Performance Appraisal and

Its Impact on Employees’ Morale and Satisfaction:

The Case of Jimma TVET College
BY

ADVISOR

Mrs.

A RESEARCH PAPER SUBMITED TO THE DEPARTMENT OF

MANAGEMENT IN PARTIAL FULFILMENT FOR THE AWARDS OF
DEGREE OF BACHLOR OF ART IN MANAGEMENT

JIMMA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT

JIMMA, ETHIOPIA

JUNE, 2022
 ABSTRACT

The purpose of the study is to investigate the performance appraisal practices and its impact
on employees’ morale and satisfaction with special focus on Jimma TVET College.
Therefore, to achieve its objective, this study utilized a descriptive research design. The study
used mainly qualitative data, both primary and secondary, collected from the study site. The
target population comprised of all the academic staff and supportive staff members employed
in Jimma TVET College as of June 2022 who were 173 in number. Stratified random
sampling technique was used to help enhance the chances of equal participation among
potential participants. With regard to sample size determination, a simplified formula
provided by Yamane was used to determine the sample size at 95% level of confidence, 0.5

i
degrees of variability and 9% precision level (e). Accordingly, a sample size of 72
respondents was used in the study. The researcher used a questionnaire as primary data
collection instrument. The sources of secondary data were both published and unpublished
documents. Data was analyzed using descriptive statistics such as frequency count and
percentage, and presentation of data was done through the use of tables.

The findings of the study reveal that Jimma TVET College usually uses the graphics rating
scale as the main method of performance appraisal. In addition, performance measurement
standards and the evaluation system of staff performance of the TVET College were
inadequate. As the employees’ performance appraisal has been done semi-annually, there
were no mechanisms for daily follow-ups, which help to take corrective measures on the
performance gaps and taking other administrative decisions. Furthermore, the study found
out that the major problems encountered in performance appraisal process of Jimma TVET
College were Biasness and raters error. In view of these, the researcher recommends that
appraisers should be given training on the performance appraisal management as well as
how to evaluate performance in fair and error freeway.Besides this, performance appraisal
should be reviewed periodically on the bases of the evaluation gained from employees and
other key stakeholders.

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 TABLE OF CONTENT
ACKNOWLEDGEMENT……………………………………………………………………………………………………….i
ABSTRACT………………………………………………………………………………………………………………………….ii
TABLE OF CONTENT…………………………………………………………………………………………………………..iii
LIST OF TABLES………………………………………………………………………………………………………………….v
ACRONYM…………………………………………………………………………………………………………………………vi
CHAPTER ONE……………………………………………………………………………………………………………………1
1. INTODUCTION……………………………………………………………………………………………………………….1
1.1. Background of the Study………………………………………………………………………………………..1
1.2. Statement of the Problem………………………………………………………………………………………3
1.3. Research Questions………………………………………………………………………………………………..4
1.4. Objectives of the Study…………………………………………………………………………………………..4
1.4.1. General Objective…………………………………………………………………………………………….4
1.4.2. Specific Objectives……………………………………………………………………………………………4
1.5. Significance of the Study…………………………………………………………………………………………4
1.6. Scope of the Study………………………………………………………………………………………………….5
1.7. Limitation of the Study……………………………………………………………………………………………5
1.8. Organization of the Paper……………………………………………………………………………………….5
CHAPTER TWO…………………………………………………………………………………………………………………..6
2. LITERATURE REVIEW……………………………………………………………………………………………………..6
2.1. Theoretical Review…………………………………………………………………………………………………6
2.1.1. Performance Appraisal…………………………………………………………………………………….6
2.1.2. The Performance Appraisal Process…………………………………………………………………7
2.1.3. Performance Appraisal Methods……………………………………………………………………..9
2.1.4. Performance Appraisal Errors………………………………………………………………………….12
2.1.5. Job Satisfaction……………………………………………………………………………………………….14
2.2. Empirical Review…………………………………………………………………………………………………….17
2.2.1. Effect of PA on Job Satisfaction………………………………………………………………………..17
2.2.2. Effect of PA on Employee Engagement…………………………………………………………….18
2.3.3. Effect of PA in Productivity……………………………………………………………………………….19
2.2.4. Effect of PAS in Organizational Commitment…………………………………………………...20
2.3. Legal Considerations in Performance Appraisal……………………………………………………...21
CHAPTER THREE…………………………………………………………………………………………………………………23
3. RESEARCH METHODOLOGY…………………………………………………………………………………………...23

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 3.1. Research Design……………………………………………………………………………………………………...23
3.2. Data Type and Source of Data………………………………………………………………………………..23
3.3. Population of the Study………………………………………………………………………………………….23
3.4. Sample Size…………………………………………………………………………………………………………….24
3.5. Sampling Technique……………………………………………………………………………………………….24
3.6. Method of Data Collection……………………………………………………………………………………..25
3.7. Methods of Data Analysis……………………………………………………………………………………….26
CHAPTER FOUR………………………………………………………………………………………………………………….27
4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION……………………………………………….27
4.1 Introduction…………………………………………………………………………………………………………….27
4.2. Demographic Characteristics of Respondents…………………………………………………………27
4.2.1 Age and Sex of Respondents…………………………………………………………………………….27
4.2.2. Educational Qualification and Service Years of Respondents……………………………29
4.3. Presentation and Analysis of Basic Research Questions………………………………………….31
4.3.1. Performance Appraisal Practice in Jimma TVET College…………………………………..31
4.3.2 The Effect of Performance Appraisal on Employees’ Morale and Satisfaction….37
4.3.3 Problems Related To Performance Appraisal……………………………………………………40
CHAPTER FIVE…………………………………………………………………………………………………………………..42
5. SUMMERY, CONCLUSIONS AND RECOMMENDATIONS………………………………………………...42
5.1 Introduction…………………………………………………………………………………………………………...42
5.2 Summary and Conclusions………………………………………………………………………………………42
5.3 Recommendations………………………………………………………………………………………………….44
REFERENCE…………………………………………………………………………………………………………...46
APPENDIX A…………………………………………………………………………………………………………..47

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 LIST OF TABLES
Table 3.1: Determination of Strata Sample Size……………………………………25

Table 4.1: Summary Statistics of Age and Sex of Respondents……………………28

Table 4.2: Profiles of Respondents by Educational Qualification………………… 29

Table 4.3: Profiles of Respondents by Service Years………………………………30

Table.4.4: The Frequency of Performance Appraisal………………………………31

Table.4.5: Methods of Performance Appraisal……………………………………. 32

Table.4.6: Standards of Performance Evaluation………………………………….. 33

Table.4.7: Evaluators of Performance Appraisal………………………………….. 34

Table.4.8: The Impact of Performance Evaluation on Employees’ Morale and

Satisfaction………………………………………………………………………… 37

Table.4.9: The Consequence of Performance Appraisal Result…………………… 38

Table.4.10: Problems Associated With Performance Appraisal……………………40

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 ACRONYM
CoC = Certification of Competence

ETP = Education and Training Policy

HRM = Human Resource Management

MoE = Ministry of Education

NTQW = National TVET Qualification Work

PA = Performance Appraisal

PAM = Performance Appraisal Management

PAS = Performance Appraisal System

T&D = Training and Development

TVET = Technical Vocational Education Training

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 CHAPTER ONE

1. INTODUCTION

1.1. Background of the Study

Performance appraisal may be defined as a structured and formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual or
semiannual), in which the work performance of the subordinate is examined and discussed,
with a view to identifying weaknesses and strengths as well as opportunities for improvement
and skills development. In many organizations - but not all - appraisal results are used, either
directly or indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority of available
merit pay increases, bonuses, and promotions (Balnaves and Caputi, 2001).

Employee performance reviews can be one of the best tools to boost performance, improve
morale and increase productivity. When done properly, performance evaluation is an
effective planning tool for managers and provides important feedback to employees like
views to identifying weaknesses and strengths as well as opportunities (Brown and Heywood,
2005).

Performance appraisal systems are increasingly being used in both public and private sector
to evaluate the performance of employees. According to Smith (2000), appraisal involves the
identification of cause and impact relationships on that employment and labour policies are
based mostly or may be based and are a routine method that organizations use to gauge their
staff, it is a scientific assessment of a current programme or policy, its design,
implementation and results. Its aim is to appraise the connectedness and fulfillment of
objectives, efficiency, effectiveness, impact and property (Dressler, 2005).

The appraisal systems usually involves evaluating pеrfоrmancе basеd оn thе judgments and
pinions of subordinates, pееrs, supervisors, оthеr managers and еvеn workers thеmsеlvеs
(Jacksоn and Schulеr, 2003). An еmplоyее appraisal, pеrfоrmancе rеviеw, оr carееr
dеvеlоpmеnt discussion is a mеthоd by which thе jоb pеrfоrmancе оf an еmplоyее is
еvaluatеd in tеrms оf quality, quantity, cоst and timе. Pеrfоrmancе appraisal is alsо part оf
carееr dеvеlоpmеnt. Pеrfоrmancе appraisal as a prоcеss is sееn as a kеy cоntributоr tо

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succеssful human rеsоurcе managеmеnt, as it is strоngly rеlatеd tо оrganizatiоnal
pеrfоrmancе (Еrdоgan, 2002).

Morale may be defined as an intangible concept that refers to how positive and supportive a
group feels toward the organization to which it belongs (Haddock, 2010) and the special
feelings members of the group share with others, such as trust, self-worth, purpose, pride in
one’s achievement, and faith in the leadership and organizational success. According to
Finger (2005), morale is more influenced from the down (that is by leadership) than from the
bottom up. Organizations can use appraisals to boost employee morale through training and
development (T&D). Performance appraisal should point out an employee’s specific needs
for training and development (Latham and Wexley, 2009).

Job satisfaction can be understood as the way employees feel about their jobs and different
aspects of their jobs (Specter, 1997). According to Specter, a shift has taken place in the last
30 years of research from job satisfaction as need to job satisfaction as an attitudinal variable.
For example, employees can have an attitude of being engaged with or disassociated from
their organization. Job satisfaction can be defined as an emotional state related to the positive
or negative appraisal of job experiences. Job satisfaction is a global construct or as a
constellation of different dimensions to which the employee reacts affectively (Armastrong,
M.2006).

When we come to TVET Colleges, it is obvious that the quality, efficiency, and effectiveness
of its graduates are highly depending up on the quality of education and training they are
provided with at the institution. The integrated effort of the academic and supportive staff of
the college and concerned bureaus at different level is also the factor to attain the goals and
objectives of the college. There were no clear performance standard and measure criteria that
help to evaluate the employees’ performance accordingly. The same line , the recently
introduced result oriented performance appraisal system suffers from inefficient human
capacity, lack of transparency, weak follow-up, loose linkage between performance and
reward that hamper the system (Solomon, 2005). Thus, due to the fact that studying the
performance appraisal in Jimma TVET College has various advantages in this particular case
and the research would add on the existing literature for the effective utilization of human
resource issues.

