PