PRACTICES AND CHALLENGES OF PERFORMANCE MANAGEMENT SYSTEM AT AWASH INSURANCE COMPANY

Abstract

Performance Management System is a continuous process encompassing performance planning & execution, monitoring, developing, assessment & reward. The purpose of this study was to assess and describe Practices and Challenges of Performance Management System of AIC, head office. Awash Insurance Company (AIC) is one of the pioneer private insurance companies in Ethiopia. This study employed a mixed type (both qualitative and quantitative) descriptive cross-sectional research design. The data were collected using questionnaires on the five basic components of PMS and related challenges of PMS by distributing to the sample of 80 non-management staff & interview questioner for 4 management staff. Simple random sampling technique is used for non-management staff & purposive sampling is used for management staff of AIC while distributing the questionnaire. The data were analysed using SPSS software version 20 and presented in frequency, percentage and mean tables. The study findings indicate that majority (60%) of the employees know their company vision, mission & value statements & 52.5% believe that their jobs are aligned with that of the company. Fifty eight point seven percept & 80% of the respondents replied that their performance result is not utilized as an input for different benefits & no standard time is given for their daily activity respectively. In addition 51.3% of the respondents mention that training is not given upon identification of performance gap. On conclusion though majority of the employees know the vision and mission of the company the major pillars of PMS are not implemented in AIC. Based on the study the company is recommended to review its performance management system and apply the whole cycle of Performance Management System for better development and expansion by having competent employees