Opportunities and Challenges of Performance Management System

on Employee Performance: The Case of Awash Bank Harar City

1. INTRODUCTION

1.1. Background of the Study

In today's competitive business environment, organizations are continuously seeking ways to

improve their performance. One crucial factor contributing to organizational performance is the
effective implementation of a performance management system. Awash Bank, located in Harar
City, Ethiopia, recognizes the importance of monitoring and evaluating employee performance to
enhance overall organizational effectiveness.

1.2. Statement of the Problem

Awash Bank, like many other organizations, faces challenges in implementing a performance
management system that effectively aligns with its goals and objectives. This research aims to
identify the opportunities and challenges associated with the performance management system
within the bank and its impact on employee performance.

1.3. Research Questions/Hypothesis)

The research will address the following questions:

- What are the opportunities and challenges faced by Awash Bank in implementing its
performance management system?

- How does the performance management system affect employee performance in Awash Bank?
1.4. Research Objectives (General and Specific)

The general objective of this study is to examine the opportunities and challenges of the
performance management system on employee performance in Awash Bank. The specific
objectives are:

- To identify the opportunities present in the current performance management system at Awash
Bank

- To determine the challenges faced by Awash Bank in implementing an effective performance

management system

- To assess the impact of the performance management system on employee performance

1.5. Significance of the Study

This research will contribute to the existing body of knowledge on performance management
systems in the banking industry, specifically focusing on Awash Bank. The findings will provide
valuable insights into the opportunities and challenges faced by the bank and offer practical
recommendations for improving employee performance through effective performance
management.

2. THE REVIEW OF RELATED LITERATURE

2.1. Theoretical and Conceptual framework of the study

This section will explore relevant theories and concepts related to performance management
systems, employee performance, and their impact on organizational effectiveness. It will draw
upon existing literature and studies conducted in similar contexts.

3. RESEARCH DESIGN AND METHODOLOGY

3.1. Description of the Study Area

This section will provide a brief overview of Awash Bank and its operations in Harar City.

3.2. Research Design

The research will utilize a descriptive research design to gather information about the existing
performance management system and its impact on employee performance.

3.3. Sources of Data

Primary data will be collected through questionnaires, interviews, and observations. Secondary
data will be obtained from published literature, reports, and company documents.

3.4. Population, Sample Size, and Sampling Techniques

The population for this study will be employees of Awash Bank in Harar City. A sample size
will be determined using a suitable sampling technique.

3.5. Data Collection Instruments

Questionnaires and interview guides will be developed to collect quantitative and qualitative
data, respectively.

3.6. Procedure of Data Collection

Data will be collected through surveys, interviews, and observations following ethical
considerations.
3.7. Method of Data Analysis

Collected data will be analyzed using appropriate statistical methods to interpret the research
findings.

3.8. Ethical Considerations

Ethical guidelines will be followed to ensure the protection of participants' rights and
confidentiality.

4. RESULTS AND DISCUSSION

This section will present the findings of the study, discussing the opportunities and challenges of
the performance management system and their impact on employee performance in Awash
Bank.

5. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

Based on the research findings, this section will present the conclusions drawn from the study,
highlight the implications of the findings, and provide practical recommendations for improving
the performance management system and enhancing employee performance at Awash Bank in
Harar City.