Study On Performance Appraisal Practice Bits Effects on Employee Performance

Study On Performance Appraisal Practice Bits Effects on Employee Performance

[Case Study on Commercial Bank of Ethiopia Jimma Maln Branch]

A Research Proposal on Partial Fulfillment of the Requirements for BA Degree in Management

PREPARED BY: HAILEMARIAM MOREDA

ADVISOR: ATO NEBIAT NEGUSSIE (BSC

JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

                                                          January 2013

JIMMA, ETHIOPIA

Acknowledgment

Before all, I would like to thank my almighty god that lets me to do everything and helps me to get this dance I would like to than all my family members that stand beside me by finance and ideal assistance and my gratin advising , supervising and directing , by giving all of his time and concentrating on making special on research his advise and great contribution in effective of this paper. Next, I would like to than all my friends that help me by giving me powerful moral and appreciation in my entire road toward deign the research project and its successful completion. Lastly but least my thanks would go to W/t Tarik for  her un conditioned cooperation in typing out , in editing and printing this research proposals.        

Abstract

This paper or study has conducted on the performance appraisal practices and its effects on employee performance in case of commercial bank of jimma main branch. This study provides relevant data about the performance appraisal practices and its effects in the institutions. The major objectives of this study is to assess the activates of performance appraisal & it effects on employee performance and to identity the importance performance appraisal system in commercialese bank Ethiopian jimma branch. The study has conducted based on both primary and secondary data more emphasis using primary data. The primary data is collected by using distributing questionnaires, direct observations and interviews are conducted. Secondary data collected of the study and internet. The method table used in conducting the study is descriptive survey method because it tries to describe and explain the data from which the solution to the problem sought. Due to population number is very small about 60 laity ) employees census methods is used because census is reliable and it yields much  Amorite information to address all the population of the bank. The dates are converted understandable form by using and percentages.

Acronyms

CBE           Commercial bank of Ethiopia

PA             Performance Appraise

EC            Ethiopian Calendar

CEO         Chief executive officer

PAS         Performance Appraisal manager

CSM         Customer Service Manager

CRO         Customer relationship officer

SU           Supervisor

                  

 

 

 

