Assessment of the Implementation of Performance Management System in Commercial Bank of Ethiopia Using the Balanced Score Card: the Case of Selected Branches Under West Addis Ababa District

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Addis Ababa University


This study is concerned with the performance management system in Commercial Bank of Ethiopia with reference to selected branches under West Addis Ababa district. To this end, the study has made an effort to thoroughly assess the implementation status of PMS processes, to identify and investigate achievements and constraints associated with the current PMS tool being used by the bank, the balanced score card (BSC). In doing so, the study was geared towards answering key research questions relevant with performance management system in the bank. The study has used both primary and secondary data sources. The primary data has been collected through structured self administered questionnaire and in-depth interview. The results of the questionnaire were analyzed using SPSS (statistical packages for social science) to get descriptive statistics. Qualitative data collected through in-depth interviews, open ended questions and document review were analyzed and summarized contextually. Frequency table and percentage was used to present the data analyzed.The results of the study have revealed that though the bank has good qualities in defining its strategic objective and other pre- requisites to PMS implementation, the performance management system of the bank in general and the study district in particular needs serious consideration as majority of the processes of PMS have not been well implemented yet. In general, the researcher has recommended that the bank has to involve all employees in performance planning process, create awareness about the concept and advantage of PMS through training, revisit its goal and target setting, develop and utilize automated software for data tracking, ensure provision of ongoing and consistent feedback and coaching to performers, and link performance result with reward and sanction, for better improvement of performance of West Addis Ababa district in particular and CBE‟s in general. Key Words: Performance Management, employees, Balanced Score Card, Commercial Bank of Ethiopia, strategic objective, West Addis Ababa district



Performance management, Employees, Balanced score card, Strategic objective, West Addis Ababa district, Commercial bank of ethiopia