PERCEPTION OF EMPLOYEES TOWARDS PERFORMANCE APPRAISAL IN COMMERCIAL BANK OF ETHIOPIA

Abstract

Performance appraisal seems to be one of the most important tools in Human Resource Management. Organizations design appraisal systems to assess and enhance employee’s performance, develop their competence and distribute rewards. Because of this, it is now viewed as a mechanism for developing and motivating people hence the general consensus among performance appraisal researchers and practitioners that assessment of appraisal reactions is important. The study has the objective to assess the perception of employees towards the problems and practices of performance evaluation On the basis of data collected through questionnaires and interview which are founded on the theoretical assessment of related literatures; the researcher tried to unearth some of the real problems of appraisals based on the opinion of the rates in that particular organization. The questionnaire was distributed to 84 employees of the bank, which only 70 were fully completed and returned. The questionnaire was distributed to the employees on the basis of census based on the willingness and cooperation of the respondents. The data collected were analyzed using SPSS software. On the basis of the data obtained from the respondents, the study identified the lack of transparency both during the evaluation and after evaluation as its major findings. Almost all the participants vented out that they are not allowed to see the result of their ratings. The subjectivity involved in the evaluation which resulted in role ambiguity and bias among the employees were identified to be the other problem of performance. The performance evaluation forms do not reflect the performance of the employees as they can be irrelevant for some jobs. Moreover, the researcher discovered that raters do not have adequate knowledge of how the systems work. Based on the findings of the study, the researcher forwarded some recommendations so that if they are used it will give them an insight as to the practice and its associated problems of performance appraisal in the organization