| Abstract: | This study was conducted at Adanech Argaw timber and plunk manufacturing company.
(AATPMC) aiming to assess the employee’s perception on performance appraisal (PA) practice
of the company and its effect on employees’ satisfaction and career development, using
descriptive research design method. In conducting this study, primary data were collected using
structured questionnaires, an interview and other published materials. In this study the researcher
try to conduct all 263 employees, among 263 questionnaires distributed 250 volunteers were
received it and 239 were returned. Descriptive statistics such as frequency counts percentages
and mean were employed to analyze the data gathered. The findings of the study clearly showed
that though AATPMC has short implemented a performance appraisal system, employees are not
satisfied or even properly served by the system due to its subjective and non-participatory nature.
Side to non-participatory nature, employees are not motivated by the results of the system as the
bank usually conducts PA for the sake of formality or monetary rewards rather than
developmental purposes. The study also came up with a clear testimony of participants claiming
high level of errors, biases, and rater’s incompetency on the PA system of the company. Failure
to properly utilize the results of PA resulted in unjustified and prolonged retention of employees
in the same post without promotion. In alleviating this and other problems, the study
recommended that the company benchmarks should be best practices in the industry, introduce
standard PA measuring tools and systems, align organizational objectives with the system,
effectively make use of the results for the identification of employee weaknesses, strengths and
training needs so that AATPC could retain the existing and attract competent employees of the
sector |
