The Effect Of Performance Appraisal System On Employees Motivation In Commercial Bank Of Ethiopia A Case Of North Addis Ababa District (cbe-naad)

The general objective of this study was to examine the Effect of Performance Appraisal on Employee Motivation in Commercial Bank of Ethiopia: a case of North Addis Ababa District. Explanatory research design was used and quantitative data were collected from a sample of 196 employees using proportionate stratified sampling technique, and the data were analyzed using descriptive and inferential analysis. A Structured questionnaire developed in form of a five point Likert Scale was used for data collection. The collected data was analyzed by a Statistical Package for Social Sciences (SPSS) software. Pearson’s correlation coefficient was used to determine the relationships between performance appraisal practice and employee motivation. A regression model was used to determine the co-efficient of the effect of performance appraisal on employee motivation. The study shows that there was a low perception of employees about the organization’s PAS. The study also indicated that there was a positive significant correlation between performance appraisal and employee motivation. The study also found that 42% of the changes in the employee motivation variables could be ascribed to the combined effect of performance appraisal practice predictor variables. The study suggested that allowing and encouraging employees’ participation in performance appraisal practice from planning to evaluation and implementing PAS in clearly delineated procedures and fair measurement standards are important for effective performance appraisal system

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