Effectiveness of employee Performance Appraisal System of Commercial Bank of Ethiopia
No Thumbnail Available
Date
2017-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The purpose of this study was to examine the factors that affect the effectiveness of performance
appraisal system of Commercial Bank of Ethiopia. A study used quantitative research design and
deductive approach. The sample for the investigation was drawn from a population of 4,125
employees, all from branches in Addis Ababa districts. Stratified sampling was used to select
representative units of measurement. The only Primary data collection instrument was a
questionnaire. Simple random sample was used to select 120 respondents among each strata
contributing to generalize the findings. The scope of the study was limited to 140 branches found
in Addis Ababa. The analysis was done by the help of SPSS software and presented a descriptive
statistics, correlations, assumption tests and regression analysis. The correlation results
indicated that there is a positive relation between the factors and effectiveness of appraisal
system. The results of the regression test showed that independent variables/factors/ was
significantly contributed in variance at significance level of 0.05. The finding of the study
revealed that over all employees think that the factors like feedback richness, improve
performance of employees, motivation, perception towards performance appraisal and purpose
of appraisal result affects the effectiveness of the appraisal system implemented in CBE.
Whereas, managers and immediate supervisors were think that the system to evaluate the
performance of employees implemented was not affected by them. The investigation indicated
that there is a significant difference between raters and ratees perception towards the
effectiveness of performance appraisal system. On the basis of the findings, the researcher
recommends that the management create intensive awareness for both raters and ratees about
the appraisal system, increase the participation of all employees towards the policy and
procedure formulation to enhance their belongingness and exploit uses of appraisal, the
feedback provided by raters should be specific and timely and be against predetermined
performance expectations, ensure whether the system achieve the intended objectives or not,
provide trainings for raters, and link the result of appraisal with rewards in order to motivate
the performers
Description
Keywords
Employee Performance Appraisal, Effectiveness, Appraisee