PRACTICES AND CHALLENGES OF EMPLOYEES’ PERFORMANCE APPRAISAL: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

This study is designed to investigate practices and challenges of employee’s performance appraisal at Commercial Bank of Ethiopia. It investigates the level of opinions of the employees regarding the practices and challenges of employee’s performance appraisal by describing the processes with its attributes. To address these objectives, descriptive research design has been organized by using both quantitative and qualitative research approach. The total number of clerical staff in CBE at head office is 4236 and this study uses simple random sampling technique to take 342 employees to fill in the questionnaire, which is the main data collection instrument. The data gathered from the questionnaire were processed using SPSS-v 20 software. Data gathered from interview were analyzed contextually. The findings illustrate that, the current performance appraisal system of the bank as a system is not providing fair appraisal to its employees due to different challenges. Further, the study identified some major gaps in the implementation of the bank’s appraisal system: no appropriate rewards are given to high performers, appraisal system was not fully explained to employees, no feedback of results and employees do not participate in the formulation of evaluation criteria. It is recommended that CBE should revisit and redesign its appraisal system that is aligning to its vision and mission towards the attainment of its organizational goals.