Gete Ermias - Proposal
Gete Ermias - Proposal
Gete Ermias - Proposal
DASHEN BANK;
(IN CASE OF DASHEN BANK AT ALAMURA BRANCH,
HAWASSA)
MAY, 2023
HAWASSA, ETHIOPIA
TABLE OF CONTENT
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CHAPTER ONE..............................................................................................................................1
1. INTRODUCTION....................................................................................................................1
1.1. BACK GROUND OF THE STUDY................................................................................1
1.2. STATEMENT OF THE PROBLEM................................................................................2
1.3. BASIC RESEARCH QUESTIONS..................................................................................3
1.4. OBJECTIVES OF THE STUDY......................................................................................3
1.4.1. GENERAL OBJECTIVES........................................................................................3
1.4.2. SPECIFIC OBJECTIVE............................................................................................3
1.6. SCOPE OF THE STUDY.................................................................................................4
1.7. ORGANIZATIONS OF THE STUDY.............................................................................4
CHAPTER TWO.............................................................................................................................5
2. REVIEW OF RELATED LITERATURE...............................................................................5
2.1. MEANING AND NATURE OF PERFORMANCE APPRAISAL.................................5
2.2. PURPOSE OF PERFORMANCE APPRAISAL..............................................................6
2.2.1. ADMINISTRATIVE PURPOSE...............................................................................6
2.2.2. DEVELOPMENT PURPOSE...................................................................................6
2.3. PERFORMANCE APPRAISAL METHODS..................................................................6
2.4. PERFORMANCE APPRAISAL PROCESSES...............................................................9
2.5. USES OF PERFORMANCE APPRAISAL...................................................................10
2.6. PROBLEM OF PERFORMANCE APPRAISAL..........................................................10
2.6.1. SYSTEM DESIGN AND OPERATING PROBLEM.............................................11
2.6.2. PROBLEM WITH APPRAISES.............................................................................11
2.6.3. PROBLEM WITH APPRAISERS..........................................................................11
2.7. THE CHALLENGES IN PERFORMANCE MANAGEMENT....................................11
2.8. REQUIREMENTS OF EFFECTIVE APPRAISAL SYSTEM......................................12
2.9. CHARACTERISTICS OF AN EFFECTIVE APPRAISAL SYSTEM..........................12
CHAPTER THREE.......................................................................................................................14
3. RESEARCH METHODOLOGY...........................................................................................14
3.1. RESEARCH METHODS...............................................................................................14
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3.2. RESEARCH DESIGN....................................................................................................14
3.3. RESEARCH APPROACH.............................................................................................14
3.4. TYPES OF DATA AND SOURCE OF DATA..............................................................14
3.5. POPULATION, SAMPLE, AND PARTICIPANTS......................................................14
3.6. SAMPLING FRAME AND SAMPLING TECHNIQUE..............................................15
3.7. METHOD OF DATA ANALYSIS.................................................................................15
4. RESEARCH PLAN................................................................................................................16
4.1. TIME SCHEDULE FOR THE STUDY.........................................................................16
4.2. FINANCIAL BUDGET SCHEDULE FOR THE STUDY............................................17
REFERENCES..............................................................................................................................18
II
CHAPTER ONE
1. INTRODUCTION
1.1. Back ground of the Study
Any organizations whether private or governmental have 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.
Performance management is an ongoing process that identifies measures, manages, and develops
the performance of people in the organization. It is designed to improve worker performance
over time. Performance appraisal is the part of the performance management process that
identifies, measures, and evaluates the employee’s performance, and then discusses that
performance with the employee (Aguinis, 2009).
The study will be focuses on the purposes (advantages, methods, effectiveness and practices of
performance appraisals system in Dashen Bank at HAWASSA ALAMURA branch).
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 their development, command them or goals to be
achieve and to discuss on any area for improvement (Alfred York, 3 rd edition). The main reason
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of the study is the fact that an employee’s performances appraisal is the most determinant in
achieving the objectives of the organization.
