THE EFFECT OF PERFORMANCE APPRAISAL ON EMPLOYEE SATISFACTION: THE CASE OF ETHIOPIAN TOURIST TRADING ENTERPRISE

Abstract

This study investigates the impact of performance appraisals on employee job satisfaction within the Ethiopian Tourist Trading Enterprise (ETTE). By using an explanatory research design and a quantitative research approach, the research explores how various factors of performance appraisals affect job satisfaction. These aspects include feedback, fairness, and clarity, communication between supervisors and employees, and trust in supervisors. Primary data was gathered through questionnaires, and the data analysis was performed using the Statistical Package for the Social Sciences (SPSS). The results reveal that communication significantly influences employee job satisfaction, followed by clarity and fairness in the appraisal process. While trust in the performance appraisal process and feedback also positively affect job satisfaction, they are not as influential as communication, clarity, and fairness. In conclusion, effective communication, clarity, and fairness in the performance appraisal process are key to enhancing employee job satisfaction. Therefore, ETTE should focus on improving communication, ensuring fair appraisal processes, and fostering a culture of transparency. This approach will strengthen the relationship between employees’ perceptions and their job satisfaction, thereby supporting the organization’s objectives