Atlas Business and Technology College

Department of Business and Economics

Assessment of employee’s performance Apprasial practice of

commercial Bank of Ethiopia wolkite Branch

By: Kiros Berihun

Advisor: Mujib Abdlhadi

A thesis proposal submitted to graduate program of Atlas Business and

Technology College in partial fulfillment of the requirement for Master
of Business Administration (MBA)

January, 2024
Wolkite, Ethiopia

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Contents
CHAPTER ONE.................................................................................................................................................iv
INTRODUCTION...............................................................................................................................................1
1.1. BACKGROUND OF THE STUDY..............................................................................................................1
1.2. Statements of the problem..................................................................................................................1
1.3. Objectives of the study........................................................................................................................2
1.3.1. General objective of the study.....................................................................................................2
1.3.2. Specific objectives of the study....................................................................................................2
1.4. Research Question...............................................................................................................................2
1.5. Significance of the study......................................................................................................................3
1.6. Limitation and scope of the study........................................................................................................3
1.7. Organization of the study....................................................................................................................3
CHAPTER TWO.....................................................................................................................................................4
REVIEW OF RELATED LITERATURE.......................................................................................................................4
2.1. Overview of performance Appraisal ........................................................................................................4
2.2. What is appraised ....................................................................................................................................4
2.3. When to conducted performance Appraisal.............................................................................................5
2.4.who is to conduct performance Appraisal .2.5 Conceptual framework ....................................................5
CHAPTER THREE..................................................................................................................................................6
RESEARCH METHODOLOGY.................................................................................................................................6
3.1. Description of the study area...................................................................................................................6
3.2. Source of data...........................................................................................................................................6
3.3. Data collections procedure......................................................................................................................6
3.4. Population and sampling techniques........................................................................................................6
3.5. Data Analysis ............................................................................................................................................7

3.6.. Validity and reliability..........................................................................................................................7

3.6.1. Validity...............................................................................................................................................7
3.6.2,. Reliability..........................................................................................................................................8
3.7. Ethical Research considerations...............................................................................................................8
CHAPTER FOUR....................................................................................................................................................9

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4,BUDGET COST AND TIME SCHEDULE (Work plan)............................................................................................9
4.1. Budgeted cost...........................................................................................................................................9
4.2. TIME SCHEDULE (WORK PLAN...........................................................................................................10
Reference..........................................................................................................................................................11

LIST OF ACRONYMS

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 MBO Management By Objectives
 HR-Human Resources
 HRM- Human Resources Management
 CBE- Commercial Bank Of Ethiopia.
 PA- Performance Appraisal
 PM- Performance practice .

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 CHAPTER ONE
INTRODUCTION

1.1. BACKGROUND OF THE STUDY

The history of commericial bank date back to the establishement of state bank of Ethiopia in
1942,Commercial Bank of Ethiopia legally established as share Company in 1963 and Currently it
has 30 district and above 36,737 employee within the country.(The organization annual
report).Commercial Bank of Ethiopia has a visioin to become a world class Commercial Bank by the
year 2025 which is aligned to the government GTP III plan.taking into account the vision and mission
statement of the bank ,employee are strongaly working in service excellence and moblizing the
resource for supporting the national development of the nation. Commercial Bank of Ethiopia had its
own performance Apprasial department to help the achieve its objective in wolikite main branch.the
Main reason of the study was the fact that an employee performance Apprasial was the most
determinant in achieving the objective of the bank .most important requirements for successful
business and human resource policy of the organization. As one of employees are one of the most
valuable assets of the organization that can make things happen the practice of performance Apprasial
is an inherent and inseparable part of the organization life. Conducting performance Apprasail helps
organization to reward and promote effective performers and identify ineffective performer to
development programs or other personal action that are essential to the effectiveness of human
management .An effective systems of performance appraisal helps the supervisor to evaluate the
performance of his or her employee systematically and periodically.performance appraisal is a
management tool which is helpful in motivating and effectively utilizing human
resources .performances appraisal is an important process for influenceing to the extrinsic and
intrinsic motivation of employee and that is increasing employee perception and understanding of job
tasks and subsequently their job satisfaction .performance appraisal may be defined as a structural
formal interaction between a subordinate and supervisior ,that usually takes the form of a periodic
interview annual or semi annual ),In which the work performance of the subordinates is examined and
discussed with a view to identifying weakness and strengths as well as opportunities for improvement
and skill development .The performance of employee through the activity and their productivity
which can easily observed and evaluated .Employee performance help to aligning the employee

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performance with the organization objectives .so each and every organization puts the employee
performance othe top.

