on the standard (Kirkpatrick Donald L, 2006, pp 25-48). It indicated that there is no one type of
system or set of objectives that is best suited for all organizations. Organization must be design
and administer performance of employees in line with organization purpose and objective.
All organization needs employees performance in order to achieve per stated objective, and
employees accomplish their duties based on specific standard stated by their managers. There are
different factors that determine the performance of employees. Of these performance appraisals
system by itself and its application in an organization has its own impacts on the performance of
employees (DelPo Amy, 2007, pp 46-51).
Nickols (2003), and Fort and Voltero (2004), identify factors that are closely related and affect
providers performance in the workplace. They include: clear goals and job expectations, suitable
repertoire, immediate feedback, skills to perform, knowledge of the organizational structure,
functional feedback system, sound metal models, sufficient motivation through self satisfaction
and incentives.
Job performance problems often start small and develop slowly. In the early stages there may be
just a few isolated incidents and these may easily be overlooked. It is important to deal with a job
performance problem in the early stages while the issues are small. Performance issues can
deteriorate to the point of crisis if the early warning signals are not acknowledged and dealt with.
The performance of one employee can affect the productivity of other employees. Poor job
performance can place the employee, co-workers and the organization at risk.
As a matter of fact most managers in organizations face with a crucial question of what factors
influence employee performance and there is inadequate empirical information that might guide
their efforts in enhancing overall job performance among employees (Salleh et al., 2011).
The research will be try to identify the major factors affecting the effectiveness of the job
performance of the employees working at Wegagen Bank, through identifying the variables
include leadership, organizational culture, working environment, motivation and training.
Thus, good employees performance is the part for the success of the organization. Nelson and
Quick (2003) argue that a job with high motivation and hygiene factors leads to high performance
and few complaints among employees. Employees performance like all other systems, they do not
function when their components do not work together smoothly and efficiently. Thus,
understanding relationship between the organization and its employees is the key to improve the
organizations ability to move through change effectively. Organizations need to understand the
factors that affect employees performance because such insight will help them make decisions
that will inculcate improved performance from the employees and to an extension the overall
performance of the organization (Mwangi, 2012).
Employee performance has been shown to have a significant effect on organizational performance
(Collis and Montgomery, 1995). This is due to the reason that individual performance is the
foundation of organizational performance (Ivancevich and Matteson, 1999). Identifying factors
that affect employees performance can help improve recruitment, retention and organization result
(Mohammed and Nimalathasan, 2011).
Many Literatures stated that there are numerous factors affecting employees performance.
Employee performance affects the overall performance of an organization and its bottom-line
(Purcell 2003). Different scholars try to point out the factors affecting employees performance in
case of different sectors throughout different countries. Most of them deal with determinant factors
and its impact on employees performance and their finding show that performance of the
employees has significantly affected by different factors including individual, organizational, and
job related factors.
The work nature of service industries is mostly dominantly faced by direct contact with customer.
As a result, selecting people who are properly suited to excel in customer service environment and
then improve the skill level of those workers to help meet the market demand and lead to
continuous improvement of a service organizations performance. As the banking industry is a
major service industry which plays a vital role in the economy development of the country.
Recently in our country the banking industry growth in a fast manner and aggressive competition
is observed since the demand of banking service not yet fulfilled and the government banking
policy which restricted the foreign banking companies these implies giving good opportunity for
local bank companies. Hence, one of the indicators in enhancing and improving the services
industry is job performance. Like other organizations engaged in the service sector Wegagen Bank
is one of those services providing organization which depend on the performance of its qualified
employees. As we discussed above there are numerous factors has its own impact on employees
performance which may hinder organization to utilize full capacity of their workers.
Therefore, it is indispensable to generate relevant evidence through a detail study to highlight
solution for improving the performance of employees. This research will try to describe the
4
What are the major factors that influence the performance of employees in Wegagen Bank?
What is the effect of those factors on the performance of employees in the study area?
To investigate the effect of each factors on the performance of the individuals in the study
area.
1.5 Hypothesis
The hypothesis assumes that employee performance is affected by and dependent on multiple
factors including leadership, organizational culture, working environment, motivation and training.
This study aims to figure out the effect of above-mentioned variables on the performance of
employee in which it based on and adopted from the literature (Le Tran, 2002) as depicted in
figure 1below.
This research also will be helpful for other organization to reconsider their performance appraisal
system and to understand the implication of the system on employees performance.
