COLLEGE OF BUSINESS AND ECONIOMICS DEPARTMENT

OF PUBLIC ADMNISTRATION AND DEVELOPMENT

MANAGEMENT

ASSESSMENT OF PERFORMANCE APPRAISAL PRACTICE

[CASE STUDY ON COMMERCIAL BANK OF ETHIOPIA FINKILE BRANCH]

A RESEARCH PROPOSALON PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR BA DEGREE IN PUBLIC ADMINISTRATION AND DEVELOPMENT
MANAGEMENT

PREPARED BY: ABDUREUF SHAFI

ADVISOR: GEMECHU

HARMAYA, ETHIOPIA

MARCH, 2020
Contents of table’s pages
CHAPTER ONE........................................................................................................................................1

1. INTRODUCTION.................................................................................................................................1

1.1 Back ground of the Study..................................................................................................................1

1.2 Statement of the Problem....................................................................................................................2

1.3. Objectives of the Study.......................................................................................................................2

1.3.1General objectives...........................................................................................................................2

1.3.2. Specific Objective............................................................................................................................2

1.4. Significance of study........................................................................................................................3

1.5. Scope of the Study............................................................................................................................3

1.6 Limitation of study..............................................................................................................................4

CHAPTER TWO.......................................................................................................................................5

2. Review of Related Literature...............................................................................................................5

2.1 Performance Appraisal......................................................................................................................5

2.2 Nature of Appraisal.............................................................................................................................6

2.3 Features of Performance Appraisal....................................................................................................6

2.4 Objective of Appraisal.........................................................................................................................7

2.5 Purpose /Aims of performance appraisal...........................................................................................8

2.6 The benefits of performance appraisal..............................................................................................9

2.7 The performance Appraisal process...................................................................................................9

2.8 Method of Performance appraisals..................................................................................................11

2.9 Problems with performance Appraisal............................................................................................15

2.10 Essential Characteristics of an effective appraisal system............................................................16

2.11 The challenges in performance Management................................................................................17

Empirical Review..................................................................................................................................17

CHAPTER THREE.................................................................................................................................18

3. Research Methodology and Design.................................................................................................18

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 3.1 Source of Data.................................................................................................................................18

3.2 Method of data Collections..............................................................................................................18

3.3. Target Population...........................................................................................................................18

3.4. Methods of data Analysis...............................................................................................................18

CHAPTER FOUR...................................................................................................................................19

4; TIME AND COST BUDGET.....................................................................................................19

4; 1 Work plan and Time schedules.......................................................................................................19

4.2. Budget breakdown..........................................................................................................................19

Reference..................................................................................................................................................20

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CHAPTER ONE

1. INTRODUCTION
1.1 Back ground of the Study
Any organization whether private or governmental has their own resources such as 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. The study
will focuses on the purposes (advantages, methods, impacts, effectiveness and practices of
performance appraisals system in commercial bank of Ethiopia fenekele branch). Commercial
bank of Ethiopia is operating under different socio-cultural environment, Geo graphical location
and other for the past years. Performance appraisal is the process by which an employee
contribution to the organization during formal specified period, (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 itself. It set out to inform an employee on development, command
them or goals to be achieve and to discuss on any area for improvement (Alfred 1996).
Performance feedback lets employees to know how were they have to perform in comparison
with standard of the organization performance appraisals and it can affect the employees towards
organization and themselves. Performance feedback used to promote the two way
communication between the management and employee and to improve the employees level of
productivity.

Commercial bank of Ethiopia had its own performance appraisals department to help it to
achieve its objectives in fenkele main branch. The main reason of the study was the fact that an
employee’s performances appraisal was the most determinant in achieving the objectives of the
bank.

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1.2 Statement of the Problem
Performance appraisals could have many problems in the organizations. It requires observations
and then evaluation of employees work by someone, usually by institutions manager. It is
difficult tasks for many managers because it exposed to some problems if it is not properly
managed. The system of performance appraisals has to be designed carefully and systematically.
If 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,interpreted the performance result
and the time of evaluation. Because, employees evaluation will be annually and semiannually,
where this cannot cover the performance evaluation of the employees who works a contract of
less time. The existing employees will be highly citizen and complaining manager. Because,
there is biasness, errors in evaluation and interpretation of performance result. Due to these
problem employees moral and it performance will be affected in commercial bank of Ethiopia.
The researcher will motivate to conduct the study on CBE Fenkele branch to give the possible
solution to above problem. To this end the study had raises the following basic
Research questions
1. What are the main reasons for conducting performance evaluation in commercial bank of
Ethiopia \ branch?
2. What are the problems, commercial bank of Ethiopia Fenkele branch will face with regard to
the performance evaluation practices?
3. Is the performance appraisals system of the bank will meet its intended objectives and how
employee perceives the system?
4. What is the effect of performance appraisals of employees in commercial bank of Ethiopia
Fenkele branch?
1.3. Objectives of the Study
1.3.1General objectives
The main objectives of the study will be to assess employee performance appraisals system in
commercial bank of Ethiopia Fenkele branch and to recommend the suggestions for the
problems related to the subject matter.

