The Effect of Performance Management System on Employee Productivity in East Africa Bottling Share Company: The Case of Dire Dawa Plant

The main purpose of the study was to evaluate the effect of the performance management system on employee productivity in East Africa Bottling Share Company (Dire Dawa plant). This study use both descriptive and explanatory research design. The proposed model consists of five determinant factors of performance management system independent variables (IV), namely (Performance Appraisal, performance Feedback, Performance Based Reward System, Career advancement and Opportunities System and Training and Development) on dependent variable i.e. on employee productivity. Both descriptive and multiple linear regression analysis used to evaluate the relationship between dependent variable and independent variables also 190 questionnaires a total 147 (77.36%) questionnaires were returned and valid to analyzed. The regression coefficient results show that at 5% level of significance and 95% level of confidence. The study finding shows that the of performance management systems (performance appraisal, performance-based reward systems, performance feedback, and training and development] has a significant and positive effect on employee productivity, while career advancement and opportunities systems have positive effect but not significant effect on employee productivity at East Africa Bottling Share Company’s (DDP). In general the study recommends managers should realize that Employee productivity is a crucial component of performance reviews, and it is closely tied to company outcomes. The productivity of the organization is directly impacted by employee performance reviews.