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ID No; MBA/CA036/15
Contents
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ABSTRACT............................................................................................ iii
CHAPTER ONE...................................................................................... iii
1. INTRODUCTION................................................................................ iii
1.1. Back ground of the study.......................................................................... iii
1.2.Statement of problem................................................................................ iii
1.3. Objectives of the study.............................................................................. iii
1.3.1. The general objectives........................................................................ iii
1.3.2. Specific objectives............................................................................... iii
1.4. Significance of the study........................................................................... iii
1.5 Scope of the study...................................................................................... iii
1.6. Limitation of the study.............................................................................. iii
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2.8.3 Essay method....................................................................................... iv
2.8.5 Ranking................................................................................................. iv
CHAPTER THREE................................................................................... iv
3. RESEARCH METHODOLOGY AND DESIGN........................................ iv
3.1 Research design.......................................................................................... iv
3.2 Target of population.................................................................................................................12
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CHAPTER ONE
1. INTRODUCTION
Performance is a multi-dimensional construct and this leads to the conclusion that when
evaluating rewarding performance of individuals and teams a number of factors have to be
considered, including both inputs (behavior) and out puts (results) (Armstrong, 2012).
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know ledge, skills and a abilities in the workforce to optimal employee productivity and
given an organization competitive advantage.
The output of every organization depends on how well and how much the performance of an
employee is appraised. Productivity can therefore be defined as quality or volume of the
major product or service that an organization provides.
Addis Ababa Abyssinia bank uses a performance evaluation method improper way,
evaluation is difficult ability in Abyssinia bank, impossible control of factor affecting
performance appraisal in Addis Ababa Abyssinia bank. If management does not invest much
into the welfare of their workers problems, problems are bound to arise leading to industrial
strike actions low commitment to work, low morale and low productivity of employees
(Bonniest and Balkan 1990). Attractive appraisal system is established by some business
organization to help motivate their employees to strive hard to be recognized and rewarded.
Once employees are motivated, their performance reflects on productivity. The research
problem of the study is to know role of performance evaluation employee s productivity in
Abyssinia bank in case of Addis Ababa branch.
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performance of organization, on other hand if it implemented poorly, it affects employee s
productivity, morale and satisfaction. So, this study will use aimed to assess problems or
challenges which affect employees productivity in Abyssinia bank in case of Addis Ababa
branch researchers try to fill this gap through identifying major measures.
Research question
3. What are the challenges and problems encounter while implementing performance
evaluation on employees productivity in ABYSSINIA BANK IN ADDIS ABABA ?
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1. To investigate kind of performance evaluation that is implemented in Abyssinia bank in
ADDIS ABABA .
2. To investigate how performance does evaluation affects employee s productivity in
Abyssinia bank.
3. To investigate employees perception toward the performance evaluation implemented in
Abyssinia bank in ADDIS ABABA .
4. To investigate challenges and problems encounter while implemented performance
evaluation on employees productivity.
This research will be cannot apply on other organization. As result the researcher cannot run
freely with the all the necessary condition so as to satisfy the whole requirement of the study.
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This study will be used only descriptive research design because of describe about
performance evaluation on employees productivity
The paper will be organized in four chapters. The first chapter will deal with introduction
which includes back ground of the study, statement of the problem, objective of the study,
significance of the study and limitation. The third chapter will deal with the research
methodology which includes research design, population of the study, source of data, data
collection method and data processing and analysis.
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CHAPTER TWO
2. LITERATURE REVIEW
Whereas human resource professionals play an important role in developing and coordinating
appraisal system, for the process to be successful, line personal must be key players in the
system. Approaches in this manner, performance appraisal was the best change for successful
implementation (Wendell French, 2007)
Performance evaluation /appraisal are used forDeveloping valid date for pay (salary and
bonus) and promotion decisions and providing means for communicating these decisions
Giving teed back to employee to they know where stand Motivating employees through
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recognition and support Strengthens superior subordinate relation Designing evaluation of
human resurge systems such as company training programs and human resource planning
Documentation of personal decisions the reliability and validity of the appraisal .
Programs are especially important in view of equal emolument opportunity legislation and
guidelines unfortunately supervisors can make several kinds of errors while, conducting
appraisals that make the process unreliable or less valid that it might otherwise be thus errors
are Hallo error of central tendency, Leniency Arguing and poor communication.
The most usual rationalization and justification for appraise is to improve in divvies
performance appraisal but there are also variety of other declared purposes and declined
being tits for appraisals is also including: improving motivation and morale, clarifying
expectation and reducing ambiguity about performance in addition improving
communication, selecting people for communication and managing careers counseling
discipline, planning remedial activity and setting goals and targets.
