Professional Documents
Culture Documents
Zeru Research
Zeru Research
Zeru Research
SAMARA UNIVERSITY
COLLAGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
January, 2020
SAMARA ETHIOPIA
Acknowledgement
First and for most I would like to giving my humble and great thank to “God” for everything he
has done for me throughout my life.
Next I want to express my heartfelt appreciation to my advisor Libamlak (MBA) for his
unlimited support advice and insightful comments in preparation of this research.
And also I would like to extend my deep heart thank for all my families who assisted me starting
from lower grade up to the university level in that they paying me their uncountable resource.
I
Abstract
This research project was conducted under the title of the role of performance appraisal on the
achievement of organizational goal. The main objective of the study would to assess the role of
performance appraisal on organizational goal achievement. Performance appraisal is the
processes by which organizations evaluate employees’ performance based on present standard.
To conduct this study the researcher would use descriptive type of research design and also the
relevant data would collected from both primary and secondary sources. In the primary data
both open and close ended questions would prepared in the form of self-administered
questionnaires, whereas the secondary data types would take from written books regarding
performance appraisal and the organizations documented materials. The researcher would use
census survey since the size of population under study would small and it would convenient to
use census to eliminate sampling errors.
II
List of Acronyms
BA bachelor degree
III
Table of contents
Title page
Acknowledgement .................................................................................................................................... I
Abstract................................................................................................................................................... II
INTRODUCTION................................................................................................................................... 1
IV
2.2.2 for development purpose ......................................................................................................... 7
2.8 The relation between performance appraisal and organizational goal achievement ............... 14
V
DATA PRESENTATION AND ANALAYSIS ...................................................................................... 20
4.3 Analysis of problems in practicing performance appraisal and the attitude of employees
regarding the performance appraisal practice in the bank ............................................................ 26
4.4 Analysis on the role of performance appraisal on the achievement of organizational goal ............. 28
References............................................................................................................................................. 32
APPENDICES ...................................................................................................................................... 33
VI
CHAPTER ONE
INTRODUCTION
1.1. Back ground of the study
The human resource department usually develops performance appraisal for employee in all
departments because without any effective appraisal system; promotion, transfer, demotion and
other employee related decision become subject to trial and error. Career planning and human
resource development suffers because there is no systematic performance feedback. Moreover,
human department lack adequate information to evaluate its performance objective this lack of
feedback can cause the resource department to miss its objective. Sometimes the consequence of
this failure is severing.
Thus, one of the most uses of performance appraisal is for making administrative decision
relating to promotion, firing/layoff and merit pay increase. Performance appraisal information
can also provide needed inputs for date remaining both individual and organizational training
and development needs. It can also on coverage performance improvement .The basic
assumptions underlying the emphasis on employee performance appraisal is organizational goal
achievement, appraisal identification ,measurement and management of human resource
performance in an organization.
Accordingly, systematic source of the evaluation is an essential aspects management not only to
make sound personnel decision but also maintain satisfactory level of performance to identify
employees training needs, to facilitate fair and equitable compensation based on performance
and promote two way communication between management and employees(Wendlfrench,2007).
1
The history of bank in Ethiopia dates back to the establishment of bank of Abyssinia in 1905. It
was the first bank in history of Ethiopia, established under the partnership of Egypt. The bank
continued to operate until 1931. Later on, the bank was wholly purchased by government of
Ethiopia and renamed as “the bank of Ethiopia”. This bank operated until the Italian invention in
1936. (http://www.combanketh.com).
After the victory over the fascist Italy, the state bank of Ethiopia was established by a
proclamation issued in August 1942. Although the intention was to establish it as a full- fledged
commercial bank, a year later in 1943, it was given additional central banking duties, the state
bank of Ethiopia provided central and commercial banking functions until it was divided in 1963
to form the two banks (the national bank and commercial bank of Ethiopia). Accordingly, in line
with the issuance of monitory proclamation in 1963, the national bank of Ethiopia and
commercial bank of Ethiopia to handle the national banking and commercial banking functions
respectively. In 1963, commercial bank of Ethiopia was legally reestablished as a share company
to take over the commercial banking activities business and operation, thorough competing with
other banks. From 1981 to 1993, commercial bank of Ethiopia was in monopoly era dominating
the banking business all over the country. But in period between 1994 and 1998 was
characterized by country shift from a command economy to market oriented economy, due to a
policy redirection, the new banking proclamation enacted in 1994, has created several new
opportunities for the private sector to be involved in the banking sector. This enabled the
commercial bank of Ethiopia to release its monopoly position in the country’s banking industry
(ibid).
