applied to analyze the data gathered through interviews. ‘Karl Pearson’s Correlation Coefficients’ has been put in use to do the correlation analysis, while ‘Simple Linear Regression’ has been also employed to provide regression analysis. The research findings have shown that there is a positively significant relationship between each dimension of PMS (performance pre-requisites, performance planning, performance execution, performance evaluation, performance review, and performance renewal and re-contraction) and OE. And the study also proved there is a positively significant association between the overall PMS and OE. HR managers can use the results of this study for identification and bridging of the gaps related to the PMS, and to get the direction and guidelines to improve the level of PMS and OE in large.

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Keywords

Ethiopian Roads Authority, Performance Management, Organizational Effectiveness

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