ASSESSMENT OF PERFORMANCE MANAGEMENT SYSTEM IN COMMERCIAL BANK OF ETHIOPIA: A CASE OF CITY BRANCHES IN ADDIS ABABA AND HEAD OFFICE

Abstract

Performance management is a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. There is no common understanding or implementation of the system by performers or supervisors at different branches (CBE, 2015). This project was designed to assess employees‟ performance management system of commercial bank of Ethiopia in city Branches and head office. To this end, the study has gone through an assessment of the practice of performance planning & agreement, provision of ongoing feedback, performance evaluation and performance review process. Primary data were collected through questionnaire and interview. 369 questioners were distributed to randomly selected employees and out of these 313 were properly filled and returned. The data were analyzed using descriptive method. Interview was held with the district human resource manager and some branch managers. The finding of the study revealed that some targets were unattainable, and data tracking system was manual and no usage of formats, lack of proper documentation of PMS files, inadequate feedback provision, inconvenient office layout to provide feedback privately for employees, absence of guideline to manage employee‟s movement from one job to another job during the rating period etc. Based on the findings, the researcher recommended the bank to allocate attainable targets, automate its data tracking system, allocate adequate manpower, develop clear guideline to manage the movement of employees to another job at the end of the rating period, etc