Wubit Proposal Wubit

............................ ....................................
1 ....................................
Table of 1.2. Background .................. 5
Contents of the 1.6.Definition of Terms
Acknowledgment Company.............. ........................................
............................. ............................. ........................................
............................. ............................. ........................................
............................. ............................. ....... 5
............................. ....... 3 1.6.1.Conceptual
.....................i 1.3. Statement of Definition of Terms
Acronym and the Problem Human Resource
Abbreviation .............. ............................. Management (HRM)
.................................... ............................. ....................................
.................................... ............................. .5
.................................... ........................ 3 1.7.Significance of the
.... ii 1.4. Research Study...............................
List of Questions............. ........................................
Table .......................... ............................. ........................................
.................................... ............................. ........ 6
.................................... ............................. 1.8. Scope of the Study
.................................... ...................... 4 ........................................
................ ii 1.5.Objectives of ........................................
Abstract...................... the ........................................
.................................... Study ................... ........ 6
.................................... ............................. 1.9. Organization of the
.................................... ............................. Paper ..............................
........................... i ............................. ........................................
CHAPTER 1: ............... 5 ........................................
INTRODUCTION.......... 1.5.1 General ....... 7
.................................... Objective ......... CHAPTER 2:REVIEWOFTHE
.................................... ......................... RELATED
.................................... ......................... LITERATURE ........................
...... 1 ......................... ............................................
1.1. Background of ......................... .................... 8
the .............. 5 2. 1. Meaning and
Study...................... 1.5.2Specific Definition of
................................ Objectives ....... PA ...................................
................................ ......................... ........................................
................................ PA .................... ....................................
... 8 ......................... ........... 21
2.2. Uses of ......................... 2.4.2 The attribute
Performance ......................... approach ....................
Appraisal................ ... 15 ....................................
................................ 2.3.5.Performa ....................................
................................ nceAppraisal ..................... 23
............................. 9 Criteria.............
2.3.PerformanceAp .........................
praisal ......................... 2.4.3The behavioral
System .................... ......................... approach ....................
................................ ............ 15 ....................................
................................ 2.3.6.Factorsth ....................................
....................... 12 atcan Distort .................. 24
2.3.1Approaches Appraisal.......... 2.4.4TheResults
ofPerformance ......................... Approach ....................
Appraisal ............ ......................... ....................................
............................ ......................... ....................................
............................ ........... 16 ....................... 26
..................... 13 2.3.7.FactorsIn 2.4.5. The Quality
2.3.2. fluencingtheEff Approach ....................
Effectiveness of ectiveness of ....................................
PA PA.................... ....................................
systems.............. ......................... ...................... 28
............................ ......................... 2.5.Conceptual Frame
............................ ........... 18 Work ...............................
............................ 2.4.Performancea ........................................
....... 13 ppraisal ........................................
2.3.3 Time to methods............... ...... 29
Conduct ............................. Chapter3:ResearchDesig
Performance ............................. n and Methodology
Appraisal............ ............................. ........................................
............................ ... 21 ........................................
............................ 2.4.1.The ......... 30
.................. 14 comparative 3.1.Research
2.3.4 approach ......... Design .............................
Responsible ......................... ........................................
Body to Conduct ......................... ........................................
..................... 30 age distribution Appraisal ........................
3.2. Target of ........................................
Population.............. respondents..... ..................................... 4
................................ ......................... 1
................................ ......................... 4.5. Potential Problems
................................ ........................ of PA in the
.................. 30 33 Organizations under
3.3.Sampling 4.1.2.Employee Study ..............................
Techniques ............ s’ level of ................................ 45
................................ Education ........ CHAPTER 5: CONCLUSION
................................ ......................... AND
................................ ......................... RECOMMENDATIONS.........
.............. 30 ......................... ............................................
3.4.Method of Data .................. 34 ............................. 50
Analysis.................. 4.1.3.Employee 5.1.
................................ s’ year of Conclusion......................
................................ service ............. ........................................
................................ ......................... ........................................
... 32 ......................... ..................................... 5
3.5. Reliability and ......................... 0
Validity................... .................. 35 5.2.
................................ 4.2. Performance Recommendations .........
................................ Appraisal Practice ........................................
................................ and Process in ........................................
...... 32 Awash ..................................... 5
3.6Ethical international 2
Issues ..................... Bank..................... APPENDIX ...........................
................................ ............................. ............................................
................................ .............. 35 ............................................
................................ 4.3.ObjectivesofP .................................... 54
................... 32 AinAwashinterna Acknowle
4.1.Respondents’ tionalBank ........... ment
Profile ..................... ............................. First and foremost I
................................ ............................. would like to thank
................................ ............................. God for giving me the

