Factors affecting employees’ perception towards the performance management system (pms) in case of commercial bank of Ethiopia, jimma city

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.