Table of Contents

Abstract II

Table of Contents. III

CHAPTER ONE. 1

1. INTRODUCTION. 1

1.1. Background of the Study. 1

1.2. Statement of the Problem.. 2

1.3 Objectives of the study. 2

1.3.1 General objectives. 2

1.3.2 Specific Objective. 2

1.4. Significances of the Study. 3

1.5. Scope of the Study. 3

1.6. Limitation of the Study. 3

CHAPTER TOW.. 4

2. Literature Review.. 4

2.1 Definition of employee Turnover :- 4

2.2 Types of Turnover 4

2.3. Discharge. 5

2.2.2 Downsizing. 5

1.3.1 Components of turn over cost 6

1.3.2 Finding Qualified workers. 7

1.3.3 Recruitment 7

1.3.4 Selection. 8

1.3.5 Developing quantified Workers. 8

1.3.6 Training. 8

1.3.7 Performance. 8

1.3.8 Cause of employee Turnover 8

1.3.9 Effects of Employee Turn Over 9

CHAPTER THREE. 10

3. Research design & Methodology. 10

3.1 The study Area. 10

3.2 The Data Source. 10

3.3 Method of data Collection. 10

3.4 Sampling Design. 10

3.5 Techniques of Data analysis & presentation. 10

CHAPTER FOUR. 11

4. Time Budget& Cost Budget 11

4.2 Cost Budget 12

CHAPTER ONE

1.  INTRODUCTION

1.1 Back ground of the Study

Any organization where private or governmental have their own resources sue has human, materials, information and capital to their success or achievements of their goals. Among these resource, human resources is the most fundamental resources for any organizations. This resources supplies the knowledge skills, creativity and their efforts to effect ivy utilize other resources for the desired objectives to be achieved for doing so the availability of individual to be quality, specific place and time has to be determined to achieve the goals. This will be obtain by periodic review and continuo evaluation of individual performance. This will be obtain by periodic review and appraisal elevation of individual performance. The organization in this word uses appraisal system to know and rise how the appraisals system is performing towards the achievements of the organizations goals. The study is focuses on the purposes 9advantages , methods, impacts, effectiveness and practices of performance appraisals system in commercial bank of Ethiopia jimma main branch ) . Commercial bank of Ethiopia has been operating under  different socio cultural environment , geo graphical location and other for the part years . Performance appraisals is the process by which an employee contribution to the organization during formal specified pieced. {Ivancevich 1998}. The long term failure and success of any organization depends highly on qualities of their employees and performance they have in organization. It has its own impacts on employee’s performance , on production and organization it self , It set out to inform an employee on their development, command them or goes to be achieve and to discuss on any area for improvement (Alfred York , 3^rd edition). Performance feedback lets employees to know they have to perform in comparison with standard the organization performance appraisals and it can affects  promote the two way communication between the management and employee and to improve the employees level of production. Commercial bank of Ethiopian has its own performance appraisals and it can taffetas the employees towards organization  and themselves. Performance feedback use to promote the two employees level of production.

Commercial bank of Ethiopia has its own performance appraisals department to help it to achieve its objectives in jimma main branch the main recusants  of the study is the fact that employees performances appraisals is the most determinant in achieving the objectives of the bank. 

1.2       Statement of the Problem

Performance appraisals can have many problems in the organizations. It requires observations and then evaluation of employee work by someone, usually by employees manager. It’s difficult tasks for many managers because it exposed to in accurately if it is not properly managed. The system of performance appraisals has to be design carefully and systematically . It this is not, it affects not only the organization but also moral of each employee in the organization. Employees may complain the one who evaluate the performance standards, the interpretation of performance evaluation results and the time of evaluation. Because, employees will be evaluated annually and semiannually, where this cannot cover the performance evaluation of the employees who works a contract of less time. The existing system of performance appraisal system in commercial bank of Ethiopia faces some problems. This research will intend to assess the employee performance appraisal system in commercial bank Ethiopian jimma main branch to this end the study will raises the following basis research questions i.e

1.   What are the main reasons for conducting performance evaluation in commercial bank of Ethiopia jimma main branch?

2.   What are the problems , commercial bank of Ethiopia jimma main branch facing with regard to the performance evaluation practices?

3.   Is the performance appraisals system of the bank meeting its intended objectives and how employee perceives the system?

4.   What is the effect of performance appraisals of employees in commercial bank of Ethiopia jimma main brach?

1.3      Objectives of the Study

    1.3.1General objectives

The main objectives of this study is to assess employee performance appraises system in commercial bank of Ethiopia jimma main branch and to recommend the suggestions for the problems related to the subject matter

1.3.2 Specific Objective

The study will try to address a number of specific objectives. Some of these are:-

v  To assess the current performance appraisal system in the bank .

v  To identity the potential problems related to performance appraise system. and state ways of overcoming those problems system and need to evaluate. its overall achievements. 

v  To recommend on finding.

1.4       Significance of study

The result of this study will be significant in various aspects. Firstly, on the basis of the study finding , it will draw some conclusions and identify the problems of performance evaluation and give signal to human repowers management of the bank to take remedial action to minimize the subjectivity of the evaluation in protesting employees for salary increment and  promotion.

Second, it has a price of contribution to the current knowledge in the practice of performance evaluation in an enterprise working in Ethiopia and it invites the fur there research to bring behavioral change in  the areas of performance evaluation both in the mind of raters, rates and those parties responsible in the design of the instruments of performance evaluation form that are used to judge the performance of employees. The last but not the least is it will to the researcher the opportunity. To gain deep knowledge in the practice of performance evaluation.

1.5       Scope of the Study

The study of this research paper is to assessing the performance appraisals practices and its effects on employee, Jimma town with considerations of performance appraisal effects on employee performance in the bank. More over the time period for this study would begin from the December to June 2012/13 months.   