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1.2. Statement of the Problem
Performance appraisal has an influence on employee work moral and satisfaction either
positively or negatively. Improving organizational performance has become one of the
overriding goals of human resource management. Organizational performance is the
synergistic sum total of the performance of all employee’s in the organization. Having this
fact, employee’s performance has to be closely placed, coached and appraised to ensure that
is in line with the interest of the organizations(Green,2016)

Institution would expect to have a defined objectives or set of goals and resource to attain its
goals and objectives. In supporting this idea, Hiller, (1996), the success of organization
depends on having an adequate number of people in the right job at the right time, all
producing at their highest capacity. On the other hand, once employees are placed on a new
job they need fair treatment, fair compensation, favorable working conditions and appropriate
performance appraisal. According to Bernardin (2004), fair performance evaluation results in
higher job satisfaction, which in turn, facilitate higher performance, lower employee
turnover, reduce costs and lower likelihood of successful union organizing.

When we come to TVET Colleges in Ethiopia, there were no clear performance standard and
measure criteria which help to evaluate the employees’ performance accordingly. The same
line , the recently introduced result oriented performance appraisal system suffers from
inefficient human capacity, lack of transparency, weak follow-up, loose linkage between
performance and reward that hamper the system (Solomon, 2005). Therefore, there is a need
to investigate the performance appraisal and its impact on employees’ morale and satisfaction
in TVET institutions in Ethiopia in general.

Many studies on performance appraisal and its impact on employees’ morale and satisfaction
have been conducted previously. However, most of them focused on the developed world,
which creates a research gap that the study would wish to fill in. Moreover, most studies on
performance appraisal in Ethiopia have tended to focus on performance appraisal practices of
organizations in the corporate world. There is little literature of performance appraisal on
educational institutions such as TVET institutions in Ethiopia. It is therefore laudable to
investigate performance appraisal practices of TVET institutions in Ethiopia.

Furthermore, as far as the researcher’s knowledge is concerned, no research has been

conducted regarding to performance appraisal and its impact on employees morale and

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satisfaction in Jimma TVET College. Therefore, this research is the first with regard to
focusing on Jimma TVET College.

1.3. Research Questions

The research paper was intended to answer the following basic questions:

 How is performance appraisal practice carried out in Jimma TVET College?

 What is the effect of performance evaluation on employees’ morale and satisfaction?
 What are the potential problems related to performance appraisal in the study site

1.4. Objectives of the Study

The objectives of the study are explained under its general and specific details as follows.

1.4.1. General Objective

The general objective of the study was to investigate performance appraisal practices and its
impact on employees’ morale and job satisfaction in Jimma TVET College.

1.4.2. Specific Objectives

The study was intended to achieve the following specific objectives:

 To assess the performance appraisal practice of Jimma TVET College

 To investigate the impact of performance appraisal on employees morale and
satisfaction
 To figure out the potential problems related to performance appraisal in the study site

1.5. Significance of the Study

This study could contribute immensely to existing knowledge on the study of performance
appraisals; and it could provide information on the impact of performance appraisal on
employees’ morale and satisfaction. The results of the study could also help in identifying the
major problems related to performance appraisal practices in the selected TVET College and
provide information for education officials, decision makers and planners to give attention for
this issue. The study can also serve as a source of reference for other related research works
in the future and can be invaluable with regards to bringing to the fore factors to note in
designating appraisal systems. Jimma TVET College is the other party that could be

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beneficiary from the study. Jimma TVET College may use it to consider some of the views
implied in the study to carve the problems existed in its performance appraisal system.

1.6. Scope of the Study

Geographically the study was conducted in Jimma TVET College of Oromia region. In
addition to this, the conceptual dimension of the study was confined to the practice of
performance appraisal and its impact on employees’ morale and satisfaction. The study was
conducted in 2015 E.C. It should also be mentioned that financial constraints and a lack of
organized and relevant records were among some of the limiting factors in this study.

1.7. Limitation of the Study

There was acute shortage of books or lack of updated related literature and similar research
works on the topic, not only that the existing ones were also hard to find, thereby the
researcher might not be able to exhaustively employ them for literature review purpose. The
other potential limitation of the study emanates from the chosen sample size, which may not
be a true representative of the total population under study, so that the results of the study
may not be confidently generalized to the whole population. Also, the information that were
provided by the researcher may not hold true for all institutions or organizations but is
restricted to the selected TVET College used as a study area in this research.

1.8. Organization of the Paper

This research paper consists of five chapters. The first chapter introduces the introduction
section of the study, in which background of the study, statement of the problem, objective of
the study, significance, limitation and scope of the study, and organization of the study are
discussed in detail. The second chapter is concerned with review of related literature in which
all necessary concepts and theories related with the subject of the study are presented. The
third chapter deals with the materials and methods (methodology) used in conducting the
study. Chapter Four is devoted to the presentation, analysis and interpretation of the primary
data supported by secondary data. In the last chapter, summery, conclusions and
recommendations are presented.

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 CHAPTER TWO

2. LITERATURE REVIEW

2.1. Theoretical Review

2.1.1. Performance Appraisal

Performance appraisal is the identification, measurement, and management of human

performance in organization. Appraisal should be a future oriented activity that provides
workers with useful feedback and coaches them to higher levels of performance. Appraisal
can be used also administratively or developmentally (Gomez-Mejia, 2003).

Employees usually want feedback regarding how they are doing and appraisal can provide
such an opportunity, and personnel actions such as promotion, termination, training and
disciplinary cases. According to Chandan, (2003) performance is a reflection of three
characteristics individual capacity to perform, individual willingness to perform, and
organization support.

In recent years performance management has come to the front as organizations seek
constantly to optimize their human resources in the face of growing competitive pressures.
The increased interest in performance management has been mirrored by the popularity of
performance related pay (PRP) schemes which reward individual employees on the basis of
their job performance, defined as a method of payment will an individual employee receives
increase in pay based wholly or partly on the regular and systematic assessment of job
performance (Lewis, 1998).

Appraisal can be either person oriented (focusing on a person who performed the behavior) or
work oriented (focusing on the record of outcomes that the person achieved on the job).
Effective performance appraisal focuses on the record of outcomes and, in particular out
comes directly linked to an organization’s mission, and objectively (Bernardin, 2004).
Performance depends on some combination of ability, effort, and opportunity and it is
measured in terms of outcomes.

As stated by Cascio (2006), performance management requires willingness and a

commitment to focus on improving performance at the level of the individual or team every

6
day. To make the decision process reliable, employee should believe in the performance
appraisal procedure and know who is in charge of making appraisal.

According to (Dessler 2004), employees’ performance appraisal involves three important

issues, these are setting working standards, assessing the employee’s actual performance
relative to these standards and providing feedback to the employee.

Authorities in the field of human resource utilization have identified varieties of purposes,
which they believe a system of a performance appraisal should serve. In the school situation,
performance appraisal is considered as an activity, which is crucial to the effective
management of the teaching learning environment. Therefore, of performance appraisal as
(Mathias and Jones 1989), have noted is to enrich the educational opportunities of students
through the professional development of principals, teachers, and other staff members that
leading to both organizational and personal growth.

2.1.2. The Performance Appraisal Process

The basic purpose of performance appraisal is to make sure that employees are performing
their jobs effectively. In order to realize the purpose of performance appraisal organizations
should carefully plan appraisal systems and follow a sequence of steps as illustrated bellow;

1. Establish performance standard

2. Communicate standards of employees
3. Measure actual performance
4. Compare performance with standards
5. Discuss appraisal with employees
6. Initiate corrective action (Werther and Davis, 1996).
1. Establish performance standards

The first step in appraising performance is to identify performance standard. A standard is

allowed or specific criterion against which actual performance can be compared (Baird,
1990). Employees’ job performance standards are established based on the job descriptions.
Employees are expected to effectively perform the duties stated in the job descriptions form
the broad criteria against which employee’s performance is measured.

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2. Communicating Standards to employees

For the appraisal system to attain its purposes, the employees must understand the criteria
against which their performance is measured. As Werther and Davis (1996), stated to hold
employees accountable, a written record of the standards should exist and employees should
be advised of those standards before the evaluation occurs. Providing the opportunity for
employees to clearly understand the performance standards will enhance their motivation and
commitment towards their jobs.

3. Measuring performance

Once employees have been hired, their continued performance and progress should be
monitored in a systematic way. This is the responsibility of the immediate boss to observe the
work performance of subordinates and evaluate it against the already established job
performance standards and requirement. The aim of performance measure is to detect
departure from expected performance level (Werther and Davis, 1996).

4. Comparing performance with standard

After evaluating and measuring employees job performance it is necessary to compare it with
the set standard to know whether there is deviation or not. When one compares performance
with the standard, either performance match standards or performance does not match
standards (Werther and Davis, 1996).

5. Discussing appraisal with employees

For the appraisal system to be effective, the employees must actively participate in the design
and development of performance standards. The participation will enhance employee
motivation, commitments towards their jobs, and support of the evaluation feedback. In other
words, employees must understand it, must feel it is fair, and must be work oriented enough
to care about the results (Glueck, 1978). After the evaluation, the rater must describe work
related progress in a manner that is mutually understandable. According to Baird Et al.
(1990), Feedback is the foundation up on which learning and job improvement are based in
an organization. The rater must provide appraisal feedback on the results that the employee
achieved that meet or exceed performance expectations.

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6. Initiating corrective action

The last step of the performance appraisal is taking corrective action. The management has
several alternatives after appraising performance and identifying causes of deviation from job
related standards. The alternative are 1, take no action 2, correct the deviation, or 3, review
the standards. If problem identified are insignificant, it may be wise for the management to
do nothing. On the other hand, if there are significant problems, the management must
identify & analyze the reasons why standards were not meet. This would help to determine
what corrective action should be taken. For example, the cause for weak performance can
range from the employee job misplacement to poor pay. If the cause were poor pay,
corrective action would mean compensation policy reviews. If the cause were employee job
misplacements, corrective action would mean assign employee to job related to his/her work
experience and qualification. Finally, it is also important to revise the performance standards.
For example, the major duties stated in the job description and the qualification required to do
the job may not match. In this case, corrective action would mean to conduct job analysis to
effectively determine the job description and job specification. Hence, the evaluator would
have a proper guide. I.e., performance standards that make explicit the quality and/or quantity
of performance expected in basic tasks indicated in the job description (Chatterjee, 1995).

2.1.3. Performance Appraisal Methods

There are various methods of appraising employees’ performance. In fact, there is no

universally accepted method an organization has to use. This may be determined by factors
like the size, nature, financial capability and objectives of the organization. According to
(Flippo, 1984) the different performance appraisal methods can be classified is to two major
groups namely, Traditional appraisal methods and Modern appraisal method.

