ASSESSMENT OF THE EFFECTIVENESS OF PERFORMANCE APPRAISAL FROM THE PERCEPTION OF EMPLOYEES IN THECASE OF DASHEN BANK S.C

Abstract

The purpose of this study was to assess the effectiveness of the performance appraisal system from the perception of employees in Dashen Bank S.C. The study used descriptive research methods and used mixed research approach. The areas the research focused on is how an effective performance appraisal is carried out and staff’s opinion on how it affects their contentment in their roles. The researcher has investigated what the main features of effective performance evaluation are and how employee behaviors and attitudes towards Performance Appraisal can affect the structure. Primary and secondary data were used. The analysis was done by the help of SPSS and presented using descriptive statistics. The scope of the study was limited to seven branches and head office within Addis Ababa. In terms of measuring whether the performance appraisal process in the organization is effective, the researcher looked into whether the process includes fundamental elements of an effective appraisal according to the literature. The elements that were discussed are fairness, employee-manager relationship, and accurate feedback, rewards linked to appraisal, clearly defined goals, confidentiality and mutually set goals. The findings reveal that the respondents are dissatisfied with the current performance appraisal practice of the organization, its fairness and un biasness of the system, the seriousness and subjectivity of leaders to review performance appraisal, satisfaction with feedback, the relevance of performance feedback, the alignment of feedback with the actual achievement, the existence of appeal process and how it is actual put into practice. On the basis of the findings, the researcher recommends that there should be a direct link between performance appraisal and the reward system and training and development of the bank, and also in order to improve the motivation of employees and to change the negative attitude toward the system. The experience gained in the assessment could be used to make similar surveys in other human resources activities.