ASSESSMENT OF EMPLOYEES PERFORMANCE APPRAISAL PRACTICES AND CHALLENGES AT ABAY BANK S.C

Abstract

A primary goal of every organization is achieving effective performance of human resources. Similar to any organization, banks evaluates their employees’ performance by aiming performance improvements. The objective of the study was to assess performance appraisal practices and its challenges in Abay Bank S.C. The scope of the study was delimited to only Addis ababa branches by taking 15 branches. The sampling method used was a cluster sampling and random sampling for the questionnaire and target sampling for interview conducting.The study employed descriptive research design supplemented with both qualitative and quantitative approach. Quantitative data was collected using questionnaires and qualitative data was using interview method. The interview results were analyzed by using narration while SPSS was used to analyze the questionnaire results.Moreover the findings indicate that the strategic objective of the bank isn’t clear; The bank has a gap in informing employees about objectives and performance standards; all non managerial employees are appraised by their managers ; Staffs in different job position compared with same standards; the bank have a gap in giving feedback and identifying corrective actions. Moreover the major challenges that affect the performance appraisal system were stated. The result suggests that communicating employees about the business strategy and performance standards; the bank needs to keep up on the preset standards but, it should be job related, and managers and subordinates should agree on performance expectations; raters should get training; the bank should participate others for appraising employees and use appraisal result to make most of administrative and developmental decisions.