Traditional Appraisal Methods

These types of appraisals are still widely used by many organizations. The most commonly
used traditional performance appraisals are the following:

A. check List Appraisal: When this technique is used employee performance and
characterize are described by words and statements the rates is expected as required to choose
one among words that describes the individual's performance. But sometimes the personnel
department assigns weights to different items in the list in accordance to their importance
without the rater knowledge. The rater indicates the answers of an employee against each

9
question by putting a tick mark within two columns provide to each questions as yes or no
that is yes for positive answers and no for negative answers. This method have has its own
advantage and disadvantage. the major advantages are it’s easy to administer and It needs
limited training and standardization the major Disadvantage is It’s costly and time consuming
to develop the check list and questioner for each job category (Flippo, 1984)

B. Forced choice method: in this method, the rate is presented with a serious of two or more
favorable or unfavorable choices and the rates select one of the statements, by which the
employee is best described from the given choices. These methods force the rates to choose
from the alternatives this is the reason it called forced choice method, it have an advantage of
easy to administer, and it is fit for a wide variety of jobs (Ramasamy, 1998).

C. Critical Incident Method: In this method, the rater records statements describing
extremely good or bad employee behavior related to performance. These statements are
supported by explanations of the actual happenings that were recorded at the time they took
place. These statements are called critical incidents. Both negative and positive incidents are
recorded and the employee is appraised on all events occurred in a particular time
(Ramasamy, 1998).

D. Field review Method: When this method is adopted, a skilled representative of personnel
management assists supervisors with their ratings. An employee's performance is appraised
through interview between the rater and the immediate supervisor of a concerned employee.
The rater asks the supervisor questions about the performance of an employee the success of
this type of appraisal method is based on the competence of the interviewer (Ramasamy,
1998).

E. Ranking Method: This method is very old and simple form of performance appraisal. An
employee is ranked one against the other in the working group for example if there are 10
workers in the working group, the most efficient worker is ranked as number one and the last
efficient worker is ranked as number ten (Ramasamy,1998).

F. Paired comparison Method: This method is a part of ranking method. It has been
developed to be used in a big organization. Each employee is compared with other employees
taking only one at a time. The evaluator compares two employees and puts a tick mark
against an employee who he considers a better employee. In the same way, an individual is
compared with all other existing employees. Finally, an employee who gets maximum ticks
for being a better employee is considered the best employee. This method is suitable for large

10
organizations and individual traits can be evaluated. However, this method is expensive and
time consuming (Ramasamy, 1998).

G. Graphics Rating Scale: This method is the oldest and most commonly used type of
performance appraisal. In this method, each individual's trait or characteristics are presented
by certain scale from low to high. A graphic rating scale lists traits such as quality and
reliability of an employee and a range of performance for each. The employee is then rated
by identifying the score that best describes his or her level of performance for each trait this
method of appraisal is widely used because it is less expensive, easy to raters and it’s
applicable to a large number of employees. However, it has some limitations like it expose to
raters biases and feedback is limited; due to these factors employees sometimes may
complain against the results (Dessler, 2003).

Modern appraisal Methods

These methods of appraisal enable the rater to evaluate either employee’s performance in the
better way than the traditional methods. Some of the modern appraisal methods are the
following:
A. Assessment centers: These methods are designed to differentiate between the current
performance and potential performance of an employee and they used to select managers and
supervisors by recognizing their potential performance in their job. The employees who will
be examined to be supervisions are brought together into similar condition of job or
assessment counters. The assessment includes interview, psychological tests, and personal
background histories leaderless group discussions and evaluated by well-trained persons. The
evaluator can show and measure their future potential performance depending on the current
performance of an employee (Graham, 1998).

B. Behaviorally anchored Rating Scales (BARS): This method combines the benefits of
critical incidents and graphic rating scale appraisal methods. This method is highly job
related than the other appraisal methods and it has high degree of validity. When this method
is used, some specifically named behaviors are used as a basis for rating employee
performance. While, more time consuming then other appraisal tools. BARS may also have
advantage of reducing subjectivity biases and provide specific feedback to employee.
(Dessler, 2003) According to (Flippo, 1984) there are two behavior anchored rating scales
these are: Behavior expectation scales (BES) and Behavior observation scales (BOS). The
Behavior expectation scales are used to help the rater to define as superiors, average or below

11
average the behavior of the employee. The Behavior observation scales (BOS) used where
the rater reports the frequency with which the employee engagements in the behavior
specified is the anchors.

C. Management by Objective (MBO): This method of appraisal is more than an appraisal

program it reflects a management philosophy that values and utilize employee contributions.
By establishing clear and well-defined objectives, the employees are provided with a course
to follow and practice their duties and responsibilities properly. MBO generally refers to a
comprehensive, organizational wide goal setting and appraisal program consisting of six steps
these steps are the following:

1) Set the organization goals

2) Set departmental goals
3) Discuss departmental goals by department needs and Subordinates.
4) Define the expected results the managers and their subordinates set employees
performance target.
5) Performance review: The managers and supervisors compare each employee actual
and expected performance.
6) Provide feedbacks the managers and employees discuss and evaluate the result
(Dessler, 2003).
An important feature of MBO is that it enhance open communication with the employees on
their result and this help them to get feedback on their performance and fosters superior and
subordinate relationship due to frequent interaction. MBO enhance participation of
subordinates and employees in managing their own affairs. On the other hand, there are a
number of limitations in applying MBO some of them are: It is time consuming; Reluctance
of superiors to delegate authority and subordinate accept authority for fear of accountability.
It gives more emphasis on the short-term objectives rather than long run objectives and its
objectives sometimes could be too ambitious which results in employee frustration. In
general, BO is very effective in some condition like when employees and supervisors are
flexible and self-control in their jobs and in some uses, it may not be effective. To make more
effective it is important to reduce its problems (Dessler, 2003).

2.1.4. Performance Appraisal Errors

The accuracy of the results of performance appraisal depends mostly upon the degree of error
freeness achieved by the evaluators. Even if appraisal errors are partly as a result of
evaluators’ attitudes, regardless of which appraisal method is used, it should be accepted that

12
the features of appraisal method affects the appraisal errors. Every PAM has its unique
structure and procedure that cause performance appraisal errors to be effective to a certain
extent. Although it is hard to determine the level of this extent for each PAMs, the evaluation
of the expert practitioners can give most precise results as accepted in this study. Since the
aim of this study is to evaluate PAMs with a focus on the errors, first appraisal errors that will
be used as evaluation criteria must be determined. By a literature review, performance
appraisal errors are determined as presented below.

1. Perceived meanings of performance standards

This error emerges from misunderstanding of performance appraisal standards stated in the
appraisal forms. Using a standard appraisal form consisting of the same criteria aiming to
measure specific qualities does not always lead to standard appraisals due to different
perceptions among the appraisers. This error results from lack of common understanding of
the performance standards (Hakan Turgut & Ibrahim Sani Mert, 2014).

2. Halo/Horn effect

Evaluator’s general perceptions of an employee influence his/her perception on specific

dimension. This error has two opposite sides. One is the general evaluation of the employee
according to his/her strengths (halo effect) and overseeing the other possible weaknesses. The
other, the horn effect, is the opposite of the halo effect, where the employee is generally
evaluated according to his weaknesses and his/her strengths is overseen (Hakan Turgut &
Ibrahim Sani Mert, 2014).

3. Central tendency error this error is ignoring the strengths and weaknesses of an
employee and mainly tending to appraise the personnel in an average score. Some raters,
rather than giving extreme poor or good grades, to evaluate all ratees tend to an average
scoring even if the performance actually varies (Hakan Turgut & Ibrahim Sani Mert, 2014).

4. Positive or negative leniency error

Positive leniency is the tendency to give high evaluation points in general, usually above the
deserved level. Negative leniency is vice versa, that gives generally low evaluation points,
regardless of the deserved level. It can be said that positive leniency is more frequent than
negative leniency, since, some raters are concerned about damaging a good working
relationship by giving poor or negative rating (Hakan Turgut & Ibrahim Sani Mert, 2014).

13
5. First impression and /or recency error

This error results from putting too much emphasis of the evaluator’s on his/her first
impression of the employee or more commonly from focusing on recent interactions with the
employee. Since the recent events or employee behaviors are more noticeable than the former
ones, recent events are weighted more heavily than they should be, in the performance
appraisals. As a result of this, some raters only tend to regard the latest events and/or
behavior of the employee regardless of employee’s actual performance (Hakan Turgut &
Ibrahim Sani Mert, 2014).

6. Similar-to-me error

This error results from situations where the evaluator sees his employee’s background,
education, attitudes, characteristics very similar to himself/herself, therefore grading higher in
performance appraisals. Due to this error, evaluators may tend to perceive others similar to
them more positively than they perceive those who are dissimilar (Hakan Turgut & Ibrahim
Sani Mert, 2014).

7. Contrast error

Contrast error is observed where the evaluator compares one employee with the other instead
of the criteria dictated in the appraisal form. This often results in the under evaluation of
some employees due to comparing him/her with an employee who is seen very successful by
the evaluator (Hakan Turgut & Ibrahim Sani Mert, 2014).

8. Insufficient Observation

In some cases, employees are evaluated with lack of sufficient information or observation on
how they really perform on their work. Here the evaluator gives his/her evaluation point or
comments on his/her general perception without detailed idea about the employee over a
specific criterion (Hakan Turgut & Ibrahim Sani Mert, 2014).

2.1.5. Job Satisfaction

Job satisfaction can be understood as the way employees feel about their jobs and different
aspects of their jobs (Specter, 1997). According to Specter a shift has taken place in the last
30 years of research from job satisfaction as need to job satisfaction as an attitudinal variable.
For example, employees can have an attitude of being engaged with or disassociated from
their organization. Job satisfaction can be defined as an emotional state related to the positive

14
or negative appraisal of job experiences. Job satisfaction is a global construct or as a
constellation of different dimensions to which the employee reacts affectively (Locke, 1969).

McNamara defines job satisfaction as one’s feelings or state of mind regarding the nature of
their work. Job satisfaction can be influenced by a variety of factors, e.g. the quality of one’s
Relationship with their supervisor, the quality of the physical environment in which they
work, degree of the fulfillment of their work, etc. (McNamara, 1999).

Job satisfaction is a worker’s sense of achievement and success on the job. It is generally
perceived to be directly linked to productivity as well as to personal wellbeing. Job
satisfaction implies doing a job one enjoys, doing it well, and being rewarded for one’s
efforts. Job satisfaction further implies enthusiasm and happiness with one’s work. Job
satisfaction is the key ingredient that leads to recognition, income, promotion, and the
achievement of other goals thatlead to a feeling of fulfillment for the organization, high levels
of job satisfaction of its workers strongly suggest a workforce that is motivated and
committed to high quality performance. Increased productivity quantity and quality of output
per hour worked would seem to be almost an automatic byproduct of improved quality of
workmanship (Kaliski, 2007).

