Employee Performance Management System Practices and Challenges: A Case of Commercial Bank of Ethiopia


  • Abdurezak Mohammed Kuhil Assistant Professor Business Leadership, Addis Ababa University, College of Business and Economics, School of Commerce, Ethiopia
  • Tigist W/Michael Ethiopia


Employee Performance Management, commercial bank of Ethiopia, Performance Management


This research was conducted to assess the practices and challenges of employee performance management system (EPMS) at Commercial bank of Ethiopia (CBE), a leading Commercial bank in the country by collecting evidences from 136 employees working at Bishoftu District area. The study focused on how PMS process was practiced, identify the purpose and challenges faced while implementing performance management in the case organization. The study employed descriptive research method of study with stratified random sampling technique to select respondents and collected empirical evidences using questionnaire and interview. The study used both Primary and secondary data for the study. The analysis was done by the help of SPSS and presented using descriptive statistics techniques. The research has confirmed that CBE has good qualities in practicing clearly by defining the mission, vision and values and developing strategy map. However, the study identified that  the EPMS of the CBE has limited awareness and trainings concerning the purpose, requirements and implications of PM among employees; lack of trust and continuity of the system; lack of regular feedback and Coaching to improve performance, subjective supervisor assessment .Based on the gap, the study has recommended to the management to improve employee’s participation in the process, to avail adequate and timely trainings concerning all aspects of the EPMS, revise performance standards and measures to minimize subjectivity and inappropriateness ;enhance the involvement and ownership of employees via promoting transparency and equip them with the required knowledge, skill and resources, provide regular feedback and Coaching. Furthermore, it has been suggested that CBE shall make the evaluation criteria objective, conduct the evaluation at the right time and clearly articulate the end-to-end implication of good as well as poor performance.


Abdurezak, M., & Girma, B. (2014). Performance Management. Addis Abba University College of Business & School of Commerce, Addis Ababa.

Aguinis, H. (2013). Performance Management (3rd ed.). Boston: Pearson Education, Inc.

Armstrong, M. (2006). A Handbook of Human Resource Management Practice (10th ed.). London and Philadelphia: Kogan Page.

Armstrong, M., & Baron, A. (1998). Performance Management: The New Realities. London: Institute of Personnel and Development.

Armstrong, M., & Baron, A. (2004). Managing Performance: Performance Management in Action. London: CIPD.

Armstrong, M., & Taylor, S. (2014). Handbook of Human Resource Management Practice (13th ed.). Kogan Page Limited.

Cokins, G. (2004). Performance Management Finding the Missing Pieces (To Close the Intelligence Gap). John Wiley & Sons, Inc.

Creswell, W. (2003). Research Design Qualitative, Quantitative. And Mixed Methods Approaches (2nd ed.). London & New Delhi: Lincoln SAGE Publications.

Gupta, A. (2012). Impact of Effectiveness of Performance Management System on Employee Satisfaction and Commitment. International Journal of Management, IT and Engineering, 2(7), 96-106.

Kothari, R. (2004). Research Methodology methods & techniques (2nd ed.). India: New Age International Limited.

Mathis, R., & Jackson, J. (2011). Human Resource Management (13th ed.). USA: Joseph Sabatino.

Nayak, K., & Singh, D. (2015). Fundamentals of Research Methodology: Problems and Prospects (1st ed.). New Delhi: SSDN Publishers & Distributors.

Qureshi, A., Shahjehan, A., Rehman, Z., & Afsar, B. (2010). Performance management systems: A comparative analysis. African Journal of Business Management, 4(9), 1856-1862.

Rowley, C., & Jackson, K. (2011). Human Resource Management: The Key Concepts (1st ed.). New York: Routledge.

Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students (5th ed.). Pearson Education Limited.

Sekaran, U. (2003). Research Methods for Business (4th ed.). United States of America: John Wiley & Sons, Inc.

Smither, W., & London, M. (2009). Performance Management Putting Research into Action (1st ed.). United States of America: Jossey-Bass A Wiley Imprint.

Stredwick, J. (2005). An Introduction to Human Resource Management (2nd ed.). Great Britain: Elsevier Butterworth-Heinemann.

Torrington, D., Hall, L., & Taylor, S. (2008). Human Resource Management (7th ed.). England: Pearson Education Limited.

Tyson, S. (2006). Essentials of Human Resource Management (5th ed.). Netherlands: Elsevier Ltd.

Zhang, Y. (2012). The Impact of Performance Management System on Employee Performance.




How to Cite

Abdurezak Mohammed Kuhil, & Tigist W/Michael. (2021). Employee Performance Management System Practices and Challenges: A Case of Commercial Bank of Ethiopia. Indian Journal of Commerce and Management Studies, 10(1), 23–33. Retrieved from https://www.ijcms.in/index.php/ijcms/article/view/92