ASSESSMENT OF EMPLOYEES PERFORMANCE APPRAISAL PRACTICE AND CHALLENGES: THE CASE OF NIB INTERNATIONAL BANK S.C

Abstract

Performance appraisal process is a key contributor to successful HRM, as it is highly related to organizational performance. The administrative purpose of performance appraisal can also be used as a motivational tool by recognizing successful performance and rewarding; whereas the developmental purpose guides on the required skills, competences and behaviors by providing trainings. In line with this, the study tried to assess the performance appraisal practice of Nib International Bank S.C by applying descriptive research method and with specific objectives of looking in to the process, effectiveness, problems of performance appraisal practice and investigating the employees’ perception towards the fairness of performance appraisal practice of the bank. The study has used mixed research approach; in which the primary data were collected through questionnaire and unstructured interview. The target population for the study was clerical employees with experience greater that one year which was 1489 as June 2018. Sample size was determined by using 95% confidence level which was 317. The sampling technique used in this study was stratified simple random sampling. In checking the reliability, Cronbach’s alpha score was applied and found to be acceptable. The study has found out that the banks appraisal system has relevance and lacks acceptability to employees, practicability and sensitivity and reliability which is due to the subjective appraisal criteria. The Bank’s appraisal system doesn’t follow the six scientific steps, judgmental errors were also found in the system and the employee’s perception towards the fairness of the appraisal system of the bank was negative. Therefore, Nib International Bank S.C should revise its performance appraisal manual and criteria in order to make its appraisal system effective. Besides sufficient training must be given to the rater so as to avoid the judgmental errors and set an accurate appraisal system.