| Abstract: | The main objective of the study was to assess performance evaluation practice and challenges at Awash Bank Share Company. The student researcher has used questionnaires and structured interview to collect data from managers and non manager employees. Data were collected from 168 employees of the bank. Descriptive statics and thematic analysis were used to analyze quantitative and qualitative data, respectively. The study findings indicated that employees are given feedback during the appraisal period; are allowed to see their result and can appeal to higher officials if they believe it is biased and inaccurate. However, they are being evaluated by the form whose design they have not participated in. Moreover the criteria used to measure performance of employees are objective. But, there are some criteria which don’t have direct relation with the actual work and natural traits which are difficult to alter and are beyond control of the employee. There also are criteria which are vague to understand. It was also found that the major challenges of Performance evaluation at AB S.C. are lack of rater ability to evaluate employee performance, rater bias in evaluating performance, lack of communicating performance standards and expectations to the employees, no link between some evaluation criteria and employee job, absence of employee participation in setting performance evaluation criteria and lack of focus and carelessness by some branch managers. Therefore, based on the research finding it is recommended that performance evaluation criteria should be revised in participation of the employees for they are the actual persons who do the job and evaluated. In order to acquaint employees who do not know why performance evaluation is conducted the bank’s management should create awareness on purpose of performance appraisal. The bank’s HR directorate should follow up those raters who are not having file and encourage those using it now. The Bank’s management should give training to supervisors and managers who are responsible for conducting performance evaluation. This will boost raters’ ability to evaluate and alleviate raters’ bias. |
