Performance management (PM) is a process that enables employees to perform their roles to the best of their abilities with the aim of achieving or exceeding established targets and standards that are directly linked with the organizations objectives. To get most out of it, every kind of organization needs to have effective PM system and need to ensure the proper implementation of each phases of PM. Thus, this study was conducted with the objective of assessing the performance management practice of Arba Minch University and the effect of performance management process on employees’ perception of performance management effectiveness. A sample of (N=198) employees were participated in the research and contributed their part in providing genuine information. Descriptive statistics, spearman's rank order correlation and ordered logistic regression were used to analyze the primary data obtained from the respondents. The analysis result indicates that there is a significant positive relationship between PM process and employees perception of PM. Moreover the regression analysis indicates that the PM process has a significant positive effect on employees’ perception of PM effectiveness.
Performance Management, Performance Management effectiveness, Higher institution, ordered logit