ASSESSEMENT OF PERFORMANCE MANAGEMENT SYSTEM AND PRACTICE; THE CASE OF COMMERCIAL BANK OF ETHIOPIA SOUTH ADDIS ABABA DISTRICT BRANCHES

Abstract

It is not known how and to what extent performance management system is practiced at CBE south Addis Ababa District and its influence on employee improved performance. The main purpose of this study is to assess and describe the performance management practice and its influence on employee performance in commercial bank of Ethiopia south Addis Ababa district branches . The study tries to address the basic questions of how the alignment is made between organizational goal with that of the branch and individual goal, how the planning, execution, assessment and review process was handled.To answer these questions descriptive survey research design has been deployed by using quantitative research approach. The total number of staff at CBE SAAD branches 938 and for this study simple random sampling technique is used by taking(15%) 135 employees to fill in the self developed questionnaire ,and interview conducted to managers of SAAD branches and document review .The data gathered from the questionnaire were compiled by using SPSS software. Descriptive statistics method was used for analyzing data obtained from questionnaire and data gathered from interview and document analysis were analyzed contextually. The result of the analysis was presented using tables. In general the finding of the study revealed employees were not involved in the planning stage of performance management, lack of regular feedback, lack of uniformity in gathering information about employee’s performance the major problems identified. In order to fill the identified gap, recommendations were forwarded to improve the level of employee’s participation in the PMS process, to enhance the awareness of employees about the purpose of PMS, goals should be setted in mutual agreement, management should encourage them development collective planning and decision making practice , letting employees to assess their own performance using self-appraisal method. Finally, it is suggested to make the evaluation criteria to be very objective and conduct the evaluation at the right time .