1.3.2. Specific Objective

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

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

 To identity the potential problems related to performance appraise system and state ways of
overcoming those problems system.

 To identity employees perceptions above performance appraisal system and need to

evaluate its overall achievements.

1.4. Significance of study

The result of this study would be significant in various aspects. Firstly, on the basis of the study
finding, it willdraw some conclusions and identify the problems of performance evaluation and
give signal to human resources 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 will have a piece of contribution to the current knowledge in the practice of
performance evaluation in an enterprise working in Ethiopia and it will invites the further
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 will used to judge the performance of employees.

The last but not the least is, it willhelp to the researcher the opportunity no full stop to gain deep
knowledge in the practice of performance evaluation.

1.5. Scope of the Study

Due the reason that organization will have many branch all over Ethiopia, the fundamental
delimitation of the researcher is on the performance appraisals practice. The assessment will be
conduct particularly in commercial bank of Ethiopia Fenkele branch which is found in eastern
hararge regional state .It will befocused on performance evaluation by manager in CBE Fenkele
branch only.

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1.6 Limitation of study
 Lack of cooperation of the respondents and their commitment to fill the questionnaires.

 Lack of sufficient time that limit the outcome of the researcher.

 Lack of color information while collecting data from employees.

 Lack of financial resources.

 Unwillingness of respondents.

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CHAPTER TWO
2. Review of Related Literature
2.1 Performance Appraisal
Performance appraisal is method evaluating the behavior of employees in the work spot,
normally it including both the qualitative and quantitative as pact job performance. It is a
systematic 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 5th 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 of most organization properly developed and
implemented; the performance appraisal process 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 of determining whether
to promote the person or not. While successful performance in the present job does not
necessarily mean an employee will be an effective for former in a high level job. Performance
appraisals do provide some productive information about the actual performance of the
employee. It can also provide the desired input for determining both the individual and the
organizational training and development needs. This information can be used to identify
individual employee’s strength and weakness. This information usedhelp to determine the
organizations over all training and department needs foran 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 employees how they are doing, suggesting desired change in behaviors,
attitudes, skills or knowledge. This feedback most clarifies the employee job expectations help
by manager. Sometimes this feedback must be followed by coaching and training by the manager
to guide employee work efforts. Finally two, others important uses of information generate
throng per procedures and input to human resource planning. Although there are many types of

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performance evolution systems, each with its 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 selected, 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 employed to mean performance appraisal are the progress report , staff
assessment , service rating , personal review ,employee evaluation 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 of personnelwithin the organizations. The personal department, where it exists can
help materially in fixing the qualities and characteristics be rated, in determining the person who
should make such appraisal as well as by prescribing the appropriate procedures. (Rsdavar, 10 th
edition).

2.3 Features of Performance Appraisal

The main characteristics of performance appraisal may be listed. Thus are

 The appraisal is a systematic process involving three 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.

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

 The appraisal is carried out periodically, according to definite plan.

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

 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

 Performance appraisal is not limited to calling the fouls its focus is on employee
development. It forces managements to become coachers rather than their judges. The
appraisals processes provide an opportunity to identify issues for discussion, eliminate any
potential problems and set new goals for achieving high performance (VSPRA

2.4 Objective of Appraisal

Performance appraisal could be taken either for evaluating the performance of the employees or
for developing them. The evaluation 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 employee’s performance and

(2) Appraisal or audit of personnel functionsitself. This chapter is thus 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

 Identifies areas for further training needs

 To help determine promotion and transfer

 To reduce grievance

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

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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 understand how well those goals are being met. The employer
already knows whether a goal has been achieved. But, may not understand how or why the
results are the way they are, just as important individual employees need to understand how
they have performed 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 an 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 further the employee’s 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 list it in different way

 Provides information for human resource planning by identifying individual contributions

and mangers with potentials for assuming additional responsibility.

 Reduce favoritism in main managerial decision about personnel

 Motivates employees by providing feedback on performance

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

 Provide backup data for making decision about employee compensation

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

Shortly the very use full purpose is:-

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 Compensation Decision

 Promotion Decision

 Training and development programs

 Feedback

2.6 The benefits of performance appraisal

 Employer perspectives /Administrative use )

 Despite imperfect measurement techniques,individual differences in performance can make a

difference to company performance.

