The Effect of Performance Management System on Employees’ Performance (the case of Addis Ababa City Government Revenue Bureau)
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Date
2021-07
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Abstract
In today’s highly competitive business environment attaining the uppermost performance is an extreme desire for all organizations. On the other hand, maintaining effective organizational and employee performance require a properly managed performance management system. Empirical research evidence implies managing performance properly results in having motivated and productive workforce. The aim of the research project is to investigate the effect of performance management system on the performance of employees in Addis Ababa City Government Revenue Bureau. The study has employed a descriptive and explanatory research design through quantitative research approach. For the purpose of investigating the study both primary and secondary data sources were used and primary data were collected from employees of the organization through structured questionnaires that have five point likert-scale. The organization has a total of 6012 employees including management staff from this a sample size of 376 were selected for the study based on a simplified formula through a combination of cluster, stratified and simple random sampling technique. Once data were collected it was analyzed through SPSS (Statistical Package for Social Science). The study revealed that Goal setting, performance appraisal, feedback, reward and purpose of PMS have a significant and positive relation with the performance of employees in the organization. Finally, based on the finding determined the study recommends organizational goal should be attainable, personal goal should be aligned with organizational goal, evaluation procedures should be clear, there should be a regular discussion and feedback. Moreover, the organization should link performance achievement to reward. On the other hand, the study has limitations regarding data and other issues. Mainly, since data were collected through structured questionnaire that is provided to respondents consequently collected data were self reported that could possibly present method bias.
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Employee performance, Performance management, Goal setting