ASSESSMENT OF EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM AT ADDIS INTERNATIONAL BANK S.C

Abstract

Employees play a pivotal role in determining the fate and success of a company. They are the main and unique resource organizations deploy in realizations of their objectives and goals. In today’s highly competitive and rapidly changing working environment, organizations need to acquire and retain the right number of competent employees to gain competitive advantage. In order to acquire and retain qualified personnel, organizations must unfold an HR system and HR management practices that are capable enough to win the heart and mind of employees over competitors. The objective of the study is to assess the performance management system of the bank. Descriptive research design was used. Both qualitative and quantitative data collection methods were employed for the study. The main sources of data were both primary and secondary sources. The study used stratified random sampling techniques. The target populations were divided in to two strata as head office and branches and then from each strata number of sample was selected randomly. Both questionnaires and interview was used to collect primary data. IBM SPSS was used to process the primary data which is collected through questionnaire. The result of the research conveys employees of the bank have no clear understanding of performance management system. Supervisors were not doing enough to make PM practices easy for employees and provide assistance when needed. And there is no participative environment created for employees equally at all levels. Employees are not initiated and satisfied with PM system of the bank. The PM practices do not provided personal development and promotion for employees. The study revealed that there is no openness and transparency in the bank. Lack of smooth flow of information between supervisor and subordinates and inability to conduct frequent meeting or discussions are factors that affect the performance management system of Addis International Bank S.c. Based on this the conclusions reached are the employees of the bank doesn’t have clear understanding about the performance goal and objective. Finally the researcher recommends in order to bring the required result the company should communicate employees about why the system is needed, what purpose does it serve and the potential benefits that can be derived from the system and an effective two way communication should get a priority.