Project Materials







1.1 Background of the study

Maximizing performance is one of the most important goals for any firm. Several factors, including managerial standards, Knowledge and Skill, influence the performance of employees.

Contributing to an employee’s performance are commitment and performance reviews (Lillian & Sitati 2011).

A performance evaluation is a systematic procedure that evaluates previous and present employees’ performance and identifies their potential for future growth and career advancement within the organization (Igbojekwe and Ugo-Okoro, 2015). Byers and Rue (2000) define Performance Appraisal (PA) as the process of determining and conveying to employees how they are performing on the job, and ideally formulating an improvement plan. These definitions demonstrate that, if a performance appraisal system (PAS) is successfully implemented in an organization, employees will be able to determine how well they are performing and what is expected of them in the future in terms of effort and task direction via a performance improvement plan. Generally speaking, performance evaluation is a beneficial technique for analyzing and evaluating employee competence and potential.

Performance evaluation has a relatively short history. Taylor’s pioneering time and motion research can be traced back to the turn of the 20th century. Near the end of the Second World War, merit rating was utilized for the first time as a technique of justifying an employee’s salary with the aid of the performance appraisal system (Lillian & Sitati, 2011). In the 1950s, performance evaluation of technical, professional, and managerial staff attracted significant attention. Systematic evaluation was acknowledged to be an indispensable component of well-designed development programs. Even though the authors of this paper were unable to determine when the performance appraisal system was first implemented in Ethiopian higher education, it was common practice for every university employee in Ethiopia to receive a written performance evaluation each semester, which provides feedback on performance and justifies personnel decisions such as promotion and compensation.

Danielle (1998) highlighted that performance appraisal system metrics often comprise both behaviors (what an employee performs) and outcomes (the results of that behavior). To achieve the intended objective of performance evaluation, companies must develop and implement their assessment systems with care. The appraisal procedure, according to Gomez-Mejia (2001), has various steps. The first step of the performance evaluation procedure is determining what is to be measured. In practice, however, this procedure can be rather complex despite its apparent simplicity. If an important component is overlooked, employee morale is likely to decrease because employees who perform well on that dimension will not be acknowledged or rewarded. He continues by stating that if an unnecessary or trivial feature is included, employees may regard the entire evaluation process to be useless.

Performance measurement is the second step in the performance appraisal process. This procedure entails assigning a number to indicate an employee’s performance on the stated traits or dimensions. Performance management is the third step of performance appraisal. Effective human performance management in organizations requires more than formal reporting and annual ratings. A comprehensive evaluation process comprises both informal, day-to-day interactions between managers and employees and formal, in-person interviews (Gomez-Mejia, 2001).

The most recent expansions of performance appraisal (PA) systems have tended to shift from a focus on control and maintenance to one that emphasizes motivational and developmental concerns (Kimiz, 2005). Thus, a favorable PA would positively influence employee attitudes, behaviors, and organizational effectiveness. For instance, the ability of the PA to reflect, measure, and evaluate an individual employee’s behavior leads to improved employee performance and productivity. These good results are a product of the employees’ perceptions of the overall effectiveness of the PA over a specified time period.

According to Coens and Jenkins (2000), performance appraisal is a required process in which a group of employees’ work performance and personal characteristics over a specified period of time are individually judged, rated, and described by the rater of the group, and the results of the evaluation are stored by the organization for future reference. Performance evaluation is typically a formal procedure and an essential component of human resource management procedures within firms.

The researchers were also motivated by the lack of attention paid to the practice of PA systems and the dearth of empirical studies about the practice of PA systems in Ethiopian higher education institutions. The purpose of this study was to evaluate the practices of the performance appraisal process, with a focus on how performance standards were established, how performance expectations were communicated to employees, how actual performance was measured, how actual performance was compared to standards, how appraisal results were discussed with employees, and how corrective actions (decision making) were indicated.

1.2 Summary of the issue

The greatest problem for managers in all sorts of organizations is maximizing the performance of their workforce. Consequently, performance evaluations become unavoidable. In the absence of a rigorously defined system of evaluation, individuals will tend to evaluate the work performance of others, even subordinates, in a natural, informal, and arbitrary manner. The human tendency to judge in the absence of a systematic evaluation system can result in significant motivational, ethical, and legal issues in the workplace. Without a structured evaluation system, it is unlikely that decisions will be legal, fair, defensible, and accurate. In light of this, the present study aims to evaluate the impact of performance evaluation on employee performance.

1.3 The research’s objectives

The primary purpose of this study is to explore the effects of performance evaluation on the performance of employees at the Builsa south district Assembly.

The following are the precise aims of the research:

a) Determine if performance evaluations are conducted effectively and efficiently at the Builsa South District Assembly.

(b) to study the opinions of the employees and the association between fair and biased performance appraisals at the Builsa south district Assembly.

(c) to comprehend the attitudes of employees following a performance evaluation at the Builsa south district Assembly.

(d) to identify problems intrinsic to the performance evaluation system in the Builsa South District Assembly.

(e) to identify the benefits connected with the performance appraisal method at the Builsa South District Assembly

(f) to give recommendations on how to enhance the performance evaluation system at the Builsa south district Assembly.

1.4 Questions of Research

The following research questions are explored in order to meet the study’s objectives.

How efficient is performance evaluation at the Builsa south district assembly?
How do employees at the Builsa south district Assembly view performance evaluations?
Does the attitude of employees toward their jobs change following a performance evaluation at the Builsa south district Assembly?

What problems does performance evaluation present at the Builsa South District Assembly?
What are the advantages of performance evaluation in the Builsa South District Assembly?
What suggestions do you have for enhancing performance evaluation at the Builsa South District Assembly?
1.5 The study’s significance

First, the findings of this study will assist managers to identify the areas in which development activities are required to improve personal and professional growth. Again, it will assist managers in identifying personnel who possess specific skills, ensuring that their promotions and transfers align with company needs. In addition, managers will be able to administer a formal organization reward and provide feedback to weak performers. In addition, it will educate managers of which selection tools and development programs are required for firms to operate efficiently. In conclusion, other scholars in the field of human resource management may find this study useful for expanding their knowledge of performance evaluations.

1.6 The study’s scope and limitations

This study on the Effects of Performance Appraisal on Employee Performance in Governmental Institutions will focus on the South Builsa District Assembly.



The study’s limitations

The research was severely constrained by a lack of funding. Due to lack of time, some respondents did not complete the questionnaire, which was the most annoying factor.

Again, some of the employees gave guarded responses to some critical queries.

The retrieval of completed surveys presented a significant obstacle for the investigation.

1.7 Structure of the investigation

This investigation consists of five chapters. Introduction is the subject of the first chapter. In addition, it addresses sections such as Background of the Study, Problem Statement, Objectives of the Study, Research Questions, Significance of the Study, Limitations, and Organization of the Study. The second chapter is devoted to a review of literature pertinent to the investigation. The third chapter provides an explanation of the study procedure and the methods used to collect and analyze data. These are population, instruments for data collecting, and questionnaire administration. The fourth and fifth chapters were devoted to data analysis and interpretation, followed by a discussion of the findings and recommendations.





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