In contrast, performance appraisal practice is a very important aspect to distinguish the strength
and the weakness of employees within the organization. Someone who has good performance on
his/ her obligation has something value within the organization such as promotion and transfer
practice from his/ her lower position to higher position, the practice of increasing the salary and
rewards to the high performer. This increases the productivity of the employees within the
organization.
Much of the previous study had focused on employee motivation and staff appraisal in the
organization. (Oluch 2009) surveyed the relationship between performance appraisal practices,
motivation and job satisfaction. (Fletcher 2002) conducts a study on the effect of staff appraisal
on employees' performance in the organization. No known study focused on performance
appraisal practices and their effect on employee productivity (Fletcher 2002).
In Addition to this Performance appraisal practices has various problem in any organization such
problems are perceptual difference in meaning of words used to evaluate employees, this is to
say thus good, adequate, satisfactory and excellent may mean different things to different
evaluators. So, biasness may be caused in using subjective evaluation. The major problems are
subjectivity and biasness.
The existing previous study on system of performance appraisal practice in the banks has faces
some problems. Therefore, I would try to sum up by gathering more reliable data, good analysis
and finally come up with its remedial solutions.
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1.3. Basic research questions
At the end of this study, the study will try to seek answers for the following questions
The main objective of this study is to assess employee performance appraisals practice in Dashen
Bank at HAWASSA ALAMURA branch, and to investigate problems associate with those
performance appraisals practice.
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1.5. Significance of the study
One of the most important assets of any organization is human resource. To maintain the
employee’s moral, productivity attitude and loyalty, it is vital to be fair in performance appraisal
process. To achieve this objective assessment of the practice, identification of the problems and
finally proposed solution is useful.
Thus, this study aspires to contribute research feedback to improve the problems related to
performance appraisal. It may also be used as indicators of problem area to complement other
source of information from the related sources. Thus, this study will benefit the organization in
providing information by identifying problems and by indicating areas of focus for further study
and decision making.
The paper will organized into five main chapters. The first chapter is an introductory part which
contains back ground of the study, statement of the problem, objectives of the study, significance
of the study, research questions, scope of the study, and organization of the study. The second
chapter provides an overview of the related literature. The third chapter contains research design,
source of data, method of data collection, sample size and sampling technique, data processing
and analysis, data presentation. The fourth chapter presents analysis and presentations of data
and the fifth chapter provides conclusion and recommendation.
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CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
When supervisor think about how employee are doing they are evaluating them in formally. The
informal (unsystematic) appraisal can be undertaken at any time and lacks precise record of
employee's accomplishment it is often hap hard and the evaluation solely relaying on the
supervisor's opinion. Therefore, inaccurate and biased information can be obtained for
layoff ,promotion and other important decision that affect employee's productivity and
organizational goal achievement(pigors,1961),argued against the informal or unsystematic
appraisal without systematic information regularly gathers and periodically reviewed ,it is hard
for supervisors to be fair employees have no satisfactory basis on which build their expectations.
The formal appraisal is undertaken in a regular and systematic to evaluate employee's
performance. A systematic and periodic appraisal is seemed superior to a causal, intuitive and at
advance of the time when it may be needed thereby avoiding spot judgments when a decision
must be made. It provides information in a form that permits the comparison of one employee
performance with other and characterized by documentation of current and past performance for
making objective judgments (Filippo, 1980).
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2.2. Purpose of performance appraisal
Organization use performance appraisal indifferent ways for different purpose. But its overall
purpose is to lay a base for making personal related decisions. The plan and method is to be used
are highly depending up on its purpose. The performance appraisal making is used for
administrative and employee development purpose.
Appraisal is used for administrative purpose, when a manager wants to determine the
performance of employees for salary administration, promotion, transfer, layoff, termination,
demotion and making other administrative human resource planning. The result help to estimate
the quality and number of personnel required to replace poor performances that are expected to
be fired or demoted. It also helps to full fill those positions that are left empty when employees
are promoted or transferred, (Monday, 1990; 199).
