Thesis Open Access

The Impact of Performance Appraisal on Employee Motivation in United Bank S.C

TIGIST GIRMA

United bank has been implementing employee performance evaluation system
whereby immediate supervisors are involved in the evaluation process. Though
there were a few studies that have been conducted, they were not tried to see the
issue in consideration of multiple performance variables. Therefore, the main
objective of the study is to evaluate the relationship between performance
appraisal and employees’ motivation in united bank S.C. in order to achieve the
objectives, the focus of the study is on constructs of performance evaluation system
including participate in objectives setting, quality of performance criteria,
availability of pre-set goal, feedback and measuring performance based on
evidence. The study employed a survey questionnaire and 331 were distributed of
which 195, 95 and 41 are for clerical, non-clerical and managerial group
respectively. Sample respondents are selected from nineteen branches and HO
using stratified random sampling technique. Collected data through questionnaire
were analyzed quantitatively using both descriptive and inferential statistics with
the help of SPSS version 20. The result of the study indicated that performance
appraisal has positive and significant relationship with employees’ motivation.

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