EMPLOYEES PERCEPTION TOWARD PERFORMANCE APPRAISAL SYSTEM PRACTICE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Performance appraisal seems to be one of the most important tools in Human Resource Management. Organizations design appraisal systems to assess and enhance employee’s performance, develop their competence and distribute rewards. Because of this, it is now viewed as a mechanism for developing and motivating people hence the general consensus among performance appraisal researchers and practitioners that assessment of appraisal reactions is important. For instance, it is frequently argued that in order for performance appraisal to positively influence employee behavior and future development, employees must experience positive appraisal reactions. The key to experience this positive reaction is an answer to the question ' are employees satisfied with the performance appraisal system?’ The purpose of this paper is to evaluate employee satisfaction as the most important reactions with performance appraisal systems. The aim is to analyze findings in the light of existing literature theories. The knowledge from the theoretical part of this paper combined with the results of the research can be useful for managers/ supervisors who deal with employees and for HR professionals who make decisions based on appraisal results. The research was based on the questionnaires distributed to the sample of 250 respondents from commercial bank of Ethiopia 14 branches under Addis Ababa districts. The respondents were asked both open ended questions which they provided their own answers to and closed ended questions which they provided answers based on the researchers options. With the use of the SPSS software, the data analyzed showed that employees clearly understood the criteria used for appraisal assessment. The findings from the study also suggested that the appraisers may not have direct or adequate knowledge of the job specification of employees in other to give a profound assessment and also the type of appraisal system in place gave the appraiser a greater influence over the final results. Moreover, they are eager to solve the problems of the workers. yet that employees should be immediately communicated supported with the performance appraisals system and the supervisor should try to provide with the proper training on not only how to use the assessment tool, but also how to acquire the necessary skills to conduct fair and accurate performance appraisals system within is expected much of it.