The Effect of Performance Management System on Employees’ Motivation: The Case of Awash Insurance Share Company
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Date
2020-10
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Addis Ababa University
Abstract
This study aimed to investigate the effect of performance management system on employees’ motivation in case of Awash Insurance Share Company. The study attended 87 % response rate as it collected 192 questionnaires (main data collection method) from 220 sample size. Using descriptive ad explanatory research design, the study found that the surveyed company performance management system has not been systematically integrated its key component of an organization's’ activities; the mean responses for agreement level have been declined gradually across to its performance management sprocess. The study also revealed that there is a positive and significant effect between prerequisite, planning, execution, assessment, and review and employee motivation using the correlation and multiple regression analyses. In addition, there is no difference between female and male employees, different age, education level and work experience in performance and motivational situation. However, there is a significant difference among married, single and other employees with their motivational status; no difference existed in their work performance using chi square. It can be concluded prerequisite, planning, execution, assessment, and review are very important for employee motivation. Accordingly, the surveyed firm and others may holistically integrated interconnected activities and to use an organization’s approach to managing performance through people and developing the skills and capabilities of its human capital. As a result, the study recommends the organization may effectively ensure the proper implementation of performance management system and align performance with the strategic goals of the organization
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Keywords
Insurance, Motivation, Performance