Research Article | | Peer-Reviewed

Assessment of Employees’ Performance Appraisal Practice: the Case of Bank of Abyssinia

Received: 16 September 2025     Accepted: 28 September 2025     Published: 22 November 2025
Views:       Downloads:
Abstract

This study investigates the effectiveness of performance appraisal practices at the Bank of Abyssinia, focusing on the perceptions of employees concerning the appraisal process, fairness, job satisfaction, and the impact of cultural norms. The association between performance appraisal practices was examined using descriptive statistical techniques methodology. In this study, quantitative research design was employed. 183 questionnaires distributed and 180 were correctly completed and returned, and a stratified random sampling strategy was used in the research for census sampling strategy. a structured questionnaire with a five-point Likert scale rating system. Using SPSS version 26.0, the acquired data were condensed and subjected to descriptive and inferential statistical analysis. The main finding of the study was a highlights a strong perception of trust in the appraisal system, although concerns about transparency and job satisfaction remain. Notably, the findings suggest that while feedback provided during appraisals is valued, employees do not associate their appraisals strongly with job satisfaction, indicating an area for improvement. The results underscore the necessity for the Bank of Abyssinia to enhance its appraisal practices by focusing on structured feedback, promoting transparency, and linking appraisals to career development to improve overall employee motivation and engagement. The study's limitations include the sample size and reliance on self-reported data, which may affect generalizability. Future research directions suggest the need for longitudinal studies to track changes over time and qualitative approaches to gain deeper insights into employee experiences. Overall, this research contributes to understanding performance appraisals in a banking context and provides actionable recommendations for organizational improvement.

Published in American Journal of Management Science and Engineering (Volume 10, Issue 6)
DOI 10.11648/j.ajmse.20251006.11
Page(s) 112-132
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Performance Appraisal, Employee Perception, Job Satisfaction, Fairness, Cultural Norms, Organizational Effectiveness, Bank of Abyssinia

