JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
THE ASSESSMENT OF PERFORMANCE APPRAISALPRACTICE (IN CASE OF
COOPERATIVE BANK OF OROMIA IN JIMMA BRANCH]

PREPARED BY: - GELETA TUJUBO

ADVISOR: Mr._Shiferraw___________________

SUBMISSION DATE; JANUARY, 2024

JIMMA, ETHIOPIA

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 Acknowledgements
First I would like to thank almighty God for His abundant blessings and supports through his Grace.
Secondly, I would like to express my heartfelt gratitude and appreciation to my advisor
Instructor………………………………………..For his technical and professional support, guidance and his
constructive criticism and comments. I also thank all the respondents for their cooperation through
provision of relevant information. Finally, I deeply wish to pay highest gratitude to my parents for
their support, encouragement and advice so far

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Abstract
Performance appraisal process is a key contributor to successful HRM, as it is highly related
to organizational performance. The administrative purpose of performance appraisal can also
be used as a motivational tool by recognizing successful performance and rewarding; whereas
the developmental purpose guides on the required skills, competences and behaviors by
providing trainings. In line with this, the study will try to assess the performance appraisal
practice of CBO S.C by applying descriptive research method and with specific objectives of
looking in to the effectiveness, the process, problems of performance appraisal practice and
assessing the employees’ perception towards the fairness of performance appraisal practice of
the bank. The researchers will use descriptive research method. The data collection tools will
be structured interview and questionnaire. The population interest consist all 50 employees in
Cooperative Bank of Oromia. The researcher will use simple random sampling and also use
descriptive analysis method to analysis the data obtained from respondents. Both primary and
secondary source of data will be used in this study.

KEYWORDS: √ Performance appraisal process

√ Purpose of performance appraisal
√ Fairness of performance appraisal practice.

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Table of Contents Page No
Acknowledgements..........................................................................................................................II
Abstract..........................................................................................................................................III
CHAPTER ONE...............................................................................................................................1
INTRODUCTION............................................................................................................................1
1.1 Background of the Study........................................................................................................1
1.2. Statement of the Problem.......................................................................................................2
1.3 Objectives of the Study...........................................................................................................3
1.3.1. General objective................................................................................................................3
1.3.2. Specific objective................................................................................................................3
1.4 Scope of the Study..................................................................................................................4
1.5. Significance of the Study.......................................................................................................4
1.6 . Limitation of the Study.........................................................................................................5
CHAPTER TWO..............................................................................................................................5

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 2.4.The Concpet of Performance Appraisal...................................................................................6
2.4.1. Establishing performance standards...................................................................................8
2.4.2. Communicating the standards.............................................................................................8
2.4.3. Measuring the actual performance......................................................................................9
2.4.4. Comparing the actual with the desired performance..........................................................9
2.4.5. Discussing results...............................................................................................................9
2.4.6. Decision making.................................................................................................................9
2.5 Performance Appraisal Methods............................................................................................9
2.5.2.6. Ineffective organizational policies and practices...........................................................13
2.6. Requirements of Effective Appraisal System......................................................................13
2.7. Employees’ Perceptions on Performance Appraisal...............................................................13
CHAPTER THREE........................................................................................................................14
RESEARCH METHODOLOGY...................................................................................................14
3.0. INTRODUCTION...............................................................................................................14
3.2. Research Design..................................................................................................................14
3.3. Target Population.................................................................................................................15
3.4. Sample Size.........................................................................................................................15
3.5.Sampling Technique.............................................................................................................16
3.6. Data Collection Method.......................................................................................................16
3.7. Research Instrument............................................................................................................17
CHAPTER FOUR..........................................................................................................................18
Cost and Time Budget………………………………………………………………………
4.1 Time Schedule.......................................................................................................................18
4.2 cost budget.................................................................................................................................18
References......................................................................................................................................45
Appendix one - Questionnaire........................................................................................................47

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List of Acronyms and Abbreviations

