PRACTIES AND CHALLENGES OF PERFORMANCE APPRISAL SYSTEM IN DASHEN BANK

Abstract

Effective job appraisal systems are important in increasing organizational performance and employee satisfaction across various industries. The primary objective of this research was to investigate practice & challenges associated with the performance appraisal system at Dashen Bank. The study focused on several key aspects including examining the role of the performance appraisal system, assessing employee perceptions of the system, identifying available methods for appraising performance, determining the frequency of appraisal practices, analyzing problems associated with performance appraisal, proposing solutions to overcome these issues, identify factors crucial for effective performance appraisal, and recommending strategies for involving employees in setting performance objectives using a quantitative research approach with a descriptive design. The research used a combination of primary and secondary data sources. Primary data was collected through structured questionnaires (closed-ended and open-ended) and interviews conducted with a sample of 106 employees, chosen randomly and through judgmental sampling followed by Slovin's formula, from a total population of 144 employees. Secondary sources included are organizational policies and procedures related to performance appraisal. The data was analyzed using Thematic analysis and discovered a few important things. First, job descriptions weren't always used consistently in performance measurement. Second, most evaluations used rating scales with set criteria. Third, supervisors were generally seen as helpful for growth, while non-supervisors were more focused on rules. Some problems found were unclear evaluation rules and decisions based on personal opinions. Based on these findings, the researcher proposes practical recommendations to address these challenges effectively. These recommendations include revising the appraisal criteria to improve relevance and transparency, establishing a clear connection between appraisal outcomes and rewards, exploring the integration of team-based evaluations together with individual assessments, and encouraging more frequent appraisal cycles together with regular coaching sessions