Effect Of Performance Appraisal Practice On Employees’ Job Satisfaction: The Case Of National Bank Of Ethiopia, Addis Ababa, Ethiopia

Abstract

Performance Appraisal is one of the key important factors which is practiced by human resource management of every successful organization. The purpose of this study is to investigate the effect of performance appraisal on employees’ job-satisfaction in the case of National Bank of Ethiopia (NBE). The study used a descriptive and explanatory research designs. A stratified random sampling technique was used to determine a sample of 152 respondents from National Bank of Ethiopia (NBE). The study used questionnaires as its data collection instrument qualitatively and quantitatively. Regression and Correlations methods of data Analysis were used to analyze the data collected using SPSS version 25. The study finding shows that currently most of employees of National Bank of Ethiopia are not satisfied by the performance appraisal practice. The employees complain bias of fairness of performance appraisal, lack of continuous communication, lack of trust in the supervisor, lack of clear performance expectations. The study also revealed that performance appraisal is positively related to job satisfaction and performance appraisal has positive effect on job satisfaction. Finally, the study forwarded that NBE is suggested to improve the clarity of performance appraisal process, trust on supervisor and communication level between employee and supervisor.