Effects Of Performance Management System On Employees’ Affective Commitment In Case Of Commercial Bank Of Ethiopia

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Addis Ababa University


The research was conducted to examine the effects of performance management system on employees’ affective commitment in case of Commercial Bank of Ethiopia. Data was gathered from 254 professional and managerial employees of CBE in Addis Ababa. Inferential statistics was used to analyze the data and also Cluster sampling was used followed by stratified random sampling to select samples. Primary data were collected using five Point Likert-Scale questionnaires and 232 responses were properly filled and returned. Statistical package for social science studies (SPSS) version 23 was used to analyze empirical data collected through the close ended questionnaire. The independent variables are setting goals, monitoring and evaluation, feedback and reward whereas the dependent variable is employees’ affective commitment. The mean and standard deviation of the dependent and independent variables were computed and interpreted. Pearson correlation Coefficient (r) was used to determine the relationship between each independent variable with the dependent variable. The major finding of this study is that the independent variables, which are setting goals and feedback, have insignificant effect on employees’ affective commitment. Meanwhile, monitoring and evaluation and reward system has significant effect on employees’ affective commitment. From the result multiple regression analysis setting goals, monitoring and evaluation, feedback and reward of the Bank had positive effect on the employees’ affective commitment. From the study the researcher concluded that feedback improves communication on work place, pay decisions are not linked to performance achievements and employees are not happy to spend the rest of their carrier in the bank. The researcher recommended that, the system should have inputs from the staff members through setting out goals and evaluation systems of the bank. The pay decisions should be linked to performance achievements. The result of the evaluation should be connected with the reward system of the bank and also the career development of the employees.



Performance management system, Affective Commitment, Commercial Bank of Ethiopia