Kaliski (2007) defined job satisfaction as any combination of psychological, physiological

and environmental circumstances that cause a person truthfully to say I am satisfied with my
job. According to this approach although job satisfaction is under the influence of many
external factors, it remains something internal that has to do with the way how the employee
feels. That is job satisfaction presents a set of factors that cause a feeling of satisfaction.
Armastrong, (2006) defines job satisfaction as affective orientations on the part of individuals
toward work roles that they are presently occupying

Factors affecting job satisfaction

Genuine job satisfaction comes from a feeling of security whereby one’s performance is
judged objectively by the quality of work performance rather than artificial criteria such as
being related to highly placed executives or to relatives in the firm (Kelski, 2007).

The level of job satisfaction is affected by intrinsic and extrinsic motivating factors, the
quality of supervision, social relationships with the work group and the degree to which
individuals succeed or fail in their work (Armstrong, 2006).

15
When considering job satisfaction, probably the most important point to bear in mind is that
many factors that affect it. What makes workers happy with their jobs varies from worker to
worker and from day to day. Apart from the factors previously mentioned, job satisfaction
isinfluenced by the employee’s personal characteristics, the manager’s personal
characteristics and management style, and the nature of the work itself. Managers who want
to maintain high levels of satisfaction in the workforce must understand the needs of each
member of the workforce (Kelski, 2007).

Measuring Job Satisfaction

Job satisfaction does not come automatically to business organizations. In a broad sense, the
job satisfaction program needs to exist and should have activities carefully designed to
achieve the intended job satisfaction goals. It must be an action program and it should be
carefully monitored to ensure that changes are periodically made as needed (Kelski, 2007).
According to (Armstrong, 2006) the level of job satisfaction can be measured by the use of
attitude surveys. There are four methods of conducting them:

1. Structured QuestionnairesMethod

These can be issued to all or a sample of employees. The advantage of using standardized
questionnaires is that they have been thoroughly tested and in many cases, norms are
available against which results can be compared. Benchmarking can be carried out with other
organizations additional questions especially relevant to the company can be added to the
standard list. A tailor made questionnaire can be used to highlight particular issues, but it may
be advisable to obtain professional help from an experienced psychologist, who can carry out
the skilled work of drafting and pilot testing the questionnaire and interpreting the results.
Questionnaires have the advantage of being relatively cheap to administer and analyze,
especially when there are large numbers involved.

2. InterviewsMethod

These may be open ended or depth interviews in which the discussion is allowed to range
quite freely, or they may be semi structured in that there is a checklist of points to be covered,
although the aim of the interviewer should be to allow discussion to flow around the points so
that the frank and open views of the individual are obtained. Alternatively, and more rarely,
interviews can be highly structured so that they become no more than the spoken application
of a questionnaire. Individual interviews are to be preferred because they are more likely to

16
be revealing, but they are expensive and time consuming and not so easy to analyze.
Discussions through ‘focus groups’(that is groups of employees convened to focus their
attention on particular issues) are a quicker way of reaching a large number of people, but the
results are not so easy to quantify and some people may have difficulty in expressing their
views in public.

3. A Combination of Questionnaire and Interview Method

This is the ideal approach because it combines the quantitative data from the questionnaire
with the qualitative data the interviews. It is always advisable to accompany questionnaires
with some depth interviews, even if time permits only a limited sample. An alternative
approach is to administer the questionnaire to a group of people and then discuss the
reactions to each question with the group. This ensures that a quantified analysis is possible
but enables the group, or at least some members of it, to express their feelings more fully.

4. Focus Groups

A focus group is a representative sample of employees whose attitudes and opinions are
sought on issues concerning the organization and their work. The essential features of a focus
group are that it is structured, informed, constructive, and confidential.

2.2. Empirical Review

2.2.1. Effect of PA on Job Satisfaction

Job satisfaction refers to the contentment an individual has with his or her job. Job
satisfaction describes how content an individual is with his or her job. It is a relatively recent
term since in previous centuries the jobs available to a particular person were often
predetermined by the occupation of that person’s parent. Performance appraisal is among the
most critical Human Resource functions that brings global success for one organization. It is
also important to mention that extensive frustration and satisfaction with performance
appraisal have challenged practitioners and researchers to appraise the efficiency of
performance appraisal quality. Once the employees are satisfied with their job, their
performance will be effective and they will achieve the goals efficiently.The effects of
employee’s perceptions of political motives in performance appraisal on their job satisfaction.
They found that when employees perceived performance ratings to be manipulated because
of raters' personal bias and intent to punish subordinates they expressed reduced job
satisfaction that, in turn, led to greater intentions to quit their jobs. They concluded that

17
manipulations of ratings for motivational purposes, however, had no effect on job satisfaction
and turnover intention (June M.L. Poon 2004). Ayaz Khan (2009) examined the effectiveness
and impact on performance and job satisfaction of technical education faculty (N.W.F.P). He
concluded that existing system of performance appraisal lack proper effectiveness to
positively affect performance and satisfaction level of faculty members of Technical
Education Department (N.W.F.P) due to inherent pitfalls.

Adnan Ahmed, Iftikhar Hussain (2010) analyzed the Performance Appraisals Impact on
Attitudinal Outcomes and Organizational Performance. They recommended that a better PA
system integrated with better HR practices will enhance performance appraisal satisfaction
and also increase employee job satisfaction and reduce turnover intentions to bring
effectiveness in the organizations. Mahdieh Darehzereshki (2013) analyzed the role of the
performance appraisal quality on job satisfaction. He had analyzed and concluded that
employees with high quality performance appraisal experiences were more likely to be
satisfied with their job and human resource (HR) practitioners has to decide whether the
allocation of additional resources to ensure that all employees have a uniformly high quality
performance appraisal experience is a worthwhile investment

2.2.2. Effect of PA on Employee Engagement

Employee engagement is the act of an employee being involved in, enthusiastic about, and
satisfied with his or her work. It includes the characteristics of a workplace environment that
“attract and retain the most productive employees”. Employee engagement is typically
described as a high level of employee involvement, commitment to the organization and job
satisfaction. Engaged employees value, enjoy and have pride in their work. They are more
willing to help each other and the organization succeed; take additional responsibility; invest
more effort in their jobs; share information with other employees; and remain with the
organization than employees who are less engaged. Employee engagement and related
variables, such as commitment and cooperation are associated with their performance as
because once the employees are given a good performance appraisal they will be motivated
and automatically they will start engage themselves towards the objectives of the
organization. Vishal Gupta, Sushil Kumar (2013)

Graham Lowe (2012) examined how job, work environment, management and organizational
factors influence levels of engagement among healthcare employees. He found that a high
level of employee engagement is related to retention, patient centered care, patient safety

18
culture and employees’ positive assessments of the quality of care or services provided by
their team. He concluded that hospital employees provide a unique opportunity to explore the
dynamics of employee engagement in healthcare.

Vishal Gupta, Sushil Kumar (2013) explored the relationship between perceptions of
performance appraisal fairness and employee engagement in the Indian business context. The
relationships between justice perceptions and engagement were analyzed and they found that
there is a significant positive association between distributive and informational justice
dimensions and employee engagement. They concluded that the distributive and
informational justice perceptions during a performance appraisal session lead to enhanced
engagement among employees.

Caroline Ann Rowland, Roger David Hall (2013) explored the contribution of appraisal
systems to sustainable organizational effectiveness. It argues that competitive advantage is
increasingly reliant on discretionary effort. As the emphasis of appraisal has shifted from a
developmental to a performance focus, perceived unfairness in both procedures and outcomes
threatens to undermine commitment and, therefore, sustainable performance. They found that
appraisal frequently creates actual and perceived injustice in terms of both procedures and
rewards. It also generates tensions between managing performance and encouraging
engagement.

2.3.3. Effect of PA in Productivity

Productivity refers to the objectivity or target of an organization to be achieved by their

employees. Employees can work effectively and efficiently only when they are Satisfied with
their work and when they feel responsible for the work they do. This can be done by
motivating the employees in terms of both financially as well as non-financially. Performance
appraisal helps the organization to understand the employee’s interest about their job and also
helps in providing them the necessities or facilities for performing the job in an effective way.
It motivates them and makes them to engage themselves towards attaining the goal of the
organization. It also helps in creating a new culture in the organization so that the employees
feel comfortable in their work, which in turn all these factors lead to increase in productivity.

Gerald T. Gabris, Kenneth Mitchell (2009) examined whether employee incentive plans lead
to increased productivity. The authors also implemented a structured open-ended
questionnaire to over 100 employees of Biloxi and used five-point Likert Type scale for
analyzing the data. They found that statistically significant variation in attitudes does exist
19
toward the Biloxi merit bonus system as a stimulus of employee performance. They
suggested that potential conflict between managers and subordinates over the purpose and
function of the performance appraisal process may not be all that serious. Also they
suggested that employees themselves appear to support the notion that rises and promotions
should be based on merit.

Evrim Ustunluo (2009) analyzed whether appraisal system leads to improvement in

productivity. They pointed out that most of the teachers always or often fulfill their
responsibilities in terms of teaching and professionalism although few teachers had received
low means. They suggested that Administration, Heads of Program and Coordinators always
and often take their responsibilities in terms of planning, organization, communication,
collaboration, professional competence, leadership and duties. They concluded that in terms
of the administration, the appraisal system helped define roles and responsibilities more
clearly, review and determine job descriptions, organizational goals and objectives, and led to
continuous learning, team building and improved productivity.

Ari Warokka, Cristina G. Gallato and Thamendren Moorthy (2012) studied the literature of
the effect of performance appraisal on productivity and employees by connecting the
employees’ perception on fair performance appraisal and organizational Justice – considered
practices to job Satisfaction and work performance. They concluded that employee
perception of organizational justice (distributive, procedural and interactional justice) in the
performance appraisal system did not significantly contribute or have no impact to
productivity.

2.2.4. Effect of PAS in Organizational Commitment

Organizational Commitment refers to the amount of involvement an employee has in his/her

work. This helps both the employee and the organization to improve their skills, which in
turn improves the productivity of the organization and the employee. An employee who is
involved completely in his/her work is said to have great organizational commitment since it
will make them to become loyal to the company and will commit themselves to the
organization automatically in all aspects which results in greater improvement in their career
as well as the productivity. Thus, Organizational Commitment leads to greater productivity.
Effective performance appraisal systems help to create a motivated and committed
workforce. In their analysis, they pointed out that with large spans of control, several
supervisors may work with an individual employee. They concluded that developing an

20
effective performance appraisal system requires strong commitment from top management: if
the system does not provide the linkage between employee performance and organizational
goals, it is bound to be less than completely effective. Deborah F. Boice and Brian H. Kleiner
(1997)

Aharon Tziner, Kevin R. Murphy (1999) observed the attitudinal influences in performance
appraisal. From their analysis they found that raters who were high on instrumental
commitment were more likely to give high ratings than raters lower on instrumental
commitment. They also suggested that perceptions of performance appraisal systems can
affect the quality and usefulness of the ratings obtained. One way of improving ratings may
be to increase perceptions that ratings are done honestly. That rating is used fairly by
organizations, and that raters are rewarded for providing useful performance feedback to their
subordinates.