 Documentation of performance appraisal and feedback may be required for legal defense

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

 Indent at perspective /developmental purpose/

 Individual’s feedback helps people to rectify their mistakes and get ahead, focusing more on
their unique strengths.

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

2.7 The performance Appraisal process

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

Appraisal systems require performance standards, which serve as benchmarks against which
performance is measured. To be useful, standards should relate to the desired results of each job
that 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 thorough analysis

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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 consideration.

B. Communicate the standards correctly.Performance appraisal involves at least two parties 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 whenever 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 standard must be released or modified. As pointed out by De cenzo
and Robbins, too many job have vague 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 repos. 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 include quality of production, degree of training needed
and accidents in a given period, absenteeism, length of service, etc. Subjective performance
appraisals measures are ratings that are based on the personal standards or options of the those
doing the evaluation and are not 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 here that objectives criteria can be
laid down while evaluating lower level jobs which are specific and defined clearly. This is not
the case with middle level positions that are complex and vague.

D. Compare actual performance with standards and discuss the appraisal

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Actual performance may be better 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 serions emotional
overtones as it affects the self-esteem of the appraise. Any appraisal based on subjective criteria
is likely to be questioned by the appraisec 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, while the other destroys, the
roots of the problem permanently. Immediate action sets thing, rights things and get things back
on truck whereas 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

1. Individual evaluation Method

Under this evaluation method of merit 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

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 efforts, why others are rated high when compared to him, low to rectify his mistakes, if any,

11
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.

1. Criticalincidenttechniques: Under this method, the manager prepared list of treatments 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 critical incidents are used in the calculation of the
workers performance. This method provides an objective basis for conducting thorough
discussion of an employee’s performance. This method suffers from the following literatures.

 Negative incidents may be more noticeable than positive incidents

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

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

 Most frequently, the critical incidents methods is applied to evaluate the performance of
superiors.

2. Checklists and weighted checklist: Checklist represents, in its simple forms, a set of an
objectives or descriptive statements about the employee and his behavior. If the rate believes
strongly that the employee possess 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 help the manager in evaluation of the performance of the
employee.

The checklist method has a serious limitation .i,e

 The rater may be biased in distinguishing the positive and negative questions

 He may assign biased weights to the questions

 It is expensive and time consuming

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 It becomes difficult for the manager to assemble, analyze and weight a number of statements
about the employee’scharacteristics, contributions and behaviors.

3. 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 employee’s performance
today. One positive point in favor of rating scale is that it’s easy to understand, to use 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.
Another pitfall is that each characteristic is equally important in evaluation of employee’s
performance and so on.

4. 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 technique emphasizes
participative goals that are tangible, verifiable 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 :

 Set the organization’s goals

 Set departmental goals

 Discuss departmental goals

 Define expected results

 Performance review

 Provide feedback

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MBO demands a great deal time to set verifiable goals at all levels of an organization. In the race
to define everything rigidly, some of the qualitative as pacts might be ignored (such as employee
attitude, job satisfaction, etc). Often the superior may set goals at frustratingly high level,
whereas the subordinate may which to have it a comfortable level. At times, the short form goals
may take precedence over long term goals. The only way to overcome thus problems is thus to
allow the manager at all levels to explain, coordinate and guide the program is a persuasive
democratic way. The jointly set retarget 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 which they are finally held responsible

2. Multiple person evaluation techniques

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

1. Ranking Method: is relatively easy method of performance evaluation. Under this method,
the ranking act of employee in working group 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 is that employee are ranced according to their relative level
of performance while using this method , the evaluator is asced to rate employees from the
highest to lowest towards some over all criteria , Though it is relatively easier to rank the
best & the worst employees, it is very difficult to rank the average employees. Generally
evaluators pick the top & bottom employees first then select the next highest & the next
lowest & above towards the average/ middle employees.

2. Paired comparison 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, the rater is asked to appraise the employee
according to a predetermined distribution scale. The rater’s bias is sought to be eliminated
here because workers are not placed at higher or lower end of the scale.

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2.9 Problems with performance Appraisal
The problems inherent in performance appraisal may be thus:-

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

I. First impression /primacy effect / the appraiser fist impression of a candidate may color his
evaluation of all subsequent 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 halo error occurs when one as pests of subordinates performance rater’s
evaluation of other performance dimension

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

IV. Central Tendency: It’s an alternative to the leniency effect. If occurs when the appraiser rate
all employees as average performers

V. Stereotyping: Is a mental picture that an individual holds about a person because of that
person’s sex age religion,etc

VI. 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.

15
 The rating seals may be quite vague and under

 The rating form may ignore important aspects of job performance

 The rating form may be contagion additional irrelevant for performance dimension

 The form may be too long and complex.

