The Effect Of Performance Appraisal System On Employees Motivation: A Case Study Of Commercial Bank Of Ethiopia, Addis Ababa
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Date
2017-05-04
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Addis Ababa University
Abstract
The general objectives of the study were, to determine the effect of performance appraisal system on employee‟s motivation at Commercial Bank of Ethiopia in Addis Ababa. The research design used in the study was descriptive study and explanatory research design, because descriptive design was appropriate for the achievement of the research objectives to show or describe the existing relationship between PAS and employees motivation, and explanatory research design used to examine the relationship between PAS and employees motivation by developing the working hypotheses from an operational point of view. The population for the study was 9699 and a sample size of 384 respondents was selected. Questionnaire was used as an instrument to collect primary data for this study and out of 384 questionnaires distributed 366 of the respondents were retrieving from the respondents. The data analyzed with descriptive and inferential analysis, and the result presented with tables and charts. Among the main finding of the study was that from the six factors of effective PAS, which are ongoing feedback, rewarding performance, trained appraiser, continuous open communication, fairness of the PAS have significant positive effect on employees motivation, except employees participation in the PAS. The result shows that the relationship between employees participation in the PAS and employees motivation was insignificant. Again, it was conclude that the level of employee‟s motivation regarding to the current performance appraisal system was low. The study recommends that the performance appraisal system is an important factor for employee motivation. Performance appraisal system helps to improve employee job performance and motivation at work. There are a few elements of the current performance appraisal system that are limiting the effectiveness of the appraisal to enhance motivation in organization.
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performance appraisal system, motivation. feedback, reward