The Effect Of Performance Appraisal On Employees Motivation In The Cause Of Cbe East Addis Ababa District

The general objective of the study was to identify the effect of performance appraisal on employee motivation using a survey of Commercial Bank of Ethiopia East Addis Ababa District.. The study was guided by the following specific objectives: To investigate how employee appraisal is linked to employee’s motivation?(b) To identify and analyze the types of performance appraisal systems used by CBE?(c) To assess the motivation of employees from the performance appraisal system at CBE? (d) To measure employees perception of the appraisal system at CBE?rnThe study adopted a descriptive and explanatory research design. A sample size of 244 was selected using convenience sampling method. Data was collection using structured questionnaires. The data was analyzed using the Statistical Package for Social Sciences (SPSS) into frequency distribution, percentages and Pearson correlations. The data was presented using tables and charts.The study concludes that performance appraisal process on employee motivation established that the system is important for employee motivation. Different raters can increase the accuracy of performance evaluation (can reduce bias) and increase employee’s perceptions. The manager’s ability to address the skills gaps can have a significant impact on the employee’s motivation.rnThe study recommends that the performance appraisal system is an important factor for employee motivation. Performance appraisal system helps improve employee job performance and motivation at work. Different raters can be used to increase the accuracy of performance evaluation and increase employee’s perceptions of fairness that can increase staff motivation. The managers in each branch of CBE should quickly address the skills gaps which have a significant impact on the employee’s motivation.

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