Aizzat Mohd. Nasurdin, Mohamad Abdullah Hemdi and Lye Phei Guat (2008) examined a
model involving Human Resource Management (HRM) practices, perceived organizational
support, and organizational commitment. They have concluded that HRM practices will be
positively related to organizational commitment, and that perceived organizational support
would serve as a mediator in the relationship between HRM practices and commitment. They
found that the Malaysian manufacturing sector demonstrated that career development and
performance appraisal have direct, positive and significant relationships with organizational
commitment.

2.3. Legal Considerations in Performance Appraisal

To provide information that can serve the organization’s goals and that complies with the
law, a performance evaluation system must provide accurate and reliable data. The ability to
generate accurate and reliable data is enhanced if a systematic process is followed. According
to Ivancecich (2004), the following six steps can provide the basis for such a systematic
process:

1. Establish performance standard for each position and the criteria for evaluation.
2. Establish performance evaluation policies on when to rate, how often to rate, and who
should rate
3. Have raters gather data on employees' performance
4. Have raters (and employees in some systems) evaluated employees' performance.
5. Discuss the evaluation with the employee.
21
 6. Make decisions and file the evaluation
Performance appraisal data as stated earlier are used to make many important human resource
decisions (e.g. pay, promotion, training, transfer and termination). The appraisal system is a
common target of legal disputes by employees involving charges of unfairness and bias. An
employee may seek the legal recourse to obtain relief from a discriminatory performance
appraisal. Every organization is guided by the rules and regulations of the federal and/or state
agencies of its respective country. In this respect, the Federal civil service commission is the
agency in charge in Ethiopian context. Ivancecic,(2004).

According to Article 31 of the Federal Civil Servants proclamation:

A. The purpose of performance appraisal shall be:

 To enable civil servants to effectively discharge their duties in accordance with

the expected level, quality standards and time and expense;

 To evaluate civil servants on continuous basis and identify their strengths and
weaknesses with a view to improve their future performance;

 To identify training needs of employees;

 To give reward based on results;

 To enable management to make its administrative decisions based on concrete

evidence.
B. Performance evaluation shall be carried out in a transparent manner.

C. The agency shall issue directives on performance evaluation.

The legal aspect of performance appraisal shall be given due attention because failure to
comply with policies and regulations results in penalties that can be easily avoided by
performing performance appraisal activities by taking in to consideration the legal issues
Ivancecich (2004)

Conceptual frame work of the study

The results of performance appraisal have great impacts on the jobs satisfaction, though
demographic and social factors of employee may affects the performance of the individuals
within the organization. Moreover the results of the appraisal whether it shows weakness or
strength of the employee it can affect the productivity of the human resources within the
organization based on these facts the study conceptual framework is proposed as follow.

22
Demographic and social factors
Incentives

Employee’s
Employee Performance appraisal results
productivity

Job
Morale
satisfaction

Figure 2.1 conceptual framework

23
 CHAPTER THREE

3. RESEARCH METHODOLOGY
This part of the study presents the methodological aspects of the research, which includes
research design, research method, study population, sample size and sampling techniques,
data collection instruments, and methods of data analysis and interpretations

3.1. Research Design

Research design provides a framework for planning and conducting a study. This study was
conducted using descriptive research design. Descriptive research is defined as a research
method that describes the characteristics of the population or phenomenon that is being
studied. This methodology focuses more on the “what” of the research subject rather than the
“why” of the research subject. The major purpose of descriptive research is to provide a
detailed and accurate picture of the issue under study, document a causal process, and report
a context of a situation. The distinguishing feature of this method is that the researcher has no
control over the variables, but only reports what has happened or what is happening (Bernard
2000). Thus, this study explored and described performance appraisal and its impact on
employees’ morale and satisfaction in Jimma TVET Institution.

3.2. Data Type and Source of Data

The study used mainly qualitative data, both primary and secondary, collected from the study
site. Miles and Huberman (1994)) explain that qualitative data deals with phenomena that
relate to qualities or types. It is based on information expressed in words, descriptions,
accounts and on the opinions and feelings of people.

In order to get the data, both primary and secondary sources were explored. The primary data
was obtained from Jimma TVET colleges’ academic staff and supportive staff members
through questionnaires. On the other hand, secondary data was gathered from different
published and unpublished documents, reports, electronic sources, magazines etc . Different
books, articles and journals were also referred to get relevant information.

3.3. Population of the Study

“Population is the entire group of people to which a researcher intends the results of a study
to apply (Aron, & Coups, 2008).” Therefore, the populations included in this research were

24
all supportive staff and academic staff members of Jimma TVET College. As far as the
number of employees is concerned, the college had 105 members of active academic staff
and 68 members of supportive staff. Thus, there were a total number of 173 academic staff
and supportive staff in the college, from which the sample size was determined.

3.4. Sample Size

With regard to sample size, a simplified formula provided by Yamane (as cited in Yilma
2005: 42) was used to determine the sample size at 95% level of confidence, 0.5 degrees of
variability, 9% precision level (e), and 173 population size:

N
n=
1+ N ( e )2

Where: n is sample size, N is total number of the population and e is the level of precision.

Thus:
173
1+ 173(0.09)
= 72
Therefore, the sample size of the study comprised of 72 cases. As discussed in sampling
technique section below, the sampling method used in this study was stratified sampling
technique. Based on career background, the target population of the research was divided into
supportive and academic strata. Then a random sample from each stratum was taken in a
number proportional to the stratum’s size when compared to the population. Supportive staff
occupied 39% of the total population, whereas academic staff amounted 61% of the same.
Accordingly, 39% of the sample was selected from the supportive staff, and 61% from the
academic staff

3.5. Sampling Technique

To come up with an appropriate study sample, the researcher utilized stratified random
sampling technique.The rationale behind the selection of this technique was that stratified
sampling attempts to overcome the shortcomings of simple random sampling, which may
leave some sections of the population out of the sample, by splitting the population into
various distinct segments and selecting entities from each of them. This ensures that every
category of the population can be represented in the sample.

Accordingly, based on career background, the target population of the study was divided into
two strata. Then a random sample from each stratum was taken in a number proportional to

25
the stratum’s size when compared to the population. These subsets of the strata were then
pooled to form a random sample. As said earlier, there were 173 academic and supportive
staff members in Jimma TVET Institution, out of which 68 (39%) of them were supportive
staff members while 105 (61%) of them belonged to academic staff.

For a sample of 72 respondents using career background, the proportionate stratified random
sample was obtained using this formula:

(Sample size/population size) * Stratum size

Table 3.1: Determination of Strata Sample Size

Career group Number of people Calculation Strata sample
in stratum (Sample size/population size)* size
stratum size
Supportive staff 68 (72/173)*68 28
Academic staff 105 (72/173)*105 44
Total 173 72

Therefore, the strata sample size for supportive staff was 28, and 44 for academic staff.

3.6. Method of Data Collection

In this study, the primary data was collected using structured questionnaire
methods.Questionnaires can be defined as written forms that ask exact questions of all
individuals in the sample group, and which respondents can answer at their own convenience
(Gall et al., 2007). Questionnaires were preferred because; it requires a little time and
expense and permits collection of data from a large sample of respondents. Moreover, the
data provided by questionnaires can be more easily analyzed and interpreted than the data
from verbal responses. Questionnaires provide greater uniformity across measurement
situations than do interviews. (Haines,2007).

The questionnaire contained both closed-ended and open-ended questions. The questionnaire
was designed in English language and administered to respondents in a face-to-face
interview. The reason that I preferred to administer in this way was that it usually results in a
higher response rate and reduces non-response to individual questionnaire.

With regard to the collection of secondary data, the study used both published and
unpublished sources including journals, books and research documents. These data were used

26
after checking the source, suitability and adequacy in order to ensure the dependability and
trustworthiness of the study.

3.7. Methods of Data Analysis

In this study, the data analysis was based on the data collected, compiled and tabulated from
primary sources and supplemented by secondary sources. The data from the questionnaires
were manually checked by using tally sheet and at the same time information was checked
for completeness. This involved the data processing that included editing, coding and
classifying the collected data. Lists of key issues were prepared and the findings were
organized according to these lists. In brief, the researcher analyzed the data collected through
questionnaires using descriptive statistical tools such as percentages, averages, and presented
them through tables. Lastly, appropriate and logical interpretation of facts was made which
paved the way for drawing conclusions.

27
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter deals with presentation, analysis and interpretation of the primary data supported
by secondary data. The study groups were current academic staff and supportive staff of
Jimma TVET College.In order to get a representative data, 72 questionnaires were prepared
and administered to academic staff and supportive staff members of the college, 44 to
academic staff and 28 to supportive staff. Fortunately, the study have achieved 100%
response rate because the questionnaires were attentively administered to respondents in a
face-to-face interview, which reduced non-response to individual questionnaire.

The chapter consists of four major sections. The first section deals with the demographic
characteristics of the respondents, and the remaining sections present the analysis and
interpretation of the main data related to the basic research questions. The collected data were
presented in tables and analyzed using descriptive statistics such as percentage and frequency
counts. The analyzed data were then compiled and organized in a way that suits interpretation
of the results in addressing the research questions.

4.2. Demographic Characteristics of Respondents

All respondents who participated in this study were academic staff and supportive staff
members from Jimma TVET College. Presented here is general background information
about the respondents. Respondents were studied for their gender, age, highest level of
education and years of service in the college. The tables that follow present the results for
each of these variables.

4.2.1 Age and Sex of Respondents

The academic staff and supportive staff members who participated in this study were asked to
indicate their gender and age. Accordingly, the findings are presented in the following Table .

28
4.1: Summary Statistics of Age and Sex of Respondents
No Item Respondents
. Total
Academic Staff Supportive Staff
F % F % F %
1 Sex
Male 33 75 16 57 49 68
Female 11 25 12 43 23 32
Total 44 100 28 100 72 100
2 Age
20-30 years 19 43.2 17 60.7 36 50
31 – 40 years 22 50 8 28.6 30 41.7
41 – 50 years 3 6.8 3 10.7 6 8.3
Above 51 years -- -- -- -- -- --
Total 44 100 28 100 72 100
Source: (Own Data, 2021)
As it can be observed in item one of Table 4.1 above, 75 % (33) of the academic staff, and
57% (16) of supportive staff members of the Jimma TVET College were found to be males
while 25% (11) of Academic staff and 43% (12) of supportive staff were females. With
regard to the grand total of all sex, 68% (49) of respondents were males and 32% (23) were
females. This may indicate that the participation of female in the area is low. Thus, the
responses of the subjects in this study have represented predominantly males’ idea.
Furthermore, this demographic data implies that Jimma TVET College is a male dominated
institution. It also suggested the need to hire more female employees to balance the number
of female and male employees in the years to come.

