EMPLOYEE PERFORMANCE EVALUATION PRACTICES AND
CHALLENGE IN ETHIOPIAN TOURIST TRADING ENTERPRISE
A THESIS SUBMITTED TO THE DEPARTMENT OF BUSINESS
ADMINISTRATION OF MARYLAND INTERNATIONAL COLLEGE
SCHOOL OF GRADUATE IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTERS IN BUSINESS
ADMINISTRATION (MBA)
BY:
FISEHA MAMO
MARYLAND INTERNATIONAL COLLEGE
SCHOOL OF GRADUATE STUDIES
MBA PROGRAM
JULY 29, 2022
ADDIS ABABA, ETHIOPIA
EMPLOYEE PERFORMANCE EVALUATION PRACTICES AND
CHALLENGE IN ETHIOPIAN TOURIST TRADING ENTERPRISE
BY:
FISEHA MAMO
ADVISOR
DR. YONAS (ASSISTANT PROFESSOR),
A THESIS SUBMITTED TO THE DEPARTMENT OF BUSINESS
ADMINISTRATION OF MARYLAND INTERNATIONAL COLLEGE
SCHOOL OF GRADUATE CLASS IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTERS IN BUSINESS
ADMINISTRATION (MBA)
MARYLAND INTERNATIONAL COLLEGE
SCHOOL OF GRADUATE STUDIES
MBA PROGRAM
JULY 29, 2022
ADDIS ABABA, ETHIOPIA
Declaration
I, the undersigned, declare that this thesis entitled ‘‘the Employee Performance Evaluation
Practices and Challenge in Ethiopian Tourist Trading Enterprise’’ my original work, prepared
under the guidance of Dr. Yonas (Assistance Professor). I also further confirm that the thesis has
not been submitted either in part or in full to any other higher learning institution for the purpose
of earns any degree.
Declared by:
Name: _Fiseha Mamo
Signature:
Date:
Name: Dr. Yonas (Assistance Professor)
_
Signature:
Date:
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CERTIFICATE
This is to certify that the thesis prepared by Fiseha Mamo entitled “_the Employee Performance Evaluation
Practices and Challenge in Ethiopian Tourist Trading Enterprise”, which is submitted in partial fulfillment of the
requirements for the Degree of Masters in Business Administration (MBA), complies with the regulations of the
College and meets the accepted standards with respect to originality and quality.
Approved by Board of Examiners:
Signature_
Date
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Advisor
Internal Examiner
External Examiner
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LIST OF ACRONYMS
PA - performance appraisal
PE - performance evaluation
ETTE - Ethiopian Tourist Trade Enterprise
HR-human resource
PMS - performance management system
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TABLE OF CONTENTS
Contents
List of Acronyms ...................................................................................................................i
Table of Contents ...................................................................................................................ii
List of Tables ..........................................................................................................................vi
Acknowledgement .................................................................................................................vii
Abstract ..................................................................................................................................viii
CHAPTER ONE
Introduction ...........................................................................................................................1
1.1.Background of the Study ...............................................................................................1
1.2.Statements of the Problem ..............................................................................................2
1.3.Research Questions ........................................................................................................3
1.4.Objective of the Study ....................................................................................................3
1.4.1. General Objective .................................................................................................3
1.4.2. Specific Objectives ................................................................................................4
1.5.Significance of the Study ...............................................................................................4
1.6.Limitation and Scope of the Study .................................................................................4
1.7.Limitation of the Study...................................................................................................5
1.8.Organization of the Study...............................................................................................5
CHAPTER TWO
Literature Review..................................................................................................................6
2.1.Performance Appraisal An Overview ............................................................................6
2.2.Necessity Of Performance Appraisal .............................................................................7
2.3.Methods Of Performance Appraisal ...............................................................................8
2.3.1. Traditional Methods Of Performance Appraisal Techniques .................................8
2.3.1.1.Ranking Straight ....................................................................................................8
2.3.1.2.Comparing By Way Of Paired Ranking ................................................................9
2.3.1.3.Assessment Of Linear Rating Scale ......................................................................9
2.3.1.4.Evaluation On The Parameter Of Critical Incidents .............................................9
2.3.1.5.Evaluation By The Group......................................................................................10
2.3.1.6.Appraisal By Field Review ...................................................................................10
2.3.2. Modern Methods Of Performance Appraisal Techniques ......................................10
2.3.2.1.Multi-Level Multi-Source Feedback System (360 Degree Feedback) ..................10
2.3.2.2.Evaluation On Behaviorally Anchored Rating Scales ..........................................11
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2.4.Setting Performance Criteria ..........................................................................................12
2.5.Performance Appraisal Processes / Guidelines ..............................................................12
2.5.1. Employee Participation ...........................................................................................12
2.5.2. Developing Performance Standards ........................................................................12
2.5.3. Goal Setting ............................................................................................................13
2.5.4. Sound Performance /Appraisal Interview/ ..............................................................13
2.5.5. Self-Evaluation .......................................................................................................13
2.5.6. Management Feedback ...........................................................................................13
2.5.7. Develop User-Friendly Procedure Performance Criteria And Rating ....................13
2.5.8. Evaluator Training ..................................................................................................14
2.5.9. Revising Performance Appraisal Process ..............................................................14
2.6.Who Should Do The Appraisal? ....................................................................................14
2.6.1. Managers/Supervisor Appraisal This Method Of Appraisal
Technique Is Traditional. ..................................................................................... 14
2.6.2. Self-Appraisal ........................................................................................................15
2.6.3. Subordinates Appraisal ..........................................................................................15
2.6.4. Peer Appraisal ........................................................................................................15
2.6.5. Customer Appraisal ...............................................................................................15
2.7.Benefits Of Performance Appraisal ..............................................................................15
2.8.Benefits For Workers Employees Are Beneficiary In Performance Management
Program with Many Dimensions. ............................................................................... 16
2.8.1. Benefits For Supervisors ........................................................................................16
2.8.2. Benefits For The Organization ...............................................................................16
2.8.3. Problems Of Performance ......................................................................................16
2.8.4. Most Serious Performance .....................................................................................17
2.8.5. Process Related Problems ......................................................................................17
2.8.6. Instrument (Form) Problems ..................................................................................18
2.8.7. Manager/Execution Problems ................................................................................18
2.8.8. Employee/Subject Problems ..................................................................................19
2.8.9. Timing Issues .........................................................................................................20
2.9.Effective Performance Appraisal ...................................................................................20
2.9.1. Sensitivity ............................................................................................................... 21
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2.9.2. Reliability ...............................................................................................................21
2.9.3. Practicality .............................................................................................................21
2.10. Conceptual Framework…………………………………………………………… 21
CHAPTER THREE
3. Research Design And Methodology ................................................................................22
3.1.Research Design............................................................................................................22
3.2.Data Type And Source ..................................................................................................22
3.3.Data Collection Methods ..............................................................................................23
3.4.Target Population ..........................................................................................................23
3.5.Sampling Method ..........................................................................................................23
3.6.Sample Size...................................................................................................................24
3.7.Data Analysis Method...................................................................................................24
3.8.Validity And Reliability................................................................................................24
3.8.1. Validity ..................................................................................................................24
3.8.2. Reliability .............................................................................................................25
3.9.Ethical Consideration ....................................................................................................25
CHAPTER FOUR
4. Data Presentation, Analysis and Interpretation ................................................................26
4.1.Profile Of The Respondents ..........................................................................................26
4.2.Employee Performance Evaluations Practice At Ethiopian
Tourist Trading Enterprise ............................................................................................28
4.3.Perceptions Of Employees Towards Performance Evaluation Practice ......................31
4.4.Challenges In Performance Evaluation Process Of The ETTE ....................................34
4.5.Action Taken By The Management To Improve Performance Evaluation Practice ....36
CHAPTER FIVE
5. Summary, Conclusions and Recommendations ...............................................................40
5.1.Summary of Major Findings .........................................................................................40
5.2.Conclusions ...................................................................................................................41
5.3.Recommendations .........................................................................................................43
References
Appendixes
iv
LIST OF TABLE
Table 4.1 Respondent Information Based On Level of Education ........................................28
Table 4.2 Summery Of Response about Performance Evaluations Practice at ETTE...........29
Table 4.3 The Enterprise is Able to Provide Clear Guidelines For
Performance Appraisal...........................................................................................32
Table 4.4 Summary Responses of Challenges in Performance Evaluation
Process at ETTE ...................................................................................................37
Table 4.5 My Manager Keeps File on What I Have Done During the Evaluation
Period to Evaluate my Performance ......................................................................39
Table 4.6 My Managers are Well Trained in Assessing and Giving Feedback .....................40
Table 4.7 Managers Are Accountable/ Responsible for their Wrong Feedback ..................40
Table 4.8 Managers are two way Communications to Solve the Problem ............................41
Table 4.9 Managers Should Coach and Monitor Employees Every Time about
Performance Evaluation .......................................................................................41
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Acknowledgement
To do this study to reach its completion, many individuals were involved. I would like to thank
them for facilitating this study in one way or another way.
First of all, I would like to thank the almighty God, alpha and omega, origin of all life and owner
of all knowledge and wisdom, who gave me guarantee of salvation and the opportunity and
strength to pursue my graduate study.
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ABSTRACT
The purpose of this study is to assess the Employee performance evaluation practices and
challenge in Ethiopian Tourist Trading Enterprise. A combination of qualitative and quantitative
research approach has been adopted whereby a structured questionnaire was administered by
the researcher to a selected population size of 258 of which 232 completed questionnaires,
generating a response rate of 90% and in-depth interviews with HR directors and managers of
the Ethiopian Tourist Trading Enterprise are used to support the quantitative data. The findings
of the research indicated that employee performance evaluation practice has numerous benefits.
Among these; it creates role clarity among employees, it enables to differentiate good and poor
performers, and it creates a constructive competition among staffs. The system has also helped to
motivate employees and encourage development through creating communications between the
employees and their managers. It also improves both individual and the Ethiopian Tourist
Trading Enterprise overall performance. However, the researcher has found that there were
challenges; lack of clarity in evaluations criteria, bias and favoritism in performance evaluation
process, no appropriate documentation for performance appraisal, time also affect and
employees’ negative attitude towards performance evaluation. Managers are also not
accountable or responsible for their wrong feedback. On the basis of the findings, the researcher
recommended that, the Ethiopian Tourist Trading Enterprise has to take remedial actions in
order to minimize evaluator bias and favoritism, feedback is given to appropriate time to the
employee, appropriate data entering to oracle performance management system, manager
keeping file or document properly every time.
Key words: performance, evaluation, practice
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CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
Management performance has been a crucial issue for a long period of time. It has grown more
attention recently due to high competitive business environment. Tourism sectors especially in
business enterprises need to give great attention to their employees’ performance and evaluation
since employees are the first one who represents the enterprise in front of those impressive
customers. Additionally, employees are responsibility to create outstanding image about the
tourism industries to those customers in order to make the enterprise to be a leader in such
competitive business environment. For this reason “People have become the primary source of
competitive advantage” (Decenzo and Robbins, 2010). According to (Noeetal, 2011), formal
evaluations are required to justify a wide range of human resource decisions like pay raises,
promotions, demotions, terminations, training needs, and etc.
