AN ASSESSMENT OF EMPLOYEES' PERFORMANCE APPRAISAL PRACTICE: THE CASE OF MUGHER CEMENT FACTORY

Abstract

The main objective of the study was to assess performance appraisal practice at Mugher Cement Factory. Both structured and unstructured interviews are used to collect data from 20 managerial and 72 non-managerial employees of the two branches of the factory (Addis Ababa and Tatek) located throughout Addis Ababa city. The branches as well as respondents are selected using stratified sampling methods and the collected data were analyzed in descriptive way.The purpose of the system is mainly for salary increment, bonus and promotion. Additionally, most employees believe that the performance appraisal of the organization is important and has benefit for their future performance as well as organizational success. But the system encountered a lot of challenges like: lack of rater ability to evaluate employee performance, absence of employee participation in setting performance evaluation criteria, no link between some evaluation criteria and giving similar result for all employees. Generally, the performance appraisal system of the organization was in effective and unsuccessful in relation with the factory goal. The performance evaluation criteria should be revised in participation of the employees for they are the actual persons who do the job and evaluated. The factory’s human resource and Human Resource Management and Development department should follow up those raters who are not having file and encourage those using it now. The factory’s management should give training to supervisors and managers who are responsible for conducting performance evaluation are given as recommendation.