CHALLENGES OF EMPLOYEE PERFORMANCE APPRAISAL: IN THE CASE OF ABAY BANK SHARE COMPANY

Abstract

This study examined the challenges of performance appraisal in Abay Bank Share Company. To address the research objective stratified sampling was used and 294 sample employees were selected based on lottery techniques from each stratum. Besides, the researcher was undertaken interview with Human Resource Manager. The collected data were analyzed by descriptive statistics such as frequency and percentage using SPSS Version 23. On the basis of the data obtained from the respondents; Less effective performance appraisal criteria, subjectivity, absence of system based evaluation, low knowledge performance evaluators, absence of due attention from the management side, nonexistence of employee participation and absence of ways of appealing for inaccurate and wrong feedbacks are the main problems of performance appraisal system of Abay bank S.C. This implies that the primary purposes of performance appraisal are missing and the criteria performance appraisal was not well articulated. Therefore, the study recommended that the concerned managements should gear their efforts to mitigate the outlined challenges, to redesign right performance appraisal criteria and arranging training to raters so as to meet intended purpose of performance appraisal system of Abay bank S.C.