Assessment of Performance Management Practices in Commercial Bank of Ethiopia

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Addis Ababa University


The basic purpose of this study is to assess performance management practices of Commercial Bank of Ethiopia by providing practical solutions and recommendations so that bank can choose the best option. And in this way the firm can improve its Performance Management Practices. Qualitative and Quantitative (Mixed) research methodology has been used by researcher. Through this mixed approach data is collected and analyzed. To identify the PM issues self-administered questionnaires and structured interviews were conducted from the employees related with different departments of Commercial Bank of Ethiopia. The collected data from sampled respondents (361) has been analyzed descriptively by using SPSS version 20 software. The research findings have shown that CBE have facing different problems from its current performance management system. Current performance management system of Commercial bank of Ethiopia lack effective goal communication. Lack of individual and organizational goals alignment, unfair job rotation, tendency of giving unbalanced targets, unclear understanding of vision and strategy of the bank, poor translation of vision and strategy are problems underlying PMS implementation of the bank. There is disintegration of PMS with other HR functions, poor HRM focus for PMS, policy and procedures are not conducive and PM outcomes contribute less for decision making. This research shows that the performance management practice of Commercial bank of Ethiopia didn’t communicate its goals to performers effectively. Again PMS lacks alignment with bank’s business strategy, PMS is not integrated with other HR functions, appropriate policies and procedures are not developed, and outcomes of PM have no significance contribution for decision making. And also HRM of the bank didn’t give enough attention for PMS. On the basis of the findings, the researcher recommended that the bank has to be making sure that goals are effectively communicated, avoid problems underline PMS, align PMS with business strategy, integrate PMS with other HR functions, give strategic concern for PMS, develop job conducive policy and procedures, and use PM outcomes for decision making. Key words: Performance Management System, Human Resource Management, Commercial Bank of Ethiopia.



Performance Management System, Human Resource Management, Commercial Bank of Ethiopia