THE ASSESSMENT OF CHALLENGES AND BENEFITS OF PERFORMANCE MANAGEMENT SYSTEM IMPLEMENTATION: CASE OF COMMERCIAL BANK OF ETHIOPIA SELECTED CITY BRANCHES IN ADDIS ABABA

Abstract

Nowadays the source of sustained competitive advantage has shifted from financial resource to technological resource and human capital. Therefore, many organizations try to rely on employees’ knowledge; skills and competence to enhance organizational competitiveness. The main objective of this study, therefore, is to assess the challenges and benefits of performance management system implementation in commercial bank of Ethiopia selected city branches. A total of 342 samples were drawn from the target population using simple random sampling technique. 309 respondent’s questionnaires were completed and returned. This represents 90 percent respondent rate. Close-ended questionnaires were distributed to employees of selected city branches and structured interview forwarded to six selected branch managers. Data analysis was done through descriptive statistic, specially used mean, standard deviation, frequency and percentage. The finding show that: the employee understanding towards PMS is differ based on their demographic character, there were challenges of PMS implementation in CBE, some benefits also gained from PMS implementation and the feature of PMS implementation in CBE is not according to theoretical aspect.