strength to go through
................................ .......... 36
this. The study was
...... 33 4.4.Criteriafor
done with a support
4.1.1.Genderand Performance
and efforts of lots of
persons. I would Particularly, I S.C-Share company
like to express express List of Tables
my gratitude and gratitude to my Table 1- Cronbach’s
appreciation for best friends Alpha……………………
the support and Gezahegne, ……………………………
contribution of Tekeba, Helina, …………….30
everyone who Mahder and Table 4.1 Sex of the
assisted me Birehanu, for respondent by Age
during this offering support group………………………
project. I like to while I work …………………...31
offer my thanks on this final Table 4.2 Employees’ level
to my Advisor, thesis. of education with monthly
Worku Acronym salary……………………
Mekonnen Abbreviat ……...32
(PhD), for his AIB-Awash Table 4.3 Employees’ year
guidance and international bank of
fast responses for BARS-Behaviorally service……………………
my queries I anchored rating …………………………….
express my scales ....33
deepest gratitude BOS-Behavioral Table 4.4: grade levels of
to my family and observation scales performance appraisal in
friends for their HR-Human Awash international
support in resource Bank………………………
completing the HRM-Human …34
study. I would resource Table 4.5 Objectives of PA
also like to thank management in Awash international
my colleagues, MBO-Management Bank.....................................
especially for by objective .....................................35
their support on OBM- Table 4.6 Criteria for
doing the final Organizational Performance
thesis. I would behavior Appraisal…………………
also express my modification ……………………..…...39
gratitude to my PA-Performance Table 4.7: Potential
friends and appraisal Problems of PA in the
classmates for PM-Performance Organizations under
their management Study………………….42
encouragement ProMES- Abstract
and support over Productivity researcher has used
the past few measurement and descriptive research
years. evaluation system method. The data
collection tools process and situational influence
were interview the etc and the
and performance remaining is the
questionnaire. standards of problem of the
Total of 191 the bank system. The HR
employees addresses department of the
have been issues such bank takes the
taken as a as quantity, ultimate
sample and the quality, responsibility for
response rate timelines, appraisal and
was 96.33%. cost supervisors take the
The researcher effectiveness lion share by filling
has used and strategic appraisal forms for
proportionate relevance but most of the
stratified it fails to employees. The
sampling address appraisal result in
method. 22, stability or Awash international
151 and 18 consistency Bank used only for
questionnaires or the extent making promotion,
were to which bonus payment and
distributed individuals annual increment
among non- tend to decisions.
clerical, maintain Performance review
clerical and certain level discussion does not
management of take place in the
employees performance case company
respectively. over time. unless an employee
The study Awash comes up with
found out that international grievances.
Awash Bank also Generally the
international faces huge outcome of the
Bank uses PA problems on research confirmed
to measure its that the performance
employees’ job performance appraisal practice of
performance on appraisal Awash international
January and practice, most Bank S.C. has
July. The bank of them are problems and
does not rater’s error weaknesses that
follow formal like recency, need to be
appraisal halo/horns, improved. Since it
needs how simple or determining how
improvement, complex the many employees with
possible business model, specific knowledge
recommendatio effective and skills are needed,
ns are outlined performance attracting potential
at the end of management is employees, choosing
this report. a key employees, teaching
requirement if employees how to
you have any perform their jobs
number of and preparing them
employees for the future,
(Allan H. evaluating their
Church and performance,
Janine rewarding employees,
Waclawski, and creating a
2009). positive work
According to environment. An
the definition organization performs
the basic thing best when all of
for human these practices are
resource managed well. At
management, companies tend to be
which helps the more innovative, have
organization to greater productivity,
CHAPTER 1: be success on and develop a more
INTRODUCTION its objective, is favorable reputation in
1.1. Background performance the community (Noe et
of the Study management. al, 2011).
Performance There are Performance management
management is several is an ongoing process that
one of the important identifies measures,
cornerstones of HRM practices manages, and develops
Human that should the performance of people
Resource support the in the organization. It is
practice in organization’s designed to improve
organizations. No business worker performance over
matter where you strategy: time. Performance
work, how big or analyzing work appraisal is the part of the
small your and designing performance management
organization or jobs, process that identifies,
measures, and knowledge, quality system then after
evaluates the and quantity of performance execution is
employee’s output,initiative, there, make sure the
performance, and leadership abilities, employee strives to
then discusses that supervision, produce the results and
performance with dependability, co- display the behaviors
the employee operation, judgment, agreed on earlier as well
(Aguinis, 2009). versatility and as to work on development
According to health (David A. needs. After that
Armstrong (2009) Decenzo, 1999). performance assessment
performance appraisal Performance comes and here the
defined as it is management is employee and the manager
formal, structured continuous process are responsible for
system of identifying, evaluating the extent to
of measuring, measuring, and which the desired
evaluating job related developing the behaviors have been
behaviors and performance of displayed, and whether
outcomes to discover individuals and the desired results have
reasons of teams and aligning been achieved. Before the
performance performance with final stage there is
and how to perform the strategic goals performance review and
effectively in future of the organization. this stage involves the
so that employee, The process starts meeting between the
organization and from prerequisites, employee and the manager
society at a large will knowledge of the to review their assessments.
benefited. organization’s This meeting is usually
Performance mission and called the appraisal meeting
Appraisals is the strategic goals and or discussion.
assessment of knowledge of the Finally renewal and re-
individual’s job in question contracting stage exist
performance in a (through job although this is identical
systematic way. It is analysis) follows to the performance
adevelopmental tool by performance planning component. The
used for all round planning, to define main difference is that the
development of the the goal for renewal and re-contracting
employee and the employees to have stage uses the
organization. The a thorough insights and information
performance is knowledge of the gained from the other
measured against performance phases. For example, some
such factors as job management of the goals may have
been set consistent with this Since embarking
unrealistically high definition of operation, the Bank has
given an unexpected performance registered remarkable
economic downturn. management. growth. Notwithstanding
This would lead to As per Auguinis global and domestic
setting definition; challenges, Awash Bank
less ambitious goals Performance has exhibited a superior
for the upcoming management operational and financial
review period systems can serve performances among
(Aguinis, 2009).Note six important private banks operating
that the key purposes: in Ethiopia. Awash Bank
components of this Strategic, is currently working
definition are that this Administrative, towards strengthening its
is a continuous Communication, capital base, technological
process and that there Developmental,
capabilities, human
is an alignment Organizational
resources and customer
with strategic goals. If maintenance and
base.
a manager fills a form Documentation.
AIB name derives from
once a year because 1.2.
the Awash River, which is
this is a requirement
extensively used in
of the HR Background of the
Ethiopia for small to
cops, then this is Company
large-scale irrigation
certainly not a Awash Bank,
schemes, hydroelectricity
continuous process. Ethiopia’s
generation and for
Also, evaluating pioneering private
industrial activities. By
employee bank, was
that token, the tagline
performance (that established on
“nurturing like the river”
is, performance November 10,
implies Awash Bank’s
appraisal) without 1994 after the
immense contribution to
clear considerations downfall of the
the country’s socio-
of the extent to socialist regime.
economic development.
which an individual The Bank was
AIB also serve the
is established by 486
population by
contributing to unit founding
encouraging the habit of
and organizational shareholders with
performance and saving, the provision of
a paid-up capital of
about how credit facilities and
Birr 24.2 million
performance will facilitating efficient and
and started
improve in fast payment systems.
banking operations
the future is also not One of the core values of
on Feb. 13, 1995.
Awash international bank
is accessibility. AIB environmental and those targets much before
always strive to social wellbeing of 2025. Awash Bank has
improve the disadvantaged recorded above average
accessibility by strata. The positive banking industry growth
means of different impact of our rates in most key
service delivery activities is clearly financial performance
channels. Currently, indicated in the indicators in the last
we are the most number of decade. Indeed, Awash
accessible private elementary schools Bank has recorded the
bank in the country, built in fastest growth rate
with a large collaboration with among private banks
footprint of NGOs, the health operating in the country.
extensive branch facilities improved We owe this impressive
networks. In and the trees achievement to the
addition to branch planted in different visionary leadership of
networks, we parts of the our Board of Directors,
provide our country and the dedicated management
customers the like. team, committed staff and
convenience of 24/7 AIB success is loyal customers (AIB,
service through measured by 2023).
ATMs, point of sale realization of our 1.3. Statement of the
terminals, internet, organizational Problem.
mobile and agency goals and the Performance appraisal
banking. objectives specified is a formal system of
Corporate social in our strategy. In periodic review and
responsibility lies at this regard, we evaluation of an
the heart of Awash have crafted a 10- individual’s job
Bank’s activities year strategic performance. It occurs
since its roadmap with the constantly in both
establishment. The theme public and private
Bank’s intent is to ‘Transforming AIB: organizations. When it
change the socio- Vision 2025. It has is properly done,
economic situation ambitious financial performance appraisal
of the communities and non-financial provides feedback to
within which it targets. employees that will

