PERFORMANCE MANAGEMENT EFFECTIVENESS ON EMPLOYEES MOTIVATION IN THE CASE OF LION INTERNATIONAL BANK S.C

Abstract

This study give due attention on theperformance management effectiveness on employees motivation. The research is designed to apply descriptive statistics by using questionnaires. A sample of 152 participants was purposely selected and questionnaires were administered from which 80of them retuned the questionnaires employees that are working at Head Office who have at least two year service in the bank and at least their job performance rated twice by the supervisors. The key finding ofthe study shows that even if most respondents reported that they have the required knowledge about the bank’s mission, vision and overall strategic objectives of the companies including their jobs, the bank has a disorganized and unstructuredperformance management practiceas well as the measurementof performanceof the employees.Likewise, most of the employees show de-motivation by the performance evaluation system of the bank. Moreover, it is found that changes in the practice of performance management have effect on the motivation of employees and also the selected eight motivational factors have a positive relationship with themotivation of employee even if there is a varying degree of effect they have on the motivation.The study extended its recommendationon that the bank should conduct continuous assessment and evaluates its employees in a cyclic fashion by implementing performance management system. And performance evaluation process should have incorporatedstakeholders (team mates and customers) and self-assessment,adding on these, the bank should exert more effort to improve employees’ motivation by linking its reward system with the performance management process.