EMPLOYEES’ PERFORMANCE APPRAISAL SYSTEM AND CHALLENGES THE CASE OF ADDIS ABABA ABATTOIRS ENTERPRISE

Abstract

Employees' performance is the major issues in an organization. This study makes an effort to address employee’s performance appraisal process and challenges in the case of Addis Ababa Abattoirs Enterprise. Haw to setting performance appraisal standard, how communicating performance expectation to employee, how measuring actual performance of employees based on Predetermined standards, how comparing actual performance with standards, haw discussion on appraisal result and giving feedback on the employees' performance. The method of the study was both quantitative and qualitative. Data were collected by the use of questionnaires and interview from 200 employees according to sample size of target population of enterprise. Data was analyzed by using SPSS. To interpret the data descriptive (frequency, percentage and mean) test were applied. Based on finding, the employees gave higher ratings for the business strategic plan's goals and for establishing performance evaluation standards within their firm. On the other hand, the respondents' view of the challenges of performance evaluation suggested that they were below medium, including communicating the standards, measuring performanceappraisal, comparing actual performance appraisal with standards, giving feedback, taking corrective action, and challenges of performance evaluation. In conclusion, the organization couldn't establish an appropriate performance appraisal system and implemented it properly. Therefore, the performance appraisal process used by an enterprise was not able to improve organizational performance by improving the employees' performance as expected. The researcher recommended that the management should do effort to make their employees aware of the role of the performance appraisal system. The results of the appraisal should be communicated to the employees and both administrative and developmental corrective actions should be applied to improve employees’ performance.