Assessment of Performance Evaluation System and Practices: The Case of Bank of Abyssinia
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Date
2018-06
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Addis Ababa University
Abstract
Right from its establishment, Bank of Abyssinia has been implementing employees’ performance
evaluation system whereby manager or immediate supervisors are involved in the evaluation
process. The mainobjective of this study is to evaluate the performance system and practices in
Bank of Abyssinia Share Company. In order to achieve the objective ,the specific objective of this
study is to assess how performance evaluation process is systematic, to assess fairness and
objectivity, to assess performance feedback and coaching system, to identify the challenges of
performance evaluation and to what extent measures taken by the management to improve
performance evaluation system. The researcher has used a combination of mixed approach
which are both qualitative and quantitative and descriptive research method was used. The data
collection tools were interview and questionnaire. Total of 294 employees have been taken as a
sample and the response rate was 90%. The researcher has used purposive and disproportionate
stratified sampling method. Questionnaires were distributed among clerical and management
employees. The study found out that Bank of Abyssinia uses to measure employees’ job
performance on December and June. The bank does not follow systematic evaluation process,
lack of fairness and objectivity, lack of formal performance feedback and coaching, lack of selfevaluation
and the performance standards of the bank. Bank of Abyssinia also faces so many
challenges on its performance evaluation practice, most of them are rater’s error like recency,
halo/horns, lack of capacity of raters to take,etc and the remaining is the problem of the system.
The HR department of the bank takes the ultimate responsibility for evaluation and supervisors
take the lion share by filling evaluation forms for most of the employees. The evaluation result
from this research study in Bank of Abyssinia used only for making promotion, bonus payment,
transfer, and annual increment decisions. Formal Performance feedback and coaching 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 evaluation practice of Bank of
Abyssinia S.C. has problems and weaknesses that need to be improved. Sincesome
recommendations are drawn from the findings are, the bank has to establish strong and
systematic written policy, guidelines used in performance evaluation process and system, fair
approval practices should be adopted by the management in order to raise performance of its
employees.
Description
A Thesis Submitted to the Department of Public Administration and Development
Management of Addis Ababa University in Partial Fulfillment of the Requirements
for Master’s Degree in Public Management and Policy.