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 |