| Abstract: | This study investigates the effect of performance appraisal on productivity in the Bank of
Abyssinia West Addis District. Utilizing an explanatory design and a quantitative research
approach, the research encompasses a total population of 1,175 employees, with a sample
size of 298 respondents selected through simple random sampling. Data were collected using
a structured questionnaire and analyzed via regression and correlation methods using IBM
SPSS version 20. This study investigates the relationship between various performance
appraisal factors and employee productivity. The analysis reveals that goal setting exhibits a
very weak negative correlation. Training and development opportunities and employee
participation, exhibits a very weak positive correlation indicating negligible effect. In
contrast, consistency and fairness display a weak but positive and statistically significant
correlation, highlighting a modest yet meaningful impact on productivity. Most notably the
manager-employee relationship shows a strong positive correlation with productivity
indicating a substantial and significant influence. These findings suggest that while goal
setting, training and development opportunities and employee participation have limited
impact on productivity, consistency and fairness, and especially manager-employee
relationships are crucial factors in enhancing employee performance. Recommendations
include strengthening managerial relationships and ensuring consistency and fairness |
