The Challenges Of Implementing Performance Based Pay System The Case Of Ethio-telecom

The study sought to assess the Challenges of Implementing Performance-Based Pay System in therncase of Ethio-Telecom. In this research, a case study approach was employed. To realize thernobjectives of this research, both qualitative and quantitative data were collected from the targetrnstudy population. To this effect, 39 raters from the management and supervisors as well as 390rnemployees of the organization working in Addis Ababa in different divisions were selected usingrna non-probability sampling technique. Two sets of Close-ended questionnaires were employed forrndata collection instrument from both group and five managers who work in the HR Division wererninterviewed. Then the response was analyzed using a simple statistical tool. The findings of thernresearch show that target and goals of the organization is not communicated to all level in thernsame manner and the claimed current performance management system as well as thernperformance measurement tools are not appropriately used to measure performance of employees.rnConsequently, the performance-based pay system that was introduced in the previous year wasrnmerely based on subjective assessment of employees by their raters rather than evaluation basedrnon set objectives that could measure actual performance. The research indicates that there is lackrnof link between employees’ performance and the pay system in the organization

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