Assessment of performance appraisal practice in United Bank Share Company

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Addis Ababa University


This study tries to assess the practice of performance appraisal in United Bank S.C.. The researcher has used descriptive research method. The data collection tools were interview and questionnaire. Total of 306 employees have been taken as a sample and the response rate was 90.2%. The researcher has used proportionate stratified sampling method. 110, 167 and 29 questionnaires were distributed among non-clerical, clerical and management employees respectively. The study found out that the UB uses graphic rating scales to measure employees job performance on January and July. The bank does not follow formal appraisal process that is developed by scholars in the field. The performance standards of the bank addresses issues such as quantity, quality, timelines, cost effectiveness and strategic relevance but it fails to address stability or consistency or the extent to which individuals tend to maintain a certain level of performance over time. UB also faces huge problems on its performance appraisal practice, most of them are raters error like recency, halo/horns, situational influence etc and the remaining is the problem of the system. The HR department of the bank takes the ultimate responsibility for appraisal and assistant managers take the lion share by filling appraisal forms for most of the employees. The appraisal result in UB used only for making promotion, bonus payment and annual increment decisions. Performance review discussion does not take place in the case company unless an employee comes up with grievances. Generally the outcome of the research confirmed that the performance appraisal practice of United Bank S.C. have problems and weaknesses that need to be improved. Since it needs improvement, possible recommendations are outlined at the end of this report.



Performance appraisal, Performance management, Human resource management