THE ASSESSMENT OF PERFORMANCE EVALUATION SYSTEM: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

The main purpose of this study is to assess the performance evaluation system in CBE in Addis Ababa area branches. The study tried to address the basic questions of; How does employee’s performance evaluation system is linked with the bank’s overall strategic objectives? Is the employees’ performance evaluation system of CBE follows standard performance evaluation process? To what extent the existed performance standards are clear and related to the desired job and also what the problems of performance evaluation system of the CBE are? To answer these questions descriptive survey research design has been deployed by using both quantitative and qualitative research approach. For this study simple random sampling technique was used, from 415employees within the sample 10 branches by taking 204 employees to fill in the self-developed questionnaire and by interviewing few managers of selected branches which is the main data collection instrument. The data gathered from the questionnaire were compiled by using SPSS software and descriptive method was used for analyzing data obtained from questionnaire. Data gathered from interview and secondary sources were analyzed contextually. The result of the analysis was presented using different tables. In general the finding of the study revealed that organizational goals and objectives are aligned with departmental and individual goals, but there is lack of regular feedback, lack of knowledge about what the strategic objectives of the bank and understandability of the strategy, poor participation of employees on putting performance standards, the biasness of the raters to rate and no corrective actions after investigations. In order to fill the identified gap, recommendations were forwarded, to improve the level of employee’s participation in the performance evaluation system process, to enhance the awareness of employees about the purpose of performance evaluation system, goals should be placed in mutual agreement, letting employees to assess their own performance using self-appraisal method, gather information about the performance of an employee from different sources, to give feedback periodically and to set goals that are achievable and are not delusional. Finally, it is suggested to make the evaluation criteria to be very objective and conduct the evaluation at the right time.