Effects of Performance Appraisal Quality on EmployeePerformance in Homa Construction PLC CompanyAddis Ababa City Administration, Ethiopia

Purpose: The objective of this study was to examine the effects of performance appraisal quality on employee performance in Homa Construction PLC, Addis Ababa, Ethiopia. Design/Methodology/Approach: The study employed a descriptive research design incorporating both qualitative and quantitative approaches. Stratified random sampling was used to distribute the questionnaire to respondents. Data were collected using both closed- and open-ended self-administered questionnaires, and a total of 200 completed questionnaires were returned. The results were analyzed and interpreted using SPSS software (version 20). Quantitative data were analyzed statistically, while qualitative responses from open-ended questions were interpreted thematically. Findings: The correlation analysis indicated that there are strong, positive, and significant relationships between performance appraisal quality and feedback, feedback and employee performance, and performance appraisal quality and employee performance. Linear regression analysis further revealed that 72.8% of the variance in employee performance can be predicted by the combined effect of performance appraisal quality and its feedback dimensions. Moreover, results from descriptive statistical analysis showed that employee performance was rated low across all attributes. Practical Implications: The findings highlight the unsatisfactory practice of performance appraisals and feedback within most company projects. This underscores the need for improved appraisal systems and feedback mechanisms. Originality/Value: This study provides a broad overview of the topic and serves as a basis for further discussion, critique, and future research.