The Impact of Performance Appraisal Process and Method on Employees' Satisfaction

A performance appraisal system measures the planned goals and standards using appropriate measurement methods to evaluate employees’ performance, satisfaction, and organizational success. This study was framed by performance appraisal and goal-setting theories to evaluate the effect of the performance appraisal process and performance appraisal method on employees’ evaluation satisfaction through performance appraisal results. It used a questionnaire to collect data from 71 participants. It also employed PLS4 SEM-software, correlation, and bootstrapping techniques to analyze the data. Results show that the employees of the Tigray Education Bureau were dissatisfied due to the inappropriate performance appraisal system. SEM results revealed that the change in performance appraisal result was explained by 36% and 35% for every 1 unit change in the performance appraisal process and method, respectively. Similarly, for every 1 unit change in the performance appraisal process, method, and result, there was 35.3%, 45%, and 45% respective change in employees’ evaluation dissatisfaction. Performance appraisal results partially mediated the relationship between the performance appraisal process and method with employees’ evaluation dissatisfaction at 36% and 44%, respectively. The practical implication is that by improving the performance appraisal process and measurement methods, Tigray’s education sectors can get improved performance results and satisfied employees. The social and policy implications of this study is if education experts are satisfied, they can influence teachers and students and address the educational policy to all local communities. The theoretical implication is that the study contributes empirically tested new models to the research area. The study was conducted at a time using limited factors and quantitative data. Hence, researchers are recommended to conduct additional investigations using triangulation methods and a longitudinal study design.