The effect of Performance Appraisal on Employees job satisfaction in the case of Ethiopian Airlines

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Addis Ababa University


The objective of the study is to examine the effect of performance appraisal on employee job satisfaction in the case of Ethiopian Airlines and to provide recommendation as how to Ethiopian bring employee job satisfaction by improving its performance appraisal practices. The success of any organization depends on the quality and characteristics of its employees because employees are the soul and blood steam of the organization and without them the organizations cannot achieve their goals and objectives. The researcher employed explanatory research design and quantitative research approach to analyze the effect of PA on job satisfaction. The data required for study is obtained from primary and secondary data sources. A self-administered structured questionnaire was intended to collect the relevant and required data from the respondents. The researcher was used simple random sampling technique for the selection of respondents. A total of 388 questionnaires were distributed to the sampled respondents randomly among the target 350 questionnaires were answered & returned successfully which denoted 90% response rate. To check the reliability Cranach alpha was employed and to check the validity of the instruments pilot test was carried out. The data was analyzed by using SPSS software and it was presented through descriptive and inferential statistics. The findings revealed that there is a strong positive and high degree of correlation between PA and employees job satisfaction. The study found that 56% of variations in job satisfaction is explained by PA components. The findings indicated that majority of the employees are not satisfied with the current performance appraisal practices. Therefore, Ethiopian should develop a good feedback system and done fair PA result of employees based on objective data. Besides, the highest management should appreciate the effectiveness, importance and fairness of performance appraisal to increase the level of employee job satisfaction



Performance appraisal, job satisfaction, Feedback and Fairness