improve their
operates by Nevertheless, our
performance and thus
ploughing back performance so far
organizations also
funds to improve indicates that the
benefit by ensuring
education, health Bank is on the
that employees'
and the verge of attaining
effort and and developmental appraisal. Different
ability make decisions are taken. researches indicate that
contribution to The researcher one of the most critical
organizational inspired to fill the inputs for a business is its
success. Failure gap which problem people (human resources)
to have a occurred and from which a firm can
carefully crafted complaints develop sustainable
performance presented by the competitive advantage.
appraisal, can bank’s staff at Based on observations
probably lead to different levels made by the researcher in
failure in the following to the different web sites and
business process bank failed to do more than two years of
itself. Organizational performance experience even if there
performance is the appraisal in a way of are a lot of researches
synergetic sum total improving and that have been done
of the performance of encouraging regarding performance
all employees in the employees due to appraisal practice, there
organization. This evaluators are not be was no research that was
being the fact, aware of the factors done to assess performance
employee that appraisal practice in Awash
performance has to be can cause problems international Bank Share
closely planned, with the process. Company. Therefore in
coached and The banking this study the researcher
appraised to ensure industry in Ethiopia assessed performance
that it is in line with has been appraisal practice in detail
the interest of experiencing an in Awash international
organizations. intense competition Bank Share Company.
However, it seems in the past few 1.4. Research
that performance years. In connection Questions
appraisal is not with this fact, in In order to answer the
given the proper order to gain problem related to this
attention by Awash competitive research paper the
international Bank advantage over researcher will raise some
and is exercised competitors in the questions which related to
periodically more as industry the the statement of problem
a usual practice than organization must and try to give appropriate
as a tool of carefully handle answer.
motivation on the this sensitive issue 1. What are the natures of
basis of which of employee employees’ performance
various administrative performance appraisal practices in
Awash international Bank Share international Bank
Bank S.C.? Company. S.C.
2. What are the major 1.5.2 Specific 1.6. Definition of Terms
problems in the Objectives In this part the researcher
practices of Specific objectives has listed definition of
performance appraisal of the study are the terms from theoretical
of employees? following:- perspective and practical
3. What are the 1. To assess the definition of terms given by
objectives of natures of the researcher.
employees’ employees’ 1.6.1. Conceptual
performance appraisal performance Definition of Terms
in these appraisal practices in Human Resource
organizations? Awash international Management (HRM)
4. What are the Bank S.C. It is utilization of
criteria/instruments 2. To examine the human resources to
used to conduct major problems in achieve Organizational
performance the practices of objectives. Human
appraisal? performance resource
Assessment of appraisal of management (HRM) is a
Employee’s employees. subset of the study of
performance 3. To assess the management that focuses
Appraisal Practice: objectives that on how to attract, hire,
The Case of Awash Awash international train, motivate, and
international Bank Bank S.C. use to maintain employees.
S.C evaluate an (Mandy et al, 1999).
1.5. Objectives of the employees' Performance Appraisal
Study performance. (PA) - is a method of
At the end of this 4. To assess evaluating the behavior of
study the researcher the employees in the work
has planned to criteria/instru spot, normally including
achieve the following ment used to both quantitative and
general and specific conduct qualitative aspects of
objectives. performance job-performance (Rao,
1.5.1 General appraisal 2004). Performance
Objective capability of Management (PM) - is a
The major objective measuring the continuous process of
of the study is to employees’ identifying, measuring, and
assess performance true developing the
appraisal practice in performance performance of individuals
Awash international in Awash and teams and aligning
performance with the up-to four) like as theory. Inform the
strategic goals of the janitors, bank any gaps in its
organization (Smither messengers, practice of
W.James, 2009). securities, cash performance appraisal
1.6.2 Operational office boys/girls and help to make the
Definition of Terms etc. necessary adjustment.
Managerial 1.7. Significance of Helps employees of
Employees the Study the bank to know
Employees of the This paper tried about how they are
bank that work on to cover the evaluated and to
the position that performance identify purposes of
starts from appraisal of the the performance
assistant branch organization. appraisal of the bank
manager, branch The findings of and. The study also
manager, this study serves as a criterion
department expected to for the partial
manager up to the provide a lot of fulfillment of Master
president. advantage for of Arts degree in the
Clerical different field of Human
employees- are organs. The Resource
employees of major benefits Management.
the bank that of this study 1.8. Scope of the Study
work starting are the The study is limited to
from grade following; it the specific company
V(five) like serves as a (Awash international
Customer stepping stone Bank S.C) which only
relation officer I for those who on employees who are
and II, want to make working at Addis
secretaries and further study on Ababa branches and
clerks up to this topic. Help Head office and
positions below students in the branches whose
Accountant or field and experience is at least
assistant branch practitioners as more than one year.
managers. a reference The scope of this paper
Non clerical material to get will not include other
employees- are deep insight elements of the
employees of the with regard to organization’s human
bank that work on performance resource management
positions from appraisal programs and will not
grade I-IV (one practice as well cover other elements of
the company’s Definition of PA core values; enabling
overall business Before defining expectations to be defined
practice. performance and agreed in terms of role
1.9. Organization of appraisal one has responsibilities and
the Paper to know what accountabilities (expected
This research has Performance to do), skills (expected to
been contained management is, have) and behaviors
T h r e e chapters. therefore according (expected to be); providing
The first chapter to Armstrong opportunities for
deals with (2009), Performance individuals to identify their
background of management is a own goals and develop
the study, systematic process their skills and
background of for improving competencies. (Armstrong,
the company, organizational 2009) Performance
statement of the performance by Appraisal is defined by
problem, developing the different scholars of
objectives of the performance of human resource
study individuals and management in different
significance of teams. It time. Therefore, some
the study, scope is a means of getting theories of those scholars
and limitation of better results by have been discussed as
the study and understanding and follows.
organization of managing According to Longenecker,
the paper. The performance within (1997) performance
second chapter an agreed appraisal is two rather
covers the framework of simple words that often
review of planned goals, arouse a raft of strong
literature in the standards and reactions, emotions, and
area of study. competency opinions, when brought
The third requirements. together in the
chapter discuss Performance organizational context of a
about the management is formal appraisal procedure.
methodology concerned with: Most organizations
employed by the aligning individual throughout the world
study. objectives to regardless of whether they
CHAPTER 2: organizational are large or small, public
REVIEW OF THE objectives and or private, service or
RELATED encouraging manufacturing, use
LITERATURE individuals to performance appraisal,
2. 1. Meaning and uphold corporate with varying degrees of
success, as a tool to the job content, job Furthermore, (Gomez-
achieve a variety of requirement and Mejia et.al.), stated that
human resource personal behavior in “performance appraisal as
management the position”. the process of
objectives. Therefore, HR identification,
Organizations use development, begins measurement, and
different tools and with the orientation management of human
have a number of of new employees, performance in
goals for HR training and organization.” Therefore, to
performance development, and make these effective
appraisals, often also includes the organizations should
resulting in some necessary develop a system that
confusion as to the information to serve as a tool to
true purpose of accommodate performance appraisal
performance appraisal technological process.
systems. However, at changes. 2.2. Uses of Performance
its core, the Encouraging Appraisal
performance appraisal development of all The use of PA is
process allows employees elaborated by Mullins
an organization to including (1996) as a formalized and
measure and supervisors and systematic appraisal
evaluate an managers is scheme can also form the
individual 8 basis of a review of
employee’s behavior necessary to prepare financial rewards and
and accomplishments organizations for planned career
over a specific future challenges. progression.
period of time Career planning Performance appraisal is
(Wiese and Buckley, identifies paths and therefore, a crucial
1998). Yong (1996) activities for activity of the personnel
defines performance individual function and the
appraisal as “an employees as they management of human
evaluation and develop within the resources. Also, the use of
grading exercise organization. PA discussed by
undertaken by an Assessing how well Henenman (1996,) as PA
organization on all employees are is used to identify the
its employees either doing their jobs is dimension of performance,
periodically or the focus of and also to set standards of
annually, on the performance contributions for each
outcomes of appraisal (Mathis performance dimensions
performance based on and Jackson1997). step.
And also Mondy, Noe Different organization (Coutts and
and Premeaux (1999) institutions/ Schneider, 2004).
stated as: “virtually organizations use According to Armstrong
every American PA for different (2000), a PA function is a
business firm is purposes as different continuous and
affected by global scholars stated. The evolutionary process in
competition. For following are some which performance
survival and success, Examples: improves over time. It
it is imperative that “Managers often provides the basis for
these organizations believe that the regular and frequent
remain competitive. most significant dialogues between
Continued PA outcome managers and individuals
competence can only involves the about performance and
be maintained contributions development needs based
ceaseless employees make to on feedback and self-
development of the organizations assessment. It is mainly
human resources’. A goal attainment. concerned with individual
potential mechanism Higher performing performance but it can
for this growth is employee’s also be applied to teams.
employee “PA”. successfully meets According to Gomez-
Mathis and Jackson their responsibilities Mejia et.al (2001),
(1997) finally and thereby make a Organizations usually