Commercial bank of Ethiopia now a day has different branches in different areas. From those,
commercial bank of Ethiopia Samara main branch is one, it opened in April 4, 1947 G.C at
Samara town, and it is a huge bank in the city of Samara that can serve a large number of
customers while compared with other banks in the town. Now it is giving various quality
services for customers by using smart computer program. In the branch, there are about 26 total
number employees. The bank in general has a vision to be an excellent commercial bank and it
has its own mission, values and objectives.
2
1.2 Statement of the problem
The role of performance appraisal in organization aims to achieve minimum cost with balanced
benefit. It also aims to reduce inefficiency and inabilities of employee. Lack of employee
performance appraisal in the organization leads to employees inefficiencies in their operation. It
may also affect training and need assessment for development management, programmers,
transfer, and demotion of employee. The researcher is motivated to study on the role of
performance appraisal on the achievement of organizational goal is that:-To know the role of
performance appraisal for the achievement of organizational goal. To identify the factors that
leads to improper performance of employees. The researcher would try to sum up by gathering
more reliable data, good analysis and finally come up with its remedial solutions.(David Ingram
2009)
Generally the study would answer the following basic research questions:-
1. What is the role of performance appraisal on the achievement of organizational goal?
2. What are the major purposes of CBE Samara main branch in the implementation of
Performance appraisal practice?
3. How performance appraisal plan is conducted in CBE Samara branch).
To investigate the major purpose of CBE samara main branch in the implementation of
performance appraisal practice.
3
To conducted performance appraisal plan in CBE samara branch.
The study has many importance among them: -first, the finding would help the company in order
to know the major problems that influence to do good performance appraisal and to take
corrective action on it. Secondly, this study result would use as reference for performance
appraisal and organizational goal achievement by bringing an initial insight for other researchers
in further study the study would help the student to broaden his understanding on the subject
matter.
Since it is difficult to cover all management and related practice of the company because of time
and financial problem the researcher want to limit its case study only on the role of performance
appraisal on the achievement of organizational goal in the case of commercial bank of Ethiopia
Samara main branch
326-Degree Feedback Method (326-DFM) 326-dfm has been defined by ward (1997) as: the
systematic collection and feedback of performance data on an individual or group derived from a
number of individuals include: oneself peers, subordinates, superiors, and customers/clients/ or
suppliers. The data are usually fed back in the form of ratings against various performance
dimensions. 326-degree feedback is also referred to as “multisource assessment” or “multi rater
feedback”.
Performance Appraisal: the process by which a manager or consultant examines and evaluates
an employee work behavior by comparing it with present standards, documents the results of the
comparison, and uses the results to provide feedback to the employee to show where
improvements are needed and why . Performance appraisals are employed to determine who
needs what training, and who would promoted, demoted, retained, or fired
4
Supervisor: A supervisor is an assistant principal whose main duty is supervisor of curriculum
and instruction this person devotes full energies to the curriculum of his/her own school and
helping teachers improve instruction.
The paper organized in to five main chapters. The first chapter is an introductory part which
contains back ground of the study, back ground of the organization, statement of the problem,
objectives of the study, significance of the study, research questions, and scope of the study and
organization of the study. The second chapter provides an over view of the related literature. The
third chapter contains study area, research design, and source of data, method of data collection,
sample size and sampling technique, data processing and analysis, data presentation. The forth
chapter contains data analysis and interpretation and the fifth is conclusion and related
recommendation.
