Abdurhaman Proposal Ganama
Abdurhaman Proposal Ganama
Abdurhaman Proposal Ganama
Acknowledgement
We would like to thanks God for giving health and strength for doing this proposal.Next
we would like to thanks to our instructor Ephrem.H for his technical and professional
Advise and support in solving the difficulties we have faced while progress this proposal.
Finally our all group member those who supported and help us directly or indirectly
By financially and supportive idea for doing this proposal
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Table of content
Abstract................................................................................................................................I
Acknowledgement..............................................................................................................II
Table of content.................................................................................................................III
CHAPTER ONE..................................................................................................................1
INTRODUCTION...............................................................................................................1
1.1. Background of the study......................................................................................1
1.2. Background of the organization................................................................................2
2.3. Statement of the problem.........................................................................................4
1.4. Objective of the study...............................................................................................4
1.4.1. General objective...............................................................................................4
1.4.2. Specific objectives.............................................................................................4
1.5. Significance of the study..........................................................................................5
1.6. Scope of the study.....................................................................................................5
1.7 Limitation of the study...............................................................................................5
CHAPTER TWO.................................................................................................................6
REVIEW RELATED LITERATURE.................................................................................6
2.1. Definition..................................................................................................................6
2.1.1. Purpose of performance appraisal....................................................................7
2.1.2. The role of appraisal in managing performance................................................7
2.2. Performance appraisal method.................................................................................8
2.3 Potential problems in performance evaluation.......................................................10
2.3.1. Opposition to evaluation..................................................................................10
2.3.2. System Design and operating problems..........................................................10
2.3.3. Rater problem..................................................................................................10
2.4. Role of supervision in appraising performance......................................................11
2.5. Eliminating rates errors...........................................................................................12
2.6. Performance related pay.........................................................................................14
2.7. Identifying and measuring employee performance................................................15
CHAPTER THREE..........................................................................................................17
METHODOLOGY............................................................................................................17
3.1.The research type.....................................................................................................17
3.2.Data sources.............................................................................................................17
3.3.Instruments of data collection..................................................................................17
3.4.Sampling and sample size........................................................................................17
3.5.Data processing and analysis...................................................................................17
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Abstract
This study will be conduct in commercial bank of Ethiopia in Dire Dawa Sebian branch
on the assessment of result oriented performance appraisal. The main objective of this
study is to identify the problems that being face the bank on evaluation system. For the
purpose of this study primary data will be collect through questionnaire and interview
and secondary data will be collect from internet, books, and documents of the
organization. The researcher also use census survey to collect data from employees. The
collect data will be process and organize in descriptive manner and organize by using
table and percentage with relevant discussion. At the end of this study the researcher will
be prove the main problem of result oriented performance appraisal in the bank will
discrimination and evaluate based on most recent performance. Most of these problems
are cause by errors from the raters.
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I
CHAPTER ONE
INTRODUCTION
The history of performance appraisal is quite brief. Its roots in the early 20th c can be
traced to Taylor's pioneering time and motion studies. But this is not very helpful. For the
same may be said about almost every thing in the field of modern human resource
management. As a distinct and formal management procedure used in the evaluation of
work performance, appraisal really dates from the time of second world war not more
than 60 years ago. It begin as simple methods of income justification.
(HTTP.www.perfomance appraisal.com)
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company to take over the commercial banking activities of the state bank of Ethiopia. In
1974 revolution commercial bank of Ethiopia got its strength by emerging with privately
owned Addis Ababa bank. Since then it has been playing significant role in the
development end over the country.
The state owned commercial bank. of Ethiopia still dominants the market in terms of
asset deposit, capital and customer base, branch network and computation from private
bank over the last 20 years. This make it one of the most reliable and strong commercial
bank in the country. Its strong capital based above 67 years of rich experience in the
market and large branch network throughout the country.
Vision
To become world class commercial bank. the term world class in this context presumes
efficiency, good cooperate, good governance and move toward best international banking
services.
Mission
It committed to maximizing share holders value through enhanced financial inter
mediation and customer satisfaction. It strongly believe that reliability and public
confidence are the base of its success. The fundamental components of its mission
statements are towards customers share holder, employees and the public.
Commercial bank of Ethiopia Dire Dawa Sebian branch is one of the branches which
found Eastern Ethiopia, Dire Dawa town. It far 452.5 km from Addis Ababa and 2km
from its district. Its strategy, mission and vision are the same as discussed above in the
same way.
