| Abstract: | The study was conducted with a general objective of examining the effect of performance
management systems on employees’ job satisfaction in the case of Ethio telecom, in Addis
Ababa, Ethiopia – with 6,630 permanent employees. The research design was descriptive
and explanatory with a quantitative approach. Closed-ended questionnaire was distributed
to a stratified sample of employees from three divisions of the case organization. A total of
340 questionnaires were collected and processed for analysis using spss and analyzed with
the help of descriptive and inferential statistics. Mean scores and standard deviation were
used to assess the level agreeableness of the respondents. Relationship of the independent
and dependent variables were analyzed using correlation and regression methods. The
results were then presented in the form of tables followed by discussions for further
interpretation on the findings. The findings of the research indicated that performance
management system has both strengths and weaknesses. The strongest driver of job
satisfaction is the quality of performance management, followed by rewarding performance,
performance planning, and performance appraisals. However, the lower mean ratings for
rewarding performance and appraisals indicate these are areas that need the most
improvement. The study found a strong positive relationship between all dimension of a
performance management system and job satisfaction. The study also shows that 71.8% of
job satisfaction variability is explained by the four performance related predictors. The
result of regression analysis revealed that all performance management practices positively
and specifically affected job satisfaction in Ethio telecom. Based on this it is recommended
that encourage a culture of continuous feedback and coaching, develop a fair and
transparent performance appraisal system and implement a performance-based reward
system |
