| Abstract: | The Performance appraisal generally considered as the most significant and crucial tool for organizations, the information gathered should provide highly useful input for decisions regarding various personnel aspects such as training, development, promotion and salary increments. Performance measures also link information gathered and decision making processes which provide a basis for judging the effectiveness of HRM sub-divisions such as recruiting, selection, training and compensation. Therefore, the research was conducted in order to demonstrate the importance of performance appraisal system to the management and to employees, in addition, to upgrade their understanding about its advantages and the associated limitations. That is, to clarify; the effect of PA measurement on employees’ job satisfaction and loyalty. This research concentrates on the general and specific objectives that are to investigate the process of performance appraisal, to examine the level of satisfaction of employees, to measure the outcomes and to determine the level of transparency. To study the practice of performance appraisal in ECS, census sampling technique with a population size of 80 staffs were made because the population is manageable. From a total of 80 distributed questionnaires 63 questionnaires were returned. The researcher collected primary data through the help of questionnaires filled by the respondents and interview questions made to senior staffs. In order to do the study a descriptive research methodology was used. The data was analyzed with the help of Microsoft Excel and with SPSS version 15 statistical software. The questionnaires responses were validated with the reliability test for 20 items with result showing 0.991Cronbach’s alpha. The findings of the research showed that the evaluation standards set from the practice of the Ethiopian Catholic Secretariat for performance appraisal are not free from personal bias; employees are looking for fair evaluation, for appropriate training and reasonable motivational factors such as fair pay, promotion and benefits like educational support. Based on the research the researcher recommended that the organization should investigate the level of pay and benefit packages to its employees. Moreover, the strength and weakness of employees should be communicated. Evaluators must also be fair and should have appropriate training to apply participatory evaluation. The researcher also recommended that if the organization used the performance evaluation properly, then there will be a noticeable effect of the performance appraisal on the organization as well as on the Individuals. |
