Perceived Effect of Performance Appraisal on Employee Productivity in Selected Hotels in Ethiopia’s Capital City Addis Ababa in Bole Sub City

The aim of the study was to assess the effect of performance appraisal variables on employee productivity at some selected hotels from the capital city of Ethiopia Addis Ababa city, Bole sub-city. The study used a descriptive and explanatory research design and a mixed research approach. The study used both primary and secondary sources of data, questionnaires, and interview tools, and the data were analyzed using descriptive and inferential statistics overall, an employee of a selected hotel and a sub-city were units of observation for the study. The finding of the study reveals the relationship between independent variables (work-life, employee benefit, organization policy, performance appraisal process, workplace interaction, and effective leadership) and dependent variable employee performance. Therefore, with regard to this model, the relationship between the independent and dependent variables is strong with 0.644(R). The R Square number of 0.414 means about a 41.4% increase in employee productivity is accounted for by the variables in the model while the remaining 58.6 % is accounted for by other factors not captured by the model. The study result demonstrated that five out of six independent variables (organization policy, effective leadership, employee benefit, workplace interaction, performance appraisal, and work-life balance) were significantly related to productivity among employees. However, only performance appraisal failed to show a significant relationship with employee productivity. The result indicated that the independent variables for the study such as organization policy, effective leadership, employee benefit, performance appraisal, workplace interaction, and work-life balance have a positive relationship with employee productivity. Thus, hiring competent expertise, designing reward and recognition schemes, sustain appraisal schemes are the forwarded recommendations by the researcher.