1.6       Limitation of the Study

External (uncontrollable) factors or variables that challenges /confronts the smooth implementation of the project are:

ü  Lack of internet assess

ü  Lack of budget

ü  Lack assent time to develop the project 

CHAPTER TOW

2. Review of Related Literature

THEORETICAL REVIEW

2.1 Performance Appraisal

Performance appraisal is method evaluating the bearer of employees in the work spot, normally it including both the qualitative and quantitative as pact job performance. It is a system and objective way of evaluating both work related and potentials of employees. It’s a process that involves deterring and communicating to an employee how he or she is performing the job and ideally , establishing a plan improvement . (Bayer’s 5^th edition) performance appraisal let employees not only how well they are perforating but also influence their future level effort and tasks direction. Performance evaluations are an integral part most organization properly developed and implemented, the performance appraisal prices can help an organization achieve its goals by developing productive employees. One of the most common use of performance appraisal is for making administrative decisions relating to promotion, layoff and pay increases the present job performance of an employee is often the most significant consideration determining we there to promote the person or not while suelesful performance in the present job does not necessarily mean an employee will be an effective for former in a high level job. Performance appraisal do provide some productive information about the actual performance of the employee. It can also provide the desired input for deterring both the individual and the organization training and development needs. This information can be used to identify in dividable employee strength and weariness. This information used to help determine the organization over all training and department needs for an individual employee, a computed performance appraisal should include plan out lining specific training and development needs another important use of performance  appraisal is to encourage performance improvement by communicating to employee how they are doing suggesting desired change in behaviors , attitudes, skills or knowledge. This feedback most clarities the employee job expectations help by manager. Sometimes this feedback most be followed by coaching and training by the manager to grieved employee work efforts. Finally two, others important uses of information generate throng performance appraisals are input to the validation of selection procedures and input to human resource planning. Although there are many types of performance evolution systems, each with is own advantage and disadvantages, we must aware of the legal implication that arise (john Wiley) and Jonson, 1997, 6^th edition). Once employees have been sleeted, trained motivated and placed on their respective job , it becomes essential for the management to conduct performance appraisal to see we there the employees are effective on their jobs or not. By this, management can also know how it has been effective job. Performance appraisal is also known as” a merit training “ or employee appraisal some other terms of which are less commonly employee to mean performance appraisal are the progress report , staff assessment , service rating , personal review ,employee evocation and behavioral assessment (HRM, Ivanceich 1998) .

2.2 Nature of Appraisal  

An appraisal of employee is undoubtedly necessary at the time of employment. Actually evaluation is constantly being done at an unconscious level. Employees evaluate superior’s fellow colleges and subordinates what is needed to generate proper control is a formal procedure for evaluation personnel within the organizations. The personal department, where it exists can help materially in fixing the qualities and characteristics be rated, in deterring the person who should make such appraisal as well as by prescribing the appropriate procedures. (Rsdavar, 10^th edit)

2.3 Features of Performance Appraisal

The main characteristics of performance appraisal may be listed thus

v   The appraisal is a systematic process involving there steps .

a)    Setting work standards

b)   Assessing employees actual performance relative to these standards

c)    Offering feedback to the employees so that he can eliminate deficiencies and improve performance in course of time.

v  It tires to find out how well the employee is performing the job and tries to establish a plan for further improvement.

v  The appraisal is carried out periodically, according to definite plan

v    Performance appraisal is future oriented activity shoaling employees where things have gone wrong , how to set everything in order and deliver results

v  Performance appraisal is not job evaluation. It refers to how well someone is doing an assigned job. Evaluation, on the other hand determines how much a job is worth to the organization and therefore, what rang of pay should be assigned to the job

v  Performance appraisal is not limited to calling the tow’ Its focus is on employee development. It forces managements to become coachers rather than their judges. The appraisals process provide an opportunity to identity issues for discussion, eliminate any potential problems and set new gols for achieving high performance (vsprao, 2005).

v  Performance appraisal may formal or informal. The informal evaluation is more likely to be subjective and influenced by personal factors. The formal system like to be more fair and objective since it is carried in a systematic manner , using printed appraisal forms

2.4 Objective of Appraisal 

Performance appraisal co cub be taken either for evaluating the performance of the employees or for developing them. The evacuation is two types telling the employees where he stands and using the data for personal decisions concerning pay, promotion etc . The job of manager can be functionally divided into four basis namely, planning, Organization, motivating and controlling. Thus in the final analysis it becomes necessary to evaluate how effectively the human resources has been utilized within the organization. This type of evaluation is of two types namely, (1) Appraisal of personnel or individual employees performance and (2) appraisal or audit of personnel function it self . This chapter is the developed to the aspect of performance appraisal of employee which is so essentials from the view point of employee development and promotion.