They also emphasize that performance appraisal is one of the pinnacle motors for creating
aggressive improvement in the business environment. Besides, they assure that performance
measurement allows the organization to tell their employees something about their rate of
growth, their competencies, and their potentials. alternatively, DeCenzo, A. D., & Stephen, P. R.
(2010).has proven that ineffective performance evaluation can be a cause for many problems,
such as low morale, low productivity, a lessening of an employee’s enthusiasm and support for
the organization, high rate of skilled employee termination, high rate of customer turnover, high
running costs and etc. that leads the company to reduce in size early. In today’s competitive
business world, it is understood that organizations can only compete with their competitors by
innovating, and organizations can be pioneering by managing their human resources well. The
human resource system can become more effectual by having a suitable and precise routine
assessment system used for rating employees (Armstrong, 2016; Bohlander& Snell, 2019).
Performance evaluation demands the immediate supervisors to understand the nature of the job
and the sources of information, and the information needs to be collected in a systematic way,
and it is provided as a feedback, and integrated into organization’s performance management
process for use in making compensation, job placement, and training decisions and assignments
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A. D., & Stephen, P. R. (2010), “performance appraisal is one of the most important and often
one of the most mishandled aspects of management.’’ It has also been said to be one of the most
problematic components of human resource management and is viewed as either a futile
bureaucratic exercise or, worse, a destructive influence on the employee-supervisor relationship
Armstrong, M. (2009).
The usefulness of performance evaluation as a managerial decision tool depends partly on
whether or not the performance appraisal system is able to provide accurate data on employee
performance and hence rating accuracy is a critical aspect of the appraisal process. A difficulty
of getting accurate appraisals of employee job behavior is most often attributed to: faults in
rating format used, deficiencies in appraisal content, quantifier resistance to judge others, and the
implications of the specific purpose of appraisal for the rat quantifier and the enumerates
Abdurezak Mohammed (2010). Therefore, the problems of performance evaluation arise when
the results of the evaluation fail to reflect the actual performance of the employees, which in
turn, leads to wrong administrative decisions that can highly affect the life of the employees.
Thus, this paper tried to assess the practices and challenges of employees’ performance
evaluation in Ethiopian Tourist Trading Enterprise. Hence such study has never been conducted
before and the enterprise is elder, encompassed with skilled manpower, innovative and well
technologically equipped, it is advantageous for the enterprise to see early the problem occurring
in relation with employees’ performance evaluation and helps to take remedial action to
overcome the cause and consequences identified.
1.2. Statements of the Problem
Performance evaluation practice provides a good opportunity to formally recognize employees’
achievements and contributions to the organization, and to ensure that a clear link is established
and maintained between performance and reward. The goal of performance evaluation practice is
to enhance the employee performance (as well as job satisfaction and commitment to the
organization) and the performance of the organization (James, 2009).
Effective performance management systems have a well-articulated process for accomplishing
evaluation activities, with defined roles and timelines for both managers and employees.
Especially in organizations that use performance management as a basis for pay and other HR
decisions, it is important to ensure that all employees are treated in a fair and equitable manner
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(Pulakos, 2004).
Ethiopian Tourist Trading Enterprise has implemented employee performance practice in the
year 2021 in order to aligning the strategic objectives of the Ethiopian Tourist Trading Enterprise
to that of individual level. But the implementation has been faced different types of challenges,
some of these are, un alignment of performance evaluation practice with benefit packages and
two extreme appraisal score (1 up to 4) for internal business process target have been given,
unbalanced goals, There is a tendency of evaluating individual performance on the target not
actually given, the employees performance may not be as expected. (ETTE performance
management system follow-up report (2022)
As the study is intended to fill the knowledge gap, the researcher makes an effort to investigate
and analyze uncover the root cause of problem associated to the performance evaluation practice
and also the study gives to the best alternative action for improvement of performance evaluation
practice in Ethiopian Tourist Trading Enterprise.
1.3. Research questions
Based on the data collected from both management group and stable employees of Ethiopian
Tourist Trading Enterprise, whose were assessed for the last three years, the study tried to
analyses the existence of the above mentioned problems.
The study was guided by the following research questions: the performance evaluation practice
and challenges in Ethiopian Tourist Trading Enterprise.
1. How is employee performance evaluation conducted at Ethiopian Tourist Trading
Enterprise?
2. What is the perception of employees towards the employee performance evaluation practices
of the Ethiopian Tourist Trading Enterprise?
3. What are the major challenges in employee performance evaluation process of the Ethiopian
Tourist Trading Enterprise?
4. What types of actions/measures are taken by the Ethiopian Tourist Trading Enterprise to
improve its employee performance evaluation practices?
1.4. Objective of the Study
1.4.1. General Objective
The general objective of this study was assessed the employee performance evaluations practice
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and challenges at Ethiopian Tourist Trading Enterprise.
1.4.2. Specific Objectives
1. To examine the employees performance evaluation practice of the Ethiopian Tourist Trading
Enterprise.
2. To assess the perception of employees towards the performance evaluation practices of the
Ethiopian Tourist Trading Enterprise
3. To identify the major problems related to employees performance evaluation practice of the
Ethiopian Tourist Trading Enterprise.
4. To identify the measures/actions taken by the management of the Ethiopian Tourist Trading
Enterprise in order to improve employees performance evaluation practice of the
organization
1.5. Significance of the study
while performance appraisal does have different return for both organization and employees;
such as pay increases, progress and training, transfers, rewards, analyzing, promotion, employee
appreciation, termination, and also nice-looking firms overall performance, the outcome of this
study supports by identifying the problems of performance estimate and give signal to the
Human Resource Management of the enterprise to take counteractive action to minimize the
obstacles of performance evaluation in viewing employees for different reasons as revealed
above. This study also handouts as a quantity of involvement to the current awareness in the
practice of performance appraisal in an enterprise working in Ethiopia and may help to bring
behavioral change in the areas of performance appraisal mutually in the brainpower of the
quantifier, quantifies and those parties accountable in the plan of the appliances of performance
appraisal forms that are used to judge the performance of employees. Besides, the result of the
study may begin the college to behavior extra routine assessment related research in the future.
1.6. Limitation and Scope of the Study
This study tried to address both employees and management group of Ethiopian Tourist Trading
Enterprise, which has only two branches and one headquarter around Addis Ababa using
questionnaires and interview. The study has focused on limited number of respondents; hence it
is difficult to address all employees. The information gathered is analyzed using SPSS computer
programming software, since the research is descriptive.
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1.7. Limitation of the study
Also to lack of time and Budget, there was a choice of explanation that limited the study. Like,
along with the expected number of employees, some of them were not agreeable to fill the
questionnaires. In addition getting contact on employees’ personal assessment result of the
previous year’s records and isolation of prior studies at international level on related topic had
limited the research.
1.8. Organization of the study
The study is organized into five chapters. Chapter one deals with introduction, chapter two deals
with the review of the related literature, chapter three deals with Research Design and
Methodology, Chapter four deals with data analysis and interpretation and presentation and
finally chapter five contains summary, conclusions and recommendations.
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CHAPTER TWO
LITERATURE REVIEW
The focal rationale of this chapter is to give a clear hypothetical and sensible thoughtful about
employees’ performance appraisal in business firms particularly enterprises. Above all, this
document focuses on ten major areas. The study begins with generous underline on performance
appraisal; based on the description given by different academic. Then, requirement of
performance appraisal; methods of performance appraisal; performance criteria’s; benefits of
performance appraisal; performance appraisal processes; effective performance appraisal are
areas covered under this chapter.
2.1. Performance Appraisal an Overview
According to Lansbury (2011), performance appraisal is defined as “the process of identifying,
evaluating and developing the work performance of the employee in the organization, so that
organizational goals and objectives are effectively achieved whereas, at the same time, helping
employees in terms of gratitude, receiving reaction, and offering career management”.
conversely, Baron and Armstrong (2010) define performance management as a systematic
management tool contained of purposes, standards, objectives, measurement, response and
incentive that are agreed on to be given more successful results from the organizations, teams
and individuals by fascinating the individuals in a way to construct them be attentive of their
own prospective.
Additionally performance appraisal may be definite as a planned recognized communication
among a subordinate and a manager where the subordinate’s work performance is evaluated. It is
a standard expression for a mixture of processes whereby an individual’s work performance is
measured, usually by the person’s nearby supervisor, and argued with a view to resolving
problems, getting better performance and developing the person evaluated. Performance
appraisals take place at 10 regular intervals and are usually based on a consistent method. In the
appraisal process, moreover the employee’s performance or the result of performance is
evaluated (Fletcher, 2003, 116; Dreves, 2002, 138; Lawler, 1990, 86).
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2.2. Necessity of Performance Appraisal
Dewakar (2009, 20) has clearly explained the objective of performance appraisal in an
organization. According to him the objectives of performance appraisal are categorized in to two
major perspectives, namely, employees’ perspectives and organization perspective. According to
him, employees perceive positive benefit from the system when it is direct towards the
consideration of an employee’s needs while Organizations are demanding the system with the
expectation of operational and business priority of the organization. In addition, Dewakar has
generalized that good performance appraisal will help to allocate resources, to reward for
performance, to create a positive feedback, bring fairness, to identify training and development
and create equal opportunity to all.
Similarly, Murphy (1995), states that the purpose of performance appraisal can be categorized
basically in to two major perspectives, including organization’s perspective and employees’
perspective. He clarifies, organization’s perspective as, to improve productivity and efficiency of
an organization, to provide developmental feedback to employees, to document performance
levels and decisions made, to achieve information on which to base other administrative
decisions, to find the best fit between employees’ qualifications and organizational tasks, to
distinguish the best performers from poorer performers, to motivate poor performers, to maintain
the motivation of good performers, to use appraisals for performance-based pay distribution and
to articulate organizational goals to the individual level.
Employees’ perspective can be to improve performance or qualifications, to enable
developmental feedback to the upper management, to promote career development and to receive
rewards based on good performance. Rynes (2005) also asserts that Performance appraisals are
usually implemented for at least for two reasons. Firstly, performance appraisals are used as a
management tool in order to develop personnel. In particular, performance evaluation is seen to
improve the performance of employees through developmental feedback (i.e. mainly focused on
improving performance). Secondly, appraisals are used to make administrative decisions based
on the evaluation of performance, namely, allocation of rewards and punishments such as pay
increases, promotions or discharge.
We can generalize from the above discussion that formal evaluations of employee work behavior
helps the employer and employee build on the strengths of the employee and identify those areas
7
the employee needs improvement to be more effective and efficient in his/her job. Moreover
performance evaluations can ensure the creation of reasonable performance standards so that
both supervisor and employee are aware of work that is considered "acceptable performance."
Because of the active involvement of both the supervisor and the employee in performance
evaluations, an important channel of two-way communication will be also opened. Obviously,
communication can result in increased cooperation and understanding between supervisors and
employees, which in turn will enhance work performance and work environment thus providing
better customer service to the community and each other.