References
[1] H. Aguinis, Performance Management, 3rd ed. Pearson Higher Ed, 2013.
[2] P. M. Muchinsky, Psychology Applied to Work, 8th ed. Thomson Wadsworth, 2006.
[3] A. T. Tensay and M. Singh, “The nexus between HRM, employee engagement and organizational performance of federal public service organizations in Ethiopia,” Heliyon, vol. 6, no. 6, e04094, 2020,
[4] G. Dessler, Human Resource Management, 15th ed. Pearson, 2016.
[5] Bank of Abyssinia, Annual Human Resource Report, 2022.
[6] G. Hofstede, “Dimensionalizing cultures: The Hofstede model in context,” Online Readings in Psychology and Culture, vol. 2, no. 1, pp. 1-26, 2011.
[7] B. Kuvaas, “Performance appraisal satisfaction and employee outcomes: Mediating and moderating roles of work motiva tion,” Int. J. Hum. Resour. Manage., vol. 17, no. 3, pp. 504-522, 2006.
[8] B. Becker, “Rethinking performance appraisals: Challenges and opportunities,” Int. J. Hum. Resour. Stud., vol. 11, no. 3, pp. 120-135, 2021.
[9] M. London and J. W. Smither, “Empowered self-development and continuous learning,” Hum. Resour. Manage., vol. 38, no. 1, pp. 3-15, 1999.
[10] T. Bekele Beri, F. Tafese, and T. Dagne, “Analysis of employees compensation and performance appraisal policies in Oromia, Ethiopia,” Int. J. Chin. Med., vol. 3, no. 1, pp. 7-16, 2019,
[11] J. Colquitt, “On the dimensionality of organizational justice: A construct validation of a measure,” J. Appl. Psychol., vol. 86, no. 3, pp. 386-400, 2001,
[12] A. M. Grant and S. K. Parker, “Redesigning work design theories: The rise of relational and proactive perspec tives,” Acad. Manag. Ann., vol. 3, no. 1, pp. 317-375, 2009,
[13] A. N. Kluger and A. DeNisi, “The effects of feedback interventions on performance: A historical review, a meta-analysis, and a preliminary feedback intervention theory,” Psychol. Bull., vol. 119, no. 2, pp. 254-284, 1996.
[14] D. Dinevski and B. Stojkovski, “Performance appraisal effectiveness: Insights from financial institutions in Eastern Eu rope and Africa,” J. Hum. Resour. Manage., vol. 8, no. 3, pp. 45-60, 2020.
[15] S. Kim and P. Hoon, “Cultural influences on performance appraisal practices in African contexts,” Int. J. Hum. Resour. Stud., vol. 11, no. 2, pp. 72-89, 2021.
[16] B. Kossivi, M. Xu, and B. Kalgora, “Study on the impact of performance appraisal on employee retention,” Int. J. Hum. Resour. Stud., vol. 6, no. 1, pp. 123-138, 2016.
[17] K. Kraiger, J. K. Ford, and E. Salas, “Application of cognitive, skill-based, and affective theories of learning outcomes to new methods of training evaluation,” J. Appl. Psychol., vol. 78, no. 2, pp. 311-328, 1993,
[18] T. A. Judge and G. R. Ferris, “Social context of performance evaluation decisions,” Acad. Manage. J., vol. 36, no. 1, pp. 80-105, 1993.
[19] T. Nguyen, Q. Tran, and P. Nguyen, “Cultural dimensions and employee responses to feedback in high power distance contexts,” J. Cross-Cult. Manage., vol. 21, no. 4, pp. 450-465, 2014.
[20] E. A. Locke and G. P. Latham, “Building a practically useful theory of goal setting and task motivation: A 35-year odys sey,” Am. Psychol., vol. 57, no. 9, pp. 705-717, 2002.
[21] J. S. Adams, “Inequity in social exchange,” in Advances in Experimental Social Psychology, vol. 2, L. Berkowitz, Ed. New York: Academic Press, 1965, pp. 267-299.
[22] G. Hofstede, Culture’s Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage Publi cations, 1980.
[23] G. Tadesse, Performance appraisal systems and employee productivity in Ethiopian commercial banks. Addis Ababa Uni versity Press, 2016.
[24] T. Abebe, Employee perceptions of performance appraisal practices in Ethiopian banks. Addis Ababa University Press, 2018.
[25] T. Melaku, “The effect of performance appraisal practices on employee retention in private banks in Addis Ababa,” Addis Ababa Univ. J. Bus. Stud., vol. 5, no. 1, pp. 50-68, 2019.
[26] L. Rhoades and R. Eisenberger, “Perceived organizational support: A review of the literature,” J. Appl. Psychol., vol. 87, no. 4, pp. 698-714, 2002,