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 is made on the
basis of score or rating given by the appraiser, which in turn is highly biased on the appraisal
system. It possesses the following characteristics.

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. The appraisal system provides the needed feedback on continuo witty basis
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.

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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 to develop employees as valuable resources.
Only then it would show primary results.

2.11 The challenges in performance Management

In present day organizations, the return processes of motivating employees are common to all
levels. 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 organizational 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
Manly literatures studied extensively on performance evocation and it in various terms such as
performance appraisal performance review, personal rating, and merit rating employee
evaluation

The history of performance appraisal is quite brief. Its roots in the early 20th

17
CHAPTER THREE
3. Research Methodology and Design
The research design will be selected for the study is descriptive survey method. Because it will
tries to describe and explain the data for the purpose of describing the nature of existing
conditions such as performance activates of employees.

3.1 Source of Data

So as to extract the data to achieve the study objective both primary and secondary data willbe
used. The researcher personally will strive to include the respondents correct opinion in the
analysis.

3.2 Method of data Collections

Questionnaires that contain both open close ended questions developed by the researcher. Direct
observation the researcher will try to serve the real practice exercise in performance of the
employee and its activities. Interviewing which enable the researcher to gather information that
are relevant to theservice provision in the office , employees, managerRelated literature
regarding performance appraisal practices and its effect on employee performance canbe will use
as a source of the information. The researcher will used different materials like, Books,
Documents, Internet and Different written material in the bank regarding the topic of the study

3.3. Target Population

The Area of the study will be the employees of commercial bank of Ethiopia Fenkele branch.
The researcher will use census technique to collect data from employees. The reason for using
census method is to cover all employees and to get more reliable, accurate and detailed
information for the study. Since the total number of employee in the bank are limited to 40 and
sample size 100 percent.

3.4. Methods of data Analysis

The researcher will use descriptive analysis methods in order to analyze the data that will be
collect through interview and questionnaires. Because the descriptive data analysis method will
helps to reduce the collect data into summery format and row data into a form that makes them
easy to understand and interpret. Through this method the row data will be convertedto
understand able form by using table and parentages.

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CHAPTER FOUR
4; TIME AND COST BUDGET

4; 1 Work plan and Time schedules

The research will be conducted during 2019 within eight months starting from end
No Months
Activities 2012/20
Nov. Dec. Jan. Fab. Mar. Apr. May. Jun.
1 Title selection **
2 Title approval **
3 Developing the proposal **
4 Tool preparation **
5 data collection **
6 Data encoding **
7 Submission of the first draft **
8 Final submission of the **
corrected draft
9 Research defense **

4.2. Budget breakdown

Budget plan shows that the budget estimated for the accomplishment of research

No Items Unit Quantity Unit price Total price

(ETB) (ETB)
1 Pen Pcs 2 2x5 10
2 Notebook Pcs 1 1x25 50
3 Printing paper Pkt 2 2x50 100
4 Photo copy paper Pkt 1 1x50 50
5 Flash disk Pcs 1 1x50 50
6 Binding Pcs 1 1x15 10
7 Transport Birr - - -

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8 For telephone Birr - - -
Total cost 270

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21
References
 Buyers Rue and leslic W. Rue, HUMAN RESOURCE MANAGEMENT (5th edition)

 (DESSLER, 2008)

 Gary, Dressler 6th edition, N.C jain, saksh: 2001)

 (HRM, Ivanceich employee evaluation and behavioral assessment (1998)

 Ivancevich J. M (1998), HUMAN RESOURCE MANAGEMNT. New year MC Graw

Hill.

 Richard D. Irwin, HUMAN RESOURCE MANAGEMENT (1995

 Shuan Tyson and Alford you (3rdedition), HUMAN RESOURCE MANAGEMENT.

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 Appendix
Haramaya University

College of Business and Economics

Department of Public Administration and Development

Management

Questioners for Employee

I am the student of Haramaya University. I am doing research proposal on the

topic of Assessment on performance appraisal system “in case of commercial
bank of Ethiopia Finkile 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.

Instruction

Note that

1. No need to write your name

 Please fill the answer by Marking “” marks

 Please give more attention and the completed as fast as possible

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  If you face difficultly contact me by phone No” 0935579852

 Sex : A. Male  B. Female 

 Age : A. 18-25  26-35  C. Above 36 

 Education level A. Diploma  B. First degree  C. Above degree

 Work experience in the bank A. <5 years  B. 6-10 years 

C. Above11 years 

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 satisfied with the performance appraisal system of your Bank?

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

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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 scales  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 pothering sage  D. Others 

14. Which method is the organization 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 do you rate the mutual understanding and relationship between
management and employee in managing performance of workers?

A. Good

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B. Medium

C. Poor

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