| Abstract: | The main purpose of this study is to assess and describe the performance management
practice and challenges in CBE in Addis Ababa area branches. The study tries to address
the basic questions of how the alignment is made between organizational goal with that
of the departmental and individual goal, how the planning, execution, assessment and
review process was handled and identifying the purpose of having PMS in CBE and
challenges faced while implementing performance management. To answer these
questions descriptive survey research design has been deployed by using both
quantitative and qualitative research approach. For this study simple random sampling
technique was used by taking 375 employees to fill in the self-developed questionnaire,
which is the main data collection instrument. 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 and figures. In general the finding of the study revealed that organizational
goals and objectives are aligned with departmental and individual goals, but lack of
regular feedback, lack of alignment of employee benefit package with PMS, the
questionability of the capacity of the raters to rate and lack of software for automating
the PMS are the major problems noted. 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 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 sated in mutual agreement, letting employees to assess their own
performance using self-appraisal method, gather information about the performance of
an employee from different sources, to give feedback periodically and to set goals that
are achievable and are not delusional. Finally, it is suggested to make the evaluation
criteria to be very objective and conduct the evaluation at the right time. |
