Assessment Employees‟ Perception towards Performance Management System (PMS) In Commercial Bank of Ethiopia: The Case of Addis Ababa, Kolfe District, Ethiopia

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.