THE EFFECT OF PERFORMANCE MANAGEMENT ON EMPLOYEE MOTIVATION THE CASE OF DAN CHURCH AID

Abstract

This study assesses the existing practice of performance management system and identifies the effects of the system on employee’s motivation. For this study, the researcher used Census method because the total number of population is small. Since, the total population under study was 91, researcher studied the entire population out of which 82 (90%) responses have been obtained and analysis was conducted based on obtained responses. Self-administered questionnaires and face-to-face interview had been conducted to collect data. Data obtained from the questionnaire was analyzed and interpreted by use of ANOVA multiple regression, to identify the existing relationship between performance planning and prerequisite (independent variable) and performance assessment and review (independent variable) and employee motivation (dependent variable). The study revealed that there is a positive relationship between performance management system(PMS) and employee motivation; so the implementation and effectiveness of the PMS directly affects employee motivation. The study concluded that performance prerequisite and planning and performance assessment and review process (performance management system) is highly correlated with employee motivation. Therefore, it has been recommended that DCA take remedial actions to develop performance management system in which employees enhance their performance due to its motivational effect.