The respondents were further asked to indicate their age category. As shown in the above
table, most of the respondents (50 percent) were aged between 20 and 30 years while 41.7
percent were aged between 31 and 40 years. Only 6 respondents (8.3 percent) were aged
between 41 and 50 years while no respondent was aged 51 years and above.The findings
show that most of the respondents in Jimma TVET College were aged less than 40 years.
Thus, it could be concluded that the respondents could generally have no rich experience.

29
4.2.2. Educational Qualification and Service Years of Respondents

The study further sought to establish the academic qualification and service years of the
academic staff and supportive staff members of Jimma TVET College who participated in
this study.

Table 4.2: Profiles of Respondents by Educational Qualification

No Item Respondents
. Total
Academic Staff Supportive Staff
F % F % F %
1 Level of Education
Certificate -- -- 11 39.3 11 15.3
Level-C (Diploma) 26 59 12 42.85 38 52.77
Level-B (BA/BSC) 14 32 2 7.14 16 22.22
Level-A (MA) 4 9 -- -- 4 5.55
PhD -- -- -- -- -- --
Others -- -- 3 10.7 3 4.17
Total 44 100 28 100 72 100
Source: (Own Data, 2021)

In terms of educational qualification of academic staff, there were three categories of teachers
in the Ethiopian TVET institutions: C-level, B-level and A-level, which is equivalent to
diploma, fist degree and master’s degree respectively. Teachers with C-level (level III and IV
qualification in Ethiopian context) are trainers of level-I and level-II trainees and are regarded
as technicians. Those with B-level (are also called level V or degree) are trainers of level III
and IV. The trainers at “A” level are master’s degree holders and train at degree level and
they are called instructors.

Table 4.2 above shows that the majority (59%) of academic staff members were with “C”
level or Diploma holders whereas 14 (32%) of them were with “B” level or first degree and
only 4 (9%) of the academic staff members were with “A” level or second degree
qualifications. Thus, it could be concluded that the profile of the TVET teachers was not
good. Because as it is stated in the Federal TVET Agency guideline (2008), the qualification
of TVET trainers should be minimum “B” level or first-degree holder.

30
According to Adula Bekele (2019), having predefined profile for TVET teachers of different
level is important in order to enhance the status of the profession. However, it is important to
look into the current status of TVET colleges in satisfying themselves with teachers of the
required profile. As the evaluation of the last five years educational sector development
programme (2012/13-2017/18) shows, the trainers’ distribution was not aligned with the
need. Particularly, there exists a shortage of B-level institution based trainers and of industry-
based trainers of all levels (Adula Bekele, 2019). Qualitative data collected from respondents
of the present study also implies the same message.

In relation to level of education of the supportive staff members, 42.85% (12) of them were
Diploma holders, 39.3% (11) of them had Certificate, and 10.7% (3) of them holdother types
of qualifications. On the other hand, only 7.14% (2) of the supportive staff members were
qualified with BA degree. Therefore, seen from the general perspective, the finding in table
4.2 revealed that most of the respondents were diploma holders. his indicates that Jimma
TVET College had shortage of qualified enough professional staffs and this had its own
impact on the less effective practice of human resource utilization.

Table 4.3: Profiles of Respondents by Service Years

No Item Respondents
. Total
Academic Staff Supportive Staff
F % F % F %
1 Service Years
Less than 1 years -- -- -- -- -- --
1-5 years 19 43 16 57.14 35 48.6
5-10 years 15 34 8 28.57 23 32
10 years or more 10 23 4 14.28 14 19.4
Total 44 100 28 100 72 100
Source: (Own Data, 2021)

Table 4.3 above illustrates the years of services of the academic staff and supportive staff
members. Accordingly, 43% (19) of academic staff and 57.14% (16) of supportive staff
members have served for five years or less. On theother hand, 34% (15) of academic staff and
28.57% (8) of supportive staff members falls in 6-10 service years while only 23% (10) of
academic staff and 14.28% (4) of supportive staff members have served for ten years and
above. The data generally indicated that most the respondents 58 (80.6%) served less than 10

31
years and have no rich experience. Such a composition, on one hand can be a signal for the
College under study to create opportunities for further education to its large proportion of
young and inexperienced staff members. On the other hand, this may also indicate that there
is high turnover in which the experienced and senior staff leaving the college.

Generally, the demographic information regarding qualifications and work experience

indicated that, most of both the academic staff and supportive staff members in Jimma TVET
Institution have no adequate experience and level of qualification to transform the institution
and to deal with many of the problems facing the institution on daily basis.

4.3. Presentation and Analysis of Basic Research Questions

In this section, the researcher presents the findings of the study in accordance with the basic
research questions that guided the study. These research questions were:

 How is performance appraisal practice carried out in Jimma TVET College?

 What is the effect of performance appraisal on employees’ morale and satisfaction?
 What are the potential problems related to performance appraisal in the study site?

4.3.1. Performance Appraisal Practice in Jimma TVET College

The first question of the study sought to examine how performance appraisal practice is
carried out in Jimma TVET Institution. Therefore, several issues were considered to examine
the performance appraisal practices of the college. The responses given by the respondents to
these issues are shown in successive tables below.

Table.4.4: The Frequency of Performance Appraisal

No Item Respondents
. Total
Academic Staff Supportive Staff
F % F % F %
1 How often is performance appraisal done in a year?
Daily -- -- -- -- -- --
Monthly
Quarterly 14 32 6 21.4 20 27.78
Semi-Annually 21 48 14 50 35 48.61
Annually 9 20 8 28.6 17 23.61
Total 44 100 28 100 72 100

32
 Source: (Own Data, 2021)

As depicted in Table 4.4 above, regarding the time interval to conduct performance appraisal,
the majority of the respondents 48.61% (35) confirmed that it has been done semiannually,
while 27.78% (20) and 23.61%(17) of them replied that the performance appraisal has been
done quarterly and annually respectively.

E. Deapa et al. (2014) stated that there are no set-in-stone rules about the frequency of job
performance appraisal, as it is up to the employer and the company policy in question but it is
better for short period to remember and measure an employee’s performance for that period.

Table.4.5: Methods of Performance Appraisal

No. Item Respondents
Total
Academic Supportive
Staff Staff
F % F % F %
1 Which performance appraisal method is usually used in the college?
Management by objective -- -- 9 32.14 9 12.5
(MBO)
Behaviorally anchored rating 7 15.92 5 17.86 12 16.67
scale
Check list 14 31.82 6 21.43 20 27.78
Critical incident appraisal -- -- -- -- -- --
Graphics rating scale 23 52.27 8 28.57 31 43.05
Total 44 100 28 100 72 100
2 What type of employee rating method frequently implemented in your college
Behavior oriented rating method 6 13.64 7 25 13 18
Result oriented rating method 16 36.36 6 21.43 22 30.6
Both behavior & result oriented 22 50 15 53.57 37 51.4
Total 44 100 28 100 72 100
Source: (Own Data, 2021)

With respect to which performance appraisal method is usually used in the college, from
Table 4.5, majority of the respondents (31 or 43.05%) pointed out that graphics rating scale is
frequently used in their college. 27.78% (20 out of 72) of them revealed that Check list
method is usually used while 16.67% (12 out of 72) said behaviorally anchored rating scale.
Finally, 12.5% (9 out of 72) of the respondents agreed that the most widely used performance

33
appraisal method is management by objective (MBO). Therefore, based on this finding, we
can conclude that Jimma TVET College usually uses the graphics rating scale as the main
method of performance appraisal but also uses other methods such as checklist method,
behaviorally anchored rating scale and management by objective (MBO).

The next item in the same table 4.5, issue forwarded to respondents in the questioner was to
know about the rating method under implementation in Jimma TVET College. Accordingly,
51% (37) of respondents responded that both behavior oriented and resulted-oriented
performance appraisal were frequently applied while 30.6% (22) and 18% (13) responded
said result-oriented and behavior-oriented respectively. Therefore, the rating responded by
different groups varies according to their influential power and dominantly both behavior and
result oriented and this practice also encouraged.

Table.4.6: Standards of Performance Evaluation

No Item Respondents
. Total
Academic Supportive
Staff Staff
F % F % F %
1 What evaluation standards are often used in this the institution to evaluate the
work of employees
Knowledge about work 8 18.18 4 14.28 12 16.17
Accuracy and completeness on 7 15.91 9 32.14 16 22.22
time
Quality of the work 14 31.82 6 21.43 20 27.78
Experience about the work 10 22.72 5 17.86 15 20.83
Skill about the work 5 11.36 4 14.28 9 12.5
Total 44 100 28 100 72 100
2 Do you think the performance appraisal criteria related with your work?
Highly related 8 18.18 4 14.28 12 16.67
Related 13 29.54 7 25 20 27.78
Averagely related 18 42 12 42.85 30 41.67
Less related 3 6.81 4 14.28 7 9.72
Almost not related 2 4.54 1 3.57 3 4.16
Total 44 100 28 100 72 100
3 Do you think the criteria used to evaluate your performance appraisal are
appropriate?

34
 Yes 25 56.82 4 14.29 29 40.28
No 19 43.18 24 85.71 43 59.72
Total 44 100 28 100 72 100
Source: (Own Data, 2021)

As illustrated in item one of Table 4.6 above, 27.78% (20 out of 72) of respondents reported
that quality of the work was the most frequently used evaluation standard while 22.22% (16
out of 72) of them believed that accuracy and completeness on time was usually used.
Whereas 20.83% (15 out of 72) of participants said that experience about the work was often
used, 16.17% (12 out of 72) said knowledge about work. In addition, 12.5% (9 out of 72) of
respondents agreed that the most frequently used evaluation standard was skill about the
work. As it can be clearly seen, there is no big difference between the responses.

Concerning the relatedness of performance appraisal criteria with the work under question,
30 (41.67%) of respondents believed that the appraisal criteria being used have been
moderately or averagely related to the work they do. These were followed by 20 respondents
(27.75%) who said related, 12 (16.67%) highly related, 7 (9.72%) less related and 3 (4.16%)
almost not related.This implies that Jimma TVET College’s performance appraisal criteria
are somewhat related to their work. However, when the respondents were asked whether the
criteria used to evaluate their performance appraisal were appropriate, the majority (43 or
59.72%) of them reported that it was not appropriate. Therefore, we can conclude that
although Jimma TVET College’s performance appraisal criteria are somewhat related to the
work under question, they were not appropriate.

