Berhanu, Meheret (PhD)Mihret, Yemisrach2021-06-072023-11-042021-06-072023-11-042015-06http://etd.aau.edu.et/handle/123456789/26707Challenges associated with performance management initially include defining and understanding the term itself. Performance management encompasses the entire process of improving and sustaining human performance throughout an organization. Collectively, the performance of individuals determines that of teams, departments and ultimately the entire enterprise. Thus, the objective of the study was to assess the Effectiveness of Performance Management system of Pact Ethiopia with the major themes of the study being performance planning, execution, assessment and the uses of the evaluation results. To collect necessary information for the purpose of the study, the researcher used questionnaire, interview, and document review. Questionnaires were distributed to all (93) employees based in Addis Ababa out of which 86% were returned. Based on the returned questionnaire, descriptive statistics were used to analyze the data. The results of the analysis shows that, in the performance management practice of the organization there are some strong areas to be further strengthened and as well as weak areas to be improved. Among the weak areas, even though employees were participating in the performance planning process goals are not set in measurable terms and employees are not clear on what is expected form them, they were not aware of the evaluation standards, they didn’t get appropriate information when things are changed and didn’t get timely feedback, there is a communication gap, their performance assessment was not based on what the employees and their supervisors jointly agreed, the evaluation system was not in a position to identify high performers and underperformers and other related issues were identified. Moreover the evaluation results is not used for the intended purpose and other related issues were identified. Based on the findings suggestions were forwarded: revising the purpose of the performance evaluation in light of its practical use, improving the objectivity and measurability of the criteria and giving emphasis for the utilization of the performance evaluation results for staff development and administrative decisions in a timely and consistent manneren-USPerformance Management systemassessmentorganizationThesis