Effects Of Performance Appraisal On Employee Motivation: the Case Of Awash Bank
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Date
2017-06-16
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Addis Ababa University
Abstract
The main purpose of this study was to determine the effect of performance appraisal on employee Motivation in the case of Awash Bank. The study was also guided by the following specific objectives: to show employee perception towards the effectiveness of each components in the appraisal process of Bank’s appraisal system, to determine the extent to which each components in the appraisal process correlate with employee motivation, and to establish the extent to which each components in the appraisal process affects employee motivation.The study adopted qualitative research approach of explanatory research method that enablesthe testing of the relationship between the dependent variables performance appraisal process components such as Set performance goals, Set performance standard, Performance measures, and Performance feedback and the independent variable Employee Motivation,that were indicated in the in the conceptual model. To analyze this relationship and make generalization, the researcher mainly used a quantitative approach with a survey strategy in the form of a cross sectional study. Sample sizes of 260 respondents were selected to represent the target population of 761 employees using stratified random sampling in Head office and Special Branch of the Bank. Self-Administered structured questionnaire was used in order to collect primary data; and Statistical Package for Social Science (SPSS) software version 20 and Microsoft Excel were employed to analyze and present the data through the statistical tools, namely descriptive such as frequency and percentage; and inferential analysis such as mean, standard deviation, Pearson correlation, and multiple regression analysis. The study showed that the effectiveness of performance appraisal process of the Bankwas perceived by employees as moderately effective. The study determined that there was significant and positive relation between performance appraisal process components and employee motivation. The studyestablished that .330 of the change in the employee motivation variable could be attributed to a level change in combined effect of the predicator variables of performance appraisal process. In general, this study concluded that performance appraisal is likely to generate employee motivation. The researcher recommended that performance appraisal process is one of an important function to be properly executed in order to generate employee motivation. Therefore, the management of Awash Bank should follow up and strengthen the proper execution of performance appraisal process in all level and parts of the Bank
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Keywords
Performance appraisal process, Performance feedback, Performance goal,Performance measure