Abstract:
The main objective of this research was to appraise the effect of performance management practice on employees' motivation. It was conducted in the Federal Transport Authority, Ethiopia a government-owned service provider sector, with a total of 629 permanent employees. The research design was descriptive with a mixed concurrent approach; Quantitative and qualitative data were collected as primary and related literature and documents as secondary sources. Closed-ended and open-ended questionnaires were distributed to a random sample of employees from different directors by lottery method; in the structural interview also the researcher uses a purposive sample for eight directors'. From the sample size of 244 respondents distributed questionnaires 231 were collected and processed for analysis using descriptive statistics with the help of SPSS V.25. Mean scores were used to assess the level of agreeableness of the respondents. The relationship between the independent and dependent variables was analyzed using correlation and regression methods. The major findings of the research indicated that the rewarding performance, acceptability and fairness, communication, clarity, and continuous feedback factors of the performance management practice; that means five of the six performance management factors have been perceived as poorly practiced. Whereas one factor is inclusiveness, the factor was considered to be neutral or could not decide by the employees. Finally, the researcher has recommended that the organization tries to improve the practice to make it effective in all its aspects. In addition, it was recommended that The civil service commission of the Federal Democratic Republic of Ethiopia should consider an external body of professionals to handle the task of properly implementing the performance management practices to solve the existing problems.
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