ASSESSMENT OF PERFORMANCE APPRAISAL AND REWARD PRACTICE: THE CASE OF ETHIOPIAN REVENUE AND CUSTOMS AUTHORITY (ERCA); WESTERN ADDIS ABABA BRANCH

Abstract

The purpose of this research was to assess the current performance appraisal system and reward practice of Ethiopian Revenue and Customs Authority, focusing mainly on western Addis Ababa branch. Both primary and secondary data were collected using questionnaires, interview and written materials. Simple random sampling technique was used to collect primary data from 185 respondents, and descriptive statistics were used to analyze the data gathered. Results revealed that ERCA has implemented a performance appraisal system but it is not enforced properly. Most of the employees are not satisfied with the current appraisal system and it is mostly biased. There is also no financial/non-financial reward system that supports the current performance appraisal system and this is highly de-motivating employees. Based on these findings, it was suggested that Ethiopian Revenue and Customs Authority should give high emphasis in enforcing the performance appraisal policy for higher employee job satisfaction and for achieving its company goals in the long run. It should also implement an effective reward system as a motivation.