The Practice and Challenges of Performance Management System at Pact Ethiopia

Abstract

This study was undertaken to assess the practice and challenges of performance management system at Pact Ethiopia. The study was a descriptive type of study applying both qualitative and quantitative methods. Stratified sampling method was used to select employees from different departments of Pact for the quantitative aspect of the study while purposive sampling technique was used to select key informants for interview. A total of 98 employees of Pact Ethiopia Addis Ababa office participated in the study. Data were collected through interview and self-administered questionnaires. Descriptive statistics that included frequency and percentage were undertaken as a measure of central tendency. Narrative approach was adapted for the qualitative data analysis. The findings showed that the performance management system as stated in the performance management guideline of the organization is sound. Nevertheless, the findings of the practice analysis led to the conclusion that the performance management system as a whole and the application and use of the performance appraisal for performance improvement or administrative ends is very weak. Based on the findings suggestions were forwarded: revising the purpose of the performance appraisal in light of its practical use, improving the objectivity and measurability of the criteria and giving emphasis for the utilization of the performance appraisal results for staff development and administrative decisions in a timely and consistent manner.