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Although result oriented performance appraisal has the above purpose some employees
believed that some public enterprise have problems regarding the result oriented
performance appraisal. commercial bank of Ethiopia Dire Dawa Sebian branch is one of
the organization, there for it has problems, such as unfair evaluation and some evaluation
errors like evaluate all subordinate on one dimension, evaluating employees on most
recent work performance, discrimination based on personal characteristics and using high
or low rating.
So the study would try to answer the following basic questions.
1. What methods does the organization use to evaluate its employees?
2. What is the perception of employees towards result oriented performance
appraisal?
3. What are the major problems that affect result oriented performance appraisal?
The general objective of the study is to assess the problem related to result oriented
performance appraisal in commercial bank of Ethiopia Dire Dawa Sebian branch.
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So we believe, if this paper has over look same areas of the problems, it is due to the
problems mentioned above.
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CHAPTER TWO
2.1. Definition
Performance appraisal is the process of determining and communicating to an employee
how he or she is performing on the job and, establishing a plan of improvement when
properly conducted performance appraisals not only let employees know how well they
are performing but also influence their future level of effort and task direction. Effort
should be enhanced if the employee should be classified through the establishment of a
plan for improvement (Byers 2009;289).
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Many expert feet that traditional appraisal don't improve performance and may actually
back time. They argue that most performance appraisal systems neither motivate
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employees nor guide their development furthermore, they cause conflict between
supervisor and subordinate and lead to dysfunctional behaviors. The traits measured are
often personal in nature, and who like the idea of being evaluated on his/her/ honesty,
integrity team work, compassion cooperation objectively. In fact, traditional can be
useless or counter productive. Researchers in Korea recently found that even discussion
and goals were clearly set and career issues discussed few of the reviews had a positive
impact on the employees subsequent job performance. In a study of almost 300 managers
form mid western U.S companies 32% rated their performance appraisal as very in
effectively while only 4% rated them effective to a large extent. Another survey of 181
manufacturing and service organizations conducted that 11% had stopped using annual
appraisals, while 25% more planned to discontinue them with in two years.
Some argue for dumping appraisals entirely. For example quality management expert like
W. Edwards Deming basically argue as follows : they say the organization is a system of
interrelated parts, and that an employees performance is more a function of factors like
training communication tools and supervision than of his or hr own motivation.
Furthermore, performance appraisal can have unanticipated consequences forced
distribution appraisal in particular can undermine team work. These expert were there
fore very skeptical about traditional appraisal methods. (Dessler, 2004;265).
This section will discuss each of the following performance appraisal method
Goal setting, or management by objective (MBO) management by objective (MBO)
consists of establishing clear and precisely defined statement of objectives for the work to
be done by an employee. Establishing an action plan indicating how those objectives are
to be achieved, allowing the employee to implement the action plan, measuring objective
and taking corrective action.
Multiple rate assignment (or 360- degree feed back)
One currently popular method of performance appraisal is called multiple rate assessment
of 360 degree feed back. With this method, managers, peers, customers, suppliers or
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colleagues are asked to complete questionnaire on the employee being assessed the
person assessed also completes a questionnaire.
Most employees are worry of performance evaluation perhaps the most common fear is
of subjectivity on the part of the rather subjective bias and favoritism are real problems
that create apposition to most performance evaluation systems these fears are hidden,
however, and other more general arguments are provided (Ivancevich, 1998:294).
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Even if the system is well designed problems can a rise if the rather one not cooperative
and well trained.
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Supervisors rating are the heart of most appraisals. This makes sense. The supervisor
should be and usually is in the best position to be and evaluate the subordinates
performance. This make responsible for that persons performance traditionally the
persons direct supervisors his or her performance however other options are critically
available and are increasingly use.
Peer Appraisal
With more firms using self management teams, peer to team appraisal. The appraisal of
an employee by his or her peers are becoming more poplar. For example, an employee
choose an appraisal chair person each sear. That person then selects one supervisor and
there other peers to evaluate the employee work.
Rating committee
Many employers use rating committees. These committees usually contains the
employees immediate supervisors and three or four other supervisors. Using multiple
others can be beneficial while there may be discrepancy in ratings by individual
supervisors, the composite ratings tend to be more reliable, fair and valid such ratings
have higher inter after rat-ability or consultancy than do rating obtains form several peers
Self rating
Should employees appraise themselves the basic problems of course is the employees
usually rate them selves higher than they are rated by supervisors or pears. In one study,
for instance, it was found that when asked to rate their owner job performances, 40% of
employees usually rate themselves in the top 10% one of the best While virtually all
remaining employees rated them selves either in the top 25% ( well above average) or at
least in the top 50% (above average) usually no more than 1% or 2% will place
themselves in bellow average category.
