Abstract:
This study was conducted with an objective examining employee performance appraisal system of
Awash bank head office. The researcher has used mixed research approach by using both
qualitative and quantitative methods. The data were collected from Clerical and non-clerical
staffs through questionnaire. The data was analyzed by descriptive analysis methods. The study
has identified that performance appraisal system of the university is ineffective in measuring the
performance of employees. Ineffectiveness of the system has resulted negative outcomes such as
minimizing cooperation and demotivating high performers. The appraisal system is challenged by
inefficiency of the raters. Therefore, the researcher recommends the bank to include promotion
and reward opportunities with the system, link the current and expected performance, and train
raters.
