THE ROLE OF KEY PERFORMANCE INDICATORS FOR PERFORMANCE MANAGEMENT, THE CASE OF DHL WORLDWIDE EXPRESS ETHIOPIA PLC.

Abstract

Most successful organizations nowadays implement a performance measurement system within their companies. This is done to give them true attentions to results, responsibilities and targets. In order for the organization to have control and improve processes, the organization needs to measure and identify the performance indicators. The aim of this study was to examine the Use of Key Performance Indicators In DHL Worldwide Express Ethiopia Plc and analyze how the company measures its performances. Given there is deficiency of information available regarding how companies use KPIs, the researcher believed that collaboration with DHL Worldwide Express Ethiopia leads to useful information within the subject. The research design for this study was a descriptive research design that sets out to describe the use of Key Performance Indicator in DHL Worldwide Express Ethiopia Plc. Primary data which was directly gathered from respondents was used for the study. The data was collected by using self - administered questionnaire, interview targeting all managerial and non-managerial employees working in DHL Worldwide Express Ethiopia plc Operation and Customer Service department. The questionnaire was distributed to the employees on the basis of a non-probability method of samplings (based on purposive or judgmental) sampling method and the data collected were analyzed using SPSS software and using descriptive statistical methods. Narrative data analysis method used to analyze interview data. The finding revealed that the company manages its performance effectively using KPI. All employees use KPI in their respective departments. The KPIs are set in line with the company’s strategies and goals. KPI helps the company improve service quality/performance by tracking progress, focus on service standards, indicating developmental area and service breakdowns and ensuring efficiency and consistency. However, their study revealed that the use of KPI encounters ethical problems of employees, employees focusing on meeting targets only and not caring for service quality, poor internet connection and failure related to indicator equipment as well as wrong data entry or system usage. Finally the researcher has recommended the Company to shape a clear direction for the employees about the importance of the set targets. Reflecting actual performance and the impact should be clearly communicated to the employees.