THE EFFECT OF PERFORMANCE APPRAISAL ON EMPLOYEE PRODUCTIVITY IN BANK OF ABYSSINIA

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