Performance appraisal helps to assess performance strength and weakness and its can be used as
basis of determining training needs. Identifying area where training is needed can be facilitated
by acquiring information from the appraisal. It is advantageous to train employees of poor
performance rather than firing or demoting them because acquiring new components employee
to fill the position may be cost and time consuming. It may also take more effort to familiarizing
those new employees to the organization environment. Training required not only improving
poor performance of an employee but also placing to asses employee's potential for higher and
key position. When appraisals are used for developing purpose, the employee's performance is
evaluated against performance standard rather than result works (Monday, 1990).
This section looks at how management can actually establish performance standards and devise
instruments that can be used to measure and appraise an employee’s performance. A number of
methods are now available to assess the performance of the employees (Rue and Bayer, 2004).
1) Critical Incident Method
Critical incident appraisal focuses the rater’s attention on those critical or key behaviors that
make the difference between doing a job effectively and doing it ineffectively. What the
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appraiser does is write down little stories that describe what the employee did that was especially
effective or ineffective. In this approach to appraisal, specific behaviors are cited, not vaguely
defined personality traits. A behaviorally based appraisal such as this should be more valid than
trait-based appraisals because it is clearly more job related. It is one thing to say that an
employee is “aggressive” or “imaginative or “relaxed,” but that does not tell anything about how
well the job is being done. Critical incidents, with their focus on behaviors, judge performance
rather than personalities. Additionally, a list of critical incidents on a given employees provides a
rich set of examples from which the employee can be shown which of his or her behaviors are
desirable and which ones call for improvement.
2) Checklist
In the checklist, the evaluator uses a bit of behavioral descriptions and checks of those behaviors
that apply to the employee. The evaluator merely goes down the list and gives “yes” or “no”
responses. Once the checklist is complete, it is usually evaluated by the staff of personnel
department, not the rater his self. Therefore the rater does not actually evaluate the employee’s
performance; he/she merely records it. An analyst in the personnel department then scores the
checklist, often weighting the factors in relationship to their importance. The final evaluation can
then be returned to the rating manager for discussion with the subordinate, or someone from the
personnel department can provide the feedback to the subordinate.
3) Graphic Rating Scale
One of the oldest and most popular methods of appraisal is the graphic rating scale. They are
used to assess factors such as quantity and quality of work, job knowledge, cooperation, loyalty,
dependability, attendance, honesty, integrity, attitudes, and initiative etc. However, this method
is most valid when abstract traits like loyalty or integrity are avoided unless they can be defined
in more specific behavioral terms. In the design of the graphic scale, the challenge is to ensure
that both the factors evaluated and the scale points are clearly understood and unambiguous to
the rater.
4) Paired Comparison
The paired comparison method is calculated by taking the total of [n (n-1)]/2 comparisons. A
score is obtained for each employee by simply counting the number of pairs in which the
individual is the preferred member. It ranks each individual in relationship to all others on a one-
on-one basis. If ten people are being evaluated, the first person is compared, with each of the
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other nine, and the number of items this person is preferred in any of the nine pairs is tabulated.
Each of the remaining nine persons, in turn, is compared in the same way, and a ranking is
evolved by the greatest number of preferred “victories”. This method ensures that each employee
is compared against every other, but the method can become unwieldy when large numbers of
employees are being compared.
5) Management by Objectives
Management by objectives (MBO) is a process that converts organizational objectives into
individual objectives. It can be thought of as consisting of four steps: goal setting, action
planning, self-control, and periodic reviews:-
a) In goal setting, the organization’s overall objectives are used as guidelines from which
departmental and individual objectives are set. At the individual level, the manager and
subordinate jointly identify those goals that are critical for the subordinate to achieve in order to
fulfill the requirements of the job as determined in job analysis. These goals are agreed upon and
then become the standards by which the employee’s results will be evaluated.
b) In action planning, the means are determined for achieving the ends established in goals
setting. That is, realistic plans are developed to attain the objectives.
