The Effect of Performance Management System on Organizational Effectiveness in the Case of Caritas Switzerland-Ethiopia
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Date
2026-09-03
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Addis Ababa University
Abstract
This study intends to examine The Effect of Performance Management System on organizational effectiveness – case organization- Caritas Switzerland Ethiopia. Specifically, the study assesses the effect of five PMS (goal setting and planning, performance appraisal, performance development, reward and recognition and performance improvement) on organizational effectiveness. The study used an explanatory and descriptive methods approach: The quantitative data were gathered from 117 respondents through structured questionnaire. Descriptive, reliability, correlation, test of assumptions and regression analysis were conducted using SPSS version 27 to test the relationship between dependent and independent variables. The descriptive analysis revealed positive employee perception of the PMS, with a grand mean ranging from 2.906 to 3.90. The correlation results also revealed that all independent variables have positive relationships with the organizational effectiveness (p< .001), performance appraisal (β = .211, p=.014), performance development (β = .198, p=.023) had positive and statistically significant effect on organizational effectiveness. The study finally concludes that the PMS of Caritas Switzerland Ethiopia are contributing to the organizational effectiveness, but this effect largely depends on integrated implementation of the practices instead of individual practices in isolation
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Performance Management System, Organizational Effectiveness, Non Governmental organizations.