The Effect of Performance Appraisal System on Employee Motivation: The Case of Nib International Bank
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Date
2021-07
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Addis Ababa University
Abstract
Performance appraisal is very crucial since it's important to determine a codified and consistent process to live quantitative and qualitative performance of employees and, vital tool to live the frameworks set by any organization to its employees. The primary aim of this study was to assess performance appraisal system of NIB International Bank on employee motivation; specifically, the study focused on the effect of 360 degree performance appraisal system on employee motivation, to investigate the effect of rating scale performance appraisal system on motivation of employees and to examine the effect of management by objective performance appraisal system on employee motivation. It employed both descriptive and explanatory study design. Both qualitative and quantitative approach has been followed. Target population of the study was 3944. Both probability and non-probability sampling technique has been implemented. The total sample size of employee 363 employees were selected for the study but data were collected from 358 employees due to unfilled 5 questioners returned back to researcher and discarded from sample. Primary data was obtained from Addis Ababa district randomly selected branches of employee and using questionnaire. Data was collected through email, telegram, in person and through correspondence. This study employed ordered logistic regression model to examine the effect of the performance appraisal system on motivation of employee. As a result, the rating scale and management by objective of appraisal system found to have a positive and significant relationship with the dependent variable of employee motivation. Therefore, the Bank should give due emphasis for management by objective method of performance appraisal system since this study found out that MBO highly boosts Nib Bank’s employee motivation.
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ordered logistic regression, 360 degree feedback, rating scale and management by objective