An Assessment of Employee Performance Management System Practice -Case of The Commercial Bank of Ethiopia
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Date
2024-02-20
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Publisher
AAU
Abstract
The case study evaluates the employee performance management system of the Commercial
Bank of Ethiopia (CBE), aiming to identify challenges and assess practices, and awareness
among managers and employees. Adopting descriptive research design, utilizing
quantitative and qualitative research approaches via survey, both primary and secondary
data were collected through structured and unstructured interviews with 34 line managers
and 127 non-managerial employees. The data was analysed using descriptive statistics of
mean, standard deviation, and correlation using SPSS version 26 software. The study
examines six variables covering various stages of the performance management system.
CBE, a major player in the banking sector with a large workforce and extensive branch
network, emphasizes contemporary HR practices for strategic execution. With the assistance
of an international consultant, the bank implemented the performance management system.
The study recommends several areas for improvement, including Providing appropriate and
timely training to staff regarding the various aspects of the performance management
system. Establishing a system to track and document performance data. Encouraging and
fostering a culture of coaching and feedback within the organization. Revision of metrics
and performance standards to minimize subjectivity, impreciseness, and inappropriateness.
giving managers and staff the tools, resources, and information they need to become more
involved and take responsibility of their work. Expressing the performance management
system's overall consequences in a straightforward manner. The bank can improve this
system's efficacy and bring it closer to line with its strategic goals by taking care of these
issues.