Performance Appraisal System And Its Effect On Employees’ Motivation: The Case Of Bole Sub-City Administration

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Date

2018-04-16

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Addis Ababa University

Abstract

The aim of the study was to establish the effect of performance appraisal on employee motivation at Bole Sub-City Administration. The research study adopted an explanatory type of research design in form of a survey and a sample size of one hundred fifty six (156) respondents drawn from all the sectors in the sub-city ranging from different job groups which included the senior management, middle level management and lower level employees. Stratified random sampling was used as all the respondents were drawn from different levels or strata within the sub-city. Structured questionnaires developed in form of a five point likert scale was used for data collection as they were easy to administer and cheap in terms of cost and time. Data was collected and analyzed by use of scientific package for social sciences (SPSS version 20). A regression model was used to determine the co-efficient of the effect of performance appraisal on employee motivation. The study shows that there is a weak positive significant correlation (.239) between performance appraisal and employee motivation and it can concluded that performance appraisal system has a significant impact on the employee motivation at Bole Sub-City Administration. The study findings have revealed that the performance appraisal system of the sub-city needs serious considerations to meet the intended purpose. In a nutshell, the study has found out that the whole process of performance appraisal outcomes, Performance Appraisal process, Fairness in performance appraisal process, Employee involvement and transparency in performance appraisal, Purpose of performance appraisal were not on the right track to bring about meaningful performance improvement. Therefore, the sub-city has to take corrective measures to rectify the problems and deficits in the performance appraisal system, because the current practice would not lead to employee motivation as well as improvement in effectiveness and efficiency of civil service

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Keywords

performance appraisal system, employee motivation

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