Appraisal by subordinates
More firms to day let subordinate an animals rate their supervisors performance a
process, some call upward fed back. The process helps to top mangers diagnose
management style, identify potential people problem and take corrective action with
individual managers ad required (Dealer, 1999:258).
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Behavior based rating scales were originally designed to help eliminate the kinds of
rating errors just. Described but when such scales didn't demonstrate more on the rating
process. In other words more recent efforts to improve performance evaluations in
organizations have centered on helping raters to more accurately observe, recall and
report behaviors.
Rater training
One popular way to improve managers ability to conduct effective performance
appraisals is through rater training programs many types of programs exist differing in
focus, cost and direction the two most popular types of one training programs designed to
eliminate common rating errors such as hallo error and training programs designed to
improve the supervisors observation and recording skills.
Programs dealing with errors do seen to eliminate many of these from ratings. In
addition, even short relatively in expensive programs are effective at accomplishing this
goal. However, there is much loos evidence that this kind of training actually increases
the accuracy of appraisals programs focused on observation and recording skills may
offer greater improvement in accuracy than those that simply focus on errors.
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To help with the communication the supervisor should hold an evaluation interview with
each subordinate in order to discuss his or her appraisal and to set objectives for the up
coming appraisal period. In addition experts advise that actions concerning the employees
development salary should not be discussed during this interview. Thus although most
organizations with formal evaluation systems give employees feedback many are not
doing in tint eh best way possible.
Normal major describes three generally used approaches to these interview situations tell
and sell tell and listen and problems solving research on when indicates that tell and sell
approach is best for new and experienced employees and that the problem solving
approach which encourages employees participation is useful for ma experienced
employees especially these with strong work ethic although these types of interview
differ in terms of the supervisors behavior, effective evaluation feed back sessions share a
number of characteristics annual discussion s of performance should include.
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both managerial and blue collar pay structures as the use of incentives declined. Such
systems however, were essentially in ward looking and tied to state conceptions of the
organization and its environment. This was reelected in the criticisms increasingly made
of job evaluation that it promoted bureaucracy was costly rigid and inflexible and failed
to respond to change consequently been rapidly changing nature of jobs in many sectors.
Pressures for such change are nicely illustrated in a consultancy report on the banking
sector which for so long typified the traditional model with its emphasis in quality,
hierarchy, control and permanently defined jobs.
Put simply performance related pay is about making a proportion of pay dependent on
some objectively defined criteria. This may range from company profits to specific
individuals out puts targets, varying according to the nature of the job. As such PRP is
more of strategy or approach than a system it embraces a great variety of schemes and
different motivations (Hen-dry, 1995:304)
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Presence at work
Cooperativeness
Linkage between strategy out comes and organizational result organizational strategy.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1.Description of the study
The researcher is undertake on the title of ''Assessment of result oriented performance
appraisal on the case of commercial bank of Ethiopia Dire Dawa town Sebian branch"
3.2.Research design
The type of research conduct in this study is descriptive type of research in order to
describe the existing situation.
3.4.Study population
3.5.Sample design
The researcher use census survey to collect data from employees. The reason for this is
the researcher believe that the relevant information is obtain from individual respondents.
There are small number of employees i.e 40 employees in the bank. To increase the
accuracy the researcher use this type of method.
3.6.Data collection method
The study has use both primary and secondary data.The primary data will be collect by
using mailed questionnaire form employees and Secondary data will be collect from the
document then verify their accuracy before using them.
3.7.Data analysis
The response that collect from respondents through qualitative and quantitative method
will be edit,analyze and interpret.The quantitative data will be process and analyze
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precisely by using table and percentage. Qualitative data and interviews are describe
through word with out any numerical measures.
3.8.Ethical consideration
It could not be ethical to access some confidential documents of the
organization.Therefore,the organization code of ethics will taken in to account without
significantly compromising findings of the study.Also it may not be ethical to ask
employees to answers questionnaires while they are at their work responsibility,enough
time will given to respondents so that they can either take the questionnaires to their
home or use their break time.
4. Time and Budget Schedule
4.1Time Schedule
The following time schedule is a schedule which the researcher will use while conducting
his/her studies in the future.
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11. (www.performaceaprisal.com)
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