THE ROLE OF PERFORMANCE APPRAISAL SYSTEM ON EMPLOYEES’ CAREER DEVELOPMENT: THE CASE OF NIB INTERNATIONAL BANK S.C

Abstract

This study was conducted at Nib International Bank S.C. (NIB) aiming to assess performance appraisal (PA) practice of the Bank and its effect on employees’ career development plan using descriptive research method. In conducting this study, both primary and secondary data were collected using structured questionnaires, an interview and other published materials. Non-probability purposive sampling technique was also employed to select representative samples of 221 participants from a total population of 518 employees found at six branches and the headquarters. Descriptive statistics such as frequency counts percentages and mean were employed to analyze the data gathered. The findings of the study clearly showed that though NIB has long implemented a performance appraisal system, employees are not satisfied or even properly served by the system due to its subjective and non-participatory nature. Side to non-participatory nature, employees are not motivated by the results of the system as the bank usually conducts PA for the sake of formality or monetary rewards rather than developmental purposes. The study also came up with a clear testimony of participants claiming high level of errors, biases, and rater’s incompetency on the PA system of the bank. Failure to properly utilize the results of PA resulted in unjustified and prolonged retention of employees in the same post without promotion. In alleviating this and other problems, the study recommended that the bank benchmarks best practices in the industry, introduce standard PA measuring tools and systems, align organizational objectives with the system, effectively make use of the results for the identification of employee weaknesses, strengths and training needs so that NIB could retain the existing and attract competent employees of the sector.