5
CHAPTER TWO
INTRODUCTION
When supervisor think about how employee are doing they are evaluating them in formally. The
in formal (unsystematic) appraisal can be undertaken at any time and lacks precise record of
employee's accomplishment it is often hap hard and the evaluation solely relaying on the
supervisor's opinion. Therefore, inaccurate and biased information can be obtained for layoff,
promotion and other important decision that affect employee's productivity and organizational
goal achievement(pigors,1961),argued against the informal or unsystematic appraisal without
systematic information regularly gathers and periodically reviewed ,it is hard for supervisors to
be fair employees have no satisfactory basis on which build their expectations. The formal
appraisal is undertaken in a regular and systematic to evaluate employee's performance. A
systematic and periodic appraisal is seemed superior to a causal, intuitive and at advance of the
time when it may be needed thereby avoiding spot judgments when a decision must be made
(Filippo, 1980).In addition it provides information in a form that permits the comparison of one
employee performance with other and characterized by documentation of current and past
performance for making objective judgments.
6
2.2 Purpose of performance appraisal
Organization use performance appraisal indifferent ways for different purpose. But its overall
purpose is to lay a base for making personal related decisions. The plan and method is to be used
are highly depending up on its purpose. The performance appraisal making is used for
administrative and employee development purpose.
This section looks at how management can actually establish performance standards and devise
instruments that can be used to measure and appraise an employee’s performance. A number of
methods are now available to assess the performance of the employees (Rue and Bayer, 2004).
7
1) Critical Incident Method
Critical incident appraisal focuses the rater’s attention on those critical or key behaviors that
make the difference between doing a job effectively and doing it ineffectively. What the
appraiser does is write down little stories that describe what the employee did that was especially
effective or ineffective. In this approach to appraisal, specific behaviors are cited, not vaguely
defined personality traits. A behaviorally based appraisal such as this should be more valid than
trait-based appraisals because it is clearly more job related. It is one thing to say that an
employee is “aggressive” or “imaginative or “relaxed,” but that does not tell anything about how
well the job is being done. Critical incidents, with their focus on behaviors, judge performance
rather than personalities. Additionally, a list of critical incidents on a given employees provides a
rich set of examples from which the employee can be shown which of his or her behaviors are
desirable and which ones call for improvement.(Kurt 2004).
2) Checklist
In the checklist, the evaluator uses a bit of behavioral descriptions and checks of those behaviors
that apply to the employee. The evaluator merely goes down the list and gives “yes” or “no”
responses. Once the checklist is complete, it is usually evaluated by the staff of personnel
department, not the rater his self. Therefore the rater does not actually evaluate the employee’s
performance; he/she merely records it. An analyst in the personnel department then scores the
checklist, often weighting the factors in relationship to their importance. The final evaluation can
then be returned to the rating manager for discussion with the subordinate, or someone from the
personnel department can provide the feedback to the subordinate.(Smither 1998).
One of the oldest and most popular methods of appraisal is the graphic rating scale. They are
used to assess factors such as quantity and quality of work, job knowledge, cooperation, loyalty,
dependability, attendance, honesty, integrity, attitudes, and initiative etc. However, this method
is most valid when abstract traits like loyalty or integrity are avoided unless they can be defined
in more specific behavioral terms. In the design of the graphic scale, the challenge is to ensure
that both the factors evaluated and the scale points are clearly understood and unambiguous to
the rater.(Stone, 2002)
8
4) Paired Comparison
The paired comparison method is calculated by taking the total of [n (n-1)]/2 comparisons. A
score is obtained for each employee by simply counting the number of pairs in which the
individual is the preferred member. It ranks each individual in relationship to all others on a one-
on-one basis. If ten people are being evaluated, the first person is compared, with each of the
other nine, and the number of items this person is preferred in any of the nine pairs is tabulated.
Each of the remaining nine persons, in turn, is compared in the same way, and a ranking is
evolved by the greatest number of preferred “victories”. This method ensures that each employee
is compared against every other, but the method can become unwieldy when large numbers of
employees are being compared.(Stone, 2002)
5) Management by Objectives
a) In goal setting, the organization’s overall objectives are used as guidelines from which
departmental and individual objectives are set. At the individual level, the manager and
subordinate jointly identify those goals that are critical for the subordinate to achieve in order to
fulfill the requirements of the job as determined in job analysis. These goals are agreed upon and
then become the standards by which the employee’s results would evaluated.
b) In action planning, the means are determined for achieving the ends established in goals
setting. That is, realistic plans are developed to attain the objectives.