discussed about the contribution to the conduct appraisals for
role (use) of PA as goals of the administrative and/or
follows. “PA has two organization. developmental purposes.
roles in organizations. Mullins (1996). Performance appraisals are
One role is to Performance used administratively
measure performance appraisal is a vital whenever they are the
for rewarding or component of a basis for a decision about
otherwise making broader set of the employee’s work
administrative human resource conditions including
decisions about practices; it is the promotions, termination
employees. mechanism for and rewards. Development
Promotions or layoffs evaluating the uses of appraisal which
might hinge on these extent to which are geared toward
ratings making them each employee’s improving employees‟
difficult at times. day-to-day performance
Another role is performance is strengthening their job
development of linked to the goals skills, including
individual potential. established by the counseling employees on
effective work e) Compensation Creating a learning
behaviors and sending programs experience that motivates
them for training. The f) Internal employee staff to develop
major functions of PA relation themselves and improve
are to give employees g) Assessment of their performance. Finally,
feedback on employee potential Henenman et al (1996)
performance, to The system classified the purpose of
identify the involves several PA into three
employees‟ steps, which can be conditions:
developmental needs considered as Administration Decisions:
to make promotion continuous, those are for employee
and reward decisions, however periodic. promotion, choosing
to make demotion Performance employee, and making
and termination appraisal objectives salary increments
decisions and to can be classified in recommendations. And
develop information a number of ways. also these scholars
about the One of the best presented this for
organizations known administrative
selection and classifications was purpose which helps to
placement decisions, produced by place employees in
as Nelson and et al. McGregor (1987) positions where their
(1997) and Mondy, who grouped the abilities can be best use
Noe and Premeaux objectives as or helpful in assigning
(1999) discuss the follows:- employees to appropriate
PA purpose as Administration: future positions. Mathis
performance Providing an and Jackson (1997)
appraisal data are orderly way of moreover state the
potentially valuable determining administrative aspect of
for use in virtually promotions, PA as follows: PA system
every human resource transfers and salary is often the link between
functional areas increases. the reward employees hope
such as: Informative: to receive and their
a) Human Resource Supplying data to productivity. Decisions on
Planning management on the promotion, termination
b) Recruitment and performance of layoff, and transfer
selection subordinates and to assignments are some of
c) Training and the the administrative use of
development individual on his or PA that are very important
d) Career planning her performance. to employees. When
and development Motivational: organizations terminate,
promote or pay individual behavior be applied to teams.
people differently, rather than to The emphasis is on
PAs are necessary as compare individual development,
they are a crucial as in the case of although performance
defense if employees administrative users management is an
sue over such of PA. important part of the
decisions. Armstrong reward system
Employee feedback (2009) also through the provision
and development: is stated of feedback and
another purpose of employees’ recognition and the
PA is to employees feedback and identification of
know where they development as opportunities for
stand relative to functions as a growth. It may be
performance continuous and associated
objectives and evolutionary with performance or
organization process in contribution related pay
expectations. As which but its developmental
Mathis and Jackson performance aspects are much more
(1997) also stated improves important.
that PA can be overtime. It Evaluation of policies
primary source of provides the and programs
information and basis for implemented: are another
feedback for regular and method of PA to
employees, which is frequent influence
the key for their dialogues work behavior. That
future development. between means, one can observe
When supervisors managers and the purpose of PA keeps
identify the individuals determinant effect and
weakness, potentials, about needs to be well known
and training needs performance and done for the
of employees about and effectiveness of the
their progress, discuss development organization task and
what skills they need needs based on employee
to develop and feedback and relative stand on his/her
workout development self-assessment. job. Mondy, Noe and
plans. Here the main It is mainly Premeaux (1999) stated
purpose of concerned with that the purpose of PA, “A
developmental individual system which is properly
feedback lies to performance designed and
change or reinforce but it can also communicated can help
to achieve the performance appraisal process is
organizational appraisal process is measuring
objectives and also identifying what is employees‟
increases employee to be measured. This performance.
performance. process seems fairly Measuring employee
Actually, PA data are simple at first performance involves
potentially useful for glance. In practice, a number to reflect an
use in every human however, it can be employee’s
resource function quite complicated. performance on the
area such as in Identification of identified
every human performance characteristics or
resource planning dimensions is the dimensions.
and important first step Technically numbers
development of in the appraisal are not mandatory.
employee potential. process. If a Label such as
2.3. Performance significant “Excellent”, “Good”,
Appraisal System dimension is “average” and “Poor
Aguinis, (2005) missed, employee might be used instead.
indicated that morale is likely to 2.3.1 Approaches of
performance suffer because Performance Appraisal
management system employee who do Numerous techniques for
usually include well on that measuring performance
measures both dimension is have been developed over
behaviors (what an missed, the years. According to
employee does) and employee will Gomez-Mejia, (2001),
results (the outcomes not be Techniques of measuring
of an employee’s recognized or performance of employees
behavior). In rewarded. If an involve wide array
order to realize the irrelevant or of appraisal formats from
purpose of trivial which to choose. Here we
performance dimension is discuss the formats that
appraisal, included, are most common
organizations should employees may legally defensible. These
carefully design perceive he formats can be classified
appraisal system and whole appraisal in two ways: (1) the type
implement process as of judgment that is
accordingly. meaningless. required (relative or
According to Gomez- The Second absolute), and (2) the focus
Mejia (2001), the first step in of the measure (trait,
step in performance behavior, or outcome). PA
roots in the early 20th different method, control how to implement
century and its during application. effective PA system.
existence consists of Management by Nelson and et.al (1997)
different approaches objectives discusses that an effective
in its history. The approach: focuses PA system has about five
three approaches that on the product of main characteristics.
deal with PA are one’s efforts. It is  Validity: Comes
presented below. the most from capturing multiple
(Henenman et.al1 common format for dimensions of person’
996). the results approach. job performance.
The traditional trait Also, it contains  Reliability:
rating scale different methods comes from
approach: involves during application. capturing
rating an individual’s (Henenman et al. evaluation
personal traits or 1996) from multiple
characteristics. 2.3.2. Effectiveness sources and at
Commonly assessed of PA systems different times
traits are: initiation, To meet the vision, over the course
decisiveness and mission, objective, of the
dependability. goals and targets of evaluation
Although the trait an organization or period.
approach is widely an institution,  Responsiveness:
used by managers and everyone should set allows the person being
it is generally clear and precise evaluated some input in
considered by experts methods of PA to the final outcome.
to be the weakest. It system objectivity.  Flexibility: it
contains different If so, effective opens to
method during output of modification based
application. PA system leads an on new information
Behaviorally organization to such as federal
anchored rating prosper specially, in requirements.
scale approach: is the environment  Equitableness:
done on job –by- where formal results in fair
job basis. The steps learning evaluations against
in and other similar established
developing a activities are held. performance criteria,
behavioral anchored As a result of, every regardless of
rating scale are both employee’s individual
time consuming and awareness leads to differences. Again
rigorous. It contains set and clear and very
important that administration activity of
statements, managers an organization, PA also
about the and has its own time to be
effectiveness employees conducted.
of PA system must Everyone in the
are expressed understand organization has his/her
by Mathis and the own time to conduct PA
Jackson purposes of depending on their own
(1997) as PA system. philosophy of time period
follows. An So, (Mullins 1996) with the
understanding consistent majority of schemes, staff
what an with the receives an annual
appraisal is strategic appraisal and for many
supposed to mission of organizations this may be
do is very the sufficient. Also more
critical organization frequent appraisals may
whichever of , useful as be appropriate for new
the method is an members of staff, those
used. It administrati recently promoted or
usually works ve tool, appointed to a new
if PA is used legal as position
to develop development or for those whose past
employees as tool, as performance has not been
a source. documentati up to the required
When on of standard. And also Mathis
management employees‟ and Jackson (1997)
uses appraisal performance broadly explained as
as a are points follows: First an informal
punishment or of chances appraisal is conducted
when raters to be whenever the supervisor
fail to obtained if feels it is necessary. The
understand its and only if day-to-day working
limitations is PA is relationships between a
fails. What practiced manager and an
and properly. employee performance
whichever the 2.3.3 Time to have to be judged. This
appraisal Conduct judgment is
method is Performance communicated
used, the Appraisal through conversation on
main point is In any the job or over coffee or
by on-the-sport between the HR appraisals should be
examination of a unit and the conducted
particular appraising manager whenever a manager feels
piece of work. becomes more they are desirable.
Informal appraisal is important. 2.3.4 Responsible Body to
especially appropriate Therefore, Conduct PA
when time is an systematic PA is the most
issue. The longer appraisals significant activity of
feedback is delayed typically are an organization. If the
the less likely it is conducted once or right persons are not
motivating behavior twice a year. assigned to process
change. Frequent Appraisals most PA activities, then
information often are conducted the strategic
feedback of once a year, objectives of
employee can also usually near the organization is
avoid surprises (and employee’s seriously affected.
therefore problems) anniversary date. Tosi, Rossi and
later when the formal For new employees, Carroll (1986) said
