AN ASSESSMENT ON EMPLOYEES’ PERCEPTION TOWARDS THE PRACTICE OF EMPLOYEES PERFORMANCE EVALUATION: THE CASE OF AWASH BANK, S.C

Abstract

The Purpose of this study was assessment on employees’ perception towards the practice of employees’ performance evaluation. Performance evaluation, though an important function of human resource management, has not received the degree of concern it deserves. However, despite these intended goals, performance evaluation seems not to be effective in most cases mainly due to the subjective nature of criteria (standard) of performance, lack of rater understanding of or inadequate training on performance evaluation, which consequently led to the less importance and emphasis attached to it. This study has tried to address each of the above and other related issues by taking Awash Bank S.C. as a case study organization. Accordingly, samples from the Bank’s staff members were selected and administered .The study has used descriptive approach and Purposive sampling technique was used to give equal chance of participation Managers from branches and head office were selected purposefully in order to assess their opinion on the performance evaluation practice as raters and questionnaires distributed to 40 employees and Analyzed. While the practice by Awash Bank S.C has been that immediate supervisors are the people in charge of evaluating employees, response from the sample respondents has indicated that others such as peers, subordinates, customers, or any combination of these should be allowed to participate if the process is expected to be more effective. It is identified that the evaluation format addresses different aspects of employee performance with traits being the dominant ones. It is also found out that the Bank adopts the rating scales method of performance evaluation. Although the existing practice of evaluating employees twice a year has got the highest support among the sample respondents, some have suggested a more frequent time period for increased effectiveness. Employee participation in the evaluation process is set at a low level. Owing to subjectivity (non-job relatedness) of most of the performance criteria in use, problems related to measurement, rater bias, and lack of appropriate rater training are seen to characterize the Bank’s evaluation system. Problems are always prevalent and what one should be concerned about is on how to overcome them. Irrespective of how they are handled, the appraisal system of the Bank is found to encourage giving performance feedback and handling post assessment interviews with employees.