The Role of Performance Management Practice on Employee Productivity in East Africa Bottling Share Company
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Date
2017-06
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Addis Ababa University
Abstract
The purpose of this study is to assess The Role of Performance Management Practice on Employee Productivity in East Africa Bottling Share Company (EABSC). The study was guided by four research questions which seek to answers whether the existing performance management practice of the company affects employee productivity or not. The study adopted an explanatory research design. Out of 411 target population a sample size of 203 was taken using Taro Yemani’s statistical formula and responses of 199 employees were analysed. Data was collected using structured questionnaires and the data was analysed using Statistical Package for Social Sciences (SPSS). From statistical tools, Pearson product-moment correlation and multiple regression were used to investigate the relationship and effect of performance management practice on employee productivity. The data was presented using tables, pie charts, and bars. The major finding of this study is that the independent variables, which are performance appraisal, performance based reward system and performance feedback from the process of performance management practice have positive and significantly high association and effect on employee productivity. From study, it is concluded that the performance management practice of the company has positive effect on employee productivity but in relation to performance based rewards the company doesn’t give adequate incentive for high performing employees and bonus is not granted based on individual employee performance contribution. Hence, it is recommended that, the company should provide incentive which is adequate to reward higher performance and increased productivity and should link bonus with individual employee performance.
Key Terms: Performance management, Performance appraisal, Performance based reward system, Performance Feedback and Employee productivity.
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Performance management, Performance appraisal, Performance based reward system, Performance Feedback and Employee productivity