Employee Performance Management System: the case NIB International Bank

Abstract

The basic purpose of this study is to assess performance management system of NIB International Bank of Ethiopia by providing practical solutions and recommendations so that bank can choose the best option. Performance management system is a strategic and integrated approach to delivering sustained success to organizations that focuses on performance improvement and employee development. This study tried to address the basic questions of what is the performance management system of NIB International bank, what is the purpose of employees performance management system in NIB International bank, how performance evaluation criteria and the banks over all goals are aligned and employees participation in the entire system. To answer these questions descriptive and inferential research design has been deployed by using both quantitative and qualitative research approach. There are 275 branches of NIB International bank in Addis Ababa and for this study simple random sampling technique was used to take 15 branches with total number of 249 employees and sample size of 154 employees to fill in the self-developed questionnaire, which is the main data collection instrument. The data gathered from the questionnaire were compiled by using SPSS software. Descriptive statistics and Inferential statistic method was used for analysing data obtained from questionnaire and data gathered from interview. Based on this study participation of employee’s in the performance planning, performance execution, performance assessment and performance review stage of performance management is not across all employees of NIB International Bank, lack of capacity of ratters to take performance management system, lack of regular feedback, The Bank did create a room for the practice of setting goals and standards of performance measures on the basis of mutual agreement between employees and supervisor and doesn’t allow employees to agree on the goals they are expected to achieve. In addition the system and objectives of performance management in NIB International Bank are not described clearly for its employees, Employee performances are not recognized and where possible rewards for performance and punishment for non-performance haven’t been well introduced. An employee doesn’t get an opportunity to know about the benefits of performance management system and so on are the major problems noted. It is concluded that there is a low understanding of performance management objectives, lack of permitting things for employees to participate in performance management system, lack of skill that helps measures actual performance and lack of providing sufficient resources, giving feedback, giving support and timely notification of performance change. To those and other problems investigated in the study, the forwarded recommendations were the bank should create a plate form through which employees participate in operational planning system, the criteria presented to assess the performance of employees should take into account of specific and measurable characteristics of that measure of work related behaviour of employees and finally they must facilitate the use of explicit metrics, open and honest feedback to alleviate employees in the Bank’s future practices of Performance management system.