Generally, performance appraisal has the following objectives and limitation

ü  Identifies areas for further training needs

ü  To help determine promotion and transfer

ü  To reduce grievance

ü  To improve job performance (Bayer’s 5^th edition)

2.5 Purpose /Aims of performance appraisal

Why should you appraise your performance?

In order to develop a performance appraisal system /process it is important to understand what purpose appraisal serve . Even so often , the senior management of company come together and outlines the goal and for the company over a specified time frame . The performance appraisal helps employers and employees and employees understand how well those gals are being met. The  employer already knows whether a goal has been achieved. But , may not under stand how or why the results are the way they are, Just as important individual employees need to understand how the have performance in regard to the company’s goal , and the goals set for them personally . (DESSLER, 2008).

 The appraisal process also gives the employees and superior on opportunity to work on carrier planning. Once supervisor understands the employee’s personal long term goals, he/she can help design a plan to help fur ther the employees goals. (DESSLER, 2008). This may induce recommending training options or even letting the employees in functional area outside their normal responsibilities. There are several reasons to appraise performance An accurately conducted performance appraisal produces data useful for a variety of organization and individual purpose. Many authors lists it in different ways?

v  Reduce favoritism in main managerial decision about personnel

v  Motivates employees by providing feedback on performance

v  Assist manager to observe their subordinate more closely do a better of job coaching

v  Provide backup data for making decision about employee compensation

v  Achieve better operation results and improved work performance( James C Gibson, John N. Gary , Dressler 6^th edition, N.C jain, saksh:2001)

Shortly the very use full purpose are:-

ü  Compensation Decision

ü  Promotion delusion

ü  Training and development programs

ü  Feedback

ü  Personal

2.6 The benefits of performance appraisal

 Employer perspectives /Administrative use )

ü  Despite imperfect measurement techniques,  individidual differences in performance can mark a difference to company performance.

ü  Documentation of performance appraisal and feedback may be required for legal defuse

ü  Appraisals offers a rational basis contracting a bonus or merit system

ü  Appraisals dimensions and standards can help to implement strategic goals and clarity performance expectations.

v  Employee perspective /developmental purpose/

ü  Individual’s feedback help people to rectify their mistakes and get ahead , fowling more on their unique strengths.

ü  Assessment and reorganization of performance levels can motivate the employees to improve their performance (VSPRAO, HRM, 2^nd edition , 2005)

2.7 The performance Appraisal process 

Performance appraisal is planned, developed and developed through a series of steps:- A. Establishing performance Standards

Appraisal system require performance standards, which serve as benchmarks against which performance is measured, job useful, standards should relate to the desired results of each job what about those appraisals which are carried out without any clear cut criteria?

To avoid embarrassments of this kind, performance standard, must be clear to both the appraisal and the appraise. The performance standards organ must be developed after a though analysis of the job . Goals must be write down. Just taking about  them is not enough. They must be measurable within certain time and cost cons durations.

B. Communicate the standards

Performance appraisal involves at least two parries i.e appraiser and appraise Both are expected to do certain things. The appraiser should prepare job description clearly help the appraise set his/her goals and targets analysis result objectively offer the coaching and guidance to the appraise when ever required and reward good results. The appraise should be very clear about what he is doing and why he is doing it for this purpose , performance standards must be communicated appraises and their reaction should be noted down right way. If necessary, this standards must be released or modified. As pointed out by De cero and Robbins , too many job have valve performance standards and the problems is compounded when this standards are set in isolation and don’t involve in the employee.

C. Measure actual performance

After the performance standards are set in the accepted , next actual performance is to be measured. This requires the dependable performance measures, ratings used to evaluate the performance. Four common sources of information which are generally used by the managers regarding how to measure actual performance are personal observations, statistical reports, Oral reports and written repents. Performance measured may be objective or subjective. Objective performance measures are indications of job performance that can be verified by others and usually quantitative objective  criteria includes quality of production , degree of training needed and accidents in a given period , absenteeism, length of service, etc subjective performance appraisals admeasures are ratings that are based on the personal standards  or options of the those doing the evaluation and arrant verifiable by other .