Critical relationships between these activities, estimating the time requirement for each activity,
and determining the resources required to complete each activity.
c) Self-control refers to the systematic monitoring and measuring of performance. The MBO
philosophy is built on the assumptions that individuals can be responsible, can exercise self-
direction, and do not require external controls and threats of punishment.
9
d) Finally, with periodic progress reviews, corrective action is initiated when behavior deviates
from the standards established in the goal-setting phase. Again, consistent with MBO
philosophy, these manager-subordinate reviews are conducted in a constructive rather than
punitive manner. Reviews are not meant to degrade the individual but to aid in future
performance. These reviews should take place at least two or three times a year.(Derven 1990)
The 326 degree feedback process involves collecting perceptions about a person’s behavior and
the impact of that behavior from the person’s boss or bosses, direct reports, colleagues, fellow
members of project teams, internal and external customers, and suppliers. Other names for 326
degree feedback are multi-rater feedback, multi- source feedback, full-circle appraisal, and group
performance review. 326 degree feedback is a method and a tool that provides each employee the
opportunity to receive performance feedback from his or her supervisor and four to eight peers,
subordinates and customers. 326 degree feedback allows each individual to understand how his
effectiveness as an employee, co-worker, or staff member is viewed by others. (Rue and Byer,
2004).
Communicating the standard to employees; after specific appraisal goal has been
established, workers must understand what are expected from them in their job. One possibility
to foster his understanding is for supervisor’s to review with employees the major duties
determined through job analysis and described in a job distribution (Monday; 1996).
Discussing the appraisal with the employees: this is a very challenging step in appraisal
processes as it involves presenting accurate appraisal to the employees and has the person accept
the appraisal is in the constructive manner(Robbins;1996).
Measuring actual employee performance; as per evaluation method used in organization and
10
instruction given for appraisal employee’s actual performance is evaluated through observation,
interview and records then compares actual performance with standard set and find out if there is
any deviation. Deviation may be positive and negative. If employee performance is more than
standard there is positive, and vice versa.
Taking the corrective action; this includes guiding counseling and coaching the employee or
making arrangement for training and developing for the employee in order to ensure improved
performance. If the actual performance is very poor and beyond the scope of improvement,it may
be necessary to take steps for demotion or retrenchment or any other suitable measurer. It also
involves making suggestions for some changes to be made on the standard job analysis or other
factors to facilitate effective performance of employee (Monday; 1990)
According to Monday (1999; 337), for many organizations the primary goal of an appraisal
system is improved performance. However other goals may be sought as well. Potential problem
and possibly primary cause of much dissatisfaction with appraisal may result from expecting too
much from one appraisal plan.
Human resource planning:-A well designed appraisal system provides profile of the
organizations human resource strength and weakness to support this effort (Monday,
1999).
11
data are essential in assessing an employee’s strength and weakness and in determining
the person’s potential(Monday;1999)
Internal employee relations: -Performance appraisal data are also frequently used for
decision in several areas of internal employee relations including motivation, promotion,
demotion, termination, layoff and transfer.
12
oriented and sees work only as a means to an end sough of the job. Generally employees do not
understand the system or its purpose employees are not work oriented and appraisal may be
below the expectation.
13
According to (Monday, 1990) goals are important; first goals give meaning to scores on the
measures you are tracking. Goals serve as bench marks or reference point which performance is
measure can be compared. Secondly; the existence of goals has a significant relationship to the
improvement of individual and goals.
2. Although participating in and of it would not guarantee that performance would improve
or goal would attained.
3. The level of difficulty of particular goal should correspond to its relative importance in
meeting compelling business need.
4. Multiple goal should be set for each measure to establish arrange with in which
performance on a given measurement can be expected to vary.
14
2.9 Requirements of effective appraisal system
Moats (1999) have points out that the key requirements of any appraisal system are relevancy,
sensitivity, reliability, acceptability and practicality. Here under we would look all the above
listed in deep.
