Thesis Open Access

THE EFFECT OF PERFORMANCE APPRAISAL ON EMPLOYEE'S MOTIVATION IN OROMIA INTERNATIONAL BANK

ROBSON KEJELCHA

The general objective of the study was to determine the effect of performance appraisal on
employee motivation using a survey of Oromia International Bank. The study was guided by
the following specific objectives: The study adopted a descriptive research design. The
research survey was conducted among 80 employees including department heads and four
branches, a total of 80 employees responded resulting in a 100% response rate. Both
qualitative and quantitative research methods through semi-structured interviews and close
ended questionnaires were analyzed to get an in-depth view about the problem. Performance
appraisal did not reflect objectively the employees’ performance and the employees were not
satisfied with performance appraisal system and motivation. Performance appraisal rating
can be considered as a technique that has a positive effect on work performance and
employee motivation. The employees may be motivated if the appraisal process is based on
accurate and current job descriptions

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