Analysis of Employees Compensation and Performance Appraisal Policies in Oromia, Ethiopia

Abstract

Compensation includes salaries and benefits in financial and non-financial forms. The compensation policy was highly linked to that of performance appraisal result. Hence, equitable salary and benefits schemes are prerequisites to effective retention of employees. The aim of the study is to assess the human resource for health compensation and performance appraisal policies and practices. The study employed qualitative case-study design and in-depth-interview and document review data collection methods. The study found base salary and benefits namely incentives package (professional hazards/risk, top up, duty, house allowance and position fee), compensatory leaves, per diem pay, training and education opportunity, promotion, transfer, job injury benefits, compensatory leaves, medical benefit, social security and uniform allowance were enforced. And also it found that the employee appraisal activities intended to be 3600 evaluation: manager, self, team members and customer performance evaluation dimensions. However, organization cars, mobile phones, cheap loans, extra vacations, gifts, travel expenses, vouchers, saving schemes, holiday expenses, and paternal leave were not in practice. Finally, it is recommended that Oromia National Regional State Policy makers should amend the civil servants proclamation to meet the nowadays circumstance. Along with the proclamation, it should formulate regulations and directives on compensation and performance evaluation to enhance consistent decision making at all levels.