There are a number of opportunities for performance rating to occur the different approaches
to rating classified as inputs, results and outcome behavior.
Such belies often become taken for granted assumptions and difficult to challenge an
appraisal as control simplifies relationship but, in the process, makes it less relevant to
peoples experience of relationship at work and reduce its effectiveness
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great deal of dissatisfy with appraisal system in many organizations. A survey conducted at
recent the conference boards HR in new your city found 90 percent of HR executive would
modify totally revise or even eliminate their companies current appraisal processes .One of
the reasons given was that top down appraisal system are less appropriate when organization
structures become more flattened and when there is an emphases on teams and cross
functional collaborations .Another reason undoubted has to with the widely held perception
by both employees and managers that most appraisal system tends to Focus on criticism
rather than positive feedback. Underlying reasons probity includes the design of the system
and the leadership styles the person doing the appraisal (Wendell French 2007).
In puts: -This is abroad and potentially vague category that has traditionally been concerned
with listing traits or personality attributes typically attributes is ability, loyalist, decisiveness
resource fullness and stability. Because much attributes may be difficult to dating there will
be little agreement between the different users lists of measure other presence in employee s
performance appraisal.
The result and outcomes of work performance provide the most objective technique for
couching date for appraisal. When available measurements can be taken at deterrent points in
time and comparison made with objectives. Typical measurement might relate to production,
sales and the number of satisfied customers or customer complaints.
Behavior in performance
In generally, performance management has control purpose to make decision about pay
promotion and work responsibilities and development purpose to improve performance
identity training to appraises and plan action. The performance control approach to appraisal
is still seen as evidence of rationality and efficiency at work
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2.5 Employee Productivity
Koontz and Weinrich (1990) define productivity as the output input ratio which a time
period with due consideration for quality they expressed it as: productivity outputs (within
time period, quality considered) inputs.
While Drucker (1999) defined it as an increase in the level of out put produced by workers
for smallest effort put in as well as in the qualify of out put which is in line whit what
(Koontz & Wrihrich1990) suggest.
Though stoner (2000) also agrees with (Koontz &Winch 1990) that it is the ratio of input to
output he however goes I head to say it measures employee s efficiency in using the
organization scarce resource to produce and goods and services. The higher the numerical
value of this ratio, the greater the efficiency.
Stoner (2000), continues that there are two basic types of productivity ratios the first being
total productivity which relates the value of all out put to the value of input, using the ratio
total output /total input. He additionally notes the second as being partial productivity
which relates the value of all out put to the value of major categories of input using the ratio
total output /partial input.
Decenzo&Robbms (2000), believe that training also affects productivity in that when an
employee's weak points in a job are discovered and he or she is trained in that particular
aspect, such an individual will get a feeling of attachment to the organization hence with the
required skills imputed in him work so hard meaning an increase in his productivity unlike
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the one whose weakness is discovered and left to learn on his work such an employee will
deter productivity due to lacking skills and the feeling of being left out.
He also talks about teams and he especially dwells on self-managed teams to whom tasks
are given to be accomplished. Here they have to find ways of how to perform, which
resources to use, its quality and finally give a feed back to management such teams or
individuals in the team feel they are trusted and try their best to yield high results hence
high employee productivity. While those who work individually and are over supervised feel,
they are not trusted hence not worth the job their morale declines leading to low
productivity.
Work simplification as by (Koontz &Winch, 1990), they define it as the process of obtaining
the participation of workers in simplifying their work. Here employees are made to pick
which tasks of their jobs they can perform better and tasks are 13 broken in to smaller
doable parts productivity goes up since work is made easier.
Daft (1997), talks about time management as a factor that affects employee productivity of
which he says that unlike other resources time is the only one that can never be replenished
and therefore should be used to create competitiveness and increase productivity by
avoiding late coming to work. The more time is kept, the greater each employee s
productivity.
Koontz &Weinrich (1990), consider effectiveness of quality circles, which are groups of
people from the same organizational area, who meet regularly to solve problems they
experience at work members are trained in solving problems, statistical quality control and
in working groups. The fact that employees participate in solving work related problems,
they are motivated to work harder and hence increase their productivity.
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While Dibenzo& Robbins (2000), agree on working conditions to them, an organizations
with an aim to improve their employee productivity should have the responsibility to ensure
that the work place is free from unnecessary hazards and that conditions surrounding
employees physical and mental health are favourable such employees productivity will
increase due to uninterrupted sessions during their work performance while those who
work under poor conditions usually yield low productivity due to accidents and time off to
heal among others.
