EFFECT OF PERFORMANCE APPRISAL ON EMPLOYEE JOB SATISFACTION; THE CASE OF NEKEMTE CITY ADMINSTRATION

Advisor :Temesgen Desta (Asst professor) This study investigates how Nekemte City Municipality employees' job satisfaction is affected by performance<br> appraisal systems. Evaluating the impact of the performance appraisal system on job satisfaction is its main<br> objective. Furthermore, the study seeks to determine how staff members see the system as a whole and its<br> essential elements, such as standard setting, assessment forms, feedback methods, appeal procedures, and<br> general attitudes about the system. This study employed a mixed research design, combining both quantitative<br> and qualitative approaches to gain a comprehensive understanding of the relationship between performance<br> appraisal and employee job satisfaction in Nekemte City Administration. A questionnaire was used to gather<br> information from 186 municipal workers, and secondary data about the performance appraisal system was<br> taken from the sector administration handbook. The findings indicate that clarity of appraisal criteria, fairness<br> in evaluation, feedback quality, and the use of results for employee development significantly affect job<br> satisfaction levels. Conversely, lack of transparency and perceived bias in appraisals were found to demotivate<br> employees and lower satisfaction. The study concludes that an effective and fair performance appraisal<br> system is essential for enhancing employee morale, retention, and productivity. Recommendations are provided<br> for policy makers and human resource managers to improve the appraisal processes in the city administration<br> to better align with employee expectations and organizational goals.<br> Key words:- Employee Motivation, Employee Perception, Fairness in Evaluation ,Feedback Mechanism,<br> Job Satisfaction, Nekemte City Administration, Organizational Performance, Performance Appraisa