Subjective criteria include ratings by superiors (knowledge about overall goals , and contribution to socio cultural values of the environment. It should be noted have that objectives criteria can be laid down while evaluating tower level jobs which are specific and defined clearly. This is not the case with middle level positions that are  com pollex and vague.

D. Compare actual performance with standards and discuss the appraisal

Actual performance may be bather than expected and sometimes it may go off the truck. Whatever be the consequences;  there is away to communicate and discuss the final outcome. The assessment of another person contribution and ability is not an easy task. It has serous emotional overtones as it rafters the self esteem of the appraise. Any appraisal based on subjective criteria is likely to be questioned by the appraise and leave him quite defected and unhappy when an appraisal turns out to be negative.

E. Taking corrective action if necessary

Corrective action is of two types one puts out the fire immediately, which the other destroy, the roots of the problem permanently. I immediate action sets thing , rights things and get things back on truck where as the basic corrective action get to the source of deviations and seeks to adjust the difference permanently. Basic corrective steps seeks to find out how any why performance deviates.

2.8 Method of Performance appraisals

The performance appraisal methods classified into their categories, such as:-

1.   Individuals evaluation method

2.   Militiaperson evaluation method

3.   Other methods

v  Individual evaluation Method

Under this evaluation method of men it rating employees are evaluated one at a time without comparing them with other employees in the organization. There are many evaluation methods under this category evaluation method , let we see some of them

1.   Confidential report: It is mostly used in government organization. It is a descriptive report prepared, generally at the end of every year by the employee immediate superior. The report highlights the strength and weakness of the subordinates. The report is not data based. The impressions of the superior about the subordinate are merely recorded there. It does not offer any feedback to the appraise. The appraise is not very sure about why his rating have fallen despite his effects, why other are rated high when compared to him low to rectify his mistakes if , any on what basis he is going to be evaluated next year etc. since the report is generally not made public and hence no feedback is available , the subjective analysis of the superior is likely to be hotly contested.

2.   Critical incident techniques : Under this method , the manager prepared list of treat mints of every effective and in effective behavior of the employee. This critical incidents or events the outstanding or poor behavior of employees on the job. The manager maintains log on each employee which by the periodically records critic incidents of the worker behavior. At the end of the rating period , these recorded critic liner dents are used in the calculation of the workers  performance. This method provides an objective basis for conducting through discussion of an employee’s performance. This method suffers from the following literatures.

ü  Negative incidents may be more noticeable than positive incidents

ü  The superior have a tendency to unload a series of complaints about incidents during an annual performance review session.

ü  It results in very close supervision which may not be like by the employee

ü  Most frequently, the critical incidents methods  is applaud to evaluate the performance of superiors.

3.   Checklists and weighted checklist : Checklist  represents , in its simple form , asset of an objectives or descriptive statements about the employee and his behavior. If the rate believes strongly that the employee posses a particular listed trait , he checks the item , and otherwise he levels item blank. A more recent variation of the check list method a weighted list. The rating scores from the check list helps the manager in evaluation of the performance of the employee.

The checklist method has a serious limitation .i,e

ü  The rater may be biased in distinguishing the positive and negative questioned

ü  He may assign biased weights to the questions .

ü  It is expensive and time consuming

ü  It is becomes difficult for the manager to assemble , analyze and weigh a number of statements about the employees characteristics , contributions and behaviors

4.   Graphical rating scale:- under this method a printed form is used to evaluate the performance of an employee. A  variety of traits may be used to in thus types of rating devices , the most common being the quantity and quality of work. The rating scales can be also adopted by including traits that the company considers impotent for effectiveness on the job. From the graphic rating scales excerpt can be obtained about the performance standards of employees. The rating scale is the most common method of evaluation of an employees performance today. One positive point in favor of rating scale is that its easy to understand , to we and permits a statistical tabulation of score of employee when ratings are objective in nature , they can be effectively used as evaluation. The graphic rating scale may however suffer from long standing disadvantages, I,e it may be arbitrary and the rating may be subjective. A mother pitfalls is that each characteristic is equally important in evaluation of employee’s performance and so on .