In addition to this, the research will serve as a reference for researchers who are interesting to
conduct a research on the topic.
Activities
Due Date
1.
2.
3.
4.
5.
December 7, 2015
December 31, 2015
January 29, 2016
February 15-20, 2016
March 31, 2016
6.
7.
8.
9.
10.
Discussion
Summary, Conclusion and Recommendations
Final Write up
Submission of final draft
Defense Period
Grade submission to the Registrar office
Unit Price
Birr
Cent
Description
Duplication paper
Note Books
Pen
Pencil
Flash Disk
Internet Fee
120
20
3
1
150
Over all
Sub Total
00
00
00
75
00
Total Cost
Birr
Cent
400
20
30
7
150
500
1697
00
00
00
00
00
500
300
150
700
1850
3547
00
00
00
00
00
00
00
00
Miscellanies Expense
7.
8.
9.
10.
Transport Cost
Photocopy and printing of reference and first draft
Final report printing and binding
Other expenses
Sub total Cost
Total Cost
2. Review Literature
Organizations are undergoing a transformation for coping against the changing needs of the
environment and excelling in the business by building up their adaptive capabilities for managing
change proactively. Sustainability of business organization is depends on talent, skill, knowledge
and experience of employees and on their performance (Armsstrong Michael, 2009).
The main objective of the performance appraisal system was to exercise control over the activities
of the employees through disciplinary actions and management of rewards and promotions. The
supervisors were expected to rate their employees on certain traits ranging between a scale of
unsatisfactory to outstanding performance and these ratings were susceptible to various errors like
central tendency, bias, halo effect, etc (Armsstrong Michael, 2009).
based on the employee's designation, or at best on the employees job description rather than on
the employees actual work exigencies (Agarwal Ankita , 2011)
11
to meet the research objective. As stated above in the scope of the study, the research will be
conducted in SINTEC ETHIOPIA PLC.
The researcher will use probability random sampling technique to select the sample from the
population. The data will be collected through questionnaire and interview, and different analytical
tools are undertaken in this research.
system. To determine this, researcher will collect data from HR department of SINTEC
ETHIOPIA PLC regarding to employees contract status.
Accordingly, 6 department director (supervisors) and 40 other members of the department
(subordinates) who fulfill the above stated requirement will be selected. The HR director will take
interview separately. Department directors and HR director are very familiar with the performance
appraisal system of the company and they will give adequate information about the system.
HR directors. Questionnaires (includes both closed-ended and open-ended) will also be distributed
to department director (supervisors) and other department member of employees (subordinates)
excluding HR directors. The secondary data will be gathered from relevant documents related with
the topic.
In order to check the validity of questionnaires, the researcher will be distributing sample
questionnaire for few selected respondent from both categories before distributing the final.
3.4. Data Analysis Method
The researcher will apply qualitative analysis technique due to the nature of the data to be
collected and use simple quantitative analysis techniques. The data from interview will be
analyzed through descriptive analysis. Data from questionnaires will be analyzed through both
descriptive and statistical analysis and using tables, and simple percentages.
4. Bibliography
1. Armstrong Michael, (2010), Human Resource Management Practice, Replika Press Pvt Ltd
India.
2. Taylor Stephen,( 2008), Human Resource Management, 7th edition, Matev Croms Artes
Graficas, Spain
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3. Aguinis, Herman, (2009), Performance Management, 2nd Edition, Dorling Kindersley Pvt. Ltd
India.
4. Carter Earl M A And Frank,( 2005), Improving Employee Performance Through Workplace
Coaching, in Great Britain.
5. DelPo Amy, (2007), The performance handbook legal and practical rules for manager, 2nd
edition, consolidated Printers, inc.
6. Pulakos Elaine, (2004), Performance Management, United States of America.
7. Dick Grote, (2002), The Performance Appraisal Question And Answer Book, United States of
America.
8. Jones Pam, (2000), Performance Management, Management Pocketbooks Ltd.
9. Kirkpatrick Donald L,(2006), Improving Employee Performance Through Appraisal And
Coaching, 2nd edition, United States of America.
11.
10. Stone, R.J. (2008). Human Resource Management (6th edition). John
http://www.saylor.org/books
14.
Salleh, F., Yaakub, N., &Dzulkifli, Z. (2011). The influence of skill levels
Boxall, P., & Purcell, J. 2003, Strategy and human resource management.
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