The Effects of Performance Appraisal on Employee Motivation the Case Of ZTE
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Date
2021-10
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Addis Ababa University
Abstract
The general objective of the study was to determine the effect of performance appraisal on
employee motivation at ZTE (HK) Limited Ethiopian Branch (ZTE). This study was guided by
four research objectives namely: assessing the effect of performance appraisal techniques and
standards on employee motivation, effects of performance appraisal objectives on employee
motivation and establishing the extent as well as the level to which performance appraisal can
affect employees’ motivation at ZTE. The study used both descriptive and explanatory research
designs. From 245 populations a sample of 167 staff was selected by using stratified random
sampling and distributed also selected to each department by simple random sampling.
Structured questionnaires were used to collect data and 141 responses were included in the
analysis. The reliability of the instrument was checked using Cronbach Alpha and it was found
0.809 which is mostly considered as the highest reliability. The data were analyzed using the
SPSS_Version_25. The result of correlation analysis evidenced that performance appraisal
standards, methods or techniques, and objectives are positively correlated. Moreover, the
regression model analysis shows that performance appraisals objectives have importance to
employee motivation. Hence, based on the finding the study conclude that employees need to be
aware of the actual implementation of performance appraisal practices both components
(performance appraisal standard measure and methods or techniques) have to be improved for
better or to enhance employee motivation. The study recommends that understanding PAS is the
major issue because performance objectives are one factor that influences the most on employee
motivation on the findings. Furthermore, the company should enhance their employee motivation
by financial and non-financial rewards scheme, should develop learning and career
development, create work-life balance, a good working environment, and should develop a fair
and proper PA practice. In addition, it is recommended that future researchers should assess the
factors affecting PA by using other variables
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Keywords
Performance Appraisal, Employee’s Motivation, development