ASSESSMENT OF EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM OF ADDIS INTERNATIONAL BANK S.C.

Abstract

The study aims at assessing the overall Employee performance Management System of Addis International Bank. It looks through how employee performance was conducted, design and evaluated. Data were collected through questionnaire. The questionnaire addressed to the employees of the organization. Total of 310 employees have been taken as a sample and the response rate was 175. The data received were analyzed quantitatively by using descriptive statistic. The result of the analysis was presented using tables. The main findings of the study revealed that organizational goals were not fully aligned with organizational and individual goals, participation of employee’s in the planning, execution, assessment and review stage of performance management is not across all employees of Addis International Bank, lack of capacity of raters to take PMS, lack of regular feedback, The Bank did create a room for the practice of setting goals and standards of performance measures on the basis of mutual agreement between employees and supervisor and doesn’t allow employees to agree on the goals they are expected to achieve. In addition the process and objectives of Performance Management in Addis International Bank are not described clearly for its employees, employee performances are not recognized and where possible rewards for performance and punishment for non-performance haven’t been well introduced. Employees doesn’t get an opportunity to know about the benefits of performance management system, why evaluation is needed, for what purpose does it serve and the evaluation procedures and components and instruments of the process of performance management and so on are the major problems noted. Generally the outcome of the research confirmed that the Employee Performance Management System of The Bank needs improvement. To those and other problems investigated in the study, the researcher forwarded recommendations to alleviate them in the Bank’s future practices of Employee Performance Management System.