evaluation is an appraisal for 90 (wrote) as follows:
communicated. days after “Performance
Second, a systematic employment, again evaluation by one’s
appraisal is used at six months, and superior, groups of
when the contact annually these after management at higher
between manager is common timing. levels subordinated or
and employee is This regular time peers. It has been
formalized and a interval is a feature department and for
system is established of formal appraisals certain purposes, self-
to report managerial and distinguishes ratings are used.”
impressions and them from informal Additionally, Mathis
observations on appraisals. Both and Jackson, (1997),
employee employees and also wrote as follows:
performance. managers are aware Again performance
Although informal that performance appraisal can be done
appraisal is useful, it will be reviewed on by any one of familiar
should not take the a regular basis, and with the performance
place of they of individual
formal appraisal. can plan for employees.
When a formalized or performance Possibilities are
systematic appraisal is discussions. In including the
used, the interface addition, informal following.
 m
S p m
u l e
p o m
e y b
r e e
v e r
i s
s w
o h w
r o h
s o
r
w a r
h t a
o e t
e
r t
a h e
t e a
e i c
r h
t
h s o
e u t
i p h
r e e
r r
e v
m i 
p s O
l o u
o r t
y s s
e i
e  d
s T e
e r
 a
E m s
o c or technical
u o competencies);
r r behavior in the job as
c e it affects performance
e (competencies); the
s ( degree to which
 3 behavior upholds the
E 6 core values of the
m 0 organization; day-to-
p ˚ day effectiveness. As
l ) Mathis and Jackson
o (1997) stressed,
y a performance criteria
e p are standards
e p commonly used for
r testing or measuring
s a performances. Criteria
e i for evaluating job
l s performances can be
f a classified as trait-
- l based, behavioral
a 2.3.5. Performance based, or results based.
p Appraisal Criteria Trait based criterion:
p According to identifies a subjective
r Armstrong Character trait such as
a (2009), the “pleasant personality”,
i criteria for “initiative,” or “creativity
s reviewing and has little to do with
a performance the specific job. Such
l should be traits tend to be
s balanced ambiguous, and courts have
between: held that evaluation based
 achievements in on traits such as
M relation to “adaptability” and general
u objectives; the demeanor” are two vague
l level of to use as the basis for
t knowledge and performance-based HR
i skills possessed decisions.
- and applied Behavior-based criterion:
s (competences focus on specific behaviors
that lead to job Managers use and utility of
success. deficient or performance appraisal
Results-based contaminated systems. Biases in
criterion: look at criteria for performance ratings
what the employee measuring manifest themselves
has done or performance much in many forms.
accomplished. For more than they According to Ivancevich,
some jobs should. (1989), the use of ratings
where measurement is 2.3.6. Factors that assumes that the rater is
easy and appropriate, can Distort reasonably objective
a result based Appraisal and accurate. However, in
approach works very These errors can reality, raters’ memories
well. Generally, emanate from are quite imperfect, and
criteria are relevant system designed raters subscribe to
when they measure and operating their own sets of likes,
employees on the problems, raters dislikes, and expectations
most important problems, and about people, which may or
aspects of ratees problem in may not be valid.
their jobs. But there performance 2.3.6.2. Problems
are also problems appraisal. Emanating from the
with these criteria. 2.3.6.1. Problems System of PA
Mathis and Jackson emanating from the Problems can be emanate
(1997) again said, Raters from the system of
jobs usually include Raters have their appraisal which involves
many duties and own rose-colored the objective of the
tasks, and so glasses with which appraisal it wants to serve,
measuring they “objectively” administrations system,
performance usually view their forms used and procedure
requires more subordinates. used to make up the
than one dimension. These biases system.
If the performance produce rating According to Michael Beer
criteria leave out errors, or deviations (1987) many of the
some important job between the “true” problems in performance
duties, they are rating an employee appraisal stem from the
deficient. If some deserves appraisal system itself, the
irrelevant criteria are and the actual objectives it is intended to
included in the rating assigned. serve, the administrative
criteria, the criteria Rating errors system in which it
are said to be reduce the is embedded, and the forms
contaminated. reliability, validity, and procedures that make
up the system. (As requires a clearly defined
cited by Zelalem strong measurement system,
Bayisa commitment and a multiple rater
2007) from top group to perform the
According to Michael management. appraisal.
Beer (1987), the The system 2.3.6.3. Problems
problems of should provide Emanating from the
performance a link between Ratees
evolution is related to employee The problems of
the forms performance performance evaluation
and procedures that and can also be attributed to
make up the organizational the ratees, and involves
performance goals through the
appraisal system. The individualized instance of; their attempt to
form used to record objectives and create unnecessary
the performance impression and work area
performance of the criteria. They ingratiation is one of the
employees is blamed further argued major problems with
if it is cumbersome, that the system respect to ratees.
not customized and if should help to According to Mark Cook
employees create a (1995), while discussing
did not participate in motivated and impression management,
the design of the form committed organizations occasionally
of evolution. (ibid) workforce. exist in which
According to Deborah (ibid) subordinates gain credit
F.B and Brain H. The system for
Kleiner (1997) should have a pushing ahead with
organizations need to framework to management plans that
have a systematic provide are absurdly wrong, in
framework to ensure appropriate pursuit of aims which are
that performance training for completely pointless,
appraisal is “fair” supervisors, stifling criticism either of
and “consistent”. In raters, and purpose or of method with
their study of employees, a cries of “commitment”
“designing effective system for and “loyalty”.
performance appraisal frequent review Ingratiation English has a
system”, they of rich vocabulary to
conclude that that performance, describe workplace
designing an effective accurate record ingratiators
appraisal system keeping, a including words listed in
dictionaries as “not favor. (ibid) ongoing relationship
in polite use” which 2.3.7. Factors between boss and
implies that the Influencing the subordinate will have
behavior is Effectiveness of PA major influence on the
widely recognized, PA can be appraisal process and
but not widely influenced by outcome. Third, the
popular. Research three major interview process
suggests however that factors itself, the quality of
ingratiation does not appraisal communication
always succeed in system, between boss and
obtaining good subordinate subordinate, can help
performance ratings. and supervisor to minimize problems
Unsubtle ingratiation relationship, of performance
may sometimes be and the appraisal. (ibid)
too blatant to be interview The appraisal
credible, or palatable. process. system: In order to
Ingratiation and other Michael Beer solve the problem of
impression (1987) has defensiveness of ratees
management discussed these that resulted as a result
techniques also three factors of conflict in the
contaminate appraisal than can goals of performance
ratings, and influence appraisal, raters
make them less appraisal should conduct two
accurate reflectors of outcomes. First, separate performance
true worth to the the appraisal appraisal interviews
organization. Besides system can be one focused on
undermining designed to evaluation and the
performance minimize the other coaching and
appraisal, and negative development. The
selection research, dynamics other solution is
this tends to be bad causing choosing appropriate
for morale, when problems of performance data. For
staff see performance instance, using
persons whose true appraisal. The behavioral rating
performance is poor, supervisor often scales and behavior
but who are good at has only related appraisal
ingratiating marginal techniques may solve
themselves, get merit control over this problem.
awards, or promotion, these matters. Supervisor-subordinate
or other marks of Second, the relations: The quality of
the appraisal process important influences destiny.
is dependent on the on boss-subordinate According to Michael
nature of the day-to- relationship. If Beer (1987) there are
day boss subordinate the organization three types of
relationship. In an culture encourages appraisal interviews
effective relationship, participative each with distinct
the supervisor management, open specific objectives.
is providing feedback communication, The differences are
and coaching on an supportiveness important in
ongoing basis. Thus, accompanied by determining the skills
the appraisal high standards of required by the
interview is merely a performance, a supervisor and the
review of the issues concern for outcomes for
that have already employees, and employee motivations
been discussed. On egalitarianism, it is and supervisor-
the other hand, if a more likely that subordinate
relationship of these values will relationships. The
mutual trust and characterize. three methods are
supportiveness exists, The appraisal termed as: tell-and-
subordinates are interview: The best sell, tell-and-listen,
more apt to be techniques for and problem solving.
open in discussing conducting a The tell and sell method:
performance problems particular appraisal The aim of this method is
and less defensive in interview to communicate
response to negative depend on the mix evaluations to employees
feedback. of objectives as
There are no easy pursued and the accurately as possible. The
techniques for characteristics of fairness of the evaluation
changing a boss the subordinate. is assumed and the manger
subordinate Employees seeks (1) to let
relationship. It is differ in their age, the subordinate know how
highly affected by experience, they are doing, (2) to gain
the context with in sensitivity about their acceptance of the
which the boss and the negative evaluation, and (3) to
subordinate work, the feedback, attitude get them to follow the
broader culture of the towards the manger’s plan for
organization, supervisor, and improvement. In the
and the climate of desire for the interview, supervisors are
the primary work influence and in
group will have control over their complete control; they
do most of the process of receiving people, and events.
talking. They information and According to Armstrong
attempt to influence making (2009), Perception is the
and persuade sense of the world intuitive understanding,
subordinates that their around us. It recognition and
observation and involves deciding interpretation of things and
recommendations are which information events. Behavior will be
valid. Clearly, this to notice, how to influenced by the
method leads to categorize perceptions of individuals
defensiveness, lack of this information, and about the situation they are
trust, lack of open how to interpret in. The term “psychological
communication and within the climate’’ has been coined
exchange of invalid framework of our to describe how
information and existing knowledge. perceptions give the
it can hurt supervisor- Perceptual situation psychological
subordinates relations. process is the significance and meaning.
