ASSESSMENT OF PERFORMANCE MANAGEMENT PRACTICES AND CHALLENGES: IN DEBUB GLOBAL BANK, ETHIOPIA

Abstract

The purpose of this study was to assess the practices of performance management system implemented in Debub global bank (DGB) and its challenges. The study tried to address the basic questions whether the purposes and concepts of PMS is well defined and communicated to employees, how the alignment is made between organizational goal and with that of the departmental and individual goal, how the planning, execution, assessment and review process was handled, how performance management system is integrated with reward and training and development and what are the challenges in implementing performance management system in DGB is covered in this study. To answer these questions descriptive research design has been deployed by using both quantitative and qualitative research approach. The researcher used lottery method of simple random sampling since the population is finite and homogeneous and that each element in the population will have equal chance of being included in the sample. Data collection instruments used for this study was questionnaires The data gathered from the questionnaire were compiled by using SPSS software. Descriptive statistics method was used for analyzing data obtained from questionnaire and the results were presented using tables. Accordingly, the finding indicated that the performance management practice is implemented with adequate knowledge of employees on PMS, good feedback and coaching practice, moderate training and development and ownership to the system by line managers. In addition, challenges like absence of training and development caused by lack of budget, subjective decision of evaluators, and inadequate commitment from the HR department and the management was pointed out. Since the performance management practice in the organization is in a good pace it should be kept as it been functioning except some improvements to be made on with the recommendations forwarded such as employees job description being up to date at least at the beginning of every performance period, the organization should confirm the practice and usage of SMART objectives in the application, the management must commit to make continuous feedback and coaching where commitment to achieve organizational objective is essential, and ongoing training of individuals in charge of appraisal especially for managers is essential in order to lower the lack of standardization.