Stoner (2002) strongly believes that leadership style also affects employee productivity
especially the participatory or democratic type If workers are involved in decision-making or
issues that affect them day-by-day and goals to achieve, they become motivated and put in
more efforts to achieve the goals which they set hence employee productivity is likely to be
high compared to autocratic leadership style that is strict, bureaucratic and coercive.
Reward and compensation policies by (Daft 1997), he says these policies include monetary
and non- monetary payments. Employees usually compare what they are paid with what
others are paid or benefit and at the end perceive an organization as being fair or unfair.
Those who perceive it as fair will work with zeal and confidence hence increase productivity
while those who see it as unfair will try their best to avoid work leading to low output with
which (Koontz &Winch, 1990) agree.
Lastly Koontz &Winch (1990) talk about the effect of technology. They state that due to · the
ever-increasing competition, demand for an organizations product increases thus a need to
reduce the product life cycle or covering up demand use of capital-intensive technology will
increase output levels, reduce product life cycles meaning organizations produce more or
enough to cover demand, thus increasing productivity unlike labour intensive which is time
wasting low output and low quality leading to low productivity.
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employee, a group financer rating an employee, a group of peers rating a colleague and
finally employees rating of bosses.
Secondly, they agree on the formal type where they state that it's anon going process with
feedback to employees about how well they are doing their work for the organization. This
can be carried out on a day-to-day basis where the manager spontaneously mentions that a
given piece of work was performed well or poorly.
Due to the close connection between the behaviour and feedback, Informal appraisal
becomes an excellent way to encourage performance. Atilio (1996), adds on formal
appraisal that, it may involve use of various techniques that have been developed for the
purpose.
Generally speaking, the many purposes of performance appraisal can be grouped in to two
main categories: evaluation of goals and coaching and development goals (according to
author Michael Harris) evaluation goals include the following: - Giving feedback to
employees to the known where they the stand Developing valid data for pay (salary and
bonus pay) and promotion decisions and providing a means for communicating these
decisions Helping the manager make retention and discharging decisions and providing a
means for warning employee about unsatisfactory decisions.
Couching and development goal including the follow Counseling and coaching employees in
order to improve their performance and develop future potential.
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Maturating employees through recognition and support.
Diagnosing individuals and organizational problems underlying all of the above strategic
need to develop to employees core completeness critical important behaviors skills and
attributes needed to achieve organizational goal (Michael Harris 2007)
The validity of performance appraisal is the extent to which appraisal procedures measures
real difference in performance. Logic suggests that the more the supervisor used data on
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actual performance. The more valid the rating become thus the most valid ratings are those in
which actual performance corresponds to rated performance.
The reliability of appraisal method can be increased by improving the training of rates and by
using more descriptive standards in appraisal systems (Monday, Noël 2009.)
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list statements Helps workstations neat and clean Can be expected to complete work on time
Maintains detailed record
The critical incidents techniques require the appraisals to keep a record of usually favorable
and unfavorable occurrences in an employee.
work. The positive aspects of this approach are that it provides at 16recorded for subsequent
discussions and decision making and that it provides data directly related to job performance
on the negative side the approach requires close and continuos observation by the appraisal
3.5.2 Ranking
Rankin g method is used less frequently than other method discussed. There are varieties of
ranking procedures but basically the supervisor ranks all employees form best to the poorest
on one more scale.
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CHAPTER THREE
The researcher will use a descriptive type because of this type of research is very useful to
find out and describe information about performance evaluation and its link with employee s
productivity.
The target population of the organization will be 12 and among these 3 managers and the
remaining 9 are employees.
This study will use primary source of data to conduct the study. Because the primary source
of data that provide first hand information for the immediate purpose. The primary data will
be collected from questionnaire and interview.
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The data collection that the researcher will use to collect data is questionnaire method which
is distribute to employees and interview method to managers in Abyssinia bank of ADDIS
ABABA branch.
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Reference
Ali and opatha (2008) performance appraisal system and bundles performance, journal of
Human resource management Mwanza, Tanzania. Unpublished PhD Thesis. Kisi
University. Kenya.
Armstrong (2012) Armstrong hand book of human resource management practice 12th
edition New York: John Wiley &Sons, INC
Braton and gold (2007) human resource management 9th edition printed in the
united state of America.
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Dzinkouse (2008) responsibility to motive their employee to achieve
organizational goal Macmillan USA (1 Nov. 1984).
(Monday, Noel 2009) increased by improving the training of rate and by using
more descriptive standards in appraisal systems New York: south western, Engage
Learning.
Wendell French (2006) human resource management 6th edition. Stony Austria.
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