The performance appraisal properly describe a process of judging past of the emplyee and clear
direction is given ,in short managent take the corrective action against the performnce of the
employee.ire several enduring issue relative to performance appraisal system implementation can
have a number of objectives including performance assessment and improvement providing a basis
for individual remuneration, identifying training need and assessing suitability . 1.2 statement of
problem.This research study on assessment employee performance'Apprasail in commercial bank of
Ethiopia.focus on the problem related to the existing employee performance appraisal of CBE wolkite
branch.Employee are the valuable asset of an organization .The turnover of experienced qualified and
skilled employee due to lack of effective performance appraisal brings lots of obstacle in day to day
operation as well as effect on the image of the bank in the sense of of cost as well as loss of skilled
personal.In today business world retaining the employee is one of the very difficult for organization
hire new people in this position within a short period of time.many purpose, including letting
employees learn of their weakness, strength, new goal and objective are agreed up on, employees
become an active participant in the evaluation process, the relationship between supervisors and
employees is taken to an adult to adult level, employees renew their interest in being parts of the
organization now nad in the future, training needs are identified, time is a devoted to discussing
quality of work without regard to many issues, supervisors become more comfortable feel that they
are taken seriously as individual and supervisors are truly concerned about their need and goal
(Rafikul Islam and Shuib Bin Mohd Rusad, 2010) .

Poor performance Apprasail can have many problems in the organization. It regards observation and
the evaluation of employee work by someone usually by employee’s manager. It is difficult task for
many managers because it exposed to in accurately. It is not properly managed affect both the
organization and moral of employees in the organization. Employees may complain the one who
practice th nd the times of Apprasail practice ..performance appraisal could have many problem in the
organization .it require observation and then evaluation of employee work by someone .usually by
institutions managers .it is difficult task for many manager because it exposed to some problem it is
not properly managed.The system of performance appraisal has to be designed carefully and
systematic cally if this is not it affect not only the organization . Employee may complain the one who

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evaluate,interpreted the performance results and the time of evaluation because employee Evaluation
will be annually where this can not cover the performance evaluation of the employed who works a
contract of less time .The existing employee will be highly citizens and complaining manager.because
there is biasness ,errors in evaluation and interpretation of performance result. Due to these problem
employee moral and it performance will be affected CBE.The researcher will Motivate to conduct the
study on CBE wolkite branch to give the possible solutions to above problem .

1.3,Objectives of the study

1.3.1,General objective of the study

The main objective of the study is assessment of employee performance Apprasial of Commericial
Bank of Ethiopia in wokite branch and recommending solution for problem related to the subject
matter.

1.3.2,Specific objectives of the study

The specific objectives of the study are:-
 To identify the purpose and methods towards the assessment of employee performance of
Apprasial in Commercial Bank of Ethiopia in wolkite branch .
 To improve job performance Apprasial practice CBE in wolkite branch.
 To find out and assess the factor that should be considered the performance Appraisal of CBE
in wolkite branch.
 To identify the way of solving the factor that affect banking activity related to performance
Appraisal of CBE in wolkite branch.

1.4,Research Question
This research has tried to answer to the following research questions.

 What is the practice of performanc Apprasail at CBE.

 How do of employee’s perception about performance Apprasail CBE.
 What are the major performance Apprasail practice in the CBE.
 what are the major problem of performance Apprasail system of the CBE.

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 1.5,Significance of the study
The study will benefit the CBE in particular and all stakeholder in the banking sector in
general.The finding of the study will also be of great significance for the manager of the bank by
helping them to establish good relationship with subordinate and also address issue affecting the
employee perfromance Apprasail.study had also significant in various aspects. Firstly on the basis
of the findings of the study the research drawn some conclusions and identify the purpose of
performance Apprasail and give signal to the human resource management of the bank to take
remedial action to improve the subjectivity of Apprasail prospecting employees for salary
increment and promotion.

1.6,Limitation and scope of the study

The study focuses on assessing the overall performance of appraisal practice of CBE nad forwards the
possible recommendation accordingly,currently working in four branch CBE of Gurage zone ,wolkite
town .moreover, the study used both manager and permanent clerical employee as participant and
precluded the contractual clerical and non crerical employee of the bank .Although there are many
factor or variable that can play a role for studing the asssement employee performance Apprasial of
CBE .In this study only a few critical variable where analyed such as performance Apprasail.the
researcher faced the following difficulties.