2.3. Methods of Performance Appraisal
There are different performance appraisal methods. Thus, managers can choose from these
appraisal methods while appraising the performance of their subordinates. This section deals
with nine commonly used performance appraisal methods categorized under traditional methods
and modern methods. These appraisal methods are briefly discussed below as asserted by
different authors. Traditional methods of performance appraisal techniques includes, ranking
straight, comparing by way of paired ranking, assessment of linear rating scale, evaluation on the
parameter of critical incidents, evaluation by the group and appraisal by field review. Modern
methods of performance appraisal techniques includes, multi-level multisource 360 feedback
system, evaluation on the basis of result or management by objective and evaluation on
behaviorally anchored rating scales.
2.3.1. Traditional Methods of Performance appraisal techniques
As asserted by different authors some of the traditional performance appraisal techniques are
explained below.
2.3.1.1. Ranking Straight
This is one of the oldest and simplest techniques of performance appraisal. In this method, the
appraiser ranks the employees from the best to the poorest on the basis of their overall
performance and then the performance of one is compared with the other in all parameter. This
method does have lot of drawbacks since peoples are different in behaviour, way of working,
style and concept of perfection, straight ranking techniques do not consider these factors
(Dewakar 2009, 26-27). According to Saiyadain (2004, 211), if an employee is evaluated by
more than on supervisor, each one of the supervisors will rank the employee according to their
8
own assessment and the mean will determine the employee performance. Comparison among the
employees will be done by the mean result.
2.3.1.2. Comparing by Way of Paired Ranking
As compared with ranking straight method this method is relatively better technique of
comparison. Hence, the performance of one is compared with all members of the group. This
method was short-lived because it was found to be quite difficult to design and it was time
consuming and difficult to implement in a large number of people (Dewakar2009, 28). The
ranking techniques are determined by the number of time that the employee is superior over their
co-worker. However, since this comparison is made on an overall basis and not in terms of
specific job behavior or output, it may be subject to legal challenges (Casico 2004, 342).
2.3.1.3. Assessment of Linear Rating Scale
This method is also known as graphic method since the parameters are putted in a graphic forms
and tick box will be put in front of each parameters to rate employees from excellent performer
to poor performer. The drawback of this method is that quantifier subjectivity is possible, But
still most organizations throughout the world are using it and it is the most popular techniques
(Dewakar 2009, 29). Graphic methods of performance appraisal techniques helps to measure the
overall competencies and objectives level the employees. In relation with competencies; the
employee’s potential to identify and analysis problems and his/her ability to maintain
harmonious and effective work relationship with co-workers and constituents will be assessed.
Pre stated objective will be evaluated in the objective parts (Dessler 2005, 317).
2.3.1.4. Evaluation on the Parameter of Critical Incidents
In this method of Performance appraisal, the evaluator rates the employee on the basis of critical
events and how the employee behaved during those incidents. It includes both negative and
positive points. The drawback of this method is that the supervisor has to note down the critical
incidents and the employee behavior as and when they occur (Dewakar 2009, 32). The objective
of critical incident method of performance appraisal technique is improve the supervisors ability
as an observer and helps to train supervisors in taking notes while critical incidents on
outstanding example of success or failure happens (Saiyadain 2004, 213). This method helps the
supervisor to provide actual examples of good and poor performance that use to explain
employees rating, also it insure that the appraisal process cover the year. But this method is not
9
too useful for comparing employees or making benefit decision (Dessler 2005, 322).
2.3.1.5. Evaluation by the Group
As the name indicates this is a group evaluation technique. Here, the group will determine job
performance standards and evaluate with the actual performances. Since the evaluation process is
taken under a group it is time consuming but it eliminate the scope of any bias and it is quite
simple (Dewakar 2009, 33).
2.3.1.6. Appraisal by Field Review
In this method, the expert evaluator, a senior member of the HR department or a training officer
discusses and interviews the supervisors to evaluate and rate their respective subordinates. A
major drawback of this method is that it is a very time consuming method. But this method helps
to reduce the superiors’ personal bias (Dewakar 2009, 34). In general, from the above discussion
we can see that in a traditional performance appraisal approach only the supervisor or
management groups or external experts are involving; but different scholarly have thought that
involvement of employees is a necessity for a good performance appraisal.
2.3.2. Modern Methods of Performance Appraisal Techniques
As asserted by different authors some of the modern methods of performance appraisal
techniques are explained below.
2.3.2.1. Multi-level Multi-source Feedback System (360 Degree Feedback)
360 degree feedback techniques can be defined as a systematic collection and feedback of
performance data on an individual or group derived from a number of stakeholders (the boss,
team members, peers, customers, subordinates) in their performance (Dewakar 2009, 38). 360
Degree feedback system does work first by developing questionnaires, these questionnaires
could be in a mixed or grouped forms, the respondents who are the stakeholders stated above do
have a choice of alternative in relation to a particular 15 question, in addition even they can skip
the rating. Moreover the individual who is going to be evaluated do have a chance to evaluate
himself. Then all the respond will be collected summarized and conduct to the individual
(Dewakar 2009, 37-40).
2.3.2.2. Evaluation on the Basis of Result or Management by Objective
Here both the boss and the subordinates will be together to set realistic objective. First the boss
give chance to the subordinates to set objectives then the boss decide as to what extent the
10
subordinates should and plans the goal for the subordinate as per his expectation. After this, both
the boss and the subordinates will have a mutual discussion about the objective to come in to a
common agreement which will be written and signed by both (Dewakar 2009, 43). The
subordinate will be evaluated based on the objective agreed. This system does have a lot of
advantage beyond other methods. Some of the advantages are, it motivates the subordinates, it
integrates the entire organization since all are setting their objective towards the organization
goal, and it helps employees to achieve their individual objective. However no system can be
without its negatives.
The drawback of this is often the time involved within the process; it lays on sole emphasis on
result instead of on quality traits within the performer (Dewakar (2009, 43-48). in keeping with
Dessler (2005, 325) so as to implement management by objective appraisal techniques, there are
six major steps; Setting the organizational goal → setting department goal→ discussing
department goal → define expected result → performance review → provide feedback
Management by objective performance appraisal techniques does have main positive impacts
within the organization. a number of them are; it strength coordination among various unit within
the organization; it becomes easy to implement hence the performer involved in putting in the
goal; each employees are conscious of what's expected from him/her; e.t.c. (Saiyadain 2004,
214). In the other hand, in line with Dessler (2005, 326), Management by objective performance
appraisal techniques faces three major problems.
1) Setting unclear and non-measurable objective
2) Its highly time consuming
3) Setting objective with the subordinate sometimes turn in to a tug-of-war.
2.3.2.3. Evaluation on Behaviorally Anchored Rating Scales
This technique is predicated on the concept that one can assess an employee’s performance by
evaluating his behavior or action over a specific situation. The parameters employed in this
system are human relation, consciousness, organizational ability, observational power,
knowledge and judgments. This method is kind of time consuming and expensive. Moreover it's
no clear cut advantage as compare with the opposite, but it's quite modern to check the
competence of a personal (Dewakar 2009, 49).
Behaviorally anchored rating scales performance appraisal techniques basically combine the
11
advantage of critical incident methods and graphic rating scale methods by anchoring a rating
scale with specific behavioral example of fine or poor performance. This method provide better,
more equitable appraisal than the others (Dessler 2005, 322). in step with Dessler (2005, 323324), behaviorally anchored rating scales techniques is implemented through five basic steps;
Generate critical incidents →developing performance dimension → reallocate incidents → scale
the incidents → develop a final instruments while this method is time consuming, it's some
advantages than others. Lead to more accurate gauges, clearer standards, feedback, independent
dimension and consistency are a number of the advantage that produces the system different
from the others (Dessler 2005, 324).
2.4. Setting Performance Criteria
As realized by Vassallo (2004, 277), the standards (dimensions) selected in forming an
evaluation system should meet seven qualifications. a number of the factors observed during this
study are, validity: criteria should be appropriate for the project and aligned with the objectives
and goals, directness: criteria should be stated as clearly as possible, objectivity: criteria should
be measurable, adequacy: criteria should sufficiently measure the end result, quantitative: criteria
should be quantitative whenever possible, practicality: criteria should be obtainable efficiently
and at an inexpensive cost and reliability: criteria should be designed to enable replicable results.
2.5. Performance Appraisal Processes / Guidelines
According to Islam and Rasad (2005), employees’ performance management techniques should
consider the subsequent areas so as to return up with good performance appraisal techniques.
2.5.1. Employee Participation
In any case, if the staff perceives the appraisal system as biased, unfair and lacks rigors, then it's
unlikely that they'll accept the outcomes of the system. Participation gives a chance to the
workers to boost their voice into the appraisal process. Performance standards, criteria for
evaluation and also the evaluation form itself – all will be developed with the assistance of
employees (Islam et al 2005).
2.5.2. Developing Performance Standards
When developing standards, they have to be essential to live the work duties and responsibilities.
Additionally, participation of employees will make the quality reliable, valid, fair and useful
performance standards (Islam et al 2005).
12
2.5.3. Goal Setting
Setting goal specifically performance measurement goal will motivate employees and build
appraisal satisfaction, especially when the criteria’s are specific, measurable, moderately
challenging and acceptable (Islam et al 2005).
2.5.4. Sound Performance /Appraisal Interview/
The appraisal interview must be conducted properly so as to induce the foremost out it. The
interviewer must remember about sensitivity to employee needs for privacy and personality. It’s
of utmost importance to produce undivided attention during the interview and reserve adequate
time for a full discussion of the problems. Moreover an open ended question increase
participation of employees within the evaluation processes (Islam et al 2005).
2.5.5. Self-Evaluation
Self-evaluation provides employees a chance to systematically assess their performance. Studies
have indicated that self-evaluation increases employees’ perceived fairness on the appraisal
process. Employees can evaluate themselves by completing their own appraisal form and
presenting the draft for discussion with the evaluator (Islam et al 2005).
2.5.6. Management Feedback
Management’s feedback is required for a standard sense reason. When the workers benefit jobs,
they expect a pat on their backs (positive feedback); on the opposite hand, if the poor performers
don't receive any constructive feedback which tells them to enhance, they'll think that this level
of performance is accepted within the organization and that they might not put extra efforts to
enhance (Islam et al 2005).
2.5.7. Develop User-friendly Procedure Performance criteria and rating
Procedures should be simple enough and that they should be understood by the quantifier and
quantifies. Performance criteria should encompass the key aspects of employee’s job. If any key
aspect is ignored, then it sends the message that's unimportant and may be ignored. Appraisal
systems are successful only the things appraised address the necessities and essential functions
on the duty. The standards used should be specific and directly associated with the work (Islam
et al 2005).
13
2.5.8. Evaluator Training
The one that conducts the appraisal exercise should receive extensive training in goal setting,
setting performance standards, conducting interviews, providing 19 feedbacks, avoiding rating
biases, etc. He/she should understand how to conduct appraisals accurately, consistently, fairly
and objectively. Specifically, top management must remember about the competency level of the
quantifier (Islam et al 2005).
2.5.9. Revising Performance Appraisal Process
The performance appraisal result should be revised by the responsible department so on assure
that the tactic and practices are in line with the rule and regulation of the organization. By
revising the strategy any bias or subjectivity is also avoided and a good performance appraisal
technique is implemented (Islam et al 2005). From the above discussion it's clear that good
performance appraisal activities should give attention to employees participation, setting predetermined performance standards, designing well defined goal, the arrangement of sound
performance appraisal interview, the implementation of self-evaluation, the need of providing
management feedback, development of user-friendly procedure, evaluator training and revise
performance appraisal process.
