ASSESSMENT OF EMPLOYEE PROMOTION PRACTICE AT COMMERCIAL BANK OF ETHIOPIA

Abstract

This study is conducted to assess overall employee promotion practices in the CBE from the bank human resource management strategies, policies and procedures point of view and also examine major challenges that hindering promotion in the bank and finally suggest possible solutions. A descriptive type of research design was employed to achieve the objectives of the study. In order to get relevant data from the target populations both quantitative and qualitative methods were employed. Primary data were collected from 320 purposively selected units through structured questionnaires, the other were collected through interviews from 26 experts. The collected data were empirically analyzed using different literatures, HR policy & procedure and descriptive statistics by means of SPSS statistical packages. The result of the study shows us there is existence of good employee promotion practices in commercial bank of Ethiopia. The bank vacancy announcement, selections process, recruitment and promotion method are clear, simple and fair to all employees and they believe that it is based on their performance. In line to that, employees have clear information on how employee's performances are evaluated, what they expected to achieve, and how their promotion process would be held, and they also believe that the bank encourages or rewards for better performer. They have also blame that the organization’s employee promotion policy is overdue or outdated for a review; employee's promotion practices do not get quick decisions; and large number of respondents are not happy and proud to be CBE staff because and they are not happy on the existing benefit package and the promotion practices provided by the bank. On the adherence of bank human resource policy and procedure, majority of the respondents believe that the bank vacancy announcement, selection, rating, and notification process it is clear and transparent for applicants. They believe that the existing policy provides sound staffing strategy and most of them think that the existing policy provides establishment of special programs that expose employees to a variety of job experiences. In line to that, they still believe that the existing policies aligns with the bank future staffing needs and organizational resources; it shows their career paths clearly ; and it will enhances their career advancement of employees to sustain productivity and minimize the effects of job poaching. Although, the bank have good practices on employee promotions there are some challenges that has also been raised by the respondents. Finally, the study presented some possible recommendations so as to alleviate the problems and risks. The bank shall make the human resource procedure and policy very clear, simple and participatory for all employees; employee performance evaluation and promotion methods shall be transparent, performance and/or systems base; the bank shall create clear understanding among the employees about overall promotion process and shall develop communication channels; and the bank shall develop performance based promotions policy and all employees subject to comply the bank human resource development guideline, procedure or policies.