Table.4.7: Evaluators of Performance Appraisal

No Item Respondents
. Total
Academic Supportive
Staff Staff
F % F % F %
1 Who often conduct the performance appraisal
Immediate supervisor 13 29.5 28 100 41 57
Peers 7 16 -- -- 7 9.7
Students 24 54.5 24 33.3
Subordinates -- -- -- -- -- --
Rating committees -- -- -- -- -- --

35
 Self-rating -- -- -- -- -- --
Total 44 100 28 100 72 100
2 Who is the most influential one in appraising employees performance
TVET Dean 7 16 8 28.57 15 20.8
Management -- -- 10 35.7 10 13.89
Colleagues 21 47.7 2 7.14 23 32
Immediate supervisor 16 36.3 8 28.57 24 33.33
Total 44 100 28 100 72 100
Source: (Own Data, 2021)

Different employees have different attitude as to who has to evaluate employee’s

performance. For these employees are given six choices; immediate supervisor, colleagues
(peer appraisal), students, rating committees, employee him/herself or appraisal by
subordinates. As illustrated in the above Table 4.7, 54.5% (24) of academic staff members
said that evaluation is often conducted by students while all supportive staff members said
they are often evaluated by immediate supervisors. On the other hand, 29.5% (13) and 16%
(7) of academic staff members reported that performance appraisal in Jimma TVET College
is often conducted by immediate supervisors and peers respectively. These findings imply
thatperformance appraisal of the academic staff in Jimma TVET College was conducted by
students, immediate supervisors and peers. From the response, it is possible to understand
that combination of appraisers is used in the college to conduct instructors’ performance
appraisals. On the other hand, performance appraisal of the supportive staff was conducted
only by immediate supervisors.

The results indicated that academic staff appraisals based on reviews by colleague instructors
happen only a few times in Jimma TVET College (16% or 7 out of 44). This form of
appraisal represents a peer-review model. Peer review models involve a peer teacher
observing a teacher and offering evaluative information to the teacher. Based on these results,
it is evident that the use of peer appraisal in Jimma TVET College is not common. There are
various reasons why peer appraisal may not be a more common form of performance
appraisal. One of the reasons may be fear that peer reviewers can infiltrate on role of the
principal as the key instructional leader in an educational institution. Additionally, it can be
argued that owing to the fact that peer reviewers are teachers’ co-workers; the evaluations
may be characterized by prejudice or inability to make hardline decisions. A great deal of

36
teachers views the idea of peer review as troublesome due to the fact that it contravenes the
professional conduct of teachers. Some teachers decline peer appraisals because they put
teachers against one another (Jonson & Fiarman, 2012). The low involvement of practicing
academic staff as performance appraisers has also been highlighted by Johnson and Firaman
(2012). The two scholars noted that peer review models are also proving to be controversial
in schools hence not widely used. In contrast, Smagorinsky (2014) noted that some people
advocate for peer evaluation of teachers because it gives teachers a voice in who does and
who does not belong in their faculty.

After determining the evaluation criteria, next question in front of any academic institution is
how to know whether these qualities are possessed by the faculty members? Seldin (2000)
emphasized that students, colleagues, administration and teachers themselves take part in this
evaluation as “components of the collective judgment of teaching performance”. He further
explains that students are always able to provide reliable information about teacher
performance and his effectiveness regarding teaching. Similarly, peers because they are in
same business can give their positive contribution for evaluation process. Teacher self-
appraisal, if conducted in accurate and constructive manner not only proves to be an authentic
part of whole evaluation information but also an abrupt and effective motivation for
performance enhancement.

From the table 4.7 the last item, regarding to influential person in appraising employees’
performance, 33.33% (24) of the total respondents confirmed that immediate supervisor plays
the decisive role in influencing employee’s performance. Accordingly, 32% (23) and 20.8%
(15) respectively colleagues and TVET dean were the most influential one in appraising
employees. The rest 13.89% (10) of respondents replied those management members are the
influential in appraising employees’ performance. On the whole, from this analysis one can
deduce that even though, different groups involved in the activity the immediate supervisors
and colleagues were the most influential in employee’s performance appraisal and followed
by college TVET dean. From this point of view, one can understand that the immediate
supervisors and colleagues can play a great role.

In general, the above findings show that immediate supervisors have a decisive role in
employees’ performance appraisal process in Jimma TVET College. This implies that
immediate supervisor is the one who is the most familiar with the individual performance, in
most jobs, the supervisors has the best opportunity to observe actual performance, and since

37
the supervisors has a proper understanding of organizational objectives, needs and influences,
he/she is best able to relate the individuals performance to departmental and organizational
goals (Chatterjee, 2005).

4.3.2 The Effect of Performance Appraisal on Employees’ Morale and

Satisfaction

The second research question sought to identify the effect of performance appraisal on
employees’ morale and satisfaction.

Table.4.8: The Impact of Performance Evaluation on Employees’ Morale and Satisfaction

No Item Respondents
. Total
Academic Supportive
Staff Staff
F % F % F %
1 Do you think that performance evaluation has an impact on employees moral and
satisfaction
Yes 44 100 28 100 72 100
No -- -- -- -- -- --
Total 44 100 28 100 72 100
2 If yes, what kind of impact does it have?
Positive 33 75 18 64.28 51 70.83
Negative 11 25 10 35.72 21 29.17
Total 44 100 28 100 72 100
Source: (Own Data, 2021)

As illustrated in the above Table 4.8, all respondents, both the academic staff and supportive
staff members, agreed with the first statement that performance evaluation has an impact on
employees’ morale and satisfaction. Based on these findings, the researcher can conclude that
the performance appraisal system of Jimma TVET College has an impact on both its
academic staff and supportive staff members’ morale and satisfaction.

The second item of the above Table is about the kind of impact (positive or negative)
performance evaluation has. Accordingly, 75% (33) of the academic staff and 64.28% (18) of
the supportive staff members reported that performance appraisal has positive impact. On the
hand, 25% (11) of the academic staff and 35.72% (10) of the supportive staff said that the
impact of performance evaluation is negative.

38
The findings of the present study generally shows that respondents agreed that the
performance appraisal systems can affect their morale and satisfaction in a positive manner
even though there were respondents who said that performance negatively affects their
morale and satisfaction. These findings concur with Omboi (2011) who established that
performance appraisal systems have a positive effect on the output of workers.

Table.4.9: The Consequence of Performance Appraisal Result

No Item Respondents
. Total
Academic Staff Supportive
Staff
F % F % F %
1 How do you react when your performance appraisal result is not good
You become aggressive 5 11.36 4 14.28 9 12.5
Start work hard better than 24 54.54 15 53.57 39 54.17
before to improve work
performance in the future
You get depressed 13 29.54 8 28.57 21 29.16
You insult and despise other 2 4.54 1 3.57 3 4.17
Total 44 100 28 100 72 100
2 Do you receive rewards when you have a positive PA results
Yes 9 20.45 10 35.71 19 26.39
No 35 79.55 18 64.29 53 73.61
Total 44 100 28 100 72 100
3 If yes, did the reward match with your performance?
Yes 3 33.33 5 50 8 42
No 5 55.55 2 20 7 37
Not sure 1 11.11 3 30 4 21
Total 9 100 10 100 19 100
4 If no, what were the reasons for not rewarding?
Ineffective management of 19 54.28 6 33.33 25 47.17
the performance appraisal
process
It is difficult to meet the 7 20 3 16.67 10 18.86
standards required for
rewards
My performance did not 2 5.71 5 27.77 7 13.21

39
 reach the standards that
required for reward
Other (please specify) 7 20 4 22.22 11 20.75
Total 35 100 18 100 53 100
Source: (Own Data, 2021)
In Table 4.8 above, the respondents were asked to indicate from the given alternatives how
they react when their performance appraisal result is not good. Consequently, 54.54% (24 out
of 44) of academic staff and 53.37% (15 out of 28) of supportive staff members reported that
they would start work hard better than before to improve work performance in the future.
Whereas 29.54% (13 out of 44) of academic staff and 28.57% (8 out 28) of supportive staff
admitted that they get depressed, 11.36% (5 out of 44) of academic staff and 14.28% (4 out of
28) of respondents from supportive staff became aggressive when their performance appraisal
result went bad. Finally, 4.54% (2 out of 44) of academic staff and 3.37% (1 out of 28) of
supportive staff members said that they would insult and despite others when their result was
not satisfactory. The grand total of the result indicates that more than half (54.17% or 39 out
of 72) of respondents from both academic staff and supportive staff reported that they start
work hard better than before to improve work performance in the future.

Respondents were asked whether they received rewards or not when they had a positive
performance appraisal results. About 73.61% (53 out of 72) of them answered “No” while
only 26.39% (19 out of 72) answered Yes. In addition,those who received rewards were taken
to a question about the match between the rewards that they had already received and their
performance. Accordingly, out of 19 respondents who received rewards, only 42% (8) of
them felt that the rewards matched their performance, 37% (7 out of 19) did not feel that the
reward matched their performance, and 21% (4 out of 19) responded that they were unsure.

Furthermore, those who answered No were also asked about the reasons for not rewarding.
Out of 53 respondents who did not get rewards, nearly half (47% or 25) of them said because
of ineffective management of performance appraisal at Jimma TVET College. Other reasons,
18.86% (10 out of 53) of respondents said it was difficult to meet standards required for
rewards whereas 13.21% (11 out of 53) were of the opinion that their performance could not
reach the required standards.

40
4.3.3 Problems Related To Performance Appraisal

The third research question sought to identify the potential problems related to performance
appraisal in the study site. Therefore, to assess the problems and challenges associated with
performance appraisal several issues were considered. The responses given by the
respondents to the issues are shown in the following table.

Table.4.10: Problems Associated With Performance Appraisal

No Item Respondents
. Total
Academic Staff Supportive
Staff
F % F % F %
1 Which of the following are the potential problems related to performance appraisal
in the college?
Problem interpretation 3 6.82 1 3.57 4 5.55
Biasness 10 22.73 7 25 17 23.61
Subjectivity 9 20.45 3 10.71 12 16.67
Error in rating 11 25 4 14.28 15 20.83
Inappropriate PA method 5 11.36 8 28.57 13 18
non participation in setting 6 13.64 5 17.86 11 15.27
evaluation criteria
Total 44 100 28 100 72 100
Source: (Own Data, 2021)
From Table 4.9 above, majority of the respondents (23.61% or 17 out of 72) agreed that the
peculiar problem associated with performance appraisal in the college is Biasness. Error in
rating was also cited by 20.83% (15 out of 72) of the respondents from both academic staff
and supportive staff as a problem with the performance appraisal practices of the TVET
College under study. Again, 18% (13 out of 72) of the respondents indicated inappropriate
performance appraisal method as another source of problem while 16.67% (12 out of 72)
believed that Subjectivity is the major problem with the performance appraisal practices of
the TVET College. Furthermore, 15.27% (11 out of 72) and 5.55% (4 out of 72) indicated
non participation in setting evaluation criteria and Problem interpretation respectively as
potential problems related to performance appraisal in the college. From the above findings,
it is clear that the key problems associated with performance appraisal practices of Jimma
TVET College are Biasness and Error in rating.