The tell and listen dynamics of Therefore, the perception
interview: The selecting, of employee about their
purpose of this organizing, and performance appraisal
interview method is interpreting external depends upon their
to communicate the stimuli. The understanding of
evaluation to the perceptual themselves and
subordinate and then process begins interpretation of their own.
let him /her respond when environmental Perception about
to it. This method is stimuli are received the Performance
apt to result in through our senses. Appraisal System
better understanding Most stimuli are Fairness and
between supervisor screened out; the Objectiveness:
and subordinate than rest are organized Performance appraisal
the -tell and sell and interpreted should be fair and
method. (ibid) based on various objective oriented, if
Employees’ information- it is for aligning
perception about the processing employees to
performance activities. The organizational goals
appraisal in their resulting and employees‟
organizations: perceptions development. Fairness
According to influence our is emphasized more
McShane and emotions and specifically; trust will
Glinow, (2000), behavior toward be developed if
Perception is the those objects, management acts
fairly, equitably procedural review of meeting in
and consistently, justice. One which an employee is
if a policy of antecedent to informed of a tentative
transparency is distributive and assessment of his/her
implemented, if procedural performance and
intentions and justice of employees are permitted to
the reasons for performance, challenge the assessment;
proposals or appraisal is and 3) Judgment
decisions are social justice based on evidence that
communicated between groups requires the organization
both to and employees. to apply performance
employees When we do standards consistently
generally and to not compensate across employees (Ibid).
individuals, if employees 2.4. Performance
there is full fairly, by appraisal methods
involvement in basing their We can manage
developing compensation performance by
reward on work results, focusing on
processes, and then the employee attributes,
if mutual employees behaviors, or results.
expectations are waste their time In addition, we can
agreed through rather on measure performance
performance getting the in a relative way,
management. desired levels making overall
Failure to meet of comparisons among
these criteria, compensation individuals'
wholly or in part, and not on performance. Finally
is perhaps the improving we can develop a
main reason why their work. performance
so may many According to measurement system
performances Susan, (1995), that incorporates some
related pay performance variety of the
schemes have not evaluation preceding measures,
lived up to system is fair as evidenced by the
expectations. The if: 1) It quality approach to
starting point is provides measuring
to understand and adequate performance (Noe et
apply the notice; 2) fair al,2008).
principles of hearing which 2.4.1. The comparative
distributive and requires a formal approach
The comparative poorest certain percentage of
approach to performer (or employees into
performance best to worst). predetermined
measurement Alternation categories. Such
requires the ranking, on the performance ranking
rater to other hand, takes several forms.
compare an consists of a Most commonly,
individual's manager employees are
performance with looking at a list grouped into three,
that of others. of employees, four, or five categories
This approach deciding who usually of unequal size
usually uses the best indicating the best
some overall employee is, workers, the worst
assessment of an and crossing workers, and one or
individual's that person's more categories in
performance or name off the between. Forced
worth and seeks list. From the distribution method
to develop some remaining forces managers to
ranking on the names, the distinguish between
individuals manager employees, which
within a work decides who avoids an entitlement
group. At least the worst mentality for pay,
three techniques employee is and rewards, and
fall under the crosses that developmental
comparative name off the list activities. Even if a
approach: and so forth manager's employees
ranking, forced (Noe et al are all above average
distribution, and 2008). performers, the
paired Forced Distribution manager is forced to
comparison (Noe The forced rate some employees
et al 2008). distribution as "Not
Ranking method also Acceptable"(Noe et al
Simple ranking uses a ranking 2008).
requires format, but Paired comparison
managers to employees are The paired
rank employees ranked in comparison method
within their groups. This requires managers to
departments technique compare every
from highest requires the employee with every
performer to manager to put other employee in the
work group, central extent to which
giving an tendency, individuals'
employee a score and strictness. performance support
of 1 every time This is the strategy, this
he or she is especially link is seldom made
considered the valuable if explicit. In addition,
higher performer. the results of because of the
Once all the pairs the measures subjective nature of
have been are to be the ratings, their
compared, the used in actual validity and
manager making reliability depend
computes the administrative on the raters
number of times decisions themselves. Some firms
each employee such as pay use multiple evaluators to
received the raises and reduce the biases of any
favorable promotions. individual, but most
decision (that is, In addition, do not. At best, we could
counts up the such systems conclude that their
points), and this are relatively reliability and validity are
becomes the easy to modest (Ibid).
employee's develop and 2.4.2 The attribute
performance in most cases approach
score (Ibid). easy to use; The attribute
Evaluating the thus, they are approach to
comparative often performance
approach accepted by management focuses
The users (Ibid). on the extent to
comparative One problem which individuals
approach to with these have certain
performance techniques, attributes
management is however, is (characteristics or
an effective their common traits) believed
tool in failure to be desirable for the
differentiating linked to the company's success.
employee strategic goals The techniques that
performance; of the use this approach
it virtually organization. define a set of
eliminates Although traits-such as
problems of raters can initiative, leadership,
leniency, evaluate the and competitiveness-
and evaluate consisted of These statements are
individuals on supervisors' then mixed with the
them (Ibid). rating statements from other
Graphic rating scales subordinates on dimensions on the
The most a number of actual rating
common form undefined instrument. Note that
that the attribute dimensions mixed-standard scales
approach to such as volume were originally
performance of work, developed as trait-
management quantity of oriented scales.
takes is the work, job However, this same
graphic rating knowledge, technique has been
scale. List of dependability, applied to instruments
traits is evaluated and cooperation using behavioral rather
by a five-points (Noe et al, than trait-oriented
(or some other 2008). statements as a means
number of Mixed-standard of reducing rating
points) rating scales errors in performance
scale. The Mixed-standard appraisal (Noe et al,
manager scales were 2008).
considers one developed to Evaluating the attribute
employee at a get around approach
time, circling the some of the Attribute-based
number that problems with performance methods
signifies how graphic rating are the most popular
much of that trait scales. To methods in
the individual create a mixed- organizations. They
has. Graphic standard scale, are quite easy to
rating scales can we define the develop and are
provide a number relevant generalizable across a
of different points performance variety of jobs,
(a discrete scale) dimensions and strategies, and
or a continuum then develop organizations.
along which the statements In addition, if much
rater simply representing attention is devoted to
places a check good, average, identifying those attributes
mark (a and poor relevant to job performance
continuous performance and carefully defining
scale). These along each them on the rating
appraisals dimension. instrument, they can be as
reliable and valid as ratings and rankings. effective and
more The result is that ineffective
elaborate both performance on the
measurement the validity and part of each
techniques (Noe et reliability of these employee. However,
al, 2008). However, methods are usually many managers resist
these techniques fall low (Noe et al, having to keep a daily
short on 2008). or weekly log of their
several of the criteria 2.4.3 The employees' behavior. It
for effective behavioral is also often difficult to
performance approach compare employees
management. There is The behavioral because each incident
usually little approach to is specific to that
congruence performance individual (Noe et al,
between the management 2008).
techniques and the attempts to define Behaviorally anchored
company's strategy. the behaviors and rating scales
These methods are employee must A behaviorally
used because of the exhibit to be anchored rating scale
ease effective in the (BARS) builds on
in developing them job. The various the critical incidents
and because the techniques approach. It is
same method (list of define those designed to
traits, comparisons) behaviors and specifically define
is generalizable then require performance
across any managers to dimensions by
organization and any assess the extent developing behavioral
strategy. In addition, to which anchors associated
these methods employees with different levels
usually have very exhibit them of performance (Noe
vague (Noe 2008). et al, 2008). To
performance Critical Incidents develop a BARS, we
standards that are The critical first gather a large
open to different incidents number of critical
interpretations by approach incidents that represent
different raters. requires effective and
Because of managers to ineffective
this, different raters keep a record performance on the
often provide of specific job. These incidents
extremely different examples of are classified into
performance critical that rather than
dimensions, and incidents. assessing which
the ones that However, a behavior best reflects
experts agree BOS differs an individual's
clearly represent from BARS in performance, a BOS
a particular level two basic ways. requires managers to
of performance First, rather rotate the frequency
are used as than discarding with which the
behavioral a large number employee has
examples (or of the behaviors exhibited each
anchors) to guide that exemplify behavior during the
the rater. The effective or rating period. These
manger's task is ineffective ratings are then
to consider an performance, a averaged to compute
employee's BOS uses an overall
performance many of them performance rating
along each to more (Ibid). A direct
dimension and specifically comparison of BOS,
determine where define all the BARS, and graphic
on the dimension behaviors that rating scales found
the employee's are necessary that both managers
performance fits for effective and employees prefer
using the performance BOS for
behavioral (or that would differentiating good
anchors as be considered from poor
guides. This ineffective performers,
rating becomes performance). maintaining
the employee's Instead of objectivity, providing
score of that using, say, 4 feedback, suggesting
dimension (Noe behaviors to training needs, and
et al, 2008). define 4 levels being easy to use
Behavioral of performance among managers and
observation scales on a particular subordinates (Ibid).
A behavioral dimension, a Organizational behavior
