The Effect of Performance Management Practice on Employee Performance of Public Institutions in Jimma Town, Ethiopia

Abstract

Performance management is one in every of the vital key activities performed by organizations to monitor the performance of their staffs. Organizations should often appraise the performance of their staff so as to know their current and future skills. The main objective of the study was to see the effect of performance management practice on employee performance of public institutions in Jimma Town. The study used five performance management practices (performance planning, performance training, performance appraisal, performance reward, and performance feedback) to see their influences on employee performance. The study adopted cross-sectional both descriptive and causal research design together with quantitative approach. Both primary and secondary data was collected using questionnaire and document analysis.  The study targeted 431 permanent employees and managers from selected seven public institutions in Jimma town and 207 respondents were selected using simple random sampling technique. The study used both descriptive and inferential data analysis techniques to analyze the data obtained. Based on the analysis the study found that, a positive relationship of employee performance and performance planning, performance training, performance appraisal, performance reward, and performance feedback. Likewise, the findings reveal that performance training, and performance feedback has a significant relationship with employee performance.  The study has both theoretical and practical implications for the selected public institutions view of the fact that it has highlighted the importance of performance management on employee performance. In the view of practical implication, it is recommended that, the management of the selected public institutions in Jimma town should integrate their performance management practices with their organizational goals and objectives while applying performance management.