THE EFFECT OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEE PERFORMANCE: THE CASE OF DEBUB GLOBAL BANK S.C

Abstract

The main objective of the study is to analyze the effect of performance management system on employee performance of Debub Global Bank S.C. The study is guided by 4 research questions which seek to answer weather the existing performance management system of DGB affects the performance of employees. From the total employees of the bank the researcher took employees work in head quarter in 10 departments population to take sample. The study adopted Descriptive research methods. The population of interest consisted of 96 employees of DGB. Out of which 69% are male and 31% are female respondents. Data was collected using structured questionnaire and the data was analyzed using the Statistical Package for Social Science (SPSS) and Excel which are Performance pre- requisition, performance planning, employee’s awareness of performance, performance implementation and performance improvement and the data presented using tables. The study findings indicated that employees have knowledge on strategic objectives of the bank and PMS has significant effect on their performance. The study revealed that there is no participative environment and their performance this make them low efficiency. The study shows also that the system helps them to avoid problems with transparency in their work. There is good practice of renewing PMS when new service occurs but current performance management does not create participative environment, it does not improve the existing team work. In conclusion on the findings the study recommended that the bank should give training to those who didn’t know about PMS and for managers to develop their evaluation system in order to decrease employee’s dissatisfaction on evaluation. The other one is that the bank must attach PMS with reward and recognition. Managers also should develop their skill to give immediate feedbacks to the employee. Generally, the bank should focus on performance renewal, performance planning and performance assessment.