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

Abstract

This main objective of the study was to assess the performance management practices effectiveness on motivation of Employees In the case of Lion international bank S.C. 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 80 of them retuned the questionnaires. The key finding of the 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 unstructured performance management practice as well as the measurement of performance of the employees gave focus on complying rules instead of on outcomes. 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 the motivation of employee even if there is a varying degree of effect they have on the motivation. The study extended its recommendation on 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 incorporated stakeholders (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.