The Effect of Performance Appraisal on Employee’s Performance in Commercial Bank of Ethiopia Jimma District

Abstract

Organizational performance is the synergetic sum total of the performance of all employees in the organization. The effectiveness of an organization's performance appraisal system is a prerequisite for ensuring the success of its selection, training, and employee motivation practices. The study focuses on to find out the effect of performance appraisal on employee’s performance, the subjects of the study were 158 employees and they were selected by employing stratified sampling methods. Out of 158 participants selected for the study, only 138 valid questionnaires were collected and filled the properly representing 90% of the total sample. The reliability of the adapted scales was tested and found to be reliable. In analyzing, the data through descriptive analysis mean and standard deviation of variables were computed. The research revealed that competence, assessment and development, management by Objectives, performance based pay and employee training all had an effect on employee Performance in commercial Bank of Ethiopia Jimma District. However the factors, employee training, Performance based pay, and management by objectives were the key factors that influenced Employee performance. However, the factor, competence, assessment and development could not be ignored since it was rated to a moderate extent by the employees an indication that it also contributed a lot to employee performance. This correlation and multiple regression analysis also revealed that the factors employee training, Performance based pay, and management by objectives were the main factors that had an impact on employee performance in CBE Jimma District.