THE EFFECT OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEE PERFORMANCE: THE CASE OF CHEHA WOREDA PUBLIC SECTORS, SOUTH NATIONS NATIONALITIES AND PEOPLES REGIONAL STATE

Abstract

he main objective of the study was to identify the effect of performance management system on employee performance in Cheha Woreda Public sectors. Specifically, this study was intended to address the following research hypothesis; the performance management system has a significant effect on employee's performance through performance planning, performance appraisal, and reward system and performance feedback. The study was done based on primary data sources. A self-administered structured questionnaire was designed to collect the relevant information from the respondents. The population of study comprises all employees of the sectors except the political leaders and supportive department workers. In course of investigation, the structured questionnaire distributed to the randomly selected 140 respondents of which 132 were retrieved. Explanatory research design was employed and correlation coefficient was used to investigate the effect of independent variables on the dependent variable of the study. The result revealed that performance planning and performance appraisal had in significant effect, while reward system, and performance feedback had a significant effect on employee’s performance. The study recommends that the organizations should make the employees to participate on the planning stage of the PMS and a frequent feedback is necessary to enable the employees be aware of what exactly is expected from them. The organizations need to employ appropriate and goal oriented appraisal system and the organization should reward the employees for greater performance levels based on the result of appraisal system.