Abstract:
The general objective of the study was to examine the effect of performance appraisal systems
on employee’s motivation the case of NIB International Bank North East Addis Ababa
District. The study adopted a descriptive and explanatory research design. A sample size of
257 was selected by using convenience sampling method. The data was collected by using
structured questionnaires and it was analysed by using the Statistical Package for
Social Sciences (SPSS) version 25 software into frequency distribution, percentages and
Pearson correlations. The data was presented by using tables to show frequencies &
percentages. As a result of the findings of the primary and secondary data the researcher
concluded that the performance appraisal system wherein the employees express that they
had low level of satisfaction with the performance appraisal system being practiced by the
bank and its appraisal process discourages the employee’s motivation. The evaluators can
increase the accuracy of performance evaluation or minimize bias and increase employee’s
motivations. Besides, based on the findings, the study recommends that the performance
appraisal system has an important effect for employee’s motivation. Because performance
appraisal system is important to improve the employee’s job performance and motivation at
any work area. Various evaluators can be used to increase the accuracy of performance
evaluation and increase employee’s perceptions of fairness that can increase employee
motivation in the bank.