[27] S. P. Robbins and T. A. Judge, Organizational Behavior, 18th ed. Harlow: Pearson, 2019.
[28] G. Hofstede, Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations, 2nd ed. Thousand Oaks, CA: Sage, 2001.
[29] H. Nishida, Cultural Communication and Intercultural Competence. New York, NY: Routledge, 2016,
[30] J. W. Creswell and J. D. Creswell, Research Design: Qualitative, Quantitative, and Mixed Methods Approaches, 5th ed. Thousand Oaks, CA: Sage Publications, 2018.
[31] M. Saunders, P. Lewis, and A. Thornhill, Research Methods for Business Students, 7th ed. Harlow, UK: Pearson, 2016.
[32] R. L. Ackoff, “On the design of sociotechnical systems,” Manage. Sci., vol. 2, no. 4, pp. 383-401, 1956.
[33] R. Gill, S. Stewart, J. Treasure, and B. Chadwick, “Methods of data collection in qualitative research: Interviews and fo cus groups,” Br. Dent. J., vol. 204, pp. 291-295, 2010.
[34] D. McCauley and E. Brutus, “Performance management: State of the art in practice,” J. Manage. Dev., vol. 35, no. 4, pp. 445-456, 2016,
[35] L. Cohen, Educational Research in Classrooms and Schools: A Manual of Materials and Methods. London: Harper and Row, 1989.
[36] K. A. Sillignakis, “Sample research proposals on education,” University of Munich, Munich, Germany, 2002. [Online]. Available:
[37] C. Dawson, Practical Research Methods: A User-Friendly Guide to Mastering Research Techniques and Projects. Oxford, UK: How To Books, 2002.
[38] R. Likert, “A technique for the measurement of attitudes,” Archives of Psychology, vol. 22, no. 140, pp. 1-55, 1932.
[39] J. A. Krosnick, “Survey research,” Annu. Rev. Psychol., vol. 50, pp. 537-567, 1999.
[40] D. Harper and A. R. Thompson, Qualitative Research Methods in Mental Health and Psychotherapy: A Guide for Stu dents and Practitioners. Chichester, UK: Wiley-Blackwell, 2011.
[41] M. Easterby-Smith, R. Thorpe, and A. Lowe, Management Research: An Introduction, 2nd ed. London, UK: Sage Publi cations, 2002.
[42] B. A. Fubara and B. O. Mguni, Research Methods in Management. Port Harcourt, Nigeria: Pear Publishers, 2005.
[43] D. George and P. Mallery, SPSS for Windows Step by Step: A Simple Guide and Reference, 4th ed. Boston, MA: Allyn & Bacon, 2003.
[44] A. Field, Discovering Statistics Using IBM SPSS Statistics, 5th ed. London, UK: SAGE Publications, 2018.
[45] P. Warr, The Psychology of Happiness, 3rd ed. London, UK: Routledge, 2019.
[46] American Psychological Association, Publication Manual of the American Psychological Association, 7th ed. Washington, DC: APA, 2020.
[47] K. R. Murphy and J. N. Cleveland, Understanding Performance Appraisal: Social, Organizational, and Goal-Based Per spectives. Thousand Oaks, CA: Sage Publications, 1995.
[48] J. A. Colquitt, D. E. Conlon, M. J. Wesson, C. O. L. H. Porter, and K. Y. Ng, “Justice at the millennium: A meta-analytic review of 25 years of organizational justice research,” J. Appl. Psychol., vol. 86, no. 3, pp. 425-445, 2001.
[49] B. Baker, Strategic Human Resource Management: Performance, Alignment, and Integration. New York, NY: Business Expert Press, 2014.
[50] J. Hair, W. Black, B. Babin, and R. Anderson, Multivariate Data Analysis, 7th ed. Upper Saddle River, NJ: Pearson, 2010.
[51] C. D. McCauley, Talent Conversations: What They Are, Why They Matter, and How to Do Them Right. Greensboro, NC: Center for Creative Leadership, 2016.
[52] C. Brewster, W. Mayrhofer, and E. Farndale, A Handbook of Comparative Human Resource Management. Cheltenham, UK: Edward Elgar Publishing, 2016.
[53] T. Nishida, Cultural Influences on Performance Feedback and Employee Communication. New York, NY: Routledge, 2016.
[54] G. Hofstede, G. J. Hofstede, and M. Minkov, Cultures and Organizations: Software of the Mind, 3rd ed. New York, NY: McGraw-Hill, 2010.
[55] F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture: Understanding Diversity in Global Business, 3rd ed. London, UK: Nicholas Brealey Publishing, 2012.
[56] J. F. Hair, W. C. Black, B. J. Babin, and R. E. Anderson, Multivariate Data Analysis, 7th ed. Harlow, UK: Pearson Educa tion, 2010.
Cite This Article
  • APA Style