5.   Management by Objectives (MBO)

MBO requires the management to set specific, measurable , goals with each employee and then periodically discuss the latter’s progress towards thus goals. This techniques emphasizes participative goals that are tangible, veritable and measurable. MBO focuses on what must be accomplished (goals )rather than how it is to be accomplished. It is thus a kind of goal setting and appraisal program involving six steps :

v  Set the organization’s goals

v  Set departmental goals

v  Discuss departmental goals

v  Define expected results

v  Performance review

v  Provide feedback

MBO demands a great deal time to set veritable goals at all levels of an organization. In the race define everything rigidly, some of the qualitative as pacts might be ignored (such as employee attitude, job satiation , etc). Often the superior may set goals ate frustratingly  high level , where as the subordinate many which to have it a comfortable levee. At times, the short form goals may take precedence over long term goals . the only way to over come thus problems is thus to allow the manger at all levels to explain , coordinate and guide the program is a pnsuasives democratic way. The jointly retarget set target must be fair and attainable. Both the superiors and the subordinates must be thought how to set realistic goals and be familiarized with the results for white they are finally held responsible

v  Multiple person evaluation techniques

The above discussed method are used to evaluate employee at a time. This section evaluates one employee in comparison to another. There techniques are used frequently in organization are:-

1.   Ranking Method: is relatively easy method of performance evaluation. Under this method, the ranking alt of employee in working prop is done against that of another employee. The relative position of each employee is expressed in terms of his numerical rank. It may also be done by ranking a personal job performance against another member of a competitive group. The implication of this methods that employee are ranged according to their relative level of performance which using this method , the evaluator is asted to rate employees from the highest to lowest towards some over all criteria , Though is it relatively easier to rank the best & the worst employees, it is very difficult to rant the average employees. Generally evaluators  pick the top & bottom employees first then select the next highest & the next lowest & above to wards the average/ middle employees .

2.   Paired companion method:- Ranking becomes more reliable & easier under the paired comparison method . Each worker is compared with all other employees in the group for every trait the worker is compared with all other employees.

3.   Forced distribution method :- Under this method , theater is asked to appraise the employee according to a predetermined distribution scale. The raters bias is sought to be eliminated here because workers are not placed at higher or lower end of the scale.

2.9 Problems with performance Appraisal

The problems in horrent in performance appraisal may be thus:-

A.   Judgmental errors  People commit mistakes which evaluating people and their performance Bases and  judgment errors of various kinds may spoil the show. Bias here refers to distortion of a measurement. These are as follows types.

I. Fist impression /primary effect / the appraiser fist impression of a candidate may color his evaluation of all subset quant behavior. In the case of negative primary effects the employees seem to do nothing right . In the case negative primary effect,  the employees can do no wrong (Herr’s p. 1992) .

II. Halo error: The rater’s bias in the other performance dimension affects the rater’s evaluation of other performance dimension

III. Leniency: Depending on raters own mental makeup at the time of appraisal , raters may be rated very strictly very leniently , a appraisers generally find evaluating others difficult , especially where negative ratings have to be green. A profess or might hesitate to tail a candidate when all other student, have cleared the examination. The leniency error can render an appraisal system in effective if everyone is to be rated  high , the system has not done anything to differentiate among the employees .

V. Central Tendency: Its an alternative to the leniency effect. It occurs when the appraise rate all employees as average perfumers

VI .stereotyping: Is a mental picture that an individual holds about adperson belay use of that person’s sex age religion , etc

VII. Regency Effect :- In this case the rater gives weight age to recent occur acnes than earlier performance.

B.   Poor appraisal forms: The appraisal process might also  be influenced by the following factors relating to the forms that are used by raters .

ü  The rating seals may be quite vague and underarm

ü  The rating form may ignore important aspects of job performance

ü  The rating form may be contagion additional for performance  dimension

ü  The form may be too long and complete.

C.   Lack of rater preparedness : The raters may not be adequately trained to carry out performance management activities.

2.10 Essential Characteristics of an effective appraisal system

Performance appraisal system should be effective as number of crucial decisions are  made on the basis of score or rating given by the appraiser , which in turn is highly biased on the appraisal system. It posses the following charlteristics.

