THE EFFECT OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEE JOB PERFORMANCE: THE CASE OF ZTE ETHIOPIAN BRANCH OFFICE

Abstract

The general objective of the study was to investigate the effect of performance management system on employee job performance in the case of ZTE Ethiopian Branch Office. The study has used explanatory research designs. Structured questionnaire was used to collect data and 114 responses were collected and analyzed. The data were analyzed using the SPSS_Version_22 software. The respondents' perception of their performance is moderate, with a grand mean score of 3.36. The result of correlation analysis evidenced that there is positive and strong relationship between the four components of performance management system (performance planning, performance measurement, performance feedback and performance reward) and employees’ performance. Moreover, the regression analysis shows that all the four components of performance management system are significant in predicting the employees’ performance. The four independent variables together explain 62.7% of variation in employees’ performance as represented by an R² value. The study concluded that improved performance management system is an increasingly important instrument to get a higher performance from employees. The study recommends that the management of ZTE to allow the participation of employees in the design, implementation, and evaluation of performance management programs that offers a direct way for compensation of professionals to enhance employee performance