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

1.7,organization of study
The study is composed of five chapter.The first chapter deals about the general background of the
study, statement of the problem, objectives and significance of the study with its scope and limitation in
accordance with organization study.The second chapter contains related literature review where detail
discussion about the topic has been undertaken.Chapter three is presented the research design and
methodology.In the fourth Chapter data presentation ,analysis of collected data to analysis finding of
study.. The last chapter, chapter five contains summary of findings, conclusions and recommendations
part of the study.

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 CHAPTER TWO
REVIEW OF RELATED LITERATURE

2.1. Overview of performance Appraisal

People are the source of all productive effort in an organization .orgnizationa performance depend
upon individual performance .To fulfill the objective of the organization there should be well
management of human researce .Actually the true meaning of humna resource maangement is the get
result through people .we can make brilliant plans,we can draw clear organizational chart,we can sep
up modern assembly lines andcan use sophisticted according control but still we fail if we can'tchoose
right human researcein rightplace and time. Human resource influence the efficiency of
organization.people set overall goals ,strategies and objective the organization ,without effective
people it is simply impossible for an organization from unneccessary law suits and penalty.managing
human resource is a centeral concern of every manger in any organization .Recently a number of
development have combined to make effective management of human resource even more important
and more complex.performance appraisal is a formal program in which employee are told the
employee expection for their performance and rated on how well they have met those
expectation .performance appraisal are used to support HR,decision ,including promation ,termination
,training and merit pay increase.

Performance Appraisal has been synonymous with performance review ,performance evaluation and
other terms and combination of terms .PA has overtime ,referred to1)an instrument or form to asses
an employees job performance ,2)an interview where an emoloyee job performance is assessed and
feedback is given to the employee ,3)a system of setting employee job expection /employee actual job
performance /assessing that performance /feedback to the employee on the performance assessment
and how to improve it in the future /setting new goal and expectation for another
period.4/performance management with job performance appraisal a part of it(Dessler,2010as cited in
kondrasuk ,2011)According to palaiologos et al (2011),performance appraisal is the process of
obtaining ,analyzing and recording information about the relative worth of an employee.

2.2. What is appraised

The criteria or criteria that management choose to evalute .when appraising employee
performance .will have a Major infuence on what employee do Generally content to be appraised is

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determined on the basis of job analysis .content to be appraised may be in the form of contribution to
organization objective (measure )like production , coast saving,return on capital etc.The three Most
popular sets of criteria are .i,Individual task outcomes(objective)which mesure job related result .like
amount of deposit mobilized.ii,Behavior which measure observal physical
action ,Movement.iii,Traits which are measured in terms of personal characteristic observable in
employee job activities .Individual task outcome .if ends count rath than means ,then management
should evaluate an employee task outcome .using task outcome ,a bank cleark could be judged on
criteria such as number of customer served ,number of new accout opend ,etc.Behavior .In many case
it is difficult to identify specifc outcome that can be directly attributable to an employeee action.Traits
,traits are the weakest set of criteria yet widely in use by many organization .they are said to be
weaker than either task outcome or behavior because they are farthest removed from the actual
performance of the job itself.ourcee of all productive effort in an organization. Organization
performances depend upon individual performance. To fulfill the objective of the study there should
be well management of human resources. Actually, the true meaning of human resource management
is get result through people. We can make brilliant plans; we can draw clear organization charts. We
can setup modern assembly lines and can use sophisticated accounting control, but still we fail if we
can’t choose right human resource in right place and time.

Human resources influence the efficiency of organization people set over all goals, strategies and
objectives the organization without effective people it is simply impossible for an organization to
achieve predetermined goals and objectives. Human resources are the major cost and expenses of
doing business, they have profound effect on productivity, they are unique and they demand fairness
and equity. Properly trained human resource manager will protect the organization from unnecessary
lawsuits and penalty. Managing human resource is a central concern of every manager in any
organization. Recently a number of developments have combined to make effective management of
human resource even more important and more complex.

2.3. When to conduct performance Appraisal

Any activity in an organization has its time of execution .so does have their performance
evaluation.organization have their own tiem to conduct PA depending on the own philosophy of time
period (Mullas 1996) with the Majority of scheme staff receive an annual maityo stem from the

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evaluation system itself the objective it is intended to serve the administrative system on which it is
embedded the form and procedures that makes up the system.

