THE PRACTICES AND CHALLENGES OF PERFORMANCE MANAGEMENT SYSTEM IN DASHEN BANK

Abstract

This research was conducted to assess the practices and challenges of the performance management system in Dashen Bank, and the main objective of this study was to assess and describe the performance management system practices and challenges in Dashen Bank. The study focused on how the performance management system process was practices, and challenges faced while implementing the performance management system in the case of Dashen Bank. To answer these questions descriptive research design has been used by using both quantitative and qualitative research approaches. Concerning selecting employee respondents for this research census method was adopted as the total numbers of employees in those four selected branches are 81 to fill in the self-developed questionnaire, which is the main data collection instrument. The data collected from the questionnaires were compiled by using Microsoft Excel. The result of the analysis was presented by using tables. In general, the finding of the study revealed that organizational goals were not fully aligned with department/branch and individual goals, participation of employee’s in the planning stage of a performance management system is not across all employees of Dashen Bank, lack of regular feedback, lack of uniformity in gathering information about employee’s performance and lack of software for automating the performance management system were the major problems noted. Having this in mind the researcher concluded that even though Dashen Bank has some good qualities in clearly defining the mission, vision, and values and developing a strategy map but a lot has to be made in making a performance management system to be more useful for the organization. To fill the identified gaps, recommendations were forwarded to align organizational goals with department/branch and individual level, improve the level of employee’s participation in the PMS process, to enhance the awareness of employees about the purpose of PMS, goals should be set in mutual agreement, letting employees assess their performance using self-appraisal method, gather information about the performance of an employee from different sources. Finally, it is suggested to make the evaluation criteria to be very objective and conduct the evaluation at the right time.