THE EFFECT OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEE MOTIVATION: THE CASE OF WOLKITE UNIVERSITY

Abstract

The main objective of the study is to identify the effect of performance management system on employee motivation in Wolkite University. The study was done based on primary data sources. The questionnaire was designed to collect the relevant data from the respondents. During the research process, the population of study comprises all teachers, administration employee and all lab assistant except the top management body of the university. In course of investigation, instrument used were the questionnaire were distributed to 345 respondents of which 340 were retrieved. Descriptive, pairwise correlation and Logit regression analysis were conducted to get the relationship and impact of performance management system on employee motivation. The correlation analysis result indicates Planning, feedback and evaluation has positive and significantly correlated with employee motivation. The result Logit regression revealed that performance planning, feedback performance and performance evaluation have positive and significant effect on employee motivation. The rewarding systems found not have significant effect on employee motivation. The study recommends that the organization will make scientific or similar evaluation method and the managers may training to raise performance management