2.6. Who Should Do the Appraisal?
Previously most organization were doing performance appraisal by one person. But now a day
given the complexity of today’s jobs, it's often unrealistic to presume that one person can fully
observe and evaluate an employee’s performance. The quantifiers may include supervisors,
peers, team members, self, subordinates, and customers (George B & Scott S 2009; Cascio 2004,
348).
2.6.1. Managers/Supervisor Appraisal This method of appraisal technique
is traditional.
Usually supervisors evaluate the performance of individuals so supervisor superior review the
evaluation and appraise it. The negative impact of this method is that when the supervisors face
shortage of some time to observe the performance of the individual; they simply relay on the past
performance records of the individual. Whether or not reviews by superiors generally are more
objective and provide a broader perspective of employee 20 performance it's highly subjective to
the supervisor (George et al, 2009; Cascio 2004, 348).
14
2.6.2. Self-Appraisal
This appraisal methods increase the involvements of the individual within the appraisal process.
Hence the worker is given a chance to end the appraisal form before the review process it makes
the task performance discussion among them simple and helps to agree on final appraisal. This
approach also works well when the manager and thus the worker jointly establish future
performance goals or employee development plans (George et al, 2009; Cascio 2004, 348).
2.6.3. Subordinates Appraisal
This is appraisal techniques made by subordinates to their managers. Most of the time managers
are hesitant to endorse such a system, particularly when it'd be used as a basis for compensation
decisions. However, when the info is used for developmental purposes, managers tend to be
more receptive the concept. These techniques are advantageous to manager to boost their
performance if they heed the advice of their subordinates (George et al, 2009; Cascio 2004, 348).
2.6.4. Peer Appraisal
Peers appraisal technique is evaluation of performance of one another that are horizontal within
the organization structure. This will help to see different dimension of performance hence peers
can readily identify leadership and interpersonal skills along with other strengths and weakness
of their co-workers. However, peer appraisals won't be advisable for administrative decisions
like salary or bonuses. Employers using peer appraisals must even be sure to safeguard
confidentiality in handling the review forms. Any breach of confidentiality can create
interpersonal rivalries or hurt feelings and convey about hostility among fellow employees
(George et al, 2009; Cascio 2004, 348).
2.6.5. Customer Appraisal
The Customer performance appraisal system is like team appraisal, which relies on TQM
concepts and seeks evaluation from both external and internal customers. For both
developmental and administrative purposes, internal customers can provide extremely useful
feedback about the value added by an employee or team of employees (George et al, 2009;
Cascio 2004, 348).
2.7. Benefits of Performance Appraisal
As asserted by Charlie (2011), performance appraisal programs are important for the staff,
supervisors who conduct appraisals, additionally as companies. Brief explanation of these
15
benefits is below.
2.8. Benefits for workers Employees are beneficiary in performance
management program with many dimensions.
variety of those are; It help to create clear understanding of his/her role and what's expected from
her/him within the organization, helps to know his/her strength and weakness and to spice up
them, it is a thanks to induce opportunities for further career development. Moreover, they get to
grasp the way the performance appraisal process is conducted by their supervisors. Therefore, so
on require the advantage individual will specialize in his work and take a glance at to deliver
quality works (Charlie, 2011). On the alternative hand Saiyadain (2004, 203) has asserts that
employees are beneficiaries of performance appraisal through personal development, satisfaction
and involvement of the individuals, and also the perception of fair and just compensation.
2.8.1. Benefits for Supervisors
As employees are beneficiary within the performance management program; supervisors also do
have many benefit packages. For instance; supervisors will get time to interact with the staff and
understand their difficulties, helps to judge employees’ confidence level and spot their
difficulties, it helps to identify level of human resource and so the gap and so the supervisor gets
to understand of the training and development needs of an employee (Charlie, 2011).
2.8.2. Benefits for the Organization
Performance appraisal program do have great advantage to the organization. Through
performance appraisal processes organization will get the prospect to identify candidates with
high potentials, helps to know the expectation of thee employees from the organization, help
organizations to spice up the overall workforce efficiency, skills and productivity and to make
good relationships with each employee, help to form your mind up how successful the company's
induction and recruitment policies are, help to understand organizational plan and etc. (Charlie,
2011). Moreover Saiyadain (2004, 203) has explained that organizations are benefited with
performance appraisal through generating man power information, and provide a rational
compensation structure.
2.8.3. Problems of Performance
Appraisal and the way to Avoid Them John Sullivan along with his magazine has explained the
highest 50 problems with performance appraisal. He categorized them as, most serious
16
performance appraisal problems, process related problems, instrument (form) problems,
manager/execution problems, employee/subject problems and timing issues. along with his
explanation he has clearly shown us that evaluating employee performance has many dimensions
of difficulties which require to relinquish serious attention.(http://www.tlnt.com) a number of
these performance appraisal problems those related with this study are briefly discussed within
the following section;
2.8.4. Most Serious Performance
Appraisal Problems According to the Author mentioned above a number of the foremost serious
performance appraisal problems include the subsequent.
a. Don’t assess actual performance: - Most of the time managers assess to factors that
contributes to actual performance like characterizations of their personal “traits” (i.e.
commitment), knowledge (i.e. technical knowledge) or behaviors’ (i.e. attendance) instead
of assessing the particular output.
b. Infrequent feedbacks: - feedback is given at the time of conducting performance result, but
feedback must run at formal interval before conducting performance appraisal result.
c. Non-data-based assessment:- most performance appraisal processes are subjective thanks to
not having pre populating forms with data to gauge individuals. Decision made supported
such subjectivity ends up in poor performance appraisal process and creates bias among the
individuals.
d. Lack of accountability: - most of the time managers aren't answerable for their in accurate
feedback or for creating mistakes. If a personal keep silent with the incorrect feedback given
by his immediate supervisor nobody will ask the supervisor his/her reason for the incorrect
feedback. In practice the supervisor is asked when the question is come from the individual.
2.8.5. Process Related Problems
As per Sullivan magazine process related problems includes the subsequent.
 Disconnected from rewards: - sometimes performance appraisal isn't liked with
employees benefit package or punishment like getting a merit raise, bonus, or promotion,
demotion etc. At now supervisors and manager may take the performance appraisal
process carelessly.
 Each year stands alone: - each performance appraisal by definition covers a finite period
17
of your time. However, if the goal is to assess potential and identify patterns, an
employee’s performance must be assessed over multiple years.
 A specialize in the squeaky wheel: - most performance appraisal systems focus on weak
performers. There’s significantly less concentrate on top performers and thus there's no
system to capture their best practices then to share them with others.
 No second review: - in most organization performance appraisal is conducted by one
supervisor and conducted to the individuals. Since performance appraisal is conducted for
the good thing about both individual and organization; to urge accurate and fairness result
a second review is critical.
 Cross-comparisons don't seem to be required: - most of the time performance appraisal
processes don't seem to be done by comparing each member of the team with each other.
A cross comparison is require so as to spot the strongest and weakest side of one another.
2.8.6. Instrument (form) Problems
As ascertained by Sullivan in his magazine, Instrument (form) related problems of performance
evaluation process includes,
i.
Doesn’t address diversity: - only too often, the identical appraisal form is applied to an
oversized but not homogeneous group of employees (i.e. all hourly, all exempts, all
managers etc.). As a result, the assessment form doesn't fit the task.
ii.
The factors are all equal: - most forms treat all assessment factors as if they're of equal
importance. Instead, they ought to be weighted supported their relative importance during
a particular job.
iii.
Disconnected from job descriptions: – in many cases, the factors on the shape are
completely different from the factors on an employee’s verbal description, bonus criteria,
or yearly goals. This could confuse employees and cause them to lose focus.
2.8.7. Manager/execution Problems
Managers related problems are the foremost briefly stated problems of performance evaluation
process by the Author. Below are a number of common managers’ related problems explained by
the Authors mentioned above?
1. Managers aren't trained: - in most organizations, managers don't seem to be trained on the
way to assess and provides honest feedback. If the method includes a career development
18
component, it's even more likely that managers won't understand how to boost the career
path of their employees.
2. Gaming the system: - often managers artificially rate individual employees to save lots of
money or to stay employees from becoming visible for promotion. Some selfishly 25
provides a score slightly below that required for a pay increase, while others give scores
just above the purpose where they'd be required to require disciplinary action.
3. Politeness errors: - managers, especially people who don’t consult employee files and data,
have an inclination to judge based totally on events that occurred during the previous
couple of months (rather than over the complete year).
4. Inconsistency across managers: - some managers are naturally “easy quantifiers” while
others aren't. As a result, employees working under easy managers have a more robust
chance of promotion thanks to their higher scores. In firms that rely heavily on the
narrative portion of the assessment, having a manager with poor writing skills may hamper
an employee’s career. Without “benchmark” numbers to line as a regular, inconsistency is
guaranteed in large organizations.
5. Managers don’t know the employee: - managers of enormous and global organizations,
further as newly hired and “transferred in” managers is also forced to try and do appraisals
on employees they barely know. Recently promoted managers could also be forced to
assess their former friends and colleagues.
2.8.8. Employee/subject Problems
Employees related problems are briefly explained by the author additionally to the above
mentioned varieties of performance appraisal problems. A number of the issues raised in relation
with employees are: One-way communication: - some managers simply give the worker the shape to quickly
sign and that they don’t even solicit feedback. Many employees are intimidated by
managers and therefore the process, and as a result, they assert nothing during or after the
appraisal.
 Self-assessment isn't possible: - Generally employees don't have an opportunity to judge
themselves. It’s possible to mention that this practice isn't implemented yet. But giving an
opportunity to self-assessment will create a smooth environment and find you with good
19
performance appraisal result.
 One-way process: - in most cases, employees don't have information about the factors on
how they're going to be evaluated. Managers conduct the evaluation process in on way.
There’s no formal and informal communication between employees and managers before
conducting the appraisal.
 Retention issues: - employees’ retention issue rose when the performance appraisal process
is conducted unfairly. Top employees are turns to seem for one more job once they feel that
the performance appraisal is unfair and no differential in recognition and rewards for his or
her superior performance.
 Many possible emotional consequences: - if performance appraisal is blotched, you'll
expect a decrease in employee engagement, trust employer brand strength, teamwork, and
innovation contribution. Employee referrals from disgruntled employees will probably also
drop.
2.8.9. Timing Issues
A time-consuming process: - most of the forms are incredibly long and time consuming. As a
result, some managers routinely recycle “last year’s” evaluations. If HR is required to take a seat
in on the sessions, the quantity of wasted time increases significantly.
2.9. Effective Performance Appraisal
As asserted by Saiyadain (2003, 336) effective performance appraisal systems that are applicable
during this research are:2.9.1. Relevance
As asserted by the author, the performance standards/criteria should be clearly linked with the
organization goal, therefore the employee’s specific job duties and responsibilities. Moreover the
performance standards/ criteria should measure how well an employee has done the work. He
has defined relevance as “What really makes the difference between success and failure on a
selected job, and in keeping with whom?” Saiyadain (2003, 336) from the above definition we
will understand that the performance evaluation criteria additionally to linked with the goal and
objective of the organization, it should need to measure the performance /achievement of
employees out com.
