The Effects of Components of Employees’ Attitude on Effectiveness of Performance Appraisal System: The Case of Commercial Bank of Ethiopia
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Date
2020-05
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A.A.U.
Abstract
The notion of Performance Appraisal System (PAS) and the attitude of employees towards it have stayed center of study in the science of management discipline over the last two-three decades. As the success of institutions largely depend on its human resource, closely assessing the issue will have a paramount importance to the institutions. Commercial Bank of Ethiopia (CBE), the biggest bank in Ethiopia is practicing performance appraisal using information communication system. However, no study so far have considered to study the effect of employees‟ attitude towards the effectiveness of performance appraisal system comprehensively. The effect of components of employees‟ attitude towards the effectiveness of performance appraisal system of CBE, specifically of those who are working the head office organs of the bank, and what determines the employees‟ attitude towards the performance appraisal system is worth studying. Therefore this research paper has mainly focused on assessing the effect of components of employees‟ attitude towards the effectiveness of performance appraisal practice of the bank by specifically considering the business processes in the head office organs of the bank. Explanatory research design and quantitative research approach was applied to achieve this overriding objective of explaining the effect of component variables of the attitude of employees of the bank towards the effectiveness of PAS. A multiple regression analysis was applied on the data collected from the selected sample using strartified sampling technique. Finally the data was collected using questionnaires, cleaned, coded in to and analysed using SPSS V20. As per the findings of the study motivation of employees was found to highly affect the overall effectiveness of PAS and most of its dimensions. In addition organizational commitment of employees also have a positive and significant effect on the effectiveness of PAS in the bank. The third variable, job satisfaction has a positive effect on the dimensions of PAS but statistically the effect is insignificant. Hence, it was concluded, as per employees who are working in the head office organs of the bank that among the components of employees‟ attitude the motivation of employees was the best predictor of effectiveness of PAS. Therefore, the top management of the bank should strongly work on maintaining employees‟ atitiude positive and at high level through enhancing employees‟ motivation, their commitment and job satisfaction, as well.
Description
A Thesis Submitted to Addis Ababa University Faculty of Business and Economics, Graduate Studies in Partial Fulfilment of the Requirements for the Degree of Master of Science in Management Specialization in Total Quality Management and Organizational Excellence
Keywords
Component Variables, Employees’ Attitude, Multiple Regression, PAS