The Practices and Problems of Employee Appraisal Systems: A Psychological Perspectives

Abstract

The objective of the study was to assess the practices and problems of employee performance appraisal system in Ethiopian Telecommunication Agency. The intention of the study was that majority of the employees are de motivated in their work, do not satisfied regarding their performance evaluation, complaining heard among departments for rewards and frequent turnover of employees. The study employed descriptive research methodology. The researcher used stratified random sampling technique in selecting respondents, while interview informants selected purposively. In addition, data collected through questionnaires, interview and documents analysis. The collected data analyzed through quantitatively and qualitatively. Quantitative data described by using frequency, percentages and mean scores. The findings revealed that purpose of appraisal is not connected with varieties of its function, which is facilitating both developmental and administrative issues of employees.  In the study, both evaluator and evaluates lack awareness of evaluation method (BSC), evaluation is not undertaken in a planned time schedule, bias (subjectivity of evaluator), difficulty of customizing evaluation criteria, and defining activities and targets, misunderstanding of the evaluation system (BSC), misperception and attitude of employees are identified as a major problems faced in the employee performance evaluation. To overcome the challenges and bottle necks of employees performance appraisal system; the importance of improving evaluation system, continuous training for awareness creation concerning method of evaluation (BSC), commitment of both evaluator and evaluates, being trustworthy and loyalty through the process of evaluation were recommended.

Keywords: Employees, Performance, Appraisal System, Practices and Problems