20
2.9.2. Sensitivity
According to Saiyadain (2003, 336), the performance appraisal system should differentiate
between good performer and poor performer. While doing so, employees’ morale is going to be
built and also the performance appraisal result will be used for administrative purposes. If not;
the method are pointless work.
2.9.3. Reliability
This is the foremost important requirement of effective performance appraisal techniques. The
performance evaluation result done by different parts (such as, Supervisors, Peers, Subordinates)
should need to agree closely with each other. So as to try and do this all the evaluator must have
enough time to look at the individual. Saiyadain (2003, 337)
2.9.4. Practicality
The performance appraisal process of a corporation have to be as simple on put in to practice,
moreover the result of the result must serve its purpose. The aim might be employees’
promotion, bonus, salary increment and employee’s recognition or demotion. (Saiyadain 2003,
337)
2.10. Conceptual Framework
The conceptual framework indicates the crucial practice, which is useful to show the direction of
the study. The study shows the variables, performance evaluation use to cascade organizational
goal to individual performance, challenges of PE such as not appropriate document, lack of
performance criteria, evaluator bias, and manager not give feedback on time. Perception of
employee in PE either negative or positive, measure taken to improve PE such as continues
training, properly data tracing in to oracle performance management system.
Figure 1 Conceptual framework
Performance evaluation;
process
Challenges in
Performance evaluation
Performance
Evaluation practices
Perception of Employees’
about PE
Improvement of
performance evaluation
Source: developed by the researcher (2022)
21
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1. Research Design
This study applied both qualitative and quantitative design (mixed method approach).The core
argument for a mixed methods approach is that the combination of both forms of data provides a
better understanding of a research problem than either quantitative or qualitative data by itself.
Mixed methods designs are procedures for collecting, analyzing, and mixing both quantitative
and qualitative data in a single study or in a multiphase series of studies (Creswell 2012). Hence,
by applying the mixed method the researcher has tried to ensure the strength of the findings
towards being more objective and generalized to the entire population.
Kothari (2004) identified that to describe the characteristics of a particular phenomenon,
descriptive research is preferable. It is concerned with specific predictions, with narration of
facts and characteristics concerning individual, group or situation. According to Best (1970),
cited in Louis Cohen et al. (2007) descriptive research is concerned with: conditions or
relationships that exist, practices that prevail, beliefs, points of views, or attitudes that are held,
processes that are going on, effects that are being felt, or trends that are developing.
3.2.
Data type and source
According to Adams, Raeside & White (2007), there are two types of data, primary and
secondary. The primary data are those which are gathered for the first time and afresh and thus
collected for the case at hand. Secondary data is a data collected by someone else and there is a
great deal available to researchers from books, libraries and on the web. For the purpose of this
study in order to obtain relevant information both primary and secondary data were used.
Primary data was collected using interviews and questionnaires from the managers group and
employees of the Ethiopian Tourist Trading Enterprise. The questionnaire was based on the
mentioned research questions.
The secondary data sources were collected from different published and unpublished materials
such as reference books, journals and the internet. In addition company reports, annual reports,
and HR manuals of the Ethiopian Tourist Trading Enterprise had also used as a secondary data
sources.
22
3.3.
Data Collection Methods
The researcher has used questionnaire and interview form manager performance management as
the tools for obtaining the necessary primary data information for the research. The questionnaire
would be open-ended and closed-ended items. The questionnaire was largely closed-ended and it
has been measured by a five-point Likert scale (from strongly Agree to strongly disagree).
Semi structured interview would also schedule to gather information on the subject from the
Managers group. The aim for using the interview guide was to enable the researcher gather other
information that could not be captured with the questionnaire.
3.4.
Target Population
The total population of the study was, employees of the Ethiopian Tourist Trading Enterprise
found in head office and two branches Under Ethiopian Tourist Trading Enterprise in head office
total employees are 500 and Dilgebeye branch 106 and Ayat Manufacturing Centre branch 122.
According to these respondents were selected forms all these managers group and employees. In
this study the researcher choose head office level because of to get sufficient data for analysis,
performance evaluation takes place in head office level and full data about profile of employee
of Ethiopian Tourist Trading Enterprise are existed in head office level.
Though, incorporating all employees’ idea on the analysis would have been better for conclusion
and generalization, but economically and operationally it would be very difficult to contact all
employees in the research. Therefore, taking a respective sample of the population of the
employees’ has found to be feasible.
3.5.
Sampling Method
The researcher used stratified random sampling method to select samples from the target
population. Because even if according to Ethiopian Tourist Trading Enterprise the structures are
two categories, the one is front line and the 2nd is back office. And also head office are back
office but under head office two manager groups but they have different job category so the
researcher used stratum for every manager groups. According to Kothari (2004) stratified
sampling result in more reliable and detailed information and enable to get more representative
samples.
23
3.6.
Sample Size
by using Yamane (1967) as quoted in Israel, 2013 sample size calculation formula, the researcher
has determined the total sample size and for respective divisions proportionally.
𝑛=
𝑁
1+𝑁(𝑒 2 )
Where n is the sample size, N is the population size, and e is the level of precision. With the
level of precision e= 5% and N= 728;
𝑛=
728
1+728(0.052 )
= 258 Therefore, the sample size to be taken from the total population
would be 258 employees.
3.7.
Data Analysis Method
Once the required data wear collected from the primary and secondary sources, it was analyzed
through quantitative and qualitative data analysis methods. And, descriptive statistic helps to
describe the general level of agreement of respondents. It reveals the conformity of respondents’
response about employee performance evaluation practice and challenges in ETTE. In addition,
frequency and percentage was used to present the data. And table and charts have been also used
to ensure easy understanding of the analysis. The collected data have been inserted into data
sheet and make ready for data analysis using statistical package for social sciences (SPSS)
version 20.
3.8. Validity and Reliability
3.8.1. Validity
Validity is the extent to which the research findings accurately represent what is really happening
in the situation (Hughey and Mussnug, 1997). Validity is the most important attribute of
assessment system. It is concerned with the extent to the performance evaluation practice the
performance it is intended to measure. The clarity of criteria, standards, data collection
procedures and the competency of the evaluators all affect validity. Validity is a measure of the
truthfulness of measuring instruments.
To ensure content validity, the researcher would be use questionnaires adopted from previous
research work and some questions are improved according the objective of this study. In
additions: The questionnaires are distributed and collected by the researcher in person. And also,
24
interview has been conducted with concerned manager group from human resource department.
3.8.2. Reliability
Reliability refers to the extent to which the Data Collection Techniques will yield Consistent
Findings. To assure this, Questions Regarding the Methods, Process, Standards, Problems and
Responsible Organs have been asked both in the Questionnaire and the Interview are Presented
to Employees as well as manager groups. The Samples of The Pilot Test are 258 Employees and
Identified by using stratified Sampling.
3.9.
Ethical Consideration
The researcher has obtained the consent of the organization for the study. Employees who have
completed the questionnaire were informed about the purpose of data collection, analysis and the
covenant to maintain privacy of their responses. Participants have informed about the purpose of
the study and their privacy and dignity also maintained. Confidential information of the
Ethiopian Tourist Trading Enterprise has not disclosed and the collected data have used for the
purposes of the study only. Regarding published and unpublished materials used in the literature
review and throughout all part of the study, all citations from copy right holder has made
properly.
25
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
In this section data presents, the data collected from both primary and secondary sources have
been analyzed and interpreted in light of the research objectives the first part, discusses
demographic information about the respondents, Then after part two discusses main part of
question about performance evaluation systems. The data collected through questionnaire,
interview and secondary data sources is analyzed using descriptive analysis method. The
questionnaire distributed to a total sample of 258 respondents. But the researcher collects 232
(90%).
4.1. Profile of the respondents
Table 4.1 Background of the Respondent
Number of respondents
Percentage
Male
132
66.9%
Female
100
43.1%
Total
Respondents Information Based on Age
Less than 21 years old
21 to 30 years old
31 to 55 years old
Greater than 56 years old
Total
Respondent Information Based on Level of
Education
College diploma
BA/BSc Degree
Master’s Degree
Total
Respondent Information Based 0n Work
Experience
Below 2 years work experience
2-4 years’ work experience
4-7 years’ work experience
7-10 years’ work experience
Above 10 years’ work experience
Total
According to table 4.1 item one Out of the total sample
232
100%
31
113
50
30
232
13.4 %
48.7%
21.6%
12.9%
100%
6
199
27
232
2.6%
85.8%
11.6%
100%
Respondents information based on gender
59
48
20.7%
42
18.1%
18
7.8%
65
28%
232
100%
of the respondents 100 (43.1%) are
female respondents and 132 (66.9%) respondents are male so we can say that Ethiopian Tourist
Trading Enterprise widely covers male staffs. Indeed, the number of female respondents’
26
participated in the study is almost proportional, given the total number of female employees in
Ethiopian Tourist Trading Enterprise
As indicated table 4.1 item two Age less than 21years old respondents are 31(13.4%)
proportionally minimum staff in Ethiopian Tourist Trading Enterprise. Age 31-55 covers
50(21.6%) out of the total sample of 232 respondents. Age greater than 56 almost none
30(12.9%) from the total sample of 232 respondents. Age 21-30 employees of ETTE are
covering 113(48.7 %) respondents. This indicates that most of Ethiopian Tourist Trading
Enterprise staffs ages are 21-30 means that, majority of the Ethiopian Tourist Trading Enterprise
employee are in the young age, it helps the Ethiopian Tourist Trading Enterprise to design a
sound working system, since they can be trained, educated and developed.
As we can see table 4.1 Item three indicated that the respondent status according to educational
background 199(85.8%) covers first degree holder. After that masters’ degree covers 27(11.6%).
Thirdly we see below college diploma covers 6(2.6%). This is because of that, most of the
Ethiopian Tourist Trading Enterprise Employees are first degree holder. So, that It helps the
Ethiopian Tourist Trading Enterprise to design a sound working system, since they can be
trained, educated and developed employees.
As the above table 4.1 Item four shows that work experience of respondents in order to this 48
(20.7%) covers year of experience from 2 up to 4 years. Then year 4 up to 7 work experience
covers 42(18.1%). 7up to 10 years work experience cover 18(7.8%).
Less than 2 years
59(25.4%) covers and finally greater than 10 years cover 65(28%). From this the researcher
generalized that most of the ETTE employees have more than 10 years’ work experience.
27
4.2.
Employee Performance evaluations practice at Ethiopian Tourist Trading
Enterprise
The analysis results regarding performance evaluation practices of the ETTE are summarized in
table 4.2 below.
