Employees Attitude Towards Performance Appraisal Practices in Ethiopian Private Banking Industry

Abstract

Performance appraisal, though an important function of human resource/personnel management, has not received the degree of concern it deserves. This function, if properly exercised by organizations, can serve a number of purposes, mainly administrative and developmental in nature. However, despite these intended goals, performance appraisal seems not to be effective in most cases mainly due to the subjective nature of criteria (standard) of performance, lack of rater understanding of or inadequate training on performance appraisal, which consequently led to the less importance and emphasis attached to it. This study investigated the attitude and reactions  of employees` towards the overall  performance appraisal system as well as its major component parts such as standard setting,  appraisal instrument, feedback, and appeal procedure in private banking industry in Addis Ababa, Ethiopia.   Data were obtained via a questionnaire from 254 participants of four banks (Awash International Bank S.C, Dashen Bank S.C, Wegagen Bank S.C and United Bank S.C). The findings of the study indicated that respondents perceived the performance appraisal system as an unfair/subjective and a system which cannot accurately measure their job related performance. So that, the evaluation criteria of private banks in Addis Ababa, Ethiopia were not job related, not objective, not measure personal characteristics of employees. The banks should use criteria which are measurable, objective, and job related.

Keywords: Performance appraisal, human resource, employee, attitude