This study is concerned with the performance management system in Commercial Bankrnof Ethiopia with reference to selected branches under West Addis Ababa district. To thisrnend, the study has made an effort to thoroughly assess the implementation status of PMSrnprocesses, to identify and investigate achievements and constraints associated with therncurrent PMS tool being used by the bank, the balanced score card (BSC). In doing so, thernstudy was geared towards answering key research questions relevant with performancernmanagement system in the bank. The study has used both primary and secondary datarnsources. The primary data has been collected through structured self administeredrnquestionnaire and in-depth interview. The results of the questionnaire were analyzedrnusing SPSS (statistical packages for social science) to get descriptive statistics.rnQualitative data collected through in-depth interviews, open ended questions andrndocument review were analyzed and summarized contextually. Frequency table andrnpercentage was used to present the data analyzed.The results of the study have revealedrnthat though the bank has good qualities in defining its strategic objective and other pre-rnrequisites to PMS implementation, the performance management system of the bank inrngeneral and the study district in particular needs serious consideration as majority of thernprocesses of PMS have not been well implemented yet. In general, the researcher hasrnrecommended that the bank has to involve all employees in performance planningrnprocess, create awareness about the concept and advantage of PMS through training,rnrevisit its goal and target setting, develop and utilize automated software for datarntracking, ensure provision of ongoing and consistent feedback and coaching tornperformers, and link performance result with reward and sanction, for betterrnimprovement of performance of West Addis Ababa district in particular and CBEâ€Ÿs inrngeneral.rnKey Words: Performance Management, employees, Balanced Score Card, CommercialrnBank of Ethiopia, strategic objective, West Addis Ababa district