| Abstract: | The main objective of this study is to investigate the performance management practice of Commercial Bank of Ethiopia, Addis Ababa area. To achieve the objective, descriptive survey research design has been deployed by using both quantitative and qualitative research approach (mixed method approach). Purposive sampling technique was used to select respondents from CBE employees who work at Addis Ababa area of North Addis Ababa District, South Addis Ababa District, West Addis Ababa District, East Addis Ababa District, and Head Office. Structured questionnaire was used to collect the data from a sample of 383 employees who are working in four districts in commercial Bank of Ethiopia Addis Ababa area. Descriptive statistics were employed for the data analysis process, whereby frequencies, percentage, and standard deviation were computed. The finding indicates that though some gaps are observed the performance management practice of the bank is good. The main gaps identified by this study include: while undertaking performance prerequisite the bank does not involve the employee on target setting, the bank lacks personal development plan, the bank didn’t effectively apply employee feedback and coaching package. In addition, the bank is also dependent on one computerized performance management system, hence does not use 360 degree assessment, and peer to peer review. Finally, employees aren’t rewarded according to their performance besides training and developments are expected to give based on employee performance however, training and development program provided randomly. Based on the findings and conclusions drawn from the study the researcher finally came up with recommendations that the bank should increase employee involvement during target development, the bank should arrange personal development plan for the employee, implement on going feedback and coaching packages, similarly the bank is expect to reward good performers in terms of financial and nonfinancial and include poor performers for feedback and coaching. |
