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This research was conducted to assess the practices and challenges of employee performance management system (EPMS) at Commercial bank of Ethiopia(CBE),a leading Commercial bank in the country by collecting evidences from 136 employees working atBishoftuDistrict area. The study focused on how PMS process was practiced, identify the purpose and challenges faced while implementing performance management in the case organization.The study employed descriptive research method of study with stratified randomsampling technique to select respondents and collected empirical evidences using questionnaire and interview. The study used both Primary and secondary data for the study. The analysis was done by the help of SPSS and presented using descriptive statistics techniques. The research has confirmed that CBE has good qualities in practicing clearly by defining the mission, vision and values and developing strategy map. However, the study identified that the EPMS of the CBE has limited awareness and trainings concerning the purpose, requirements and implications of PM among employees; lack of trust and continuity of the system; lack of regular feedback and Coaching to improve performance, subjective supervisor assessment .Based on the gap, the study has recommended to the management to improve employee’s participation in the process, to avail adequate and timely trainings concerning all aspects of the EPMS, revise performance standards and measures to minimize subjectivity and inappropriateness ;enhance the involvement and ownership of employees via promoting transparency and equip them with the required knowledge, skill and resources, provide regular feedback and Coaching. Furthermore, it has been suggested that CBE shall make the evaluation criteria objective, conduct the evaluation at the right time and clearly articulate the end-to-end implication of good as well as poor performance.

Employee Performance Management System Practices and Challenges: A Case of Commercial Bank of Ethiopia