THE EXISTING PERFORMANCE EVALUATION PRACTICES OF PRIVATE COMPANIES AND EMPLOYEES PERCEPTION TOWARDS THE ACTION: IN THE CASE OF SOME INSURANCE COMPANIES WOLAITA SODO CITY, SOUTHERN ETHIOPIA

Lidetu Alemu Anjulo
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Lidetu Alemu Anjulo: Department of Management, Wolaita Sodo University, Southern Ethiopia.

Bulletin of Business and Economics (BBE), 2021, vol. 10, issue 1, 8-16

Abstract: Conducting performance appraisal helps organizations to reward and promote effective performers and identify ineffective performers to developmental programs or other personnel actions that are essential to the effectiveness of Human Resource Management. However, despite these intended goals, performance appraisal seems not to be effective in most cases mainly due to the subjective nature of criteria (standard) of performance, lack of rater understanding of or inadequate training on performance appraisal, which consequently led to the less importance and emphasis attached to it. This study investigated the perception and reactions of employees` towards the overall performance appraisal system as well as its major component parts such as standard setting, appraisal instrument, feedback, and request procedure in private Insurance companies in the Wolita Sodo City with the selected branches. Data were obtained via a questionnaire from 94 participants of four branches (Awash Insurance S.C, Lion Insurance S.C, Nib Insurance S.C and Africa S.C). An interview was also made with 10 key personnel of the companies particularly with employees working as supervisor/manager and Human Resource department. The result of the study indicated that respondents perceived the existing performance appraisal system as a partial/personal and a system which cannot precisely measure their job related performance. In this case, the evaluation criteria of those companies are not job related, not objective, not measure individual physiognomies of the employees. The Insurance companies should use standards which are measurable, impartial, and job related and should adjust their criteria`s in order to create the working environment attractive and to increase employees effectiveness.

Keywords: Effectiveness; Human Resource Management; Insurance companies; Employees Perception (search for similar items in EconPapers)
JEL-codes: G22 O15 (search for similar items in EconPapers)
Date: 2021
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