| Abstract: | The major objective of this study was to investigate the factors affecting the effectiveness of the current employee performance appraisal system. As result, its effectiveness has been determined by selecting five major effectiveness variables. This research has a descriptive nature which describes the existing phenomenon as it exists. The population for the study was 14,436 and a sample size of 389 respondents was selected. Questionnaire and interview were used as an instrument to collect primary data for this study. Stratified random sampling was used as sampling technique for the study. The data analyzed with descriptive and inferential analysis, and the result presented with tables and charts. The findings shows that performance appraisal planning and performance standard as the significant and key factor which affect the effectiveness of performance appraisal and should be focused by the human resource managers to improve on overall organizational objectives. Furthermore to the findings, level of trust and level of communication is not as significant to impact on the effectiveness of performance appraisal. From the theoretical perspective, this study helped to identify the effect of performance appraisal planning, level of trust, perceived fairness and level of communication on the effectiveness of performance appraisal. Hence, it was recommended that the organization should revisit its employee performance appraisal system and take corrective actions. For instance, alignment of the appraisal system with organization’s objective, reward policy and development objectives should be maintained. Moreover, the organization also have to work a lot on the identified effectiveness variables;( level of trust, level of communication, performance standard, performance planning, and perceived fairness) to enhance effectiveness of the current performance appraisal system. Likewise, the organization have to give emphasis for employees’ participation in appraisal related matters. |
