Effects of Performance Appraisal Quality on Employee Performance in Homa Construction PLC Company Addis Ababa City Administration, Ethiopia

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The objective of this study was to examine Effects of Performance Appraisal Quality on Employee Performance in Homa Construction PLC Company, Addis Ababa, Ethiopia. The study was used descriptive and which incorporated both qualitative and quantitative research approaches. The researcher was employed Stratified Random Sampling Technique techniques to distribute the questionnaire to the respondents. Data was collected by using both closed and open ended self-administered questionnaires and a total of two hundred (200) questionnaires were returned. The results were analyzed and interpreted using SPSS software version 20. The scores are interpreted quantitatively and open-ended suggestions are interpreted qualitatively. The research finding of Correlation analysis was indicated there is positive, strong and significant relationships were existed between (Performance Appraisal Quality and Feedback, Feedback and Employee Performance, and Performance Appraisal Quality and Employee Performance) at r =.896, p < 0.01, r =.851 p < 0.01, and r =.799 p < 0.01 respectively. Linear regression analysis also indicated that at 72.8% variance in Employee Performance can be predicted from the combination of all Performance Appraisal Quality and its Feedback Dimensions. The result also shows that at F=267.047, p<0.05 statistically significant. This indicates that combination of the predictors significantly combined together to predict Employee Performance. In meantime the result from the analysis of an independent-sample t-test was approved that most variables of performance appraisal quality were significantly differentiated in score variance for males and females while the finding result of ANOVA analysis explores there was no a statistically significant difference at the p>.05 level in mean scores between groups in Performance Appraisal Quality [F (1, 198) = 1.189, p=.277]. However, there was statistically significant difference at the p>.05 level in mean scores between groups for both Feedback and Employee Performance based on the Age of Respondents. Furthermore, as the result of finding obtained from descriptive statistical analysis Employee Performance was stated low in all attributes. This also proved for unsatisfactory practice of performance appraisals and its feedback that had seen in most Company projects. Finally, the researcher believes that this paper was not exhaustive that could provide all lists of topic researched. However, it gives a bird-eye view on topic and it is open for further discussion and/or critics.