Good Governance Practices and Employees Job Performance in Federal Ministries of Ethiopia: The Mediating Role of Performance Management

Abstract

The objective of the study is to examine the good governance practices and employees job performance with the mediating roles of performance management in Federal Ministries of Ethiopia. The study used explanatory research design with a quantitative research approach. To get adequate representation samples, the study included twelve (57%) of the twenty-one Federal Ministries of Ethiopia. Sampling over 50% is critical for accurately capturing variability within small, finite populations. The study employed Stratified Random Sampling, dividing the ministries into Economic and Infrastructure Development and Social and Institutional Governance. The sample size of 384 was calculated for each stratum using the Krejcie and Morgan formula with a 95% confidence interval and 5% margin of error. In general, the two group total samples were 768. From 768 survey questionnaires distributed and 736 collected for analysis. Mean and standard deviation were used to describe the practices of ministries in governance, performance management, and employees' job performance. In addition, path analyses were employed to examine the direct and indirect effects of governance and performance management on employees' job performance through Partial Least Squares Structural Equation Model software. The results indicated that the implementation of good governance, performance management, and employees' job performance practices was low in the Federal Ministries of Ethiopia. The path analysis confirmed that performance management serves as a mediating role in the relationship between governance and employee job performance. In particular, responsiveness, rule of law, transparency, and participation have a significant effect on employees' job performance indirectly through performance management.  The analysis concludes that employee performance is strongly impacted by governance and performance management. To boost employees' job performance the Federal Ministries should focus on good governance and performance management practices to improve employee job performance.