HRM - Human Resource Management

HR - Human Resource

PA - Performance Appraisal

PAS - Performance Appraisal System

DHR - Division of Human Resources

CBO Cooperative Bank of Oromia S.C

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II
 CHAPTER ONE

INTRODUCTION

1.1. Background of the Study

Performance appraisal properly describes a process of judging past performance of the

employee and it gives clear direction and in short the management takes the corrective
action against the performance of its employee. Performance appraisal systems provides
management an opportunity to recall as well as feedback to people as to how they are
doing, so that they can correct their mistake and acquire new skills. In most of the
organizations appraisal results are used either directly or indirectly to determine reward
outcomes (system). I.e. the appraisal results are used to identify the better performing
employees who should get better reward, pay increment, bonuses, and promotions, Dessler
(2008, cited by Muluwork Melkamu 2015). We can’t imagine an organization without
people. It operates and steer only by its people (human resources). It is people who set the
goal and achieve the result. So the performance of the stakeholders of the organization
gives the clear path to the organization for the future destination. According to Peter
Drunker, an organization is like a tune; it is not constituted by individual sound but by their
syntheses. The success of an organization will therefore depend on its ability to measure
accurately the performance of its members and use its objectivity to optimize them as a
vital resource. Performance appraisal may be defined as a structured formal interaction
between subordinate and supervisor that usually takes the form of a periodic interview
(annual or semi- annual) in which the work performance of the subordinate is examined and
discussed with a view to identify weaknesses and strengths as well as opportunities for
improvement and skills development. The performance of employees can be done through
their activities and their productivity which can be easily observed and evaluated.
Employees’ performance helps to align the employees’ performance with the organization
objectives. So each and every organization should put the employee performance on the
top. Employees’ performance helps to link the individual objective with the organization’s
mission and goal and fit with its strategies plan. Performance can be measured by some

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combination of quantity, quality, time and cost. Organization always gives the feedback as
per the performance of the employee and even the employee doesn’t learn unless they are
given the feedback on their performance. Learning to take place, feedback must be
provided regularly and it should register both successes and failures and should follow soon
after the relevant action .Dessler (2008). Human resource management (HRM) is a key
ingredient affecting organizational competitiveness and its ability to fulfill its mission. The
effectiveness of an organization in providing a product or service that fits customers' needs
is critical if it is to survive. That product or service is provided in part (or entirely) by
people. Employees are not only among the most important resources a firm has; they also
sometimes are among the most problematic (Mathis & Jackson, 1997, pp. 4-5). There are
several enduring issues relative to performance appraisal in CBO Jimma branch. They
include the controversy over combining developmental purposes, the absence of rater
training, the lack of organizational commitment and top-level support, rating errors,
employee dissatisfaction with the amount of performance feedback received, and the
absence of specific performance documentation.

1.2. Statement of the Problem

This study will be focused on the employees’ perception of the fairness of performance
appraisal practice in Jimma branch. Assessment of employees’ performance is one of the
common practices in almost every organization as it is an essential trend to bring better
performance of employees and organizations as well. In creating better performance of the
organization, satisfied employees play a crucial role (Karimi, 2011 cited by Melat Tiruneh
2015). Employee satisfaction in job is pleasurable or positive emotional state resulting from
one’s personal expectations at work are in line with the outcome (Sharma & Khanna, 2014;
Khan, 2007 cited by Karimi, Malik & Hussain, 2011). Performance appraisal practices, if,
performed correctly and logically are considered as one of the key contributing factors to
the success of an organization. Organizations have to put high emphasis on performance
appraisal to identify the strengths and weaknesses of their employees, to improve their
productivity which in turn helps the organizations to gain competitive advantage with
human resource (Femi 2013). However, if it is abused and misused, appraisals can be a
source of dissatisfaction that obstruct employee motivation. While conducting interview

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with employees who are on non-managerial positions of the bank, complaints have been
presented towards the appraisal system of the bank in which current appraisal results of the
employees are based on their past result and are similar to their past as the appraiser
doesn’t see the current performance of the employees (Muluken Alemayehu 2014).
Moreover some of them believed that the appraisal practice goes from end to the start point
as the supervisors or managers decide the final result at first and then allocate it to the
various appraising criteria and while doing it sometimes they may give contrary result for
similar criteria.

