Abstract:
The research was conducted with the objective of assessing performance management systems
on staff motivation. It was conducted in Department for International Development office based
in Addis Ababa office on 126 permanent employees. In order to achieve the objective of the study
descriptive research design was used. The study used census survey; data was collected through
questionnaire from a population of 126 employees. Out of which 42.51% male and 66.49% are
female respondents. The data collected from the questionnaire were analyzed using statistical
tools SSPS 24 mean scores and standard deviation was used to assess the level agreeableness of
the respondents. Relationship of the independent and dependent variables were analyzed using
Pearson correlation and regression method. The results were then presented in the form of
tables followed by discussions for further explanation on the findings. The major findings of this
study is that the independent variables, which is performance pre-requisite, Performance
planning and Performance Implementation factors has significant effect on motivation with
P<0.01and P<0.05. From the regression analysis result performance pre-requisite, performance
planning and performance implementation had positive effect on staff motivation whereas
performance assessment and aspiration and talent assessment had negative effect on staff
motivation. The major findings of the study show that luck of appropriate skill of line mangers,
unbalance performance assessment, and unclear talent assessment from variables of the
performance management system have been taken as less effective. The researcher recommended
that performance assessment; aspiration and talent assessment factors needs to be revisited as it
is directly connected with motivation. It also recommended that the structures of the
performance management system to improve and execute systematically so that it becomes
strong in influencing the employees level of motivation.