The Effect Of Performance Management System On Employee Performance: The Case Of Commercial Bank Of Ethiopia Adama District

Abstract

The purpose of this paper is to examine the contribution and effect of PMS on employee performance. Setting objective, coaching and training, personal development, performance evaluation, pay for performance, continuous communication and feedback and performance review are major factors dealt in the process. The first five factors are catalysts for positive employee performance whereas continuous communication and feedback and performance review factors are affecting employee performance negatively. Commercial bank of Ethiopia branches that found under Adama city and outline branches are representing CBE Adama district. The researcher used questionnaire, interview, secondary documents and observation. These methods are used to collect data related with PMS factors and employee performance. Data presentation, analysis and interpretation are made with the aid of regression and descriptive statistics. Moreover, qualitative data is analyzed thematically. All, but continuous communication and feedback and performance review, have had positive impact on employee performance. In terms of contribution, performance evaluation contributed a lot for the CBE employee performance. It is followed by setting objective, personal development, coaching & training and pay for performance respectively.