Research Questions

 How the performance appraisal process is conducted in the bank?

 What are the major problems in performance appraisal practice of the bank?
 How do the employees perceive the fairness of performance appraisal practice
of the bank?

1.3. Objectives of the Study

1.3.1. General objective

The study will be carried out with the general objective of assessing performance appraisal
practice in CBO Jimma town.

1.3.2. Specific objective

Based on the general objectives of the study the specific objectives of the study are:

 To assess the performance appraisal process of the bank.

 To assess the major problems in performance appraisal practice of the bank.
 To look into employees’ perception towards the fairness of performance appraisal
practice of the bank.

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1.4. Scope of the Study

The study will be limited on geographical, conceptual and methodological delimitation. The
geographical delimitation of the study would be conducted only in Jimma town on the
Cooperative bank of Oromia. Since it will be very difficult in finance, time, and other resources,
the study will only be conducted in this organization. Conceptual delimitation of the study is that
it will be only conducted on employees’ performance appraisal in the case of Cooperative bank
of Oromia in Jimma town. That will be to assess the practice of employees’ performance
appraisal in the bank, to assess the performance appraisal process of the bank, to assess the major
problems in performance appraisal practice of the bank, and to look into employees’ perception
towards the fairness of performance appraisal practice of the bank. Methodological delimitation
of the study will be that the study will use descriptive method to analysis and in temperate the
data. The researcher will use both qualitative and quantitative types of data because the
researcher will gather data through questionnaire and structured interview. Additionally the
researcher will use only simple random sampling. The study also will use both primary and
secondary source of data. The researcher will be use descriptive research design because this
study design will help to briefly describe the nature of employees’ performance appraisal in the
bank.

1.5. Significance of the Study

The findings of this study will be used by the bank as an input for assessing its performance
appraisal practice and its employee’s perception towards the fairness of performance appraisal
system so that it can identify the areas needing improvement and corrective action. The study
will also be used as a basis for further researchers to conduct on this area (issue). Besides, it will
serve as a reference material for both academicians and practitioners

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1.6. Limitation of the Study

The expected limitations that the researcher may face during the study will be:

 Researcher may face a number of problems such as lack of time, finance and experience
in research.
 Some of the data collected through questionnaire will not fill by the respondents
properly and accurately.
 In some cases the respondents may not fill and return questionnaires on the time
required

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1. Definitions of Performance Appraisal

 According to Edwin Flippo, ―Performance appraisal is the systematic, periodic and an impartial rating
of an employee’s excellence in matters pertaining to his present job and his potential for a better job.

‖  According to Wendell French, ―Performance appraisal and review in the formal, systematic
assessment of how well employees are performing their jobs in relations to establish standards and the
communication of that assessment to employees.‖

 According to Dale Yoder, ―Performance appraisal includes all formal procedures used to evaluate
personalities and contributions and potentials of group members in a working organization. It is a
continuous process to secure information necessary for making correct and objective decisions on
employees.

‖  Performance appraisal is a systematic evaluation of the employees’ performance at work.

Performance appraisal is a process of evaluating an employee‘s performance on a job in terms of

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requirement. It is a process of estimating or judging the value, excellence, qualities of status of some
object, person or thing.

2.2. Theoretical Literature Review

It deals with the concept of performance appraisal, purpose of performance appraisal, the performance
appraisal process, performance appraisal methods, and performance appraisal errors. It also discusses
about the requirements of effective performance appraisal system and employees’ perception on
performance appraisal.

