ASSESSMENT OF PERFORMANCE APPRAISAL PRACTICE AT OROMIA INTERNATIONAL BANK

Abstract

The study aims at assessing the overall performance appraisal practice of Oromia International Bank. It looks through how performance appraisal was conducted, design and evaluated. Data were collected through questionnaire and interview. The data were gathered combination of both unstructured interviews with higher level managers and questionnaire addressed to the employees of the organization. The data received were analyzed both qualitatively and quantitatively by using descriptive statistic. Total of 304 employees have been taken as a sample and the response rate was 98%. The bank does not follow standards of appraisal process and the performance standards of the bank addresses issues such as quantity, quality, timelines, cost effectiveness and strategic relevance but it fails to address the extent to which individuals tend to maintain certain level of performance over time. The Bank also faces problems on its performance appraisal practice, some of them are rater‟s error and the remaining is the problem of the system. Performance review discussion does not take place in the case company unless an employee comes up with grievances. Generally the outcome of the research confirmed that the performance appraisal practice of the Bank needs improvement.