AN ASSESSMENT ON THE EFFECTIVENESS OF PROJECT PERFORMANCE APPRAISAL SYSTEM: THE CASE OF ETHIOPIAN ROADS ADMINISTRATION

Abstract

The major objective of this study was to investigate the effectiveness of the project performance appraisal system. As a result, its effectiveness has been tested by selecting three variables to show the relationship between the three independent variables and the dependent variable. The study is required to create the level at which availability of funds, stakeholders’ participation, and organization leadership influence the effectiveness of the project appraisal system. Furthermore, they have been selected based on their population size out of 1206 permanent employees. A total of 300 employees were taken as a sample by using a stratified sampling technique, and questionnaires were distributed proportionally. The findings indicate that the organization’s project performance appraisal system is miss-formulated and also based on the selected effectiveness variables; it is observed that the project performance appraisal system is less effective across all the divisions. Furthermore, problems which hinder the effectiveness of the project performance appraisal system were identified and a comparison of their occurrences was also made. As a result, lack of participation of employees in the project performance appraisal process was identified as one of the major problems, while lack of a well-tailored measurement system and lack of well-designed procedures and processes were also identified as critical problems. Finally, this research enables us to see the effectiveness of the performance appraisal system of ERA and the gaps that exist in the project performance appraisal system. By giving extensive information about the organization's performance appraisal processes, the research intends to recommend to management of the organization a better project performance appraisal system in order to fill the existing gaps and/or take corrective action on the PAS in a way that enables it to achieve the objectives of the organization.