The Effects Of Performance Management Practices In Motivating Employees: In The Case Of Hibret Bank S.C

Abstract

This study give due attention on the effects of performance management practice in employees motivation in one of leading private bank in the country. The research is designed to apply explanatory and descriptive statistics by using questionnaires and document review. The study was guided by the following research objectives: to assess the of performance management practices on employee motivation, to examine the performance management practice review, to assess the practices of performance evaluation and to analyze the purposes of performance management practice on employee motivation. The target population comprised of 546 hibret bank s.c employees working at head office. Stratified sampling method was used to divide the population into 12 strata. The demographic profiles of the respondents were analyzed using percentages and frequencies. Inferential statistics such as correlation and regression analysis established the relationship between dependent and independent variables. The findings suggested that the leads to enhanced employee performance in organization. In regards to the influence of performance evaluation systems on employee motivation the findings suggested that employees can be evaluated to meet target. An effective performance review between employees and supervisors is the key to successful empowerment and performance. The study concluded that effective performance management practices gives employees opportunity to express their ideas and expectations for meeting the strategic goals of the company. Performance evaluation enables the employees to be made aware of what exactly is expected from them. The study extended its recommendation on that the bank should conduct continuous assessment, review and evaluates its employees in a cyclic fashion by implementing performance management system. the bank should exert more effort to improve employees’ motivation by linking its evaluation system with the performance management process.