2.3. The Concept of Performance Appraisal

Performance appraisal can be defined as a structured formal annual or semi-annual interaction between
the subordinate and supervisor to examine and discuss the work performance of the subordinate by
identifying strength and weakness as well as opportunities for improvement and skill development
(Bhatia & Jain, 2012).Belete, Tariku & Assefa (2014) defined performance appraisal as a systematic
evaluations of an employees’ performance skill and other necessary qualities for carrying out the job
successfully. Performance appraisal is the process of obtaining, analyzing and recording information
about the worth of an employee so as to evaluate the performance and understand the abilities of an
employee for further growth and development (Manjunath, 2015).

Lansbury (1988) defined performance appraisal as “the process of identifying, evaluating and developing
the work performance of employees in the organization, so that the organizational goals and objectives
are more effectively achieved while at the same time benefiting employees in terms of recognition,
receiving feedback, catering for work needs and offering career guidance.” cited by (Seniwoliba, 2014:
601).

2.4. Purpose of Performance Appraisal

Performance appraisal is taken as the most important and crucial tools for the organization as it provides
information which is very useful for decision making about different personnel aspects like promotions
and merit increases (Obisi, 2011).

Gomez-Mejia and coworkers (2012) state that appraisals are usually performed for administrative and /or
development purposes. Behn (2000) cited by Mamimine and coworkers (2015) had also stated that,
Performance appraisal is used administratively when the information gathered from it is used as a basis

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for decision regarding the work conditions of the employee. According to Rahim (2012: 386) “One of the
most common uses of performance appraisal is for making administrative decisions relating to
promotions, fringes, layoff, and merit pay increases.”

2.5. The Performance Appraisal Process

If a systematic performance appraisal process is followed, the ability to generate accurate and reliable
data will be enhanced as a result the information that can serve the organization’s goals and that compiles
with the law will be provided (Ivancevich, 2004). According to Rao & Rani (2014), unfair procedures of
the performance appraisal create job dissatisfaction.

Manjunath (2015) has listed the following steps for developing such systematic process;

 Establishing Performance Standards

 Communicating Standards and Expectations

 Measuring the Actual Performance

 Comparing the Actual with the Desired Performance

 Discussing Results

2.5.1. Establishing performance standards

It is the process of setting key performance criteria which could be used to judge the actual performance
of employees as successful or unsuccessful and the degrees of their contribution to the organizational
goals and objectives (Manjunath, 2015).

According to Khan (2013), these four dimensions of performance which are competencies, behaviors,
results or outcomes and organizational citizenship behaviors should be considered in performance
appraisal. Besides the performance criteria should be based on the up -to -date job description so as to
ensure that the performance criteria are relevant to work practice. As Gomes (2003) cited in Subekti and
Setyadi (2016) has argued that the quantity of work, quality of work, job knowledge, creativeness,
cooperation, dependability, initiative and personal qualities are some indicators which become a
performance appraisal measurement.

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2.5.2. Communicating the standards

After setting the performance standards, the management should communicate it with the employees of
the organization. There should be clear explanation of the standards to employees so that they could
understand their roles and know what exactly is expected from them (Manjunath, 2015)

2.5.3. Measuring the actual performance

Measuring the actual performance or the work done by the employees during the specified period of time,
is the most difficult part of the performance appraisal process. It is a continuous process involving
monitoring the performance all through the year which requires the watchful selection of appropriate
techniques of measurement, making sure there is no individual bias, and providing support instead of
interfering in employee’s work (Manjunath, 2015).

2.5.4. Comparing the actual with the desired performance

In order to know that whether there is a positive or negative deviation in the organizational performance,
the actual performance of an employee will be compared with the desired outcome or the standard
performance. It includes recalling, evaluating and analysis of data related to the employees' performance
(Manjunath, 2015).

2.5.5. Discussing results

Here the results of the appraisal will be communicated and discussed with the employees on one-to -one
basis with the aim of problem solving and agreement. Feedback will also be given with a positive attitude
so as to have a positive effect on employee’s performance and motivation (Manjunath, 2015).