Table 4.2 Summery of Response about Performance Evaluations Practice at ETTE
Strongly
disagree
Disagree
Neutral
Agree
Strongly
Agree
Total
Mean
3.83
Performance evaluation criteria are
aligned with the objective and goal
of the ETTE
Count
17
19
29
88
79
232
%
7.4%
8.0%
12.7%
37.8%
34.1%
100%
Performance evaluation criteria are
specific and directly related to the
job
Count
%
22
9.3%
26
11.1%
30
13%
102
44%
52
22.6%
232
100%
3.59
There is realistic standard against
which employee performance is
measured
count
%
16
6.8%
49
21.1%
64
27.6%
82
35.3%
22
9.3%
232
100%
3.19
Feedback is given to employees
about their performance evaluation
so that they know where they are
compared to the expected standard
count
20
65
61
69
17
232
2.99
%
8.7%
27.9%
26.3%
29.7%
7.4%
100%
While conducting the evaluation
result there is enough time to
Interview to hear and address
employees’ problems/needs.
count
%
15
6.5%
81
35%
67
28.8%
52
22.6%
17
7.1%
232
100%
2.89
Performance results are used
constructively for development;
purpose
count
%
21
9%
40
17.3%
47
20.1%
71
30.7%
53
22.9 %
232
100%
3.41
25
10.8%
40
17.3%
67
28.8%
65
27.9%
35
15.2%
232
100%
3.19
count
There are mechanisms to handle
%
employees’ complaints regarding
performance evaluation
Source: questionnaire data (2022)
As table 4.2 shows that from the total sample respondents 79(34.1%) of respondents said
strongly agree and 88(37.8%) of the respondents said that agree that Performance evaluation
criteria are aligned with the objective and goal of the Ethiopian Tourist Trade Enterprise.
However, 1 7 ( 7.4%) of respondent’s responses strongly disagree and 1 9 ( 8 % ) disagree
those Performance evaluation criteria are aligned with the objective and goal of the Ethiopian
Tourist Trade Enterprise. 29(12.7%) of respondents say neutral that variable performance
28
evaluation criteria are aligned with the objective and goal of the Ethiopian Tourist Trade
Enterprise. The mean of this variable is 3.83. This Indicates constructive response about
Performance evaluation criteria are aligned with the objective and goal of the Ethiopian Tourist
Trade Enterprise. The goals of the unit and the organization are made clear, and the employee
understands the link between what he or she does and organizational success. This is a
contribution to the communication of what the unit and the organization are all about and how
organizational goals cascade down to the unit and the individual employee.
Second variable, from total of respondents 102(44% ) responses agree and 52(22.6%) strongly
agree that Performance evaluation criteria are specific and directly related to the job. But
22(9.3%) responses strongly disagree and 26(11.1%) disagree that performance evaluation
criteria are specific and directly related to the job. 30(13%) of responses are neutral. The mean of
this variable is 3.59 this means the sample of respondents give constructive response for
Ethiopian Tourist Trade Enterprise Performance evaluation criteria are specific and directly
related to the job. In Ethiopian Tourist Trade Enterprise job of the person being appraised may
be clarified and defined more clearly. In other words, employees gain a better understanding of
the behaviors and results required of their specific position. Employees also gain a better
understanding of what it takes to be a successful performer (i.e., which criteria define job
success).
Third variable, from the total sample of respondents 22(9.3%) of response strongly agree and
82(35.3%) of the respondents response that agree that realistic standard against which employee
performance is measured in Ethiopian Tourist Trade Enterprise. However 16(6.8%) of response
strongly disagree and 49(21.1%) disagree that realistic standard against which employee
performance is measured in Ethiopian Tourist Trade Enterprise. 64(27.6%) response are neutral.
The mean of this variable is 3.19 this indicates sample of respondents are positive response to
that, realistic standard against which employee performance is measured in Ethiopian Tourist
Trade Enterprise.
Fourth variable, from the total sample of respondents 17(7.4%) responses strongly agree and
69(29.7%) of the respondents said agree that Feedback is given to employees about their
performance evaluation so that they know where they are compared to the expected standard.
29
However 20(8.7%) responses strongly disagree and 65(27.9%) disagree or the statements of
Feedback is given to employees about their performance evaluation so that they know where
they are compared to the expected standard. 61(26.3%) responses are neutral. We can see the
mean 2.99(below the average standards or mean less than 3) it indicates that the responses of the
respondents negative for this statements, Feedback is given to employees about their
performance evaluation so that they know where they are compared to the expected standard.
Giving feedback is one of the core techniques that helps to improve employees’ performance and
helps employees to know their strength and improve their weakness; Managers should give
feedback at common interval. It also coach employees and help them to improve performance on
an ongoing basis.
Fifth variable, from the total sample of respondents 17(7.1%) responses strongly agree and
52(22.6%) of the respondents said that agree that while conducting the evaluation result there is
enough time to Interview to hear and address employees’ problems/needs. But out of 15(6.5%)
of respondent response strongly disagree and 81(35%) disagree that while conducting the
evaluation result there is enough time to Interview to hear and address employees’
problems/needs. 67(28.8%) of responses are neutral. The mean of this variable is 2.89 (below the
average) this shows that respondents response is negative for the statements, while conducting
the evaluation result there is enough time to Interview to hear and address employees’
problems/needs.
Sixth variable, from the total respondents 53(22.9 %) responses strongly agree and 71(30.7%) of
the respondents said that agree that Performance results are used constructively for development;
purpose. However 21(9%) of respondents responses strongly disagree and 40(17.3%) disagree,
that Performance results is used constructively for development; purpose. 47(20.1%) responses
are neutral. When we come to this variable mean is 3.41 so the responses are positive that,
Performance results are used constructively for development; purpose.
Seventh variable, from the total respondent 35(15.2%) of responses strongly agree and
65(27.9%) respondents response agree that mechanisms to handle employees’ complaints
regarding performance evaluation. But 25(10.8%) of respondent responses strongly disagree and
40(17.3%) disagree for the statements mechanism to handle employees’ complaints regarding
30
performance evaluation. 67(28.8%) responses are neutral. The mean of this variable is 3.19 it
means positive response to statements, mechanisms to handle employees’ complaints regarding
performance evaluation.
4.3.
Perceptions of Employees Towards Performance Evaluation Practice
The analysis results regarding perceptions of employees towards performance evaluation
practices of the ETTE.
Table 4.3 Summery Responses of Perceptions of Employees Towards Performance
Evaluation Practice of the ETTE
Strongly
disagree
Disagree
Neutral
Agree
Strongly
Agree
Total
Mean
3.6
The Ethiopian Tourist Trade
Enterprise is Able to Provide
Clear Guidelines for
Performance Appraisal
Count
9
26
58
94
45
232
%
4%
11.2%
25%
40.5%
19.3%
100%
The Goal/Standard Setting
Process is Participatory
Count
%
16
7%
47
20.2%
60
25.8%
87
37.5%
22
9.5%
232
100%
3.22
The Performance Appraisal
Helps Employees to Improve
their Performance
Count
%
9
3.8%
47
20.3%
29
12.5%
85
36.6%
62
26.8%
232
100%
3.63
My Performance Appraisal is a
Fair Reflection of my
Performance
I Am Satisfied With my
Involvement in Decisions that
Affect my Work
Count
16
66
49
77
24
232
3.11
%
7%
28.4%
21.1%
33.2%
10.2%
100%
Count
%
23
9.9%
69
29.8%
52
22.4%
68
29.3%
20
8.6%
232
100%
2.97
My Supervisor has Adequate
Knowledge on Performance
Evaluation Practice
Interpersonal Relationships Can
Influence the Evaluation and the
Decisions in The Performance
Appraisal Process
Count
%
18
7.7%
34
14.6%
92
39.6%
63
27.3%
25
10.8%
232
100%
3.19
Count
21
41
43
94
33
323
3.33
%
9%
17.6%
18.5%
40.7%
14.2%
100%
Count 52
35
52
69
24
232
Performance Evaluation is
%
22.4%
15%
22.6%
29.7%
10.3%
100%
conducted for the Sake of
Formality
Source: questionnaire data (2022)
According to table 4.3 item one states the employee perception about clear guidelines for
performance appraisal in the Ethiopian Tourist Trade Enterprise from the total sample of
31
2.9
respondents 45(19.3%) of responses strongly agree and 94(40.5%) agree and 9(4%) of responses
strongly disagree and 26(11.2%) of the respondents response that disagree. 58(25%) of responses
are neutral. The variable of the mean is 3.60. This indicates in Ethiopian Tourist Trade Enterprise
have clear guidelines about performance appraisal.
Table 4.3 item two states that 22(9.5%) of respondent’s responses strongly agree and 87(37.5%)
of the respondent’s response agree of ETTE goal/standard setting process are participatory.
However 16(7%) of responses strongly disagree and 47(20.20%) of the respondent’s response
that disagree in ETTE goal/standard setting process is participatory. From the total of 25.80%
responses are neutral. The Mean of this response is 3.22. It indicates majority of respondents
agree to goal/standard setting process is participatory in Ethiopian Tourist Trade Enterprise. In
the literature review In any case, if the employees perceive the appraisal system as biased and
unfair, then it is unlikely that they will accept the outcomes of the system. Participation gives an
opportunity to the employees to raise their voice into the appraisal process. Performance
standards, criteria for evaluation and the evaluation form itself – all can be developed with the
help of employees.
According to table 4.3 item three states that, from the total respondents 62(26.8%) of responses
strongly agree and 85(36.6%) respondents were said that agree in Ethiopian Tourist Trade
Enterprise performance appraisal help employees to improve their performance. But from the
total of respondents 9(3.8%) respondents responses strongly disagree and 47(20.3%) of the
respondents response’s that disagree, it means in Ethiopian Tourist Trade Enterprise performance
appraisal not helps employees to improve their performance. 29(12.5%) responses are neutral.
Average of the variable is 3.63. It states Ethiopian Tourist Trade Enterprise use performance
appraisal helps employees to improve their performance, majority of the respondents agreed to
this.
According to table 4.3 item four states that from the total respondents 24(10.2%) of responses
strongly agree and 77(33.2%) of the respondents said that agree that my performance appraisal is
a fair reflection of my performance. 16(7%) of respondent response strongly disagree and
66(28.4%) of the respondents response’s that disagree that performance appraisal is a fair
reflection of individual performance. 49(21.1%) of responses are neutral. The mean of this
variable is 3.11 it indicates the much respondents agreed at Ethiopian Tourist Trade Enterprise
the performance appraisal is a fair reflection of individual performance.
32
Based on table 4.3 above item five indicate that, from the total respondents 20(8.6%) of
responses strongly agree and 6 8 ( 2 9 . 3 % ) agree, I am satisfied with my involvement in
decisions that affect my work. However 23(9.9%) of respondent responses strongly disagree and
69(29.8%) disagree, that satisfaction on involvement in decisions that affect individual work.
52(22.4%) of response covers neutral. The average of this response is 2.97 (less than 3) the
interpretation this is more of respondents response are disagree; I am satisfied with my
involvement in decisions that affect my work.
According to table 4.3 above item five states that, from the total sample of respondents
25(10.8%) of responses strongly agree and 63(27.3%) of the respondents response that agree that
my supervisor has adequate knowledge on performance evaluation practice. But 18(7.7%)
respondent responses strongly disagree and 34(14.6%) respondents response disagree my
supervisor has adequate knowledge on performance evaluation practice. 92(39.6%) responses are
neutral. The mean of these variables is 3.19 it means that ETTE supervisor has adequate
knowledge on performance evaluation practice most of respondents are agreed or positive
response.
