The Effect of Performance Management System on the Employees' Performance of Commercial Bank of Ethiopia
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Date
2016-05
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Addis Ababa University
Abstract
The purpose of this study is to analyze the effect of Performance Management system on the employees' performance of Commercial Bank of Ethiopia. The study is guided by three research questions which seek to answers whether the existing performance management system of CBE affects the performance of CBE employees. From the total employees of the bank the researcher took employees work in four districts of Addis Ababa city as his total population to take a sample. This is because of the similarity in structure and system across branches and for the difficulty of collecting questionnaires on very remote and far location of branches. The study adopted an explanatory research design. The population of interest consisted of 252 staff members of Commercial Bank of Ethiopia. Out of which 54.37% are male and 45.63% are female respondents. Data was collected using structured questionnaires and the data was analyzed using the Statistical Package for Social Sciences (SPSS) into Regression analysis to the effect of the independent variable to the employee performance. The data was presented using tables. The major findings of this study is that the independent variables, which is setting objectives, feedback, coaching, appraisal and evaluation cascaded from the process of performance management system has significant effect on the performance of employees with p <0.01 and P< 0.05. From the result multiple regression analysis setting objective, coaching, appraisal and evaluation of the Bank had positive effect on the performance of employees whereas feedback activities of the bank had negative effect on the performance of employees. From study the researcher concluded that the performance management system of the bank have positive effect but not on the intended level because the feedback giving activities of the bank had negative effect on employee performance and also the result of the appraisal and evaluation system of the Bank is not connected with reward and career development of the employees. The researcher recommended that, the system should have inputs from the staff members through setting out objectives, appraisal and evaluation systems of the bank. The result of the evaluation should be connected with the reward system of the bank and also the career development of the employees.
Key Terms: Performance management system, Employee performance, Setting objective, Feedback, Coaching, Appraisal and Evaluation.
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Performance management system, Employee performance, Setting objective, Feedback, Coaching, Appraisal and Evaluation