ASSESSMENT OF EMPLOYEE’S PERFORMANCE APPRAISAL PRACTICES AND CHALLENGES: THE CASE OF NIB INTERNATIONAL BANK SHARE COMPANY

Abstract

The main objective of the study was to assess performance appraisal practice and challenges at NIB S.C. The researcher has used descriptive research method and has used stratified sampling method to select the sample that is representative which is nine branches and headquarters. From those branches and headquarters 235 employees have been taken as a sample. The researcher has used questionnaires and semi structured interview to collect data from managers and non-manager employees. The data that was gathered through questionnaire and interview were analyzed by using a software package called SPSS. The study found out that the Bank uses performance appraisals mostly to promote capable employees and to give bonus and is conducted semiannually, at the end of December and June. The bank does not communicate the performance standards that are developed to evaluate performance. The study also found that the major challenges of performance appraisal in the bank are subjectivity, recency of events error, lack of rater ability to evaluate employee performance, rater bias in evaluating performance, lack of focus and carelessness by some branch managers and lack of communicating performance standards. The HR department of the bank takes the ultimate responsibility for appraisal and supervisors take the lion share by filling appraisal forms for most of the employees. Generally, the researcher recommended that the HR department should follow each activity in performance appraisal practices, the standards should be communicated with Employees and the organization needs to fill the gap by giving training for those who are involved with the measurements of performance appraisal system of the company.