AN ASSESSMENT OF THE LEVEL OF IMPLEMENTATION OF EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM- CASE OF THE COMMERCIAL BANK OF ETHIOPIA

Abstract

This paper is a case study assessing the employee performance management system of the Commercial Bank of Ethiopia aimed at attaining the specific objectives of assessing the prevailing level and the effective implementation of the system in the bank, assessing the bank‟s employees and line managers level of understanding and ownership with regard to the concept and technical aspects of the EPM system, and identifying potential challenges and recommend possible solutions in order to mitigate them. The research objectives were attempted in light of six variables that covers the steps of the employee performance management system which include insuring employee readiness, performance planning, feedback and coaching, performance appraisal, rewarding and improving, and the overall performance management as a new system. Quantitative descriptive research was applied to analyze and interpret the mean scores of the variables. Commercial Bank of Ethiopia is a giant company in the banking industry in Ethiopia which has more than 970 branches spread all over the country with more than 22,000 employees. CBE has a vision to "Become a World Class Commercial Bank by the Year 2025." To realize its vision, the Bank underlining the contributions of its people has designed new HRD strategy with the support of an international consultants; employee performance management system is one amongst the newly implemented HRD strategic tools. The research has outlined that the employee performance management system of the CBE , as assessed by the above mentioned variables, its effectiveness is at moderate level which signifies the bank needs to strive hard to enhance the system‟s effectiveness giving due emphasis to the aspects and areas of: availing adequate and timely trainings to its people concerning the end-to end aspects of the employee performance management system; instituting system to support the data tracking & documentation ; promoting and ensuring effective feedback & coaching culture; revise performance standards and measures to minimize subjectivity, vagueness, and inappropriateness ;enhance the involvement and ownership of both the managers and employees via promoting transparency and equip them with the required knowledge, skill and resources; and clearly articulate the end-to-end implication of good as well as poor performance.