    Kitila, D. B. (2025). Assessment of Employees’ Performance Appraisal Practice: the Case of Bank of Abyssinia. American Journal of Management Science and Engineering, 10(6), 112-132. https://doi.org/10.11648/j.ajmse.20251006.11

    Copy | Download

    ACS Style

    Kitila, D. B. Assessment of Employees’ Performance Appraisal Practice: the Case of Bank of Abyssinia. Am. J. Manag. Sci. Eng. 2025, 10(6), 112-132. doi: 10.11648/j.ajmse.20251006.11

    Copy | Download

    AMA Style

    Kitila DB. Assessment of Employees’ Performance Appraisal Practice: the Case of Bank of Abyssinia. Am J Manag Sci Eng. 2025;10(6):112-132. doi: 10.11648/j.ajmse.20251006.11

    Copy | Download

  • @article{10.11648/j.ajmse.20251006.11,
      author = {Dereje Biru Kitila},
      title = {Assessment of Employees’ Performance Appraisal Practice: the Case of Bank of Abyssinia},
      journal = {American Journal of Management Science and Engineering},
      volume = {10},
      number = {6},
      pages = {112-132},
      doi = {10.11648/j.ajmse.20251006.11},
      url = {https://doi.org/10.11648/j.ajmse.20251006.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20251006.11},
      abstract = {This study investigates the effectiveness of performance appraisal practices at the Bank of Abyssinia, focusing on the perceptions of employees concerning the appraisal process, fairness, job satisfaction, and the impact of cultural norms. The association between performance appraisal practices was examined using descriptive statistical techniques methodology. In this study, quantitative research design was employed. 183 questionnaires distributed and 180 were correctly completed and returned, and a stratified random sampling strategy was used in the research for census sampling strategy. a structured questionnaire with a five-point Likert scale rating system. Using SPSS version 26.0, the acquired data were condensed and subjected to descriptive and inferential statistical analysis. The main finding of the study was a highlights a strong perception of trust in the appraisal system, although concerns about transparency and job satisfaction remain. Notably, the findings suggest that while feedback provided during appraisals is valued, employees do not associate their appraisals strongly with job satisfaction, indicating an area for improvement. The results underscore the necessity for the Bank of Abyssinia to enhance its appraisal practices by focusing on structured feedback, promoting transparency, and linking appraisals to career development to improve overall employee motivation and engagement. The study's limitations include the sample size and reliance on self-reported data, which may affect generalizability. Future research directions suggest the need for longitudinal studies to track changes over time and qualitative approaches to gain deeper insights into employee experiences. Overall, this research contributes to understanding performance appraisals in a banking context and provides actionable recommendations for organizational improvement.
    },
     year = {2025}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Assessment of Employees’ Performance Appraisal Practice: the Case of Bank of Abyssinia
    AU  - Dereje Biru Kitila
    Y1  - 2025/11/22
    PY  - 2025
    N1  - https://doi.org/10.11648/j.ajmse.20251006.11
    DO  - 10.11648/j.ajmse.20251006.11
    T2  - American Journal of Management Science and Engineering
    JF  - American Journal of Management Science and Engineering
    JO  - American Journal of Management Science and Engineering
    SP  - 112
    EP  - 132
    PB  - Science Publishing Group
    SN  - 2575-1379
    UR  - https://doi.org/10.11648/j.ajmse.20251006.11
    AB  - This study investigates the effectiveness of performance appraisal practices at the Bank of Abyssinia, focusing on the perceptions of employees concerning the appraisal process, fairness, job satisfaction, and the impact of cultural norms. The association between performance appraisal practices was examined using descriptive statistical techniques methodology. In this study, quantitative research design was employed. 183 questionnaires distributed and 180 were correctly completed and returned, and a stratified random sampling strategy was used in the research for census sampling strategy. a structured questionnaire with a five-point Likert scale rating system. Using SPSS version 26.0, the acquired data were condensed and subjected to descriptive and inferential statistical analysis. The main finding of the study was a highlights a strong perception of trust in the appraisal system, although concerns about transparency and job satisfaction remain. Notably, the findings suggest that while feedback provided during appraisals is valued, employees do not associate their appraisals strongly with job satisfaction, indicating an area for improvement. The results underscore the necessity for the Bank of Abyssinia to enhance its appraisal practices by focusing on structured feedback, promoting transparency, and linking appraisals to career development to improve overall employee motivation and engagement. The study's limitations include the sample size and reliance on self-reported data, which may affect generalizability. Future research directions suggest the need for longitudinal studies to track changes over time and qualitative approaches to gain deeper insights into employee experiences. Overall, this research contributes to understanding performance appraisals in a banking context and provides actionable recommendations for organizational improvement.
    
    VL  - 10
    IS  - 6
    ER  - 

    Copy | Download

Author Information
  • Sections