| Abstract: | Proper performance appraisals have greater contribution for the attainment of organization objectives. The general objective of the study was to assess performance appraisal practice in Addis Ababa traffic management agency. The specific objectives of the study are to examine the nature and practice of employees performance appraisal system, to describe the main purposes of employees‟ PAS and to identify the challenges in performance appraisal system in Addis Ababa traffic management agency. The study used descriptive research design with the help of survey research strategy. The study applied mixed research approach to get detail and significance information. Addis Ababa traffic management agency employees were unit of observation and 129 samples were taken. The research used systematic random sampling to select employees from the agency and purposive non probability sampling techniques to select key informants. The study mainly relies on primary data with the help of questionnaire, interviews and secondary data sources. The collected data was analysed using mean, frequency, percentage, tables and charts. The findings of the study shows, there is formal employee appraisal practice which was undertaking twice in a year at the study area. Employee’s performance appraisal was undertaken with evaluating committees as the results they have weak participation during evaluation process. However, performance appraisals have the purpose to differentiate high performer from low performers; to identify the strengths and weaknesses of employees and to control the overall performance of employees at Addis Ababa traffic management agency. During PA process, various challenges were created such as lack of skill and knowledge of evaluation, lack of integration between evaluation criteria and employees job, lack of supervision on employees job performance, lack of employee participation in formulation of PA criteria and absence of adequate training at Addis Ababa traffic management agency. Therefore the researcher suggests about prepare suitable performance appraisal standards with active participation, facilitate adequate training on performance appraisal procedures for employees, prepare work experiences sharing program with similar or different offices and cascade the work done for each worker at the beginning of the budget year for to Addis Ababa traffic management agency. |
