The Effect of Performance Appraisal on Employees' Motivation: The Case of Selected Governmental Public Sectors in Goba Town

Abstract   The general objective of the study is to examine the Effect of Performance Appraisal on Employees’ Motivation: The Case of Selected Gov’tal Public Sectors in Goba Town. In this study the researcher used descriptive and explanatory research design. The data were collected from 172 employees of sample selected public sector. Both primary and secondary data collection instruments were used to collect data. Closed-ended questionnaires along with interviews were used for the purpose of data collection. The selections of the customers carried out by using stratum stratified sampling techniques were used, because to avoided bias and also ensured. The quantitative data generated analyzed with the help of frequency, percentages, correlation and multiple regression. The study found that the current level of employee’s motivation were at low level. Further, the study clearly shown, among the six considered factors, multiple linear regressions analysis revealed ongoing feedback is the most significant factor affect employee motivation. Open communication also makes the large contribution to explaining the dependent variable, while, employee participation makes the moderate contribution to explaining the dependent variable. On the other hand, fairness, trained appraiser and performance rewarding makes insignificant contribution to explaining the dependent variable. Performance appraisal should effectively link to the performance management system of the organization not only financial, non-financial incentive should be linked to the annual appraisal system so that employees would be motivated to perform better. The study reviled that there is problem in the performance rewarding in the system.    1