As indicated table 4.3 item six indicates that, from the total respondent of response 33(14.2%) of
the respondents response strongly agree and 94(40.7%) of the respondents said that agree for the
statement of Interpersonal relationships can influence the evaluation and the decisions in the
performance appraisal process. However 21(9%) of responses strongly disagree and 41(17.6%) of
them said that disagree, that Interpersonal relationship can influence the evaluation and the
decisions in the performance appraisal process. 43(18.3%) of response is neutral. The average of
this statement is 3.33(above the 3 so respondents had positive response).
Table 4.3 above item seven states that from the total sample of respondents 24(10.3%) responses
strongly agree and 69(29.7%) respondents response agree that Performance evaluation is
conducted for the sake of formality in Ethiopian Tourist Trade Enterprise. But 52(22.4%) of
responses strongly disagree and 35(15%) respondents said disagree for the statement of
Performance evaluation is conducted for the sake of formality in Ethiopian Tourist Trade
Enterprise. 52(22.6%) say neutral. Mean of this statement is 2.90. This means the response of the
respondent are negative. So Ethiopian Tourist Trade Enterprise used properly Performance
evaluation for improvement of goals as well as individual performance.
33
4.4.
Challenges in Performance Evaluation Process f The Ethiopian Tourist
Trade Enterprise
In This section we can see some challenges are faced the performance evaluation practice in
Ethiopian Tourist Trade Enterprise.
Table 4.4 Summary Responses of Challenges in Performance Evaluation Process at ETTE
Strongly
disagree
Disagree
Neutral
Agree
Strongly
Agree
Total
Mean
3.51
Lack of clarity in evaluations
criteria
Count
14
38
44
87
49
232
%
6%
16.4%
19%
37.5%
21.1%
100%
Lack of credible performance
data
Count
%
16
6.9%
41
17.6%
31
13.4%
96
41.4%
48
20.7%
232
100%
3.51
Bias and favoritism in
performance evaluation process
Count
%
15
6.5%
43
18.5%
55
23.7%
72
31%
47
20.3%
232
100%
3.40
There is no appropriate
documentation for performance
appraisal
Count
21
65
41
70
35
232
3.15
%
9%
28%
17.6%
30.2%
15.2%
100%
The evaluation process takes
longer time
Count
%
22
9.4%
53
22.9%
62
26.7%
70
30.2%
25
10.8%
232
100%
3.11
Employees’ negative attitude
towards performance evaluation
Count
%
21
9%
65
28%
44
18.9%
70
30.2%
32
13.9%
232
100%
3.12
Managers use performance
evaluation results to hurt
employees
Count
%
50
21.6%
38
16.4%
71
30.6%
44
18.9%
29
12.5%
323
100%
2.4
Source: questionnaire data (2022)
According to table 4.4 respondent response about Challenges in performance evaluation process
at Ethiopian Tourist Trade Enterprise from the total sample of respondents 49(21.1%) of say
strongly agree and 87(37.5%) respondents are response’s agree that Lack of clarity in evaluations
criteria. However 14(6%) of respondent responses strongly disagree and 38(16.4%) of the
respondents response’s that disagree, that Lack of clarity in evaluations criteria.44 (19%) of
responses are neutral. Again in this table other challenges are Lack of credible performance data.
Based on this data from total respondents 48(20.7%) of the respondents responses that strongly
agreed and 96(41.4%) of the respondents said that agree. However 16(6.9%) of the respondent
responses strongly disagree and 41(17.6%) of the respondents response’s that disagree, that Lack
of credible performance data. 31(13.4%) of data responses are neutral.
Based on table 4.4 below another Challenge in performance evaluation process at ETTE, Bias
34
and favoritism in performance evaluation process 47(20.3%) from the total sample of
respondents answered strongly agree and 72(31%) of the respondents said that agree. However,
15(6.5%) of responses strongly disagree and 43(18.5%) of the respondents said that disagree that
Bias and favoritism in performance evaluation process at Ethiopian Tourist and Trade Enterprise.
55(23.7%) of responses are neutral.
In the above table 4.4 we can see that Challenges in performance evaluation process at Ethiopian
Tourist and Trade Enterprise There is no appropriate documentation for performance appraisal,
respondent answered 35(15.2%) strongly agree and 70(30.2%) respondents are responses that
agree from total of respondents. But 21(9%) of respondent responses strongly disagree and
65(28%) of the respondents response’s that disagree that no appropriate documentation for
performance appraisal in Ethiopian Tourist and Trade Enterprise. From the total respondents
41(17.6%) of responses are neutral.
In the statement of the evaluation process takes longer time, the samples respondents answered
25(10.8%) strongly agree and 70(30.2%) of the respondents response’s that agree. And
also 22(9.4%) responses strongly disagree and 53(22.9%) of the respondents response’s
that disagree that the evaluation process takes longer time in Ethiopian Tourist and Trade
Enterprise. 62(26.7%) of responses are neutral.
In table 4.4 also Challenges in performance evaluation process at ETTE, Employees’ negative
attitude towards performance evaluation, the respondent responses 32(13.9%) strongly agree and
70(30.2%) of the respondents response’s that agree. However 21(9%) of respondent responses
strongly disagree and 65(28%) of the respondents said that disagree, that Employees’ negative
attitude towards performance evaluation process. 44(18.9%) of responses are neutral. In the
above table 4.4 from the total sample of respondents 29(12.5%) of responses strongly agree and
44(18.9%) of the respondents said that agree for Managers use performance evaluation results to
hurt employees. However 50(21.6%) of responses strongly disagree and 38(16.4%) of the
respondents response’s that disagree that Managers use performance evaluation results to hurt
employees. 71(30.6%) responses are neutral. In general the above table we can see that the mean
deviation of each variable (3.51, 3.51, 3.40, 3.15, 3.15, 3.11, 3.12 respectively) those all
variables are positive responses. It means that the Ethiopian Tourist and Trade Enterprise faced
the above problems of performance evaluation process. According to the respondent answer
35
Lack of clarity in evaluations criteria and Lack of reliable performance data are more focus or
high mean value. But the statements, Managers use performance evaluation results to hurt
employees that respondent responses are below average. So performance evaluation is not hurt to
employee but to enhance the employee performance (as well as job satisfaction and commitment
to the organization) and the performance of the organization.
4.5.
Action Taken By the Management to Improve Performance
Evaluation Practice
Table 4.5 My Manager Keeps File on What I Have Done During the Evaluation Period to
Evaluate My Performance
Frequency
Mean
Percent
Strongly Disagree
21
9
Disagree
47
20.3
Neutral
64
27.6
Agree
71
30.6
Strongly Agree
29
12.5
232
100.0
Total
3.18
Source: questionnaire data (2022)
According to table 4.5 below from the total respondent 29(12.5%) of responses strongly agree
and 71(30.6%) of the respondents said that agree that manager keeps file on what I have done
during the evaluation period to evaluate my performance. However 21(9%) of respondent
answered strongly disagree and 47(20.3%) of the respondents response’s that disagree.
64(27.6%) of responses are neutral. In the literature review, Supervisors must observe and
document performance on a daily basis. It is important to keep track of examples of both good
and poor performance.
Table 4.6 My Managers are Well Trained in Assessing and Giving Feedback
Frequency
Percent
Strongly Disagree
16
7
Disagree
70
30.1
Neutral
58
25
Agree
74
31.9
Strongly Agree
14
6
Total
232
100.0
Source: questionnaire data (2022)
36
Mean
2.98
From table 4.6 below from the total sample of respondent 14(6%) of response strongly agree and
74(31.9%) of the respondents response’s agree that my managers are well trained in assessing
and giving feedback. 16(7%) of responses strongly disagree and 70(30.1%) of the respondents
said that disagree managers are well trained in assessing and giving feedback. 58(25%) of the
respondents answered neutral. Most of time in Ethiopia Tourist Trade Enterprise managers is not
trained on how to assess and give direct feedback. If the process includes a job development
component, it is even more likely that managers will not know how to enhance the job
description of their employees.
Table 4.7 Managers are Accountable/ Responsible for their Wrong Feedback/Comments
Frequency
Percent
Strongly Disagree
29
12.5
Disagree
57
24.6
Neutral
59
25.4
Agree
63
27.2
Strongly Agree
Total
24
232
10.3
100.0
mean
2.97
Source: questionnaire data (2022)
In table 4.7 we can see that another measurement, from the total sample of respondent 24(10.3%)
of responses strongly agree and 63(27.2%) of the respondents answered that agree for that
managers are accountable or responsible for their wrong feedback/comments. However
29(12.5%) of responses strongly disagree and 57(24.6%) of the respondents responses that
disagree that managers are accountable/responsible for their wrong feedback/comments.
59(25.4%) of responses are neutral. Most of respondent say managers are not accountable for
their in accurate feedback or for making mistakes. If an individual keep silent with the wrong
feedback given by his immediate supervisor no one will ask the supervisor his/her reason for the
wrong feedback. In practice the supervisor is asked when the question is come from the
individual.
37
Table 4.8 Managers are Two Way Communications to Solve the Problem
Frequency
Strongly Disagree
Mean
Percent
17
3.10
7.3
Disagree
60
25.8
Neutral
64
27.6
Agree
65
28
Strongly Agree
26
11.3
Total
232
100.0
Source: questionnaire data (2022)
According to below table 4.8 from the total respondent 17(7.3%) of responses strongly agree and
60(25.8%) of the respondents answered that agree that managers are two- way communication to
employees to solve the performance evaluation problem. But 17(7.3%) of responses strongly
disagree and 60(25.8%) of the respondents said that disagree that managers are two- way
communication to employees to solve the performance evaluation problem. 64(27.6%) of
responses are neutral. Employees should feel free to communicate with their supervisors
regarding their progress as well as problems while trying to achieve their objectives.
Table 4.9 Managers Should Coach and Monitor Employees Every Time about
Performance Evaluation
Frequency
Mean
Percent
Strongly Disagree
27
11.6
Disagree
60
26.0
Neutral
33
14.2
Agree
73
31.5
39
232
16.8
100.0
Strongly Agree
Total
3.15
Source: questionnaire data (2022)
Table 4.9 states that coaching and monitoring, so from sample of respondents 39(16.8%) of
responses strongly agree and 73(31.5%) respondents responses that agree that managers should
coach and monitor employees every time about performance evaluation. However, 27(11.6%) of
response strongly disagree and 60(26%) of the respondents answered disagree that managers
should coach and monitor employees every time about performance evaluation. 33(14.2%) of
responses are neutral.
38
Based on data collected from interview, performance evaluation has two category the first team
evaluation and second individual performance evaluation. Before the evaluation first design,
employee job description, critical role, goal and target to properly cascade for evaluation process.
In Ethiopian Tourist Trade Enterprise apply main purpose of performance evaluation practice
50% of measure for promotion, reward, either intrinsic or extrinsic. The root cause of problem
associated to the performance evaluation practice is data tracing, manager’s level of
understanding about performance evaluation is different. Managers also subjectivity, reward for
the wrong person, size of the Ethiopian Tourist Trade Enterprise difficult to manage employee
performance. And also Manager says use to improve performance evaluation; continues training
and create awareness of manager. Employee motivation also support by guideline.
