AN ASSESSMENT OF EMPLOYEES’ PERFORMANCE APPRAISAL PRACTICES AND CHALLENGES: THE CASE OF ETHIOPIAN ROADS AUTHORITY ALEMGENA MACHINE BASED TECHNOLOGEY TRAINING AND TESTING CENTER BRANCH

Abstract

This project is designed to assess the employees performance appraisal practices and challenges in the case of Ethiopian Roads Authority, Alemgena machine based technology training and testing center (AMBTTTC). To answer the questions that were raised in the research, the study was employed through descriptive design in which data from employees and management have been collected using questionnaires and interviews. The total number of staff at AMBTTTC was 254 and for this study simple random sampling technique was used by taking 155 employees to fill in the adapted questionnaire and the response rate was 83.8%, to the main data collection instrument. The data gathered from the questionnaire have been compiled by using SPSS software. Descriptive statistics method had been used for analyzing data obtained from questionnaire and data gathered from interview. The study found out that ERA, AMBTTTC appraisal process lacks acceptability, practicality and relevancy which are due to the subjective appraisal criteria and these criteria are not in line with the job description of employees. Additionally the organization appraisal system doesn’t follow the six scientific steps of performance appraisal system, and also faces huge problems on its practice, most of them are rater’s error like recency effect, halo/horns effect, stereotyping effect etc were also found in the appraisal system. Generally the outcome of the research confirmed that the performance appraisal practice of the organization has problems that need to be improved. The organization appraisal system should revise its performance appraisal criteria in order to make its appraisal system effective. Since it needs improvement, possible recommendations are outlined at the end of this report.