ASSESEMENT OF PERFORMANCE MANAGEMENT SYSTEM IMPLEMENTATION AND CHALLENGES: A CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

This paper is a case study assessing the employee performance management system: a case of Commercial Bank of Ethiopia (Addis Ababa). It aimed at attaining the specific objectives of assessing whether the strategic mission of CBE aligns with individuals’ performance objectives, investigating whether the organization performance management system properly implemented or not, identifying the benefits gained from performance management system implementation in CBE, identifying potential challenges and recommend possible solutions in order to mitigate them, and finding out employees’ perception toward employee performance management system of the Bank . To attain these objectives descriptive survey research design has been deployed by using mixed method approach. For this study simple random sampling technique was used by taking 440 employees to fill in the adapted questionnaire, which is the main data collection instrument. The analysis was done by the help of SPSS and presented using descriptive statistics; frequency tables, percentages, mean and standard deviation. However, data gathered from interview document analysis were analyzed contextually. The scope of the study was delimited to branches and head office within Addis Ababa area. In general the finding of the study revealed that: organizational goals were not fully aligned with departmental and individual goals; there is a tendency of giving unbalanced targets for similar positions; supervisor evaluates employees work not based on recorded evidence only; there is no fair job rotation among employees; there is no sufficient resource allocation to execute their job properly; performance management processes are not done free of bias and objectively; pay raises are not depending on how well employees perform their jobs; performance ratters are not competent enough to undertake their assignment. Employees feel they are not fairly treated in every process of performance management system even they do not have received adequate training in performance management and performance management system is not clearly defined in the organization. Having this in mind the researcher concluded that even though CBE has some good qualities in clearly defining the mission, vision and values and developing strategy map but a lot have to be made in making performance management system to be more useful for the organization. In order to fill the identified gap, recommendations were forwarded to align organizational goals with departmental and individual level, 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 and coaching culture; revising performance standards and measuring to minimize subjectivity, vagueness, and inappropriateness; enhancing the involvement and ownership of both the managers and employees via promoting transparency and equipping them with the required knowledge, skill and resources; and clearly articulate the end-to-end implication of good as well as poor performance.