Workaferahu, Yohannes (PhD)Gadissa, Alemayehu2022-02-022023-11-192022-02-022023-11-192021-10http://etd.aau.edu.et/handle/12345678/29848The aim of this thesis was to examine the effect of performance management system on employees’ job satisfaction: the case of Ethiopian airlines group maintenance, repair & overhaul strategic business unit. The study used explanatory also known as causal research method to understand the causal relationship between PMS & JS. To analyze the relationship, the researcher adopted both quantitative & qualitative research methods. Among 350 sample employees, 298 which is 85.14% employees returned properly answered self-administered questionnaire distributed using the stratified random sampling techniques. The IBM SPSS version 26 is used in the study to analyze & present the descriptive & inferential statistics. The correlation analysis result indicated that the three stages of PMS: PP, PE & PR have statistically significant positive relationship with employees’ job satisfaction. The regression analysis result of adjusted R2 which is the degree of association between stages of PMS & JS revealed that 60.3% of variation in JS is explained by the change in PMS. The study also found that employees are not satisfied with the current performance monitoring, feedback, performance based benefit distributions, practical application of PMS & its appeal process. In these areas, the researcher forwarded recommendations to the airline to take remedial actions focusing on the important stages of PMS so as to increase employees’ JS which ultimately make them asset for the company. Key words: performance management system, employees’ job satisfaction, performance planning, performance evaluating, performance rewarding.enperformance planningperformance management systemThesis