THE EFFECT AND PRACTICE OF EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEE PERFORMANCE: THE CASE OF SELECTED PUBLIC SECTORS IN GURAGHE ZONE

Abstract

The aim of this study was to the effect and practice of Employee Performance ManagementSystem on employee performance: the case of selected public sectors in Guraghe Zone, SNNPR. The study employed descriptive and explanatory survey research design approach. The targetpopulation was public sectors employees in Guraghe Zone. But, in this study, 144 employees were selected using proportional stratified random sampling technique. Data sources were primary and secondary and these data were collected using questionnaire, interview, and document review. Descriptive statistics, Pearson correlation coefficients, multiple linear regression model was employed to analyze the collected primary data using a Statistical Package for Social Sciences (SPSS) version 20. The performance of employees were measured by employees ‘performance scales as a dependent variable and criteria identification, measurement, evaluation, improvement, and reward were used as independent variables. The findings of the study unveiled that all the independent variables had positive and significant correlation with the dependent variable – employee performance. Regards to effect, only the four variables, namely, criteria identification, employee performance evaluation, employee performance improvement, and reward had statistically significant effect on the employee performance. In this regard, 49.8 % ofthe variations in the employees’ performance were jointly accounted by the five variables at 5%level of precision. The major finding of this study is that Performance management system is not tool that is not well known by Gurage zone selected public sectors. The most known type of evaluation which much also practiced in thus sector is performance appraisal which is twice annually used for legislation purpose. Therefore, this study suggests that, the public sector may view performance management system as holistically, encompassing all the elements public-sector culture. Without this capability, performance management system likely to become compliance activities rather than adding value to the sector and individual employees. Sensitization to all employees might be taken in to account to create awareness on the implication of performance managements and concerned bodies have to intervene in order to employees’ performance.