A.   Reliability and validity: appraisal system should /provide consistent , reliable and valid information in a job related activities / areas of the organization.

B.   Job relatedness: The appraisal technique should measure the performance and provide information in a job related areas.

C.   Standardization: appraisal forms, procedures , administration of techniques , rating etc  should standardized as appraisal decision affects all employees of the group

D.  Practical viability :The technique should be practically viable to administer possible to implement and economical to undertake continuously

E.   Open Communication Most employees want to know how well they are performing the job. A good appraisal interview should permit both parties to learn about the gaps and prepare themselves for the future.

F.   Employee access to results: employee should know the rules of the game they should receive adequate feedback on their performance.

G.  Due Process : it follows then that formal procedures should be developed to enable employees who disagree with appraisal results (which are considered to be in accurate or unfair ). Performance appraisal should be used primarily resets

2.11 The challenges in performance Management

In present day organizations, the return process of motivating employees are common to all levees. Acknowledge unique contributions and alleviate personal concerns that impact profession performance to get the best out of people the chief executive offices should.

      Create a culture of excellence that motivates employees at all levels

      Match organization objectives with individual aspirations

      Equip people with requisites skills to discharge their duties well 

      Clear growth paths for talented employees

      Provide new challenges to rejuvenate flattening corners

      Employer employees to take decisions without fear of failing

      Encourage team work and team sprit and open communication

Empirical Review

It in various terms such as performance appraisal performance review , personal rating menstruating employee evaluation  

The history of performance appraisal is quite beret . Its rootles in the earlt20^th  

Century can be traced to Taylors pioneering , time and motion studies There is says “a basic human tendency to make judgments about those one is working with as we as about one self  appraisal, it seems , is both inevitably and universal . In the abs ice of carefully strutted system of performance ,appraisal people will tend to judge the work performances of others in clouding subordinates , naturally informally and arbitrary Dura wicz(1989).

Research (Bannister and Barking, 1990) has reported that appraises seem to have great or acceptance of the appraisal process and feed more statistic with it when the process is directly linked to reverends. Boyce and killer reports those effective performance appraisal system help to create a motivated and committed work force to be effective they require the support of top management to show their commitment and to translate the organization goals and objectives into personalized employee specific objective.        

      

3. CHAPTER THEE

3.1 Research Methodology and Design

The research design (method) selected for the study to performance appraisal system and its effects on employee performance in commercial bank of Ethiopian jimma main branch is descriptive survey method. Because it tries to describe and explain the data for the purpose of describing the nature of existing conditions such as performance activates of employees

3.2 Method of data Collections

Primarily sources of data

1.   Questionnaires: - that contains relevant variables which contain both open close ended questions developed by the researcher .

2.   Direct objection the researcher try to serve the real practice exercise in performance of the employee and its activates

3.   Interviewing which enable the researcher to gather information  that is relevant to the service provision in the office , employees, manager

Secondary Sources of data

Related literature regarding performance appraisal practices and its effect on employee performance be used as a source of the information the researcher used different materials like

ü  Books

ü  Documents

ü  Different written material in the bank regarding the topic of the study

ü  Internet

3.3       Target Population

The study of this study will be the employees of commercial bank of jimma main branch, Ethiopia. The methods the researcher interested to use for conducting the study is census method the reasons that initiates the researcher to use census methods are. The data derived through census are highly reliable and also censes data yields much information. In general sense, data derived through census are accurate because , it addresses all the population employees of the bank.

3.4       Methods of data Analysis

The researcher will use descriptive analysis methods in order to analyze the data that will e collected through interview and questionnaires because the disruptive data analysis method helps to reduce the collected data into summery format and rout data into a form that makes them easy to under stand and interpret through this method the row dates are convert to understand able form by using table and parentages       

      

     

CHAPTER FOUR

1.  Work plan and Budget plan

Every human activity is carried out through time it is also inevitably requires resources. Research as a human activity accordingly is necessarily in need of both time and resources. Since it’s a procedural task, it has to be undertaken in a systematically bounded time and resources are to be allocated reasonably. Hence, both the time and resources are table planned prior the commencement of the performance of the researcher.