1. Relevancy:-This implies that there are clean links between the performance standards for
a particular job and organizational goal and between the critical job element identity
through a job analysis and the dimension for rated on appraisal form.
5. Practicality:-Implies that the appraisal instruments are easy for man power and employee
to understand and use. Those that are not or that impose in coordinate time demands on
all parties simply are not practical and managers would resist using them.
Cummings (1973) in an article titled, “A Field experimental study of the effects of two
performance appraisal systems” reported the results of a field experiment designed to test
the effects of manipulating several elements of an operative level performance appraisal
15
system first, and the multipurpose nature of appraisal in formal organizations is
discussed. This is followed by a brief overview of the literature on performance appraisal.
The design results of the study at hand are then discussed.
Patton (1973) has in his paper on “des performance appraisal work?” States that performance
appraisal can be a powerful force for performance improvement at both the individual and
the corporate level, but few companies in the US and even fewer in European have learned to
tap its full potential. Examining the difference European and US performance appraisal
practices, the author finds that some European companies have more than caught up with
their American counterparts. He offers guidelines to overcome some difficulties prevalent on
both sides of the Atlantic.
Randall (1973) in his paper titled “performance appraisal: purposes practices and conflicts”,
discusses the collection of information from and about people at work. It attempts to
structure the field, define key problems. Expose sources of conflict and point the way to
resolving major difficulties.
Compensation factor
Training factor
Success of Achieve
performance organization
Training and appraisal goal
development factor
Performance
appraisal problems
16
CHAPTER THREE
3 RESEARCH METHODOLOGY
3.1. Research Approach
The methodology would qualitative and quantitative methods as general approaches as well as
the applicability of mixed .methods and triangulation. Drawing on research approach, a research
design would have been established to follow the study step by step in a systematic way. The
research discusses in detail the empirical research methodology, including data collection,
measurement scales, samplings and data analysis procedures.
The study would use descriptive type of research design because it describes how performance
appraisal plays a role on the achievement of organizational goal.
The researcher used both primary and secondary data sources for this study. Hence, necessary
data were gathered from primary source such as questionnaires from employees and magazines,
newspapers, and brochures of the organization were as a secondary source.
In this study both primary and secondary data collection method were used. Principally self-
administered questionnaires would propose tools for primary data collection method. Because of
time given to conduct this study would short, the researcher would use these techniques to get
more data within short period. And secondary data were collected through the review of the
documents of the bank.
17
3.5. Sample size and sampling technique
After the data would have been collected, the data would processed on the activity, which
involve editing, coding and classifying data to make it suitable for further analysis. Descriptive
analysis would employ to examine the finding of the study. Since it refer to procedure for
organizing, summarizing and describing qualitative and quantitative data about the sample of the
study.
After the data would have been processed and analyzed well, it would presented by using table
and graph with their figure and interpreted in convenient manner accordingly
Reliability is ability of an instrument to give consistent results when different time. According to
Mugenda (2008) reliability is the measure of degree to which a research instruments is achieved
by pre-testing the set of questionnaires to the staff, which are not part of the sample size of the
actual questionnaires. The method chosen is reliable since standard questions in control of the
research can be put in the simplest way possible which make the respondent feel free to answer
18
the question as true as possible. The method is reliable and consistent since the question are of
the same which bring out objective.
Ethical Consideration
Ethical consideration would have been characterized as “a matter of principled sensitivity to the
rights of others” and that “while truth is good, respect for human dignity is better”. Newman and
brown (1995) suggested the researcher must protect human rights, guide them and supervise the
interests of people. According to Christians (2000) the minimum considerations are informed
consent, privacy and confidentiality, and accuracy. In this research, all ethical requirements
would followed throughout all phases of the research. Before collecting data, permission would
granted by the relevant organization. The participants would asked to participate voluntarily and
given the chance to withdraw from participation if they chose to do so. Participants would told
that answering and returning the questionnaire assumed their consent to participate in this study.
All participants would assured anonymity and confidentiality of the responses would guaranteed.
