PRACTICES AND CHALLENGES OF EMPLOYEES’ PERFORMANCE APPRAISAL SYSTEM: THE CASE OF BANK OF ABYSSINIA

Abstract

With a greater concern over the performance appraisal practice as implemented in different institutions, this study has been undertaken in the context of Bank of Abyssinia. Having examined how performance appraisal activities are undertaken and how the employees consider the relative transparency and trustworthiness of the evaluation process. It follows that the study has identified a sample of respondents through multi stages random sampling and has contacted 174 participants through questionnaire and various other data were collected using secondary data collection tools. The data gathered has been analyzed using the statistical methods through the use of SPSS version 20. The data has been entered in to the software and data has been analyzed through descriptive statics that included mean, standard deviation and frequency and percentages. Accordingly the result has been generated and the findings have indicated that the employee performance appraisal practice used by the bank is somehow one way, an immediate supervisor evaluating the subordinate through an evaluation format which is not believed to be reliable and valid by the staff. The findings of the study have shown that the employee performance appraisal practice employed by BoA falls short of meeting the required standard as it is top down where the supervisor rates the subordinates thereby leaving the result more of rater bias eminent. Finally, it is deduced that the performance appraisal practice in place by the bank is in stark problem. It has shown that effectiveness of the staff is hampered and the quality and commitment as a result of the exiting performance appraisal practice.