Based on this , to carry out the research planned to undertake on the title “study on performance  appraisal system and its effects on employee performance “ from the perspective of human resources management in the commercial bank of Ethiopian jimmma main branch .

4.1 Time Budget

No	Activity	Time period ( in months ,2005)
		Nov	Dec	Jan	Feb	Mar	Apr	May	June
1	Topic Selection	ü
2	Literature review	ü	ü
3	Proposal Development		ü	ü
4	Data Collection				ü	ü
5	Data analysis Interpretation					ü	ü
6	Report writing							ü
7	Presentation								ü

4.2 Cost Budget

No	Item	Unit	Quantity	Cost Prevent		Total cost
				Birr	Cent	Birr	Cent
1	Paper Pen Flash  Binder	Packet	1 4 1 1	90 3 80 20	00 50 00 00	90 14 80 20	00 00 00 00
2	Transportation Cost from   BECO to Mercator		8	1	80	14	40
3	Secretary			200	00	200	00
4	Binding			3	5	15	00
5	Contingency expense			75	00	75	00
	Total					508	40

References

1.   Ivancevich J. M (1998) Human resource Management New your MC Graw –Hill.

2.   Shuan Tyson and Alford your *3^rd ) edition ) Human Resource Management.

3.    Bayers Rue and leslic W. Rue Human Resource Management (fith edition).

4.   Richard D. Irwin Human resource Management (1995).      

Appendix

Jimma University

College of Business and Economics

Department of Management

Questioners for Employee  

I am the student of Jimma University. I am doing research paper on the topic of study on performance appraisal system and its effects on employee performance “ in case of commercial bank or Ethiopia Jimma main branch.

Objective of the research

The objective of the study is to identity the main employee performance that should be addressed to improve organization performance with the need and requirement. And also identity strength and weakness of the bank to take corrective action on the entire system. 

                   Instruction

          Note that  

          1. No need to write your name

2.   Please fill the answer by making “ü” marks

3.   Please give more attention and the completed as fast as possible

4.   If you further exclamation contact me by phone No” 0912075774

1.    Sex :     A.   Male      ¨     B. Female  ¨

2.   Age :     A. 18-25   ¨          25-35  ¨      C. Above 35 ¨

3.   Education level   A. Diploma     ¨   B. First degree     ¨     C. Above degree¨

4.   Work experience in the bank  A. <5 years ¨    B. 5-10 years ¨  

                                                                        C. Above year ¨ 

5. Position in the bank    A. Junior officer¨       B.  Cleric   ¨

                               C. Junior & citric officer  ¨   D. Customer service officer  ¨

6. Are you aware of performance appraisal system in the organization?

     A.  Yes    ¨         B. No¨

7. Are you sati tied with the performance appraisal system of this organization?

    A.  Yes    ¨         B. No¨

8. Are you able to achieve your target set by performance appraisal system of the organization?

   A.  Yes    ¨         B. No¨

9. Which kind of reward did you get from the superior for your performance?

     A. Salary increment ¨               C. Appreciation¨

     B. Promotion           ¨               D.    Bonus Pays¨

10. Are you satisfied with reward system of this organization?

      A.  Yes    ¨         B. No¨

11. Did you get any feedback from your superiors about your work performance?       A.  Yes    ¨         B. No¨

12. Which of the performance appraisal method do you prefer the most?

        A. Rating seals  ¨     C. 360 ¨

        B. Check list     ¨     D. Management by objective (MBO) ¨

13. In which stage do you think the appraisal should communicate with the employee regard to performance appraisal system?

A.   Goal setting stage       ¨             C. Midterm reviews ¨

B.   Data adhering sage     ¨           D. Others                  ¨

14. Which method is the organize using to evaluate the performance of an employee?

    A. Confidential report    ¨        C. Grading methods ¨

    B. Critical method         ¨      D. Others                    ¨

15. Is the performance appraisal effective?

      A. Agree                     C.  Strongly agree

      B. Disagree                 D. Strongly disagree

16. How does your rate the mutual understanding and relationship bet ween management?  And employee in managing performance of workers?

    A. Good

   B.  Medium

   C. Poor