Participants would not expected to write names on the questionnaire and would coded to ensure
anonymity and confidentiality throughout the research process. Similarly, for the interviews, all
the participants would assured of anonymity and confidentiality in the manner in which all the
data (including interviewee name, job designation and ministry department) would coded. All the
participants’ information would kept confidential and they would not described in any way that
allowed them to be identified.
19
CHAPTER FOUR
Total 26 100%
3 Academic Ma\MSc 3 11.54%
qualifications BA\BSC 22 84.6%
Diploma 1 3.84%
Certificate 0 0
20
As shown above on the table the characteristics of respondents were examined interns of age, sex
and academic qualification.
The sex parameter accounted about (20)77% of male and (6) 23% of females. As regard to the
age, one can easily understand that the age group between 26 and 35 years have the lion share of
the distribution by controlling the (13)50% of the total population and those below the age of 25
years accounted only (7) 26.9% of the total population and the age ranged between 36 and 45
years accounted the same (4)15.4% of the total population. Whereas the ages ranged between 45
and 55 years accounted only (2)7.7%. As shown above the age 56 years has no share.
In terms of item 3 majority of respondents’ possess the quality of BA\BSc degree with a total
share of (22) 84.6%. The rest (3) 11.54%, 3.84%and 0 of respondents were accounted for
Ma\MSc, diploma, and 12complete and above respectively. As the data shows there is no
employee in the bank who possesses the quality of certificate academically.
Total 26 100%
2 If your answer for item 1 is yes Paired comparison
what type of system is your performance evaluation 13 50%
organization use? Measuring performance
with the standard set in 8 30.76%
the organization
Measuring actual 5 19.23%
employee performance
21
Others 0 0
Total 26 100%
3 Do you think that the criteria of YES 24 92.3%
employee evaluation in your bank
NO
valid and reliable?
2 7.69%
Total 26 100%
4 Are you satisfied by the criteria Yes 24 92.3%
listed in the evaluation system?
No 2 7.69%
Total 26 100%
Performance appraisal is intended to evaluate the performance and potential of employees. The
greater reliance the criteria is, the greater validity of evaluation. When subjection criteria are
used the evaluation becomes less valid for decision making and carrier planning. Moreover,
employer or appraisers are more effective if they measure an employee’s performance item of
how well specific job standard are met.
So according to the table above shows (25) 96.15% of employees approve the existence of
performance appraisal system in the bank. But the rest (1)3.84% of them denies its existence.
According to item 2 of the above table, the performance appraisal system the bank mostly used is
paired comparison performance evaluation which accounted (13)50%; for measuring
performance evaluation with the standard set in the organization which accounted for (8)30.76%
and measuring actual employee performance which accounted for (5)19.23%of the respondents.
Rarely, the organization tries to measure actual employee performance as the respondent’s
response. But there are no others.
22
As Item 3 of table 4.2 shows that, (24)92.3% of respondents think the performance evaluation
criteria’s are valid and reliable. But the rest (2)7.69% responds negatively.
As item 4 Furthermore most employees of CBE Samara main branch (24) 92.3% are satisfied by
the performance evaluation criteria listed in the organization even though some (2)7.69% are
dissatisfied.
In addition, the respondents were asked the reason of satisfaction by the criteria of performance
appraisal, accordingly to the job description of each employee of each employee. Some of the
others respond that since the criteria can evaluate our performance and because of they are valid
and reliable. Some others also said they are satisfied because the criteria well evaluate the
employees and they are not biased.
Table 4.3 respondent view regarding to pre-appraisal meeting, participation the purpose
of the evaluation and the tie of the appraisal takes place
Total 26 100%
23
meeting conducted? Three time 5 19.23%
Four time 0 0
Total 26 100%
According to item 1 of the table above the respondents that constitute 26.92%, 61.59% and
11.53% are claimed that the bank evaluate its employees for administrative purpose, employee
development and motivation purpose respectively.