2.5.6. Decision making

After discussing the results, the last step is to make a decision on either to improve the performance of the
employees, take the necessary corrective action or the related human resource decisions like promotion,
rewards, transfers and the like (Manjunath, 2015).

2.6. Ineffective organizational policies and practices

Most of the time, the sincere appraisal report is not suitably rewarded and this diminish the motivation to
perform the job thoroughly and sincerely (Rao and Rani, 2014).

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2.7. Requirements of Effective Appraisal System

Performance appraisal process is a key contributor to successful HRM as it is highly related to the
organizational performance (Erdogan, 2002 cited by Rao and Rani, 2014). According to Beard well and
Claydon, (2007) cited by Wangithi and Muceke (2012), an incorporated and effective appraisal system
could increase organizational performance and employee motivation. It recognizes successful
performance and guides on the required skills, competences and behaviors to meet the expectation. In
order to develop an effective performance appraisal system, the raters should be trained on the process of
managing, motivating and evaluating employee performance (Goff & Longenecker, 1990 cited by Ochoti
and coworkers, 2012). The key requirements for sound appraisal system will be discussed as follows:

Relevance: implies that there is a clear relation between the performance standards and organization’s
goals and also clear links among the crucial job elements and the dimensions to be rated on an appraisal
form (Khan, 2013; Cascio, 2003).

Sensitivity: the performance appraisal system is capable of distinguishing high performers from low
performers in which the high and low performers receive criterion scores that precisely represent the
variation in their performance (Ivancevich, 2004; Cascio, 2003).

Reliability: implies consistency of judgment in which appraisals for any given employee made by
different raters must reach to similar conclusions about the quality of that worker’s output (Ivancevich,
2004; Cascio, 2003).

Acceptability: is the most important requirement of all as the appraisal systems that are acceptable to
those who will be affected by them guide to more favorable reactions to the process and also enhance
trust for top management (Cascio, 2003).

Practicality: Understanding and using the appraisal instruments are easy for managers and employees that
is the criterion is measurable and the data collection is efficient (Ivancevich, 2004; Cascio, 2003).

2.8. Employees’ Perceptions on Performance Appraisal

In managing organizations effectively, it is important to any top management to set accurate performance
appraisal system and meet the employees’ perception of fairness. Perception of performance appraisal

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procedure unfairness could have an adverse effect on employee’s organizational commitment, job
satisfaction, trust in management, performance, work- related stress, and theft (Belete, Tariku & Assefa,
2014). According to Ochoti and coworkers (2012) employee reaction to the performance appraisal system
is significant aspect to the acceptance as well as effectiveness of the system.

Hui and Qin-xuan (2009) cited by Malik & Aslam (2013) have indicated that if employees’ perceive
performance appraisal as unfair, it will be turned to ineffective management tool and if they perceived as
fair, it can be welcomed and resulted into positive attitude of the employees.

Employees most likely perceive the performance appraisal as accurate and fair when; appraisals are
conducted frequently, there is a formal system of appraisal, supervisors have high degree of job
knowledge, there is opportunity for the ratees’ to appeal, performance dimensions are seen highly
relevant, and when there is formulating action plans to deal with present weakness (Murphy & Cleveland,
1995 cited by Belete, Tariku & Assefa, 2014; Murphy & Cleveland, 1995 and Landy et al, 1978 cited by
Ochoti and coworkers, 2012).

2.9 PERFORMANCE APPRAIASAL METHODS.

2.9.1. Traditional performance appraisal methods

Traditional methods are relatively older methods of performance appraisals which are based on
the personal qualities of the employee including the knowledge, initiative, loyalty, leadership and
judgment. These methods were past oriented approaches which concentrated only on the past
performance (Aggarwal and Thakur, 2013).

2.9.1.1. Graphical rating scale

It is a popular and simple method used to compare individual performance to an absolute

standard. It is a scale which lists traits such as quality and reliability and the range of
performance values from unacceptable to outstanding. The employee is then graded by
identifying the score that best defines his or her level of performance for the trait (Lunenburg,
2012; Shaout and Yousif, 2014).

