Diriba Firdisa

102 Pages·2013·6.39 MB·English

Addis Ababa University
College of Business and Economics
School of Graduate Studies
Department of Public Administration and Development Management

Assessment of Performance Evaluation System and Practices: The case of Bank of
Abyssinia

By
GoshuAndarge

June, 2018
Addis Ababa,Ethiopia
Addis Ababa University
College of Business and Economics
Department of Public Administration and Development Management
Masters of Public Management and Policy (MPMP)

Assessment of Performance Evaluation System and Practices: The Case of Bank of
Abyssinia
By
GoshuAndarge

Advisor
GemechuArarssa (PhD)

A Thesis Submitted to the Department of Public Administration and Development
Management of Addis Ababa University in Partial Fulfillment of the Requirements
for Master’s Degree in Public Management and Policy.

May, 2018
ADDIS ABABA, ETHIOPIA
Addis Ababa University
College of Business and Economics
Department of Public Administration and Development Management

This is to certify that the thesis prepared by Goshu Andarge entitled " Assessment of
performance evaluation system and practices in Bank of Abyssinia S.C "which is partial
fulfillment of the requirements for Degree of Masters in Public Management and
Policy(MPMP),complies with the regulations of the University and meets the accepted standards
with respect to originality and quality.

Approved by Board of Examiners:

___________________
Advisor Signature Date

Internal Examiner Signature Date

External Examiner Signature Date

Signature Date
Chief of Department or Graduate Program Coordinator
Statement of Declaration
I, the undersigned, declare that this thesis’s my original work and has not been presented for
Degree in any other University and that all sources of material used for the thesis have been
dully acknowledged .

Declared by Confirmed by Advisor
Name --------------------------------- Name--------------------------------
Signature------------------------------ Signature----------------------------
Date------------------------------------ Date----------------------------------
ACKNOWLEDGEMENTS

First of all, I express my deep gratitude to the Almighty God for giving me the strength, patience
and guidance to endure and complete this project. In connection with this, my special thanks go
to my advisor Dr. GemechuArarssa for his material supports, invaluable advice, tirelessly went
through the paper and made comments, and encouraged during the study period up to its
completion. I would like to express my thanks to all those who have helped me during the study
time. I also acknowledge models of my life, late W/rtKonjitBinalfew (you will remain alive in
my heart forever), my dearest brother TerbinosGetachew and my gratefulness goes to Bank of
Abyssinia S.C.Management and subordinate staffs for their significant contributions and
assistance in the process of realization of this study.

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Table of Contents

ACKNOWLEDGEMENTS ............................................................................................................. i
Table of Contents ............................................................................................................................. i
Acronym and Abbreviation ............................................................................................................ v
Abstract .......................................................................................................................................... vi
Chapter One .................................................................................................................................... 1
Introduction ..................................................................................................................................... 1
1.1 Background of the Study ....................................................................................................... 1
1.2 Background of Bank of Abyssinia ........................................................................................ 4
1.3 Statement of the Problem ...................................................................................................... 5
1.4 Research Questions ............................................................................................................... 7
1.5. Objective of the Study .......................................................................................................... 7
1.6 Significance of the Study ...................................................................................................... 8
1.7 Scope or Delimitation of the Study ....................................................................................... 8
1.8 Limitation. ............................................................................................................................. 8
1.9 Organization of the Paper ...................................................................................................... 9
CHAPTER TWO .......................................................................................................................... 10
2. REVIEWS OF RELATED LITERATURE .............................................................................. 10
2.1 Introduction ......................................................................................................................... 10
2.2 Theoretical Review ............................................................................................................. 10
2. 2.1 Meaning and Definition of Performance Evaluation System ...................................... 10
2.2.2. History of Performance Evaluation System ................................................................ 11
2.2.3 The Performance Evaluation Process ........................................................................... 13
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2.2.4 Guidelines for Systematic and Effective Performance Evaluation System .................. 15
2.2.5 Employees’Perceptions on Fairness and Objectivity ofPerformance Evaluation ........ 18
2.2.6 Objectives of Performance Evaluation ......................................................................... 20
2.2.7Challenges Encounter in the Practices of Performance Evaluation of Employees ....... 22
2.2.8 Methods of Performance Evaluation ............................................................................ 24
2.2.9 Criteria used to Conduct Performance Evaluation ....................................................... 27
2.2.10 Continuous Performance Feedback and Coaching ..................................................... 28
2.2.11 The 360 Performance Evaluation ............................................................................... 30
2.3.Reviews of Empirical Studies ............................................................................................. 31
CHAPTER THREE ...................................................................................................................... 33
3. Research Design and Methodology .......................................................................................... 33
3.1 Introduction ......................................................................................................................... 33
3.2 Research Design/Approach ................................................................................................. 33
3.3 Sources of Data ................................................................................................................... 34
3.4 Data CollectionMethod ....................................................................................................... 34
3.4.1 Questionnaire ................................................................................................................ 35
3.4.2 Interviews ..................................................................................................................... 35
3.5Population, Sampling Methods, and Sample Size................................................................ 36
3.5.1 Population of the Study. ............................................................................................... 36
3.5.2 Target Population ......................................................................................................... 36
3.5.3 Sampling Technique and SampleSize .......................................................................... 36
3.6 Data Presentation and Analysis Technique ......................................................................... 38
3.7 Ethical Consideration .......................................................................................................... 38
CHAPTER FOUR ......................................................................................................................... 39
4. Presentation, Analysis, and Interpretation of Data .................................................................. 39
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4.1 Introduction ......................................................................................................................... 39
4.2 Rate of Response ................................................................................................................. 39
4.3. Demographic Characteristics of Respondents.................................................................... 40
4.5 Analyses of Employees’ Perceptions on Fairness of Performance Evaluation ................... 49
4.6 Analysis on Employees Response on Objectivity of Performance Evaluation ................... 52
Table 4.6 Employees Response on Objectivity of Performance Evaluation ............................. 53
4.7 Analysis on Challenges of Performance Evaluation Process in BoA’s .............................. 54
4.8 Analysis on Employees’ Response on Performance Feedback ........................................... 59
4.9Analysis on Employees Response on Coaching .................................................................. 63
CHAPTER FIVE .......................................................................................................................... 66
5. Summary of Major Findings, Conclusions, and Recommendations ........................................ 66
5.1. Summary of Major Findings .............................................................................................. 66
5.2. Conclusions ........................................................................................................................ 70
5.3. Recommendations .............................................................................................................. 73
References ..................................................................................................................................... 78
Appendix ....................................................................................................................................... 82
Appendix I - Questionnaire for Employees .................................................................................. 82

iii
List of Table
Table 4.3. Demographic Characteristics of Respondents ............................................................. 40
Table 4.4 -Employees Response on Systematic way of Performance Evaluation Process of the
Bank .............................................................................................................................................. 44
Table 4.5 Perceptions of Employees’ on Fairness of Performance Evaluation ............................ 50
Table 4.6 Employees Response on Objectivity of Performance Evaluation ................................ 53
Table 4.7 Challenges of Performance Evaluation Process in BoA’s ............................................ 55
Table 4.8 Employees Response on Performance Feedback ......................................................... 61
Table 4.9 Employees Response on Coaching. .............................................................................. 63

iv
Acronym and Abbreviation

HR--------------Human Resource
HRM-----------Human Resource Management
PA--------------Performance Appraisal
PE--------------Performance Evaluation
PES------------ Performance Evaluation
SPSS----------Statistical Package for Social Sciences
BoA----------- Bank of Abyssinia
S.C------------Share Company

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