The performance system can be blamed if the criteria for evaluation are poor, the technique used is
cumbersome or the system is more from than substance. If the criteria used focus solely on activities
rather output (result) or on personality traits rather than performance, the evaluation may not be well
received (Junlin Pan and Guoging Li, 2006, Michael Beer, 2010, Iran Leuich, 2007, Cynthia Lee,
2009).

Hunderson (2011) cited in Deborah F.B and Brain H.Fleienr (2008), performance evaluation system
are not generic or easily passed from one company to another. Heir design and administration must be
tailer-made to match employees and organizational characteristics and qualities.

In the study made by Cliton O Longenecker (2007) on 120 seasoned manager drawn from five
different large us organization entitled why managerial performance evaluation are ineffective. The
majority (83%) of the respondent argued that managerial performance evaluation is designed to fail
because of (among the many reason cited) unclear performance criteria or ineffective rating
instrument.

2.4. Who is to Conduct PA

PA is the most significant activity of an organization.if the right person are not assigned to
process .PA activity then the strategies objective of organization is seriouly affected .By tradition
Manager outhority typically has included appraising subordinatse performance .ecivet literature
reviews on the practice of employees performance evaluation .the logic behind this tradition seems to
be that since Manager held responsible for their subordinate performance .it only makes sense that
these manager do the evaluating of that performance .However ,other may actually be able to do the
job better (Robbins,1998).Among these are: Immediate supervior: Traditional rating of employee by
supervior is based on the assumption that the immediate supervior is the person most qualified to
evaluate the employee performance realistically ,objectively and fairly.II,Peeers .peer evaluation are
one of the most reliable source of appraisal data.first peers are close to the action .III, self apprasial:
As part of the overall process ,employee self apprasial should be encouraged (Goffand
Longenecker,1990,as cited in Boice and kleiner,1997).on the other hand ,Maths and Jackson

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(1997:347) affirmed that performance appraisal can be done by anyone who is familiar with the
performance of individual being appraised .They presented the following list as possible option.

Supervision who rate their employee

Employee who rate their supervisior.2,5.Conceptual framework .According to the literature review
on the practice of employment performance Appraisal effectiveness factor such as Appraisal
system ,performance interview ,supervisior subordinate relationships and feedbacks from multiple
source .

CHAPTER THREE
RESEARCH METHODOLOGY

3.1. Description of the study area

Wolkite town located in central Ethiopia Region in Gurage zone. It is capital city of Gurage zone
approximately 97.52 miles or 156.94km far from Addis Ababa. Wolkite town has a latitude and
longitude of 8017 North, 37047 east and an elevation between 1910 and 1935 meters above sea level.
Wolkite is one of 12 towns with electrical power, one of 11 with telephone service and one of 9 that
have postal service. The SNNPR Bureau of finance and economic development adds that as of 2003
Wolkite also add a bank branch and other financial institutions, as well as a hospital. An all-weather
road was built in 1963 which connect Wolkite to Addis-Ababa by way of Emdibir. The study area is
Wolkite town and the study conduct only commercial bank of Ethiopia in wolkite branch.

3.2. Source of data

There are two sources of data: they are primary and secondary source. Primary data source is used to
collect mainly through questionnaires of both types closed ended and open ended.data from
secondary source is used to collect such as published books, internet ,have also been extensively
reviewed as reference from data. in this study the data will be obtained from both sources.

3.3. Data collection procucedure

As discussed above in the source of data section were prepared and distributed to 80 employee of the
bank .The questionnairs were first tested before distributing to the respondent so as to check their
viability.The questionnaire test was done by distributing 15 questionnairs(5 for Manager, 10 for non
Manager staff) convenient sampling was used to test the questionnairs.After testing and making
8
revision ,questionnairs were finally distrbuted to sample respondent.As to interview ,question for the
discussion were made ready before hand and the responsible HR directorate was contacted for
arranging a meeting .with consent of the respondent interview time was scheduled.During interview
data will be collected by taking notes of the proceeding of the discussion based on the dicussion
question designde.

