THE EFFECT OF PERFORMANCE APPRAISAL ON EMPLOYEES MOTIVATION: THE CASE OF ETHIOPIAN CONSTRUCTION WORKS CORPORATION

Abstract

The study intended to investigate the effect of performance appraisal on employee motivation of ECWC. Therefore, the study sought to investigate the current practice, the satisfaction of employees towards the method, the purpose and the effect of performance appraisal on employee motivation of ECWC. The study adopted both descriptive and explanatory research design. The population of the study was all the professional staffs of ECWC working in the study period. The study conducted a sample on the selected sector office. The study used primary and secondary data. Descriptive analysis, Bivariate Pearson correlation coefficient analysis and an ordinary linear regression model was used. The correlation and regressions were conducted using statistical package for social sciences (SPSS) version 20. The study findings indicated that there is a negative and significant relationship between performance appraisal method and employee motivation. The relationship between satisfaction and fairness and also performance appraisal purpose and employee motivation were found to be positive and significant. Based on the findings, the study concluded that performance appraisal on employee motivation had a significant effect in the selected sector offices of ECWC. The study recommended that ECWC should take effective performance appraisal strategies that won’t increase their operational risks which in turn affects employee performance and productivity. The study also recommended that ECWC should focus more and invest more in both training and development programs as the two will lead to better employee performance and productivity.