The Effect of Performance Appraisal on Employee Performance: The Case of United Bank S.Co
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Date
2017-05
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Addis Ababa University
Abstract
This study was designed to assess the ‘Effect of Performance Appraisal on Employee Performance in United Bank’. Data were collected through questionnaire with five point likert scale. The validity of the instrument was checked and commented by professionals and my advisor. Besides, internal consistency of the instrument was measured using Cronbach Alpha and the result of the four independent variables and one dependent variable items were above 0.7Alpha value. For data collection 311 questionnaires were distributed to the sample respondents who are located in Addis Ababa city branches and the head quarter. Of the total distributed questionnaires 281 usable questionnaires were returned which is about 90.3% response rate. Interpretation is made by comparing the mean, standard deviations of the variables. To determine the significance and relationship magnitude of independent and dependent variables Pearson correlation coefficient were deployed. On the other hand multiple leaner regressions was adopted in order to understand the effect of independent variable over the dependent variable. The result implied that employees of the bank have a good understanding of the purposefulness the performance appraisal. On the other hand the result revealed that they did not agree on the current method of performance appraisal that evaluates employee’s actual performance. Besides, it also depicts that employees lack receiving a consistent feedback and constructive follow up from their manager. In the mean time performance appraisal has a positive and significant relationship with employee performance and also has an impact on it. Finally, it has been suggested that the bank should deal with on reviewing method of performance appraisal, continuous communication of performance feedback and training on overall performance appraisal system for the entire employees of the bank.
Key words: Performance, Performance appraisal, Employee performance & Feedback
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Keywords
Performance, Performance appraisal, Employee performance & Feedback