ASSESSMENT ON EMPLOYEE PERFORMANCE MANAGEMENT PARACTICES AND CHALLENGES IN ETHIOPIAN COMMODITY EXCHNAGE /ECX/

Abstract

Performance management is a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. There is lack of implementation consistency of the system by managers, supervisor’s and performers at head office and 23 ECX branch offices (ECX December 2019 half year corporate performance report). This project was designed to assess employees‟ performance management system practices and challenges of Ethiopia Commodity Exchange /ECX/. To this end, the study has gone through an assessment of the practice of performance planning and agreement, provision of ongoing feedback, performance evaluation and performance review process and also employee perception about PMS of ECX. Primary data were collected through questionnaire and interview. 120 questioners were distributed to randomly selected employees and out of these 116 were properly filled and returned. The data were analyzed using descriptive method. Interview was held with the human resource department and HROD/human resource and organizational development manager, strategic planning manager (in person) and selected some branch managers (by phone). The finding of the study revealed that performance appraisal and feedback provision doesn’t have consistency of implementation across the departments/divisions as well as branch offices, raters error due to lack of awareness and adequate knowledge and forced distribution rating method that put majority of staffs on the same range which create great staff dissatisfaction even if PMS is linked with rewarding performance. In addition very loose alignment of PMS with the staff development plan and also data tracking system is manual. Based on the findings, the researcher recommended the company to automate its data tracking system as well as PMS in general, in place other mutually agreed performance rating approach rather than forced distribution approach and provide capacity building training for managers/ supervisors about PMS to make the system effective, participatory and to maximize efficiency as well as motivation.