AN ASSESSEMENT OF PERFORMANCE MANAGEMENT SYSTEM OF COMMERCIAL BANK OF ETHIOPIA EAST ADDIS ABABA DISTRICT

Abstract

The purpose of this study is to assess and describe the performance management practice on employee performance in Commercial Bank of Ethiopia East Addis Ababa District (CBE EAAD). The study tries to address the basic questions of alignment of organizational goal with that of the branch and individual goal, how the planning, execution, assessment and review process was handled and to what extent the performance of the staff comply. The result of the study by arriving at different indicators will enable to measure the desired alignment. To answer these questions a survey has been undertaken by using quantitative research approach. The total number of staff at CBE EAAD branches was 1500 and for this study simple random sampling technique was used by taking 150 employees to fill in the self-developed questionnaire. An interview was also conducted to 13 managers of EAAD branches to use as one of data collection instruments. The data gathered from the questionnaire were compiled by using SPSS software. Descriptive statistics method was used for analysing data obtained from questionnaire and data gathered from interview document analysis were analysed contextually. The result of the analysis was presented using tables and graphs. In general the finding of the study revealed that organizational goals were aligned with departmental and individual goals but as to the participation of employees in the planning stage of performance, management did not involve the staff; lack of regular feedback, lack of uniformity in gathering information about employees’ performance and lack of data tracking system for employees’ performance, these are the major problems noted in the study. Having this in mind the researcher concluded that even though CBE EAAD has some good qualities in clearly defining the mission, vision and values and developing strategy map but a lot has to be done in making performance management system to be more useful for the organization. In order to fill the identified gap, recommendations were forwarded to improve the level of employees’ participation in the PMS process, to enhance the awareness of employees about the purpose of PMS, goals should be set in mutual agreement, letting employees to assess their own performance using self-appraisal method, gather information about the performance of an employee from different sources. Finally, it is hoped that CBE—EAAD would be able to strengthen the performance management practice of its employees by making use of the recommendations of this study.