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

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. <i>The association between </i>performance appraisal practices <i>was examined using </i>descriptive statistical techniques<i> methodology. In this study, </i>quantitative <i>research design was employed. 183 questionnaires distributed and 180 were correctly completed and returned, and </i>a stratified random sampling strategy was used in the research for census sampling strategy<i>. 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 </i>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.