Assessment of Prospects and Challenges of Employee Performance Management System: A case of Commercial Bank of Ethiopia (Addis Ababa area)
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Date
2016-05
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Addis Ababa University
Abstract
The purpose of this study was to assess the challenges and prospects of employee performance management system implemented in commercial Bank of Ethiopia. The study used descriptive method of study with cross sectional survey and used mixed research approach. This study has used stratified random sampling to select questionnaire respondents and purposive sampling to select interviewees. The research objectives were to assess the prospects and challenges of employee performance management system, to identify benefits gained from and challenges faced in implementing the system, to assess employees’ perception towards employee performance management system and to evaluate performance management processes in the bank. Primary and secondary data were used. The analysis was done by the help of SPSS and presented using descriptive statistics; frequency tables, percentages, bar and pie charts. The scope of the study was limited to branches and head office within Addis Ababa area. The findings of the research indicated that employee performance management system has numerous benefits. Among them; it has created role clarity among employees, enables to differentiate good and poor performers, created a constructive competition among staffs. The system has also helps to motivate employees and encourage development through creating communications between the employees and their supervisor or managers. It improves both individual and the bank’s overall performance. However the researcher has found that there were challenges; a tendency giving unbalanced goals for similar positions while they have equal job grades, no fair job rotation among employees, no sufficient resource allocation to execute their job properly, no clear mechanism in the bank to address the issue of underperformance, a tendency of giving 1 and 4 only for non financial targets. Furthermore, the result of evaluation did not attach with reward and recognition schemes. On the basis of the findings, the researcher recommended that the bank has to be making sure that equal jobs are assigned for equal positions, prevailing fair job rotation, attaching performance evaluation results with reward and recognition programs so that the issue of underperformance will be solved. The bank has also work with training of supervisors on assessment to make rating standard/uniform across assessors and branches/process
Key words: Employee Performance Management system, commercial bank of Ethiopia, challenges and prospects.
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Keywords
Employee Performance Management system, commercial bank of Ethiopia, challenges and prospects