3.4. population and sampling Techniques

This study was focus on the whole employment of the commercial bank of Ethiopia wolkite
branch.The branch has 80 employee which include the branch manager,tellerand other professional
employee primary data were collected from employee of the bank working of the bank working in
different branches in wolkite branch.the bank has a total of 4 branch in wolkite (asof feb17,2023) out
of the 4 branch 3 branch where performance apprasialpractice has been carried out for more than two
years were considered for the study .There are 80 employee in the 4 branch altogether .Besides total
staff in the wolkite branch approximately 40 percent have worked more than two years in the bank as
confirmed by the HR Directorate of the bank .

3.5. Data Analysis

The data was collected from respondent employee through questionnaries and interview discussion
are analyed and interpreted so as to arrive at meaningfull finding. Data collected from interview
discussion was also incorporate in the data discussion and interpretation part of the study .Hence the
result are easily interpreted to assess performance appraisal practice at CBE conclusion were drawn
based on the data analysis and interpretation. .3.6. Validity and reliability

A reliable and valid research instrument is absolutely essential for collected accurate data for the
conduct of any research and the process of development of the present research work.

3.6.1. Validity
Validity is concerned with whether the finding are really about what they appear to be about validity
defined as the extent to which data collection method or method accurately measure what they were
intended to measure.

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Data were collected from the reliable sources, from respondents who are employees of CBE
(manager as well as non-managers) working at the human resources staff. The study was used face to
face communication and linking the idea of human resource managers and the idea of employees
were used to assess the validity of the instruments.

3.6.2,Reliability
Reliability means the ability of a measuring instrument to give accurate and consistent results. The
question of reliability arises only for the question used to measure perception.

3.7. Ethical Research considerations

The researcher addressed ethical considerations of confidentiality and privacy.I used a rigorous and
conscious effort at all times to sustain this promise .A guarantee was respondent that their names
should not be revealed in the questionnaires and research report .In order to ensure the sucess of the
research ,leader were linked to subordinates in such a manner that each subordinate response remains
anonymous apart from being linked to a particular leader .Moreover ,participants received a verbal
and written description of the study ,and informed consent was obtained before the
survey .participation in the study was voluntary ,and all participant response were confidential .

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 CHAPTER FOUR
BUDGET COST AND TIME SCHEDULE (Work plan)

4.1. Budgeted cost

No. Item Quantity Per unit (birr) Total cost/ Birr
1 Paper 2 packet 750 1500
2 Pens 5 units 20 100
3 Binder 1 unit 50 50
4. Flash disk memory (32GB) 1 unit 400 400
5 Transportation (Megenase to Emdibir to 20 round 80 1600
Wolkite)
6 Telephone expense 20 100 2000
7. Printing cost 4 500 2000
8 Other cost - - 15,000
9 Miscellaneous expenses - - 5000
Total cost 27650

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 4.2. TIME SCHEDULE (WORK PLAN)
No Activity Sept. Oct. No Dec Jan Feb Mar Apr May June July Aug
v
1 Title selection
2 Proposal writing (writing
the first draft of proposal
3 Literature review
4 Submitting the first draft
of proposal to advisor
5 Taking comment and
finalizing the drafted
proposal
6 Submitting the final
proposal
7 Proposal defense
8 Taking comment and
finalizing proposal
9 Data collection
10 Data processing and
Analysis
11 Writing the first draft of
the research report
12 Writing draft report and
taking remark from
advisor
13 Submission of the first
draft report
14 Taking comment and
preparing the second draft
of the research

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15 Revising and rewriting
thesis
16 Taking comment and
writing the final research
report
17 Thesis submission
/submission of final
research report for advisor
and department
18 Thesis defense

REFERENCE
 Smith D E(1986)Training program for performance Appraisal A Review Academy of
management Review .
 Compbells, D.J and Lec, C (2007.8) self-appraisal in performance evaluation; Development
versus evaluation; Academy of management review 13,302-314.
 Cascio, F.w (2007.9) managing human resource ; productivity quality of work life , the
profit ,6 edition, Mc Graw –Hill Higher Education pp, 328-369.
 Longenecker, C.O and Fink,L.S (2011.1) creative effective performance appraisals, Industrial
management 18-23.
 Kurt, (2009.3) performance appraisal and true performance Journal of managerial philosophy
vol 10, No, 7, pp 3-7.
 Rafikul Islam and Shuib Rosad (2010:3) employee performance evaluation by Ahp = a case
study, Honolulu, Hawali, July 8-10, 2005.
 Weise, (2000) The evolution of the performance appraisal process .journal of Management
History.

* ---kondrasuk j.N ( 2011) so what would An Ideal performance Appraisal Lock like journal of
Applied Business and Economics .

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