THE EFFECT OF PERFORMANCE MANAGEMENT ON EMPLOYEE MOTIVATION: THE CASE OF EAST AFRICA BOTTLING SHARE COMPANY, ETHIOPIA

Abstract

The study's goal is to determine the effect of performance management system on employee motivation. In this study, the researcher drew on both primary and secondary data sources. Primary data was gathered through questionnaires, and secondary data for the study was gathered by referring to relevant reports and documents from within and outside the organization. The researcher used a descriptive research design to accurately and economically describe the practices and challenges of the performance management system, as well as to demonstrate its impact on motivation. Out of the 454 employees in the sample frame, 213 are part of the target population who will be sampled. The researcher used a simple random sampling technique to obtain a representative opinion from the population. The researcher also used regression and correlation tools to examine the variables' relationships. According to the correlation analysis results, all relationships between the dependent and independent variables are positively and significantly correlated. Employee motivation has been found to be more influenced by performance management. The findings show that there is a clear relationship between motivation and employee performance, and that motivated employees produce better results. It is suggested that the company establish performance standards for each job level and conduct performance reviews on a regular and ongoing basis based on those standards. Furthermore, appropriate and practical training aimed at increasing line managers' knowledge of performance management should be prioritized in the human resource department's periodic training and development plans.