EFFECTS OF PERFORMANCE APPRAISAL QUALITY ON EMPLOYEE PERFORMANCE: THE CASE OF BERHAN INTERNATIONAL BANK S.C

Abstract

The main purpose of this study is to investigate the effect of performance appraisal quality on employee performance in Berhan International Bank S.C. Explanatory research design was used and quantitative and qualitative data were collected from a sample of 125 employees using proportionate stratified sampling technique, and the data were analyzed using descriptive and inferential analysis. The study found out that BrIB follows formal appraisal process and uses graphic rating scales to measure employee performance while HR department takes the ultimate responsibility for appraisal and assistant managers take the lion share by filling appraisal forms for most of the employees. The study also found that 83% of the changes in the employee performance variables could be attributed to the combined effect of performance appraisal quality predictor variables. In general this research revealed that high quality performance appraisal was associated with higher level of employee performance. Possible reasons could be clarity of performance expectation, level of communication between employees and their supervisors, fairness of appraisal process and trust on supervisors.