Effect of Performance Management Practice on Employee Productivity: The Case of Ethiopian Construction Works Corporation

Abstract

The Objective of study was to examine the effect of performance management on employee productivity, in Ethiopian Construction Works Corporation. The researcher used explanatory research design with quantitative research approach in order to meet the objective of the study. The target populations for this study were employees at head quarter from Ethiopian Construction Work Corporation in Addis Ababa. Out of 557 permanent and professional;- employee with position above grade eight and work experience four years and above. The researcher selected 233 respondents using Stratified Random Sampling technique the four factors/independent variable/ of the performance management and dependent variable namely: - performance appraisal, reward system, employee recognition, performance feedback and employee productivity were studied. The questionnaires were used as data collection tool for this study and the data was analyzed using descriptive and inferential statistics. A structured questionnaire with five-point Likert scale was distributed to the target respondents to collect the data. The data collected were summarized, classified, tabulated, organized and analyzed using SPSS and Microsoft office tools. Pearson Correlation analysis shows that there was statistically significant positive relationship between two performance management factors are performance appraisal and employee recognition on employees’ productivity according to this study. Based on the research findings major recommendations such as for newly hired employees consistently and the organization most involve, empower, and participate workers in decision making and create atmosphere of trust. The organization should give strong emphasis to practice the continuity in the organization to increase the employees productivity is also recommended by the researcher.