Performance Management System and Its Effect On Employee Motivation At Compassion International Ethiopia Assisted Children Development Projects

Abstract

The main objective of this study was to assess the existing performance management system and its effect on employee’s motivation at Compassion International Ethiopia Assisted Children Development Projects. To address the objective and answer the research questions, exploratory, descriptive and casual method was used with quantitative method design. A sample of 101 participants was randomly selected and questionnaires were administered from which 88 of them returned the questionnaires. The key finding often study shows that even if most respondents reported that they have the required knowledge about the CIEACDP’s mission, vision and overall strategic objectives of the companies including their jobs, the CIEACDP has a disorganized and unstructured performance management systems well as the measurement of performance of the employees gave focus on complying rules instead of on outcomes. The study used questionnaires to get primary data from employees, at CIEACDP Head Office and site projects located in Addis Ababa. Data was gathered from 101 managerial and non-managerial staffs’ employees of CIEACDP in Addis Ababa. Inferential statistics was used to analyze the data and also cluster samplings were used followed by stratified random sampling to select samples. Primary data were collected using five point likert scale questionnaires and 88 responses were properly filled and returned. Statistical package for social science studies (SPSS) was used to analyze empirical data collected through the close ended questionnaire. The independent variables are performance planning, performance appraisal, acceptability& fairness, reward/bonus, motivation and performance feedback whereas the dependent variable is employees’ motivation. The mean and standard deviation of the independent and dependent variables were computed and interpreted. Pearson correlation coefficient(r) was used determine the relationship between each independent variable with the dependent variable. The qualitative data was processed and analyze in descriptive manner and the quantitative data was organized in table form and percentage method, because the intention of the study is to describe present or the current situation of performance management system and its effect on employee’s motivation at CIEACDP. The study uses frequency distributions and tables to analysis the outcomes of the survey against the related theories. Other aspects of performance management such as performance Page xi planning, performance assessment and review are not properly executed to give feedback and reward better performance to motivate employees. From the result multiple linear regression analysis performance planning, performance appraisal, acceptability& fairness, reward/bonus, and performance feedback of the CIEACDP had positive effect on the employee motivation. Therefore, to motivate its employees the Organization should design and implement a performance management system that was allows employee’s participation in performance planning, give timely feedback to employees, and based on the result of PM process CIEACDP must develop, recognize, and reward its employees.