This step includes identifying the activities necessary to accomplish the objective, establishing
the critical relationships between these activities, estimating the time requirement for each
activity, and determining the resources required to complete each activity.
c) Self-control refers to the systematic monitoring and measuring of performance. The MBO
philosophy is built on the assumptions that individuals can be responsible, can exercise self-
direction, and do not require external controls and threats of punishment.
d) Finally, with periodic progress reviews, corrective action is initiated when behavior deviates
from the standards established in the goal-setting phase. Again, consistent with MBO
philosophy, these manager-subordinate reviews are conducted in a constructive rather than
punitive manner. Reviews are not meant to degrade the individual but to aid in future
performance. These reviews should take place at least two or three times a year.
6) 360 degree appraisal
The 360 degree feedback process involves collecting perceptions about a person’s behavior and
the impact of that behavior from the person’s boss or bosses, direct reports, colleagues, fellow
members of project teams, internal and external customers, and suppliers. Other names for 360
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degree feedback are multi-rater feedback, multi- source feedback, full-circle appraisal, and group
performance review. 360 degree feedback is a method and a tool that provides each employee the
opportunity to receive performance feedback from his or her supervisor and four to eight peers,
subordinates and customers. 360 degree feedback allows each individual to understand how his
effectiveness as an employee, co-worker, or staff member is viewed by others. (Rue and Byer,
2004).
Communicating the standard to employees; after specific appraisal goal has been established,
workers must understand what are expected from them in their job. One possibility to foster his
understanding is for supervisor’s to review with employees the major duties determined through
job analysis and described in a job distribution (Monday; 1996).
Discussing the appraisal with the employees: this is a very challenging step in appraisal
processes as it involves presenting accurate appraisal to the employees and has the person accept
the appraisal is in the constructive manner(Robbins;1996).
Measuring actual employee performance; as per evaluation method used in organization and
instruction given for appraisal employee’s actual performance is evaluated through observation,
interview and records then compares actual performance with standard set and find out if there is
any deviation. Deviation may be positive and negative. If employee performance is more than
standard there is positive, and vice versa.
Taking the corrective action; this includes guiding counseling and coaching the employee or
making arrangement for training and developing for the employee in order to ensure improved
performance. If the actual performance is very poor and beyond the scope of improvement, then
it may be necessary to take steps for demotion or retrenchment or any other suitable measurer. It
also involves making suggestions for some changes to be made on the standard job analysis or
other factors to facilitate effective performance of employee (Monday; 1990)
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2.5. Uses of performance appraisal
According to Monday (1999; 337), for many organizations the primary goal of an appraisal
system is improved performance. However other goals may be sought as well. Potential problem
and possibly primary cause of much dissatisfaction with appraisal may result from expecting too
much from one appraisal plan.
Human resource planning:-A well designed appraisal system provides profile of the
organizations human resource strength and weakness to support this effort (Monday,
1999; 338).
Recruitment and selection:-performance evaluation rating maybe help full in predicting
the performance of job applications. The determination of selection tests validity would
depend on accuracy of appraisal results.
Training and development:-A performance appraisal should pin out an employee's
specific needs for training and development(Monday;1999)
Career planning and development:-Career planning and development may be viewed
from either individual or organizations view point. In either cases performance appraisal
data are essential in assessing an employee’s strength and weakness and in determining
the person’s potential(Monday;1999,338)
Compensation programs:-performance appraisal results provide basis for rational
decisions regarding pay judgments to encourage good performance, firm should design
and implement a fair performance appraisal system and then reward the most productive
workers and team accordingly.
Internal employee relations: -Performance appraisal data are also frequently used for
decision in several areas of internal employee relations including motivation, promotion,
demotion, termination, layoff and transfer.
