Assessment of Performance Management Practice in Ethiopian Electric Power
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Date
2020-11
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Addis Ababa University
Abstract
Human resource is one of the most determinant factors for organizations success and survival. In light of this,
substantiating employee performance and creating performance-oriented culture is inevitable. Organizations
need to practice effective performance management system so as to improve the performance of individuals
and teams. Performance management system aims to build up the capacity of people to meet and exceed
expectations and achieve their full potential to the advantage of themselves and the organization. The main
purpose of this study was to assess performance management practices in Ethiopia Electric power. The study
also addresses the practice & process of performance management system, the attitudes of the employees &
leaders towards the system and challenges faced while implementing it. Descriptive type of research design
was used. In order to collect primary data, structured questionnaire which includes demographic profiles and
issues that related to performance practices designed with a five-point Likert scale was used. A total of 262
questionnaires were distributed to employees of the organization selected by using proportionally stratified
random sampling technique. Of which 247(94%) questionnaires were properly filled and returned. Interviews
were also conducted with Human resource development director, performance and reward management
manager and performance and reward management experts of the organization selected by using purposive
sampling technique. Data analysis was made using descriptive statistics, frequency and percentage. SPSS
version 24 was used to process the primary data which was collected through the questionnaire. The study
found that the practice of performance management system in EEP is not properly implemented though
performance management directives are designed. Employees are well aware of the mission, vision and
strategic objectives and the alignment between organizational objectives with departmental and individual
objectives. Managers and employees didn’t equip with the necessary attitude, skill, and awareness in
implementing the whole performance management process. In addition, EEP was not using performance
management results for any administrative and developmental purpose and high-level performances were not
recognized and rewarded adequately. Therefore, EEP should establish a full-fledged performance
management system that would cover all PMS steps and create employee understanding on this matter. Top
management of EEP should also be committed and exert its maximum effort to put the system institutionalized
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Keywords
Performance Management, Human resource, Electric Power