observation scale BOS may use modification
(BOS) is a 15 behaviors Organizational
variation of (Noe et al, behavior modification
BARS. Like a 2008).. A (OBM) entails
BARS, a BOS is second managing the
developed from difference is behavior of
employees employees observe the
through a formal should exhibit individuals' behavior
system of those ehaviors. and evaluate their
behavioral Finally, skill or potential as
feedback and feedback and managers (Noe et al
reinforcement. reinforcement 2008).
This system are provided to Evaluation of the
builds on the employees (Noe behavioral approach
behaviorist view et al 2008). The behavioral
of motivation, Assessment centers approach can be very
which holds that Although effective. It can link
individuals' assessment the company's strategy
future behavior centers are to the specific
is determined by usually used behavior necessary for
past behaviors for selection implementing that
that have been and promotion strategy. It provides
positively decisions, specific guidance and
reinforced. The they have also feedback for
techniques vary, been used as employees about the
but most have a way of performance expected
four components. measuring of them. Most of the
First, they define managerial techniques rely on in-
a set of key performance. depth job analysis, so
behaviors At an the behaviors that are
necessary for job assessment identified and
performance. center, measured are valid.
Second, they use individuals Because those who
a measurement usually will use the system
system to assess perform a develop the measures,
whether these number of the acceptability is
behaviors are simulated also often high.
exhibited. Third tasks, such as Finally, with a
the manager or leaderless substantial investment
consultant group in training raters, the
informs discussions, techniques are
employees of in-basket reasonably reliable
those behaviors, management, (Noe et al, 2008). The
perhaps even and role major weaknesses
setting goals for playing. have to do with the
how often the Assessors organizational context
of the system. from the process consisted of
Although the measurement having all the
behavioral process and that subordinate managers
approach can be results are the write a letter to their
closely tied to a closest superiors, detailing
company's indicator of what their performance
strategy, the one's goals were for the
behaviors and contribution to coming year and how
measures must organizational they planned to
be constantly effectiveness. achieve them(Noe et al
monitored and The researcher 2008).
revised to ensure examined two In an MBO system, the top
that they are still performance management team first
linked to the management defines the company's
strategic focus. systems that strategic goals for the
This approach use results: coming year. These goals
also assumes management by are passed on to the next
that there is objective and layer of management, and
"one best way" the productivity these managers
to do the job measurement define the goals they must
and that the and evaluation achieve for the company to
behaviors that system. reach its goals. This goal-
constitute this Management by setting process
best way can be objectives cascades down the
identified. (Noe Management by organization so that all
et al 2008). objectives managers set goals that
2.4.4 The Results (MBO) is help the company achieve
Approach popular in both its
As per Noe et al private and goals. These goals are used
(2008) the results public as the standards by which
approach focuses organizations. an individual's performance
on managing the The original is evaluated
objective, concept came (Noe et .al , 2008).
measurable from the Productivity measurement
results of a job or accounting firm and evaluation system
work group. This of Booz, Allen, (ProMES)
approach and Hamilton The main goal of
assumes that and was called ProMES is to motivate
subjectivity can a "manager's employees to higher
be eliminated letter." The levels of productivity.
It is a means of return rate (2) result approach
measuring and percentage of The results approach
feeding back quality-control minimizes
productivity inspections subjectivity, relying
information to passed. Third, on objective,
personnel. the staff quantifiable indicators
ProMES consists establishes the of performance. Thus,
of four steps. contingencies it is usually highly
First, people in between the acceptable to both
an organization amount of the managers and
identify the indicators and employees. Another
products, or the the level of advantage is that it
set of activities evaluation links an individual's
or objectives, associated with results with the
the organization that amount. organization's
expects to Fourth, a strategies and goals.
accomplish. The feedback However, objective
organization's system is measurements can be
productivity developed that both contaminated and
depends on how provides deficient contaminated
well it produces employees and because they are
these products. work groups affected by things that
At a repair shop, with are not under the
for example, a information employee's control,
product might be about their such as economic
something like specific level recessions, and
"quality of of performance deficient because not
repair." Second, in each of the all the important
the staff defines indicators. An aspects of job
indicators of the overall performance are
products. productivity amenable to objective
Indicators are score can be measurement.
measures of how computed by Another disadvantage
well the products summing the is that individuals
are being effectiveness may focus only on
generated by the scores across aspects of their
organization. the various performance that are
Quality of repair indicators. (Noe measured, neglecting
could be et al 2008). those that are not.
indicated by (1) Evaluation of the 2.4.5. The Quality
Approach measuring appraisal systems
Thus far we have performance. focus more on
examined the iv.Use multiple individual employee
traditional approaches sources to evaluate performance, while
to measuring and person and system the quality approach
evaluating employee factors. adopts a systems-
performance. Two Statistical process oriented focus. Many
fundamental control techniques companies may be
characteristics of the are very important in unwilling to
quality approach are a the quality approach. completely abandon
customer orientation These techniques their traditional
and a prevention provide employees performance
approach to errors. with an objective management system
Improving customer tool to identify because it serves as the
satisfaction is the causes of problems basis for personnel
primary goal of the and potential selection validation,
quality approach. solutions. identification of
Customers can be These techniques training needs, or
internal or external include process-flow compensation
to the organization. analysis, cause-and- decisions. Also, the
A performance effect diagrams, quality approach
management system Pareto charts, advocates evaluation
designed with a strong control of personal traits (such
quality orientation can charts, histogram, as cooperation), which
be expected to and scatter grams are difficult to relate
i.Emphasize an (Noe et al 2008). to job performance
assessment of both Evaluation of the unless the company
person and system quality approach has been structured
factors in the The quality into work teams (Noe
measurement system. approach relies et al 2008).
ii.Emphasize that primarily on a 28
managers and combination of
employees work the attribute 2.5. Conceptual Frame
together to solve and results Work
performance approaches to This chapter tries to
problems. performance deal with review of
iii.Involve both measurement. literature on
internal and external However, performance appraisal
customers in setting traditional and organizations’
standards and performance under the study
background. Appraisal scientifically is the
Attempts will be Process priority attention given
made to briefly by the researcher.
begin with Therefore this chapter
evolution and Performance includes research
over view of Management design, sample and
Human Resource Apprise sampling technique,
Management Performance instrument for data
followed by the collection, procedure
Performance
general concepts of data collection,
Feedback
of performance method of data
Standards of
appraisal such as analysis, reliability and
Performance
purpose, validity and ethical
Major
methods, issue.
Problems
importance, time, 3.1. Research Design
Responsible
schedule, and According to Geoffrey et
Organs
other related al, 2005 descriptive
information’s are research is a research
Figure 2.1
presented in very type which describes
Conceptu
precise manner. phenomena as they exist
al
Th e conceptual and it is used to identify
framewor
fram work which and obtain information on
developed based k of the
the characteristics of
o n Li t r a t u r e study: a particular problem or
review based on issues. Based on the above
Met hods of li t e r at u r e definition descriptive type
Appraisal review. of research design is
Defining Chapter 3: best to achieve the aim of
Performance Research Design this research since the
and Methodology study is focus on assess of
In order to performance appraisal
achieve the practice in Awash
objective of international Bank S.C
this paper, Data was collected by
using of using of questioner and
appropriate interview. The
methodology questionnaire includes both
that helps to close
approach the ended questions with
research predetermined scale for
response and open (2015/2016) the include
ended questions total using a census for small
providing permanent populations, imitating a
respondents with employees of sample size of similar
freedom to express Awash international studies, using published
their perception. Bank S.C. are 1005 tables, and applying
3.2. Target (i.e 127 managerial, formulas to calculate a
Population 772 clerical and106 sample size. A third way to
The target population non determine sample size is
of this research is clerical) out of this to rely on published tables,
permanent employees employees 381 of which provide the sample
of Awash them are working at size for a given set of
international Bank Addis Ababa and criteria. The first and
S.C who works in have got more than second approaches for
various positions of one year determining the sample
managerial, clerical experience. For this size are not appropriate for
and non-clerical post study the researcher this study. Since the
at Addis Ababa and use sample from population of the study are
who have more the total population many in number it was
than one year due to difficult to use census, and
experience. The time, resource and also imitating the
rationale of selecting proper organization sample size of similar
these employees as a of data. From the studies was not possible
target population is given scope, sample because it was difficult to
because they have at only take from head gate this kind of
least one time office employees research that is done in the
experience of and eight branches Awash international Bank
performance appraisal in Addis Ababa or other banks. Therefore
in Awash (Main, Merkato, the researcher has used
international Bank Lideta, kera, Bomb- table for determining
S.C and Tera, sample size, because it is
the remoteness of Bole Michael, CMC easy and developed by
accessing outlaying and Goffa), the experienced scholars like
branches employees. branches selected Krejcie and Morgan (1970).
3.3. Sampling randomly. Since the study was
Techniques As per Glenn delimited to Addis Ababa
According to the (1992) there are city the population size of
bank’s report several approaches employees working in
following to the end to determining the Addis Ababa and that have
of first quarter sample size. These experience of one year and

