The Effect of Performance Management System on Employees Performance: The Case of Commercial Bank of Ethiopia, Adama District

Abstract

The purpose of the study was to determine the influence of performance management system (PM) on employee job performance in the commercial bank of Ethiopia selected adama districts. In order to test five (05) hypotheses and achieve the objectives of this research structured questionnaire had been applied to gather primary data for analysis and interpretation. However, this questionnaire is composed of 31 questions (Likert Scale question) that personate all the variables of this paper. However, a simple random sample (n=159) was selected with 178 questionnaires that were distributed and back to ensure high response from bank staffs. Descriptive Statistics and Multiple regression model were used for data analysis. Accordingly the result of the data analysis reveal that performance management system i.e. Employee readiness, performance planning period, performance feedback, performance appraisal and, rewarding system have a significant influence on its selected outcomes. As a result, it is recommended by the researcher that study also bring about the emphasis on the presence and appearance of PMS internal experts within the banks which helps to improve the implementation of effective PMS practices. The study concluded that there are strong links with all independent outcomes but there is strong ling is there with performance appraisals as indicated. Based on the results of the study, it is recommended that the management of commercial bank of Ethiopia adama district if they sit and reconcile their PMS practices to make them more sustainable.

Keywords: Employee performance management system, Performance feedback, Performance planning period, employee readiness to training, performance rewarding, employee performance and adama

DOI: 10.7176/ISDE/14-1-04

Publication date: January 31^st 2024