39
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Based on the results of the study, the researcher has attempted to present findings of the survey
data collected through questionnaire completed by randomly selected respondents with
complementation of data gathered through interview and document reviews. The questionnaire
and the interview were designed in line with the research questions and performance evaluation
practice frameworks.
5.1 Summary of Major Findings
The study was conducted with the main objective of this study was assessed the employees
performance evaluations practices and the challenges at Ethiopian Tourist Trade Enterprise.
Based on the discussion and data interpretation undertaken in the previous chapter, the following
summaries of finding are derived.
 Majority of respondents agreed Performance evaluation criteria are aligned with
the objective and goals, also specific and directly related to the job in Ethiopian
Tourist Trade Enterprise.
 The employee performance measurement has actual standards, most of
respondent also agreed.
According to the respondent, Feedback is less given to employees about their performance
evaluation so that they didn’t know where they are compared to the expected standard.
And there is not enough time to Interview to hear and address employees’ problems or needs
 Based on majority of respondent responses agreed there are mechanisms to handle
employees’ complaints regarding performance evaluation and results are used
constructively for development purpose.
 Ethiopian Tourist Trade Enterprise is providing clear guidelines for performance
appraisal and also goal/standard setting process is participatory. So performance
appraisal helps employees to improve their performance.
 Majority of respondent agreed my supervisor has adequate knowledge on
performance evaluation practice and also my performance appraisal is a fair
reflection of my performance. But not satisfied with my involvement in decisions
making.
40
 Interpersonal relationships affect in the evaluation period. Performance evaluation
is conducted not for the sack of formality. But for the purpose of reward,
recognition and align to bank goal.
 In evaluation process there are many challenges faced in Ethiopian Tourist Trade
Enterprise. Such as, Lack of clarity in evaluations criteria, Bias and favoritism in
performance evaluation process, no appropriate documentation for performance
appraisal, time also affect and Employees’ negative attitude towards performance
evaluation. Managers are also not accountable or responsible for their wrong
feedback.
 Action taken by the management to improve performance evaluation system
manager uses keeps file or document, coach and monitor employees every time
about
performance
evaluation.
According
to
respondent
response
accountability/responsibility for their wrong feedback/comments not enough.
5.2. Conclusions
This study is intended to assess the employee performance evaluation practice and challenges in
Ethiopian Tourist Trade Enterprise; challenges or constraints in the appraisal process, and how to
improve those evaluation practices and employees’ perception towards the practice and examine
its processes in the Ethiopian Tourist Trade Enterprise. To get these findings, the researcher has
collected primary data through questionnaire from 232(90%) sampled employees and using
interview from Managers and analyzed by using SPSS version 20 to get descriptive statistics.
Secondary data such as reports, books, journals and manuals of performance rating formats, have
also been used to triangulate the information gathered through primary data collection
instruments and techniques.
As a result, based on the above mentioned summary of findings, the researcher has reached on
the following conclusions.
Based on the respondent agreement we can conclude that performance evaluation criteria are
aligned with the objective and goals, also specific and directly related to the job in Ethiopia
Tourist Trade Enterprise. And also employee performance measurement has actual standards. So
it promotes the alignment of individual objectives with organizational objectives. In Ethiopian
Tourist Trade Enterprise manager’s feedback is less given to employees about their performance
evaluation so that they didn’t know where they are compared to the expected standard. And there
41
is not enough time to Interview to hear and address employees’ problems or needs. In Ethiopian
Tourist Trade Enterprise, mangers are not accountable to their wrong feedback; so that
employees’ morale will decrease and forced to leave the organization. Moreover the overall
performances of the organization will decreases. In addition, if feedback is not given at the right
time, the Ethiopian Tourist Trade Enterprise losses the benefit to get the most out employees.
There are many constraints of performance evaluation practice in Ethiopian Tourist Trade
Enterprise: Those problems are caused by lack of employee data tracing it means manual data
entering to oracle performance management system and also manager level of understanding
about performance evaluation are different. For improvement of performance evaluation practice
manager must be take sufficient amount of training about performance evaluation and give
feedback appropriate time. And human resource development takes responsibility for every
managers should coach and monitor employees every time about performance evaluation.
42
5.3. Recommendations
On the above findings and conclusions reached, the following recommendations are forwarded in
order to improve the performance evaluation practice in Ethiopian Tourist Trade Enterprise.

Employee performance data capturing mechanism must be enhanced (fair and
continues recording data).

The evaluator should put performance value based on clear guideline.

Coach and give training for all managers and employees about performance
evaluation practice every time until the problems are minimizing.

Scheduled time manager and employee to discuss about performance evaluation practice

Ethiopian Tourist Trade Enterprise evaluator should be attention to their employees
that they participating in performance evaluation.

The human resource department also responsible among employees about how the
performance evaluation process is conducted. Time need to be given to hear and
address employees related problems. The departments should implement
mechanism (Such as, Suggestion Box, Employees interview, Developing and
distributing questionnaires’ etc) to address employees to hear performance related
issues.

The department needs to implement a system that will help to evaluate the
performance result prior to conducting the final result to employees. This will help
to avoid subjectivity and any bias. Moreover managers will be accountable for their
performance evaluation practices.

In all performance evaluation process the employee and supervisor must do
attentively to get the best result.

It is impossible to avoid evaluator bias for it is human in nature to get biased
somehow. It is possible to reduce its level by continuous training. It means the
Ethiopian Tourist Trade Enterprise management should give training to supervisors
and managers who are responsible for conducting performance evaluation.
43
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45
APPENDIXES-I
Thesis Research Questionnaires
Maryland International College
Department of Master in Business Administration Program (MBA)
Questionnaire to be filled by: Employees of Ethiopian Tourist Trading
Enterprise.
Name of student: Fiseha Mamo
Dear Respondents,
The purpose of this questionnaire is to collect primary data for conducting a study on the topic,
“Employees Performance Evaluation Practice and Challenges in Ethiopian Tourist Trading
Enterprise” as partial fulfillment to the completion of the master’s program in Business
Management Administration Program at Maryland International College. Parenthetically I kindly
request your time to provide me with reliable information with the intention of the findings of
this study would meet the intentional outcome. I strongly assure you for the confidential
treatment of your answers. I would like to thank your voluntary participation for the success of
my research study.
For Organizational Employees
Directions
 No need to write your name,
 If you have any question, please contact me on Mob. No 0911-881451.
Part I – General Information
1. Gender: (A) Male
(B) Female
2. In which age group do you fall?
(A) Less than 20
(B) 20-30
(C) 31-40
(D) 41- 50
(E) 51 and above
3. What is your highest educational status?
(A) Certificate (B) College Diploma (C) BA/BSC Degree
4. Years of service in ETTE: (A) Below 2 year
(D) Masters (E) PHD
(B) 2 to 4 years (C) 4 to 7 years
(D) 7 to 10 years (E) above 10 years
5. In which field of manner/ work unit are you presently employed?
______________________________________________________________________________
_____________________________________________________________________________
6. What is your present position in this field of manner/work unit?
______________________________________________________________________________
___________________________________________________________________________
46
7. To which classifications does your status assigned? (A) Managerial
Leaders
(C) Professionals (D) Other support staff
(B) Supervisory/Team
Part II Purpose of Performance Appraisal System
8. Are you clearly aware of the purpose of Performance Appraisal System which is
implemented by your organization?
(A)Yes
(B) No
9. If yes, what is the purpose of having Performance Appraisal System in ETTE?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
10. Do you think Performance Appraisal System is clearly defined in the organization?
(A)Yes
(B) No
11. If No, what do you think is the reason?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
12. The purpose of Performance Appraisal System performed in ETTE is to: (If you have choice
two or three answer is possible)
(A)To get a better result
(B) To establish a good culture in which individuals and groups take fully concern for the
Continuous improvement of enterprise
(C) To provide employees with information about how they are supposed in the organization
And where they attitudes
(D)To control who gets encouraged and salary increment
(E) To facilitate downsizing or inferior
(F) Other ___________________________________________________
13. Based on my performance (participant)
(A)I have received salary increment or promotion
(B) I have been downgraded from the job I used to work
(C) Training have been given to me to improve my ineffective performance
47
Part III: -Questions related to the practices of performance Evaluation
Note: 1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree and 5= Strongly Agree
SECTION 2 (A): How is performance evaluation conducted at Ethiopian Tourist Trading
Enterprise?
S.N0
5 4 3 2 1
1
Performance evaluation criteria are aligned with the objective and goal of the
ETTE.
2
Performance evaluation criteria are specific and directly related to the job
3
There is realistic standard against which employee performance is measured
4
Feedback is given to employs about their performance evaluation so that they
know where they are compared to the expected standard
5
While conducting the evaluation result here is enough time to Interview to hear
and address employs’ problems/needs.
6
Performance results are used constructively for development; purpose
7
There are mechanisms to handle employs’ complaints regarding performance
evaluation
SECTION 2(B): Perceptions of Employees towards Performance evaluation practice
S.N0
5
1
The organization is able to provide clear guidelines for performance appraisal
2
The goal/standard setting process is participatory
3
The performance appraisal helps employees to improve their performance
4
My performance appraisal is a fair reflection of my performance
5
I am satisfied with my involvement in decisions that affect my work.
6
My supervisor has adequate knowledge on performance evaluation system
7
Interpersonal relationships can influence the evaluation and the decisions in the
performance appraisal process
Performance evaluations is conducted for the sake of formality
8
48
4
3
2
1
SECTION 2(C): Challenges in performance evaluation process of the Ethiopian Tourist
Trading Enterprise
S.N0
5 4 3 2
1
Lack of clarity in evaluations criteria
2
Lack of credible performance data
3
Bias and favoritism in performance evaluation process
4
There is no appropriate documentation for performance appraisal
5
The evaluation process takes longer time
6
Employees’ negative attitude towards performance evaluation
7
Managers use performance evaluation results to hurt employees
SECTION 2(D): actions taken by the management to improve its performance evaluation
system and practices
S.N0
5 4 3 2
1
2
My Manager keeps file on what I have done during the evaluation period to
evaluate my performance
My managers are well trained in assessing and giving feedback.
3
Managers are accountable/ responsible for their wrong feedback/comments
4
Managers are two way communication to solve the problem
5
Managers should coach and mentor employees every time about
performance evaluation
49
1
1
Appendix- II: interview
Maryland International College
Department of Master in Business Administration Program (MBA) Questionnaire to be
filled by: Managers of Ethiopian Tourist Trading Enterprise.
Dear Managers, this interview are designed to collect primary data or information about the
practice and challenges of employee performance evaluation system in Ethiopian Tourist
Trading Enterprise at head office. Thank you for your contribution.
1 How is performance evaluation conducted at your organization?
2 What are the reasons/Purposes to conduct performance evaluation at Ethiopian Tourist Trading
Enterprise?
3 What are the major problems/challenges and there consequences that your department is facing
with respect to performance evaluation?
4 What measurements are taken in order to overcome the problems?
5 Finally, is there anything that you want to comment about the performance evaluation system
of your department?
50