PRACTICES AND CHALLENGES OF PERFORMANCE APPRAISAL SYSTEM; The CASE OF DASHEN BANK S.C

Abstract

Performance appraisal helps to success of the organization in realizing of strategic purposes and increasing of effective working processes through continuous improvement of individuals' performance and processes along with focusing on weak improvable points by motivating employees The main purpose of this study is to assess the practices and challenges of performance appraisal system in Dashen Bank Share Company. The study tries to address the basic questions of how the alignment is made between organizational objectives with that of the performance standards , how the process of performance appraisal system , execution, was executed and identifying the purpose of having PAS in DB and the challenges faced while implementing performance appraisal. To answer these questions descriptive survey research design has been deployed by using both quantitative and qualitative research approach. The result of the analysis was presented using tables, percentage and frequency. In general the finding of the study revealed that organizational goals were not fully aligned with departmental and individual goals, participation of employee’s in the standard setting process performance appraisal is not across all staff of DB, not practicing appraisal results for decision making ,lack of regular and timely feedback, lack of uniformity in gathering information about employee’s performance ,subjectivity on measurement of performance and vast communication gap between supervisors and employees in performance appraisal execution are the major problems distinguished. Having this in mind the researcher concluded that even though DB has some good qualities in clearly defining the mission, vision and values and developing strategy map .In order to fill the identified gap, recommendations were forwarded to align organizational objectives with the performance standards , to progress the level of employee’s participation in the PAS process, to enhance the awareness of employees about the purpose of PAS, goals should be set in mutual agreement, employ performance appraisal result for decision making ,slim down the practicing of subjectivity on performance measurement narrow the gap between supervisors and employees in practicing PAS and increase the standards clearness and reliability using SMART objective setting techniques.