above were 381. technique. The experienced scholars like
Therefore from the reason for Krejcie and Morgan (1970).
table making the 3.4. Method of Data
Krejcie and Morgan number of Analysis
(1970) the sample samples from Descriptive statistics
size for population branches more used to organize the
size of 381 is 191. than head office data through closed
191 were used as was based on ended questions with
sample size for this the proportion the help of SPPS
study. The numbers of the number version 16.analaysis
of staffs who have of staff found at has been done
more than one year branches’. according to the
experiences were There are several objective of the study.
listed as follows. approaches to Summary of statistics
Main branch have 28 determining the has organized in the
staffs, Merkato sample size include form of qualitative and
branch have 19 staffs, using a census for quantitative measures
Lideta branch have small by using frequencies
11 staffs, Kera populations, and percentage.
branch have 12 imitating a sample Regarding to the
staffs, Bomb-Tera size of similar interpretation for the
branch have 19 studies, using variables use on likert
staffs, Bole Michael published tables, scale: measurement
branch and applying used on the basis of
have 13 staffs, CMC formulas to calculate survey 1=strongly
branch have 12 staffs a sample size (Glenn disagree, 2=disagree,
and Goffa branch 1992). From the 3=neutral, 4=agree
have 9 staffs. The three and 5=strongly agree.
total numbers of aforementioned 3.5. Reliability and
samples from the sampling Validity
branches are 123 possibilities the To ensure the reliability
employees and the researcher use table of the response (internal
remaining 68 was for determining consistency of items
taken from different sample size, since measuring the level of
departments in the other two are homogeneity of measures
head office by not suitable for this in the instrument and
using research and taking reliability over and over
proportionate of sample size from groups of respondents),
stratified random table is easy and the study did the reliability
sampling developed by test to 24 selected target
group respondents by answer management practice. 7th
calculating cronbach’s questionnaires Ed. London: Kogan Page
alpha with all variable while they are Ltd.
using SPSS. As a at their work Armstrong, M. (2009). A
result the cronbach’s responsibility. handbook of personnel
alpha of the Hence, enough management practice. 11th
questionnaire revealed time was given Ed. London: Kogan Page
0.816. As per to respondents Ltd.
(Walsh, 1995) so that they can Bacal, R. (1999).
recommendation a either take the Performance management.
minimum level of questionnaire to New York: McGraw-Hill.
cronbach’s alpha their home or C. Dawson. (2002).
should be use their break Practical Research
70%. Hence the time. Methods: A user friendly
reliability of the APPENDIX guide to mastering research
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............................ ....................................

................................ ............................. would like to thank

................................ ............................. God for giving me the

establishment. The theme public and private

Bank’s intent is to ‘Transforming AIB: organizations. When it

change the socio- Vision 2025. It has is properly done,

economic situation ambitious financial performance appraisal

of the communities and non-financial provides feedback to

within which it targets. employees that will

According to the (1992) there are city the population size of

bank’s report several approaches employees working in

of first quarter sample size. These experience of one year and

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