Abstract:
Performance appraisal system are processed designed to assess and evaluate an
employee’s performance within an organisation. It offers a chance to regularly assess
pre-determined objectives. The research aimed to investigate how the performance
appraisal system influences employee productivity in the commercial bank of Ethiopia's
Jigjiga district. Employee productivity served as the dependent variable, while
independent variables encompassed the performance appraisal process, goals, methods,
and feedback. The study employed both quantitative and qualitative approach, utilizing
both descriptive and explanatory research designs to achieve the research objectives of
the Commercial Bank of Ethiopia in the Jigjiga district. A questionnaire was distributed
to 122 employees at the Commercial Bank of Ethiopia in the Jigjiga district. The data was
coded, entered, and analysed using SPSS version 20, a statistical package for the social
sciences. Descriptive statistics were utilized to report and were interpreted through
tables, frequency, percentage, mean, standard deviation. To assess the reliability of the
instruments, internal consistency techniques were used, resulting in a Cronbach’s alpha
coefficient of 0.7–0.9. The study found that employees in commercial banks in the Jigjiga
district of Ethiopia were evaluated by personnel in higher positions than them. The
overall Cronbach’s alpha (91.5%) with twenty-seven items and four dimensions indicates
that the instrument designed and used for this research was highly reliable. Correlation
analysis examined the relationship between productivity and performance appraisal,
while regression analysis assessed the impact on employee productivity. The results of
the hypothesis suggest a significant relationship between the perception of the appraisal
system and employee productivity. The study suggests that the commercial bank should
adopt a performance appraisal system to enhance employee productivity.
