Abstract:
The Purpose of this study is to assess factors affecting employees’ perception towards the
performance management system in Commercial Bank of Ethiopia at a branch level. The
study was also meant to identify the progress and challenges that have encountered and
considers how employees perceive the new performance management system. The data for
the study was collectedthrough questionnaire. The questionnaire was distributed to 178
employees of the bank working in eleven branches and one district office in Jimma town
namely: Jimma district office, Jimma Main, Hirmata, AbaJifar,Jiren, ShenenGhibe,
Bishishe, Ginjo Gudru, Mentina, Awetu, Sedecha and FerenjArada branches and then
among the all distributed questioners 170 are collected and presented.. Due to the
homogeneity of the respondents, stratified random sampling technique was employed. The
collected data was duly coded and entered into a Statistical Package for Social Science
(SPSS) version 20 for analysis. The data analysis techniques and reliability test used in this
study are Cronbach's test, descriptive analysis, inferential analysis, maximum, minimum
and descriptive mean. Demographic characteristics of respondents, gender, age, level of
education of staff were described using descriptive statistics like frequency and
percentage.On the basis of the data gathered and analyzed it was found out that a medium
level perception on the performance management aspect, the performance appraisal
aspect, the performance rating aspect, periodic review aspect, and reward and recognition
aspect. The study has also identified the progress and challenges that have encountered
and considers how employees perceive the new performance management system. Finally,
the study forwarded some recommendations as to what should be done to have an improved
PMS that is welcomed by employees. Such as the organization if it works harder on
communicating the PMS to the whole employees better by avoiding the doubt in the
employees mind through manuals, trainings and through showing them how it done.