41
In answering to the open-ended question, respondents also suggested the following solutions
to overcome the problems encountered in the performance appraisal process of Jimma TVET
College.

 Paying attention to the individual performance rather than personalities

 Raters should be rational
 Making raters aware of the problems through formal training
 Using multi-source assessment techniques-3600 feedback
 Conducting continuous observation and keeping record on employees performance
regularly
 Involving individuals in the process
 Making jobs more specific and measurable
 Not to be lenient while appraising

42
 CHAPTER FIVE

5. SUMMERY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter provides the summary of the findings from chapter four, and also it gives the
conclusions and recommendations of the study based on the objectives of the study. The
objectives of this study were to investigate the impact of performance appraisal on employee
morale and satisfaction in Jimma TVET College.

5.2 Summary and Conclusions

The purpose of this study was to investigate impact of performance appraisal on employees’
morale and satisfaction in Jimma TVET College. Key concepts are discussed based on the
three research questions. The following are the three questions that guided the study;

 How is performance appraisal practice carried out in Jimma TVET College?

 What is the effect of performance appraisal on employees’ morale and satisfaction?
 What are the potential problems related to performance appraisal in the study site?

Therefore, this study utilized a descriptive research design to provide answer for these
questions and to achieve its objectives.As mentioned under the introductory part of the study,
the general objective of the study was to investigate performance appraisal practices and its
impact on employees’ morale and satisfaction in Jimma TVET College.The study used
mainly qualitative data, both primary and secondary, collected from the study site. The target
population of this study comprised of all the academic staff and supportive staff members
employed in Jimma TVET College as of June 2021 who were 173 in number. Stratified
random sampling and simple random sampling techniques were used to help enhance the
chances of participation among potential participants. With regard to sample size, a
simplified formula provided by Yamane was used to determine the sample size at 95% level
of confidence, 0.5 degrees of variability, 9% precision level (e). The sample size of 72
respondents was then used in the study. The researcher used a questionnaire as primary data
collection instrument. The questionnaire was administered to respondents in a face-to-face

43
interview. Data was analyzed using descriptive statistics such as frequency counts and
percentage, and presentation of data was done through the use of tables.

Based on the information gathered through the questionnaires, the major findings that the
researcher comes up with are;

 The majority of the academic staff and supportive staff members were males.
Therefore, the responses of the subject of represented predominantly males’ idea. This
indicates that, there was poor participation of female in the area. It also indicated that
the female participation and employment rate to the teaching profession in the TVET
colleges has low.
 50 percent and 41.7 percent of the respondents were within the age category of 20-30
and 31-40 respectively, and their responses could be valuable on the recent
information of how performance appraisal is carried out in their college.
 From the size of the total academic staff and supportive staff members, majority were
diploma holders. This may shows that they did not have the required qualification for
TVET level 3 & 4 as of the standard of ministry of education.
 Almost half (48.61 percent) of respondents reported that performance appraisal has
been done semi-annually in Jimma TVET College.
 Jimma TVET College usually uses the graphics rating scale as the main method of
performance appraisal but also uses other methods such as checklist method,
behaviorally anchored rating scale and is management by objective (MBO).
Concerning the rating method of employees 51% of respondents confirmed that both
behavior-oriented and result oriented were under implementation for staff.
 41.67% of respondents believed the appraisal criteria being used have been
moderately or averagely related to the work they do. However, when the respondents
were asked whether the criteria used to evaluate their performance appraisal were
appropriate, the majority (59.72%) of them reported that it was not appropriate.
Therefore, although Jimma TVET College’s performance appraisal criteria are
somewhat related to the work under question, they were not appropriate.
 54.5% of academic staff members said that evaluation is often conducted by students
while all supportive staff members said they are often evaluated by immediate
supervisors. Regarding to influential person in appraising employees’ performance,
33.33% of the total respondents confirmed that immediate supervisor plays the
decisive role in influencing employee’s performance.

44
  70.83 of respondents reported that performance appraisal has positive impact on
employees’ morale and satisfaction.
 More than half (54.17%) of respondents from both academic staff and supportive staff
reported that they start work hard better than before to improve work performance in
the future when their performance appraisal result is not.
 About 73.61% (53) of respondents admitted that they did not receive rewards when
they had a positive performance appraisal results. Out of 53 respondents who did not
get rewards, nearly half (47%) of them said because of ineffective management of
performance appraisal at Jimma TVET College.
 The majority of the respondents agreed that the peculiar problem associated with
performance appraisal in the college is Biasness.

Based on the above findings, we can conclude that Jimma TVET College is male dominated
institution and the profile of the college’s teachers was not good. On the other hand, Jimma
TVET College usually uses the graphics rating scale as the main method of performance
appraisal. In addition, performance measurement standards and the evaluation system of staff
performance of the TVET College were inadequate. As the employees’ performance
appraisal has been done semi-annually, there were no mechanisms for daily follow-ups,
which help to take corrective measures on the performance gaps and taking other
administrative decisions. As the majority of the respondents agreed, the major problems
encountered in performance appraisal process of Jimma TVET College were Biasness and
raters error. Furthermore, the performance appraisal procedure dominated by the colleagues
and immediate supervisors. It can be concluded from the above facts that the overall staff
performance appraisal in the college was not confirmed on clear and transparent procedures
and measurement criteria. Its effects may be one of the causes for job dissatisfaction, which
influences the quality of education and training.

5.3 Recommendations

Based on the major findings and the conclusions drawn, the following recommendations are
forwarded or further considerations were made to improve the current status of appraisal
practice observed in Jimma TVET College.

 The staff members need to be qualified enough to perform the duty they execute.
Appropriate selection and placement of employee at different level should also be
carefully conducted.

45
 As the findings indicated, Jimma TVET College usually uses graphic rating scale
method in performance appraisal, which is a traditional method of performance
appraisal. Therefore, the college should adopt a rather modern approach in the future
because these methods of appraisal enable the rater to evaluate either employee’s
performance in the better way than the traditional methods.
 In addition, the method of performance appraisal of the College should be changed
periodically so that the employees have no chance to complain for the method
 Jimma TVET College should keep changing the raters for performance appraisal
system from time to time so that they do not become bias at any time for any
employee.
 Jimma TVET College should appraise the performance of the workers by giving them
incentives, which would motivate them to work to their fullest capacity and encourage
them to work more and show good and better results. Academic and supportive staffs
should be fairly compensated for their performance and well treated to motivate them
in order to maximize their productivity or quality service delivery.
 The Collage should develop challenging criteria and discuss them with its employees
to alleviate performance appraisal problems.
 In addition, appraisers should be given training on the objectives as well as how to
evaluate performance. Especially, a lot should be done on students not to attach
instructors’ performance appraisal with their results/grades, and instructors to show
positive willingness toward the evaluation. Further, pre- appraisal and post appraisal
interview should be conducted for the effectiveness of the performance appraisal.
 Generally, the researcher would like to recommend that, strategic goals and objectives
achieved when every employees contribute and participate actively in every aspect of
performance issues and they are satisfied when they are evaluated with the
organizational standards.
 To sum up, on this ground the researcher recommends that a more detail and rigorous
investigations in the same area should be seriously considered so as to further
strengthen the findings of this study.

46
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APPENDIX A
Jimma University
Collage of Business and Economics
Department of Management
Dear respondent,
This research is being conducted by student of Jimma University College of Business and
Economics in order to comply with the requirements of the degree of bachelor of art in
management. Your participation in this study is strictly confidential. To guarantee the
anonymity of your response, you should NOT write your name in the questionnaire. Any
response you provide will be used exclusively for the research purpose only. Your honesty in
responding the right answer is vital for the research outcome to be reliable. Thank you in
advance for your cooperation.

General Guideline:

Circle for those questions that you think right.

Give your short and precise answers for those followed by blank spaces.

PART 1: Demographic Characteristics of respondents

1. Sex: a. Male b. Female

2. Age
a. 20 - 30 c. 41 - 50
b. 31 - 40 d. Above 51

3. Marital status
a. Married b. Unmarried c. Divorced d. Other (Specify)_______
6. Educational level
a. Certificate b. Level-C (Diploma) c. Level-B (BA/BSC d. Level-A (MA)
e. PhD f. Others (please specify)_________________
5. How long have you been working in the institution?
a) Less than 1 years b) 2-5 years c) 6-10 years d) 11 years or more
6. Which staff do you belong?
a. Academic staff b. Supportive staff
48
PART 2: Questions concerning performance appraisal
7. Is there performance evaluation in this institution?
a. Yes b. No
8. How often is your performance evaluated in a year?
a. Monthly b. Quarterly c. half a year d.Annually
9. What evaluation techniques have been used in your performance evaluation?
a. Management by objective (MBO) b. behaviorally anchored rating scale
c. Check list d. Critical incident appraisal e. Graphical scale
10. What type of employee rating method implemented in your colleges
a. Behavior oriented rating method
b. Result oriented rating method
Both behavior & result oriented
11. What evaluation standards are used in this the institution to evaluate the work of
employees?
A. Knowledge about work
B. Accuracy and completeness on time
C. Quality of the work
D. Experience about the work
E. Skill about the work
F. Other specify __________
12. Do you think the performance appraisal criteria related with your work?
a. Highly related b. related c. Averagely related
d. Less related e. Almost not related
13. Do you think the criteria used to evaluate your performance appraisal are appropriate?
a. Yes b. No
14. Who often conduct the performance appraisal?
a. Immediate supervisor b. Peer appraisal. c. Rating committees
d. Self-rating e. Appraisal by subordinates f. Students
15. Who is the most influential one in appraising employees’ performance?
a. TVET Dean b. Management c. Colleagues
d. Immediate supervisor

49
16. Do you think that performance evaluation has an impact on employees moral and
satisfaction?
A. Yes B. No
17. If yes for Q16, what kind of impact does it have?
A. Positive B. Negative
18. While you are evaluated, what do you feel when your performance is not good?
a. You become aggressive
b. Start work hard better than before to improve work performance in the future.
c. You get depressed
d. You insult and despise other
e. Others specify ___________________________
19. Do you receive rewards when you have a positive PA results
A. Yes B. No
20. If yes for Q19, did the reward match with your performance?
a. Yes b. No c. Not sure
21. If no for Q19, what were the reasons for not rewarding?

a. Ineffective management of the performance appraisal process

b. It is difficult to meet the standards required for rewards
c. My performance did not reach the standards that required for reward
d. Other (please specify)_______________________
22. Which of the following are the potential problems related to performance appraisal in the
college?
A. Problem interpretation
B. Subjectivity
C. Error in rating
D. Biasness
E. Inappropriate PA method
F. Non participation in setting evaluation criteria
G. Others (please specify)
23. What do you think are the solution for these problems?
___________________________________________________________________________
___________________________________________________________________________

50
Thank you!

51