As observed on the table above on item 2, (18) 69.23% of employees replied that almost pre-
appraisal meeting was held in the bank. In this case it could be conclude that performance of
work in CBE Samara main branch have taken place in co-ordinate and planned manner and with
ensuring mutual understanding and agreement between appraisers. Furthermore in light of item 3
of table 4.3 majorities of respondents (17) 65.38% respond that pre-appraisal meeting for
appraisers takes place twice. As item 4 of the above table shows (21)80.76% of respondents
have vote to participate in appraisal processes. Although in terms of item 5, most (18)69.23% of
24
respondents strongly agree the contribution of their participation for achievement of
organization’s goal.
Furthermore, in light of item 6 of table 4.3 majorities of respondents (10)38.46% respond that
employee’s performance evaluation takes place both once and twice a year. In this regard current
system of performance evaluation in the bank would very difficult to secure compressive data on
employee’s performance with only two sessions.
Table 4.4 Respondent’s opinion towards post appraisal situation and focused area
Others 0 0
TOTAL 26 100%
So as reveal in table 4.4 above the discussion point on which appraiser often focused in post
appraisal conference were both performance weakness and both on strength and weakness of
employees. It was confirmed by the (10) 38.46% of respondent the existence of such practice in
CBE Samara main branch.
25
4.3 Analysis of problems in practicing performance appraisal and the attitude of employees
regarding the performance appraisal practice in the bank
Table 4.5 Attitude of employee’s on the practice of performance appraisal.
Now a day, performance evaluation is one of the major responsibilities of managers involved in a
system of human resource management. For organization’s member to perform well. Their
performance should assess their weakness and strength and they should get feedback to know
where they stand in their performance. Performance evaluation also useful for performance
improvements, compensation adjustment, placement decision, training and development, needs
development and equal employment opportunity (Monday, 1990).
As indicated in table 4.5 respondents were provided response about the usefulness of the
evaluation of performance, accordingly (24) 92.3% of respondents were responded that
performance appraisal is useful for the main human resource practice. But the remaining few
respondents or (2) 7.69% of them said that performance appraisal practice is not useful. This
help for possible conclusion that appraisal is indispensable and crucial section of human resource
management in order to achieve per-specified mission or goals.
26
Source: questioner, 2020
The primary goal of many organizations is to improve a potential problem and possibly a
primary cause of much dissatisfaction may result from expecting too much from appraisal plan.
If a performance appraisal practice is properly designed and communicated it can help to achieve
organization’s objective and enhance employee’s performance. Performance appraisal uses to
achieve other parameters like promotion, demotion, reward and transfer (Ivancceuich, 1989).
In terms of table 4.6 92.3% of the respondents responds to there is a problem of implementation
the appraisal practice in the bank. But the rest 7.69% of respondents revealed that there is no
problem in the practice to implement in the bank.
Furthermore the system of performance appraisal may fail for many reasons including the
problem related to the designed and operation of the system, skill and competence of appraiser,
implementation problem and perception of employee about appraisal.
When respondents were asked about what were the problems in the form of open ended question
most of them answered that problems related with the system including not up to date,
incomplete, not implemented on time and problems related with the appraisers including bias and
unaware evaluation and problem related with those of the apprises with lack of preparation and
lack of awareness about the purpose of the evaluation.
Finally respondents were asked about the measures that are taking on by the bank to avoid
appraisal problems. Accordingly some respondents’ replay that make the system complete and
up to date, train employees both appraisers and apprises about how to conduct the performance
appraisal practice in a best way, communicating and discussing the standards of evaluating
criteria with the employees is important to know the effectiveness of that criteria to evaluate
performance of employees. Others say that taking corrective action is essential to take lesson
from past mistakes when evaluating employees and draw lesson to propose best criteria to
evaluate individual’s performance.
27
4.4 Analysis on the role of performance appraisal on the achievement of
organizational goal
Table 4.7 the role of performance appraisal on the achievement of organizational goal
According to the table above 19 (73.06%) of the respondents respond that there is a role that a
performance appraisal plays on the achievement of organizational goal. But the remaining
26.92% respond to no role that performance appraisal plays for the achievement of
organizational goal.
