Effects of Performance Appraisal Quality on EmployeePerformance in Homa Construction PLC CompanyAddis Ababa City Administration, Ethiopia

Awol Hussien Aman

International Journal of Finance, Insurance and Risk Management, 2025, vol. 15, issue 3, 71-100

Abstract: Purpose: The objective of this study was to examine the effects of performance appraisal quality on employee performance in Homa Construction PLC, Addis Ababa, Ethiopia. Design/Methodology/Approach: The study employed a descriptive research design incorporating both qualitative and quantitative approaches. Stratified random sampling was used to distribute the questionnaire to respondents. Data were collected using both closed- and open-ended self-administered questionnaires, and a total of 200 completed questionnaires were returned. The results were analyzed and interpreted using SPSS software (version 20). Quantitative data were analyzed statistically, while qualitative responses from open-ended questions were interpreted thematically. Findings: The correlation analysis indicated that there are strong, positive, and significant relationships between performance appraisal quality and feedback, feedback and employee performance, and performance appraisal quality and employee performance. Linear regression analysis further revealed that 72.8% of the variance in employee performance can be predicted by the combined effect of performance appraisal quality and its feedback dimensions. Moreover, results from descriptive statistical analysis showed that employee performance was rated low across all attributes. Practical Implications: The findings highlight the unsatisfactory practice of performance appraisals and feedback within most company projects. This underscores the need for improved appraisal systems and feedback mechanisms. Originality/Value: This study provides a broad overview of the topic and serves as a basis for further discussion, critique, and future research.

Keywords: Performance appraisal quality; employee performance; feedback; human resource management; construction industry; Ethiopia. (search for similar items in EconPapers)
JEL-codes: J53 L74 M12 M54 O15 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journalfirm.com/journal/432/download (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ers:ijfirm:v:15:y:2025:i:3:p:71-100

Access Statistics for this article

More articles in International Journal of Finance, Insurance and Risk Management from International Journal of Finance, Insurance and Risk Management
Bibliographic data for series maintained by Marios Agiomavritis ().