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2.9.1.2. Ranking method

It is an alternative method to graphic rating scale in which the employees are ranked based on
their performance effectiveness one after the other from best to worst (Shaout and Yousif, 2014).
According to Lunenburg (2012), the usual procedure in ranking method is that the rater will
write the name of the best subordinate on the top of list, then the worst at the bottom and
continue this sequential procedure until all the subordinates are listed.

2.9.1.3. Paired comparison method

This is a method where each employee is paired with every other employee in the same
framework and then the raters make a two -way comparison. This is a useful method only where
the number of comparisons made is less otherwise it will become ineffective when the number of
employees increases (Khan, 2013; Lunenburg, 2012).

2.9.1.4. Grading method

In this method, certain categories of grading of performance like excellent, very good, good,
average, poor, very poor etc. will be defined in advance and employees are put in a particular
category depending on their traits and characteristics. However, this method has one basic
limitation which is the rater may give higher grades for most of the employees (Khan, 2013).

2.9.2. Modern performance appraisal methods

2.9.2.1 Management by objective

Management by objectives (MBO) is a process that converts organizational objectives into

individual objectives. It can be thought of as consisting of four steps: goal setting, action
planning, self-control, and periodic reviews:-

a) In goal setting, the organization’s overall objectives are used as guidelines from which
departmental and individual objectives are set. At the individual level, the manager and
subordinate jointly identify those goals that are critical for the subordinate to achieve in order to

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fulfill the requirements of the job as determined in job analysis. These goals are agreed upon and
then become the standards by which the employee’s results will be evaluated.

b) In action planning, the means are determined for achieving the ends established in goals
setting. That is, realistic plans are developed to attain the objectives. This step includes
identifying the activities necessary to accomplish the objective, establishing the critical
relationships between these activities, estimating the time requirement for each activity, and
determining the resources required to complete each activity.

c) Self-control refers to the systematic monitoring and measuring of performance. The MBO
philosophy is built on the assumptions that individuals can be responsible, can exercise self-
direction, and do not require external controls and threats of punishment.

d) Finally, with periodic progress reviews, corrective action is initiated when behavior deviates
from the standards established in the goal-setting phase. Again, consistent with MBO
philosophy, these manager-subordinate reviews are conducted in a constructive rather than
punitive manner. Reviews are not meant to degrade the individual but to aid in future
performance. These reviews should take place at least two or three times a year.

2.9.2.2 360 degree appraisal

The 360 degree feedback process involves collecting perceptions about a person’s behavior and
the impact of that behavior from the person’s boss or bosses, direct reports, colleagues, fellow
members of project teams, internal and external customers, and suppliers. Other names for 360
degree feedback are multi-rater feedback, multi- source feedback, full-circle appraisal, and group
performance review. 360 degree feedback is a method and a tool that provides each employee the
opportunity to receive performance feedback from his or her supervisor and four to eight peers,
subordinates and customers. 360 degree feedback allows each individual to understand how his
effectiveness as an employee, co-worker, or staff member is viewed by others

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 CHAPTER THREE

3.1. RESEARCH METHODOLOGY

Research methodology targets to build a structure consisting of predefined actions that help to
collect evidence to find the answers to a research question (BayihAlene, 2017). This section
should only concentrate on the different kinds of research methods, and out of them which ones
the researchers should use to conduct the research. The researchers will give the justification for
the chosen research methods and why is this research important for this subject

3.2. Research Design

A general plan or strategy for conducting the research study, the researcher will use
descriptive research design. The purpose of using a descriptive survey will be to identify
present conditions and point to present needs, to study the immediate status of a phenomenon, to
examine the relationships of traits and characteristics (Yogesh, 2006). It also helps to collect
detailed and information that describe an existing phenomenon. Both quantitative and qualitative
approaches will be used. A quantitative approach will be used because it is relatively
economical, easier to render and quicker for respondents to answer. The other reason is that the
data gathered can be numerically measured using statistical tools, resulting in sharp, clear
findings. In this case, qualitative data will include the theoretical perception of the topic of study
and the analysis of the ideas presented by the research respondent’s.

