https://youtu.be/Ae_gOdLtMaQ

Abstract

The purpose of this study was to assess the challenges and prospects of employee performance management system being implemented in Commercial Bank of Ethiopia. A mixed research approach was followed in the study and descriptive method of study with cross sectional survey was used. A stratified random sampling and simple random sampling techniques were used jointly to select respondents to the survey the questionnaire and purposive sampling was used to select participants for the interviewees. The research objectives were to assess the prospects and challenges of employee performance management system, to identify benefits gained from and challenges faced in implementing the system, to assess employees’ perception towards employee performance management system and to evaluate performance management processes in the bank. Primary and secondary data were used. The analysis was done by the help of SPSS and presented using descriptive statistics; frequency tables, percentages, bar and pie charts. The scope of the study was delimited to branches and head office within Addis Ababa area. The findings of the research indicated that employee performance management system has numerous benefits. Among them; it has created role clarity among employees, enables to differentiate good and poor performers, created a constructive competition among staffs. The system has also helped to motivate employees and encourage development through creating communications between the employees and their supervisor or managers. It improves both individual and the Bank’s overall performance. However, it has been found out that there were challenges in some respects, such as: a tendency to be unfair on job rotation among employees; Lack of clear with regard to the mechanism used at the bank to address the issue of underperformance; the use of wrong techniques (e.g. a tendency of giving 1 and 5 only for non financial targets). Furthermore, the result of evaluation did not attach with reward and recognition schemes. On the basis of the findings, the researcher recommended, prevailing fair job rotation, attaching performance evaluation results with reward and recognition programs so that the issue of under performance will be solved. The bank has to also work with training of supervisors on assessment to make rating standard/uniform across assessors and branches/process