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2.6.1. System design and operating problem
The performance appraisal system breakdown because if they are poorly designed. The can be
blamed if the creation for evaluation one poor, the technique used is cumber so I or the system is
more from than substance. If the criteria used focused solely on activity rather than output results
or on personality traits rather than performance the evaluation may not be well received and if its
process fail to operate efficiently (Ivancceuich,1989).
For the appraisal system to work well the employee must understand it, tell it is fair, and be work
oriented enough to care about the result. One way foster understanding is for the employee to
participate in system design and be trained to some extent in the process performance evaluation.
If performance evaluator is in competent or unfair the employee may resist, sabotage or ignore
them. Performance evaluation may also be less effective than desired it the employee is not work
oriented and sees work only as a means to an end sough of the job. Generally employees do not
understand the system or its purpose employees are not work oriented and appraisal may be
below the expectation (Ibid).
An evaluation system can hampered or destroyed often because raters are not been adequately
trained. It should be clear therefore that even if the system is well designed little knowledge and
skill on the side of raters can lead to a serious of problem and error in competing appraisal
(Ivancevich;1998).
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Provide new challenges to rejuvenate flattening corners
Employer employees to take decisions without fear of failing
Encourage teamwork and team spirit and open communication
1. Relevancy:-This implies that there are clean links between the performance standards for
a particular job and organizational goal and between the critical job element identity
through a job analysis and the dimension for rated on appraisal form.
5. Practicality:-Implies that the appraisal instruments are easy for man power and employee
to understand and use. Those that are not or that impose in coordinate time demands on
all parties simply are not practical and managers will resist using them.
A. Reliability and validity: The appraisal system should provide consistent, reliable and valid
information in job-related activities/areas of the organization.
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B. Job relatedness: The appraisal technique should measure the performance and provide
information in job-related areas.
E. Open Communication; Most employees want to know how well they are performing the job.
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: Employees 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 inaccurate or unfair).
Performance appraisal should be used primarily to develop employees as valuable resources.
Only then it would show primary results.
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CHAPTER THREE
3. RESEARCH METHODOLOGY
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3.5. Population, Sample, and Participants
Target Population
Terre and Dureim (2004), target population is said to be a specified group of people or object for
which questions can be ask or observe to develop require data structures and information. The
area of this study will be on the employees of Dashen Bank at HAWASSA ALAMURA branch.
The methods the researcher will be interested to use the conducting the study is census method.
The reason that imitates the researcher to use census method is total of 25 employees from the
lists of the employees which are written with in the bank and by the response of the bank
manager (2015 E.C). So it is difficult / impossible to take sample from those small employees.
The researcher conducts the study to all of them, in this case the researcher will uses census
method. The data derived through census are highly reliable and also census data yields much
information.
In general sense, data derived through census is accurate because of it addresses all the
population employees of the Dashen Bank at HAWASSA ALAMURA branch.
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4. RESEARCH PLAN
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4.2. Financial Budget Schedule for the Study
There will cost be same that will be incurred while doing the research to have the best cost
effective research. There will have a budgeting as follows:-
Stationery cost for writing the research paper;
Transportation cost during data collection,
Cost incurred for mobile card, data collector/supporter and other costs.
Table 1.2: Cost allocation for each activity and items
Item or Activities undertaken during Cost per Quantity Total price
study unit(birr)
Stationary (Paper, Pen, Pencil, and others) 1000 1000
Transportation Costs for total activities 1000 1000
throughout studying time
Writing proposal and other related 900 900
activities
Writing research 700 - 700
Communication with advisors and other 500 - 500
concerned bodies related with study
Other activities 200 - 200
Total cost will be - 4300
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REFERENCES
Aguinis, H. 2009. An expanded view of performance management. In J. W. Smither and M.
London (Eds.)
Armstrong, M. (2009). A handbook of personnel management practice. 11th Ed. London: Kogan
Page Ltd.
Bayers Rue and leslic W. Rue, HUMAN RESOURCE MANAGEMENT (5th edition).
Terre and dureim (2004), human resource management 11 th Ed. Prentice Hall Irwin
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