THE EFFECT OF PERFORMANCE MANAGEMENT SYSTEM ON THE EMPLOYEES’ PERFORMANCE: -THE CASE OF DASHEN BANK

Abstract

Performance management is the continuous effort while we work in the organization for quality control. The objective of the study is to examine the effect of the performance management system on the performance of employees in the Dashen Bank. The study was done based on primary and secondary data sources. A self-administered structured questionnaire was designed to collect the relevant information from the respondents. In course of investigation, instrument used were structured questionnaire distributed to respondents of which 188 were retrieved. The researcher has used proportionate stratified random sampling method. The data was analyzed using SPSS Version 25; in the model summary R amounted to 0.82; this indicates that variation order can be accounted for 82 % of employee performance and the R square (coefficient of determination) where the rest 67.2% of variation may be explained by either by determinates. The result of the data analysis reveals that PMS have a significant effect on its Employee performance. The major findings of this study is that the independent variables, which are setting objectives, feedback, reward appraisal and evaluation cascaded from the process of performance management system, have a significant effect on the performance of employees (p < 0.05). The study concludes that there is a positively significant effect of performance management systems such as setting objectives, feedback, reward, appraisal and evaluation on employee performance. The study recommends that Dashen Bank would make the employees to participate on the Planning stage of the PMS and a frequent feedback is necessary to enable the employees be aware of what exactly is expected from them