THE EFFECT OF PERFORMANCE APPRAISAL ON EMPLOYEES’ CAREER DEVELOPMENT: CASE STUDY ON BUNNA INTERNATIONAL BANK S.C

Abstract

This study was conducted at BIB International Bank S.C. aiming to assess the effect performance appraisal (PA) practice of the Bank and on employees’ career development plan using descriptive research method. In conducting this study, both primary and secondary data were collected using structured questionnaires, an interview and other published materials. Nonprobability purposive sampling technique was also employed to select representative samples of 140 participants from a total population of 218 employees found at 4 branches and the headquarters. The study used questionnaires as its data collection instrument qualitatively and quantitatively. Regression Analysis and Correlations were used to analyze the data collected using SPSS version 20 to analyze the data gathered. The findings of the study clearly showed that Among the main finding of the study was that from the four factors of effective PA, which are Clarity, Performance appraisal feedback, Knowledge, Fairness in the appraisal have significant positive effect on employees Career development, BIB has long implemented a performance appraisal system, employees are not motivated by the results of the system as the bank usually conducts PA for the sake of formality or monetary rewards rather than developmental purposes. Failure to properly utilize the results of PA resulted in unjustified and prolonged retention of employees in the same post without promotion. In improving this and other problems, the study recommended that the bank benchmarks best practices in the industry, introduce standard PA measuring tools and systems, align organizational objectives with the system, effectively make use of the results for the identification of employee weaknesses, strengths and training needs so that BIB could retain the existing and attract competent employees of the sector.