Abstract:
This study aims to assess branch-level factors affecting employees' perceptions of the
Commercial Bank of Ethiopia's performance management system. The data for the study were
gathered through a questionnaire. The questionnaire was distributed to 227 bank employees
from the bank's five cluster (Asko, Burayu, Ashewa-Meda, Alem-Bank, and Betel). The
collected data were correctly coded and entered into the statistical package for social science
(SPSS) version 20 for analysis such as frequency and percentage, were used to describe the
respondents' demographic characteristics, including gender, age, and educational level.
Based on the collected and analyzed data, it was determined that there was a medium level of
perception on the aspects of performance management, performance appraisal, performance
rating, periodic review, and reward and recognition. The main finding from the data is that
there is a lack of efficient communication between the bank's supervisors and its employees.
Without efficient communication between managers and lower-level employees, achieving an
organizational goal is challenging. The investigation also made several suggestions for
improving the performance management system and making it more popular among
employees. The organization would be recommended to put more effort into clearing up any
confusion that any of its employees may have about the performance management system by
offering them manuals, training sessions, and other opportunities to observe it in action and
understand its importance. It is preferred to establish a relationship between compensation to
performance in order to stop people from working below their ability under the premise that
everyone is paid equally.