3.3. Sampling Techniques and procedures

Target Population

The target population for this study will be all employees of Cooperative Bank of Oromia,
Jimma branch with different qualification, knowledge and experience. The population size of this
study will be 73 employees and 3 administrative staff members in the bank. Simple random

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sampling technique will be used to select the employees. This is due to that gives equal chance of
participation. Managers will be selected purposefully in order to assess their opinion on the
performance appraisal practice as raters. Purposive sampling will be used with the view that
managers will give relevant data that will help in assessing the performance appraisal practice of
the Bank.

3.4 Sample Size

To avoid un-guided generalization, the researcher will choose to sample as suggested by Amin
(2005), who suggested that sampling is important in selecting elements from a population in such
a way that the sample elements selected represent the population. The researcher will use a
sample of 63 respondents drawn from the population of 76 employees

The determination of sample was made in consultation with Amin (2005) who (by help of
kregcie and Morgan (1970)), suggests the use of a sample table to determine which equivalent
sample will ensure representation. The sample will be further drawn from the fact so this
research will be purely academic and collected in a given period of time.

N
The sample size for this study will be determined by using the following formula n=
1+ N (e)²
that suggested by Yemane (1967).

N
n=
1+ N (e)²

Where n - is the required sample size,

N - is the population size and

e - is the level of precision.

N
n=
1+ N (e)²

n = 76n = 63

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 1+ 76 (005)2

3.5. Types and Sources of Data

The study will be used both primary and secondary data in its construction. Primary data will be
collected mainly through questionnaires of both types (closed-ended and open-ended).
Secondary sources such as, published books, company appraisal forms, and the Internet have
also been extensively reviewed as references.

3.6. Method of Data Collection

The primary data will be gathered from respondents by using primary data collection tools such
as questionnaires which is closed ended and open-ended and additionally, the researcher will use
interview to complement the information provided on the questionnaires. In the process of
conducting the interview, I will use structured interview. This is because the researcher will
conducts with key informant or managers to know their perception on effect of employee
motivation on the organization performance and other issues to be asked in the interview. This is
to compare side by side the perception and opinions of the two parties (managers and
employees). Secondary data will be collected from books, internet and from certain written
materials about the topic.

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 CHAPTER FOUR
Time schedule and Cost budget
4.1 Time schedule
When I collect my data analysis and proposal to final research my estimate time schedule and cost
budget will be as bellows in 2015 E.C

Table 4.1

N o Activities January February m a r c h A p r i l m a y

1 Title selection 

2 Literature review 

3 Proposal writing 

4 Data collection 

5 Data analysis 

6 Research writing 

7 Presentation 

4.2 Cost budget

This research study will be expected to consume the following cost estimated in 2015 EC.

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Table 4.2 cost budget

NO D e s c r i p t i o n Quantity U n i t c o s t T o t a l c o s t

1 Transportation _ _ 2 0 0 . 0 0

2 P e n c i l 2 _ 1 5 3 0 . 0 0

3 Print to the research paper 55.00 4 . 0 0 2 2 0 . 0 0

4 P e n 4 2 5 . 0 0 1 0 0 . 0 0

5 F l a s h 1 5 0 0 . 0 0

6 Telephones cost _ _ 5 0 . 0 0

7 P a p e r 1pack _ _ 2 1000.00

9 Total grand budget _ _ 2 1 0 0 . 0 0

REFERENCE

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 Aggarwal, A. and Thakur, G. S. (2013). Techniques of Performance Appraisal-A Review,
International Journal of Engineering and Advanced Technology, Vol. 2, Issue 3, pp. 617-
621.

Akinbowale, M. A. Jinabhai, D. C. and Lourens, M. E. (2013). The Impact of Performance

Appraisal Policy on Employee Performance -A Case Study of Guaranty Trust Bank in
Nigeria, Mediterranean Journal of Social Sciences, Vol. 4, No. 14, pp. 677-686.

