Abstract: | This research aims at examining the impact of performance management systems on employee
productivity at East Africa Bottling Share Company (EABSC). The study used a mixed methods
approach with quantitative as well as qualitative research. Out of 1,378 employees working in plants
located in Addis Ababa, 214 staff members were selected and primary data was collected through a
questionnaire and analyzed using IBM SPSS statistics. The researcher used a simple random
sampling technique to obtain a representative opinion from the population. Interview was also
conducted with senior managerial staff. The study employs descriptive statistical measures,
correlation, and regression analysis to assess the strength and significance of the relationships
between independent variables and productivity. The results reveal a strong overall relationship
where 84% of productivity variability at EABSC can be explained by these factors. The result of the
regression analysis is found to be statistically significant, confirming that the observed relationships
are not due to chance. The analysis indicates that prerequisites negatively impact productivity, while
performance planning, employee input, ongoing feedback, performance evaluation, and performance
review positively influence productivity. These findings have practical implications for management,
emphasizing the importance of addressing performance-related factors to enhance productivity. The
study acknowledges limitations and suggests further research to explore additional variables and
gain a comprehensive understanding of productivity dynamics in the context of EABSC. |