When respondents were asked to list the roles that performance appraisal plays on the
achievement of organizational goal they respond in such a way for employee development,
resource allocation, technological expansion, those employees who evaluated well strive for the
achievement of their organizational goal, have the role of evaluating and know about their
strengths and weakness of the employees, good evaluation can motivate employees and those
motivated employees run to achieve their organizational goals, for job satisfaction. Lastly when
the employees were asked about how their organization conduct or implement the performance
appraisal plan in the bank they respond that first the administrative bodies develop the plan
through posting on the board in the form of announcement then through conducting a formal
meeting the evaluation would accomplished finally the results would either posted on board or
come to offices in the form of mail.
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CHAPTER FIVE
5.1 CONCLUSION
To achieve the objective of the study, the structure review part contribute a lot to generate
knowledge about employees performance evaluation, organizational goal achievement and the
role of performance on the achievement of those organizational goals. It also used to analyze and
interpret the available data
Most of the surveyed population regarding the validation of performance appraisal and
their satisfactions assure that the criteria the bank used to evaluate the performance
employees are valid and as well as satisfactory. Mainly the bank uses the system of
measuring the performance with the standard set in the organization.
Related to focus area for performance appraisal CBE Samara main branch mostly focused
on both the strength and weakness of employees to evaluate performance.
To solve the problems the bank is taking some measures including make the system
complete and up to date, train employees both appraisers and apprises about how to
conduct the performance appraisal practice in a best way, communicating and discussing
the standards of evaluating criteria with the employees and taking some corrective
actions.
Regarding the role of performance appraisal majority of respondents that there is a role
that performance appraisal plays on the achievement of organizational goal like;
evaluating and know about their strengths and weakness of the employees, good
evaluation can motivate employees and those motivated employees run to achieve their
organizational goals, for job satisfaction.
Lastly the plan of performance appraisal in the bank is conducted through; first the
administrative bodies develop the plan through posting on the board in the form of
announcement then through conducting a formal meeting the evaluation would
accomplished finally the results would either posted on board or come to offices in
the form of mail.
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5.2 RECOMMENDATIONS
Based on the results of analysis of data and conclusion the following recommendations
are forwarded:-
The bank is better to focus to eliminate the problem related with implementation
since it is the dual effects of both apprise and appraiser and can affect the bank
hardly.
The bank also recommended to took additional measures to totally erase those
problems
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References
David Ingram, (2009), small business performance appraisal, Walsh University, houson printing
company
Derven, M.G. (1990)The Paradox of. Performance Appraisal. Personnel. Journal volume 69.
Kennedy, Marilyn Moats (1999), The case for performance appraisals; Across the board, 51.
Kurt (2004).Kurt lewin and the planned approach to change: A Re-appraisal. Across the Board,
51.
In J. W. Smither (ED) performance appraisal state of the Art In practice san Francisco: Jossey-
Bass.
Stone, R. J. (2002) Human Resource Management (4 th ed). Milton, Queensland: John Wiley and
sons.
32
APPENDICES
SAMARA UNIVERSITY
This questionnaire is designed to collect data for a research work entitled “The role of
performance appraisal on the achievement of organizational goal in Semara”. The questionnaire
is designed for the completion of BA degree in management. Therefore, your response would
kept confidentially and would not be used for any other purpose. So, you are kindly requested to
give good response for the questions
GENERAL INSTRUCTION:
3. Academic qualification
MA BA Diploma Certificate
Yes No
2. If your answer for item 1 is yes what types of system is your organization use?
33
Paired comparison performance evaluation.
Others____________
3 Do you think that the criteria of employee evaluation in your bank valid and reliable?
Yes No
Yes No
Others _______
6 Do the organization arrange pre-appraisal meeting for appraisers about evaluation system?
Yes No
7 If your answer for item 2 is yes how many times pre-appraisal meeting conducted?
Yes No
9 If your answer for item 4 is yes do you believe that your participation contributes for the achievement of
organizational goal?
10 How often performance appraisal takes place in CBE samara main branch?
34
Once a year Twice a year Three times a year
others _____________
On weakness of employee
On strength of employees
Others_________________
13 Is there any major problem of the bank to implement performance appraisal practice?
Yes No
14 Is there any role that the performance appraisal plays on the achievement of organizational goal?
Yes No
35