Atta-Quartey, J. E. (2015). An Evaluation of the Annual Performance Appraisal System at

the University of Cape Coast, Open Journal of Social Sciences, Vol. 3, pp. 247260.

Beardwell,J. and Claydon,T. (2007). Human Resource Management. A Contemporary

Approach. (5th ed.). Harlow : Prentice Hall. Behn, R. D. (2000). Performance, People and
Pay, Bob Behn’s Public Management Report

Belete Getnet, Tariku Jebena and Assefa Tsegaye (2014). International Journal of
Management and Commerce Innovations, vol. 2, Issue 1, pp. 174-210.

Bhatia, K. and Jain, P. (2012). A Study of Performance Appraisal and Organizational

Effectiveness In terms of Individual and Organizational Basis Hui, L. and Qin-xuan G (2009).

COLLEGE OF BUSINESS AND ECONOMICS

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 DEPARTMENT OF MANAGEMENT
Questionnaire to be filled by respondents

Dear Respondent;

The purpose of this questionnaire is to collect primary data for conducting a study on the topic:
”Assessment of performance Appraisal practice In Case Of CBO." for the partial fulfillment of
Bachelor of Arts Degree in Management. In this regard we kindly request you to provide me
reliable information that is to the best of your knowledge so that the findings from the study will
meet the intended purpose.

We strongly assure you that the information you provide will be used only for academic purpose
and will be kept confidential. I would like to extend my deep appreciation in advance for being a
volunteer to devote your valuable time in filling this form. Thank you in advance for your
cooperation.

Sincerely,

Instruction

> Writing your name is not needed

> Put the liker scale (^) in your appropriate response

> If you have additional idea to add please don’t hesitate

Part I. Personal information

Sex: Male Female

Age: 18-30 31-40 41-50 Above 50

Qualification: Certificate Diploma BSC/BA Masters & Above

Position: Work Experience:
0-2year 3-5year above 5 years

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Part II. Dear respondents, here are possible statements for the study; in this case we kindly
request you to show the extent of your agreement by putting " V" mark using the following
rating scale;
1=Agree, 2 = Disagree, 3 = Neutral

2= Disagree
1= Agree

3= Neutral
No Questions
1. The standards for appraising employees' performance are
aligned to the bank’s goal and also reflect the most
important factors in your job (Relevance).
The performance appraisal system of the bank is capable of
2. distinguishing high performer from low performers
(Sensitivity).
3. The performance appraisal of the bank has consistency of
judgment in which individuals tend to maintain a certain
level of performance over time (reliability).
4. The performance appraisal system of the bank is acceptable
by you (Acceptability).
5. The performance appraisal formats are simple and
practicable (practicality).
The performance appraisal process begins with setting of
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performance expectations or standards.
The criteria’s for evaluation is based on observable and
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measurable characteristics of the behavior of the employee.
8. Your rater clearly explains to you the standards that will be
used to evaluate your work.
9. The most recent performance rating you received is based
on job-related requirements derived from your job
10. description.
Your performance was measured based on the established
performance standards.
11. The result of the appraisal is communicated and discussed
with the employees on one to one basis.
12. Decisions will be made on either to improve the future
performance of employee or taking actions like
Promotion, rewards, demotions and the like.

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 13.
The rater gives high or low rating time to peoples based on
certain characteristics such as gender, religion and the like
(Stereotyping).

14.
Interpersonal relationships influence the evaluation and the
decisions in the performance appraisal process.
15. The performance appraisal formats are simple and
Practicable.

Your performance appraisal is based on the quality and

16. quantity of your work not your personality and position.
17.
Your most recent performance rating was fair

OPEN ENDED QUESTIONS

How do you examine performance appraisal of the

bank?-------------------------------------------------------------------------------------------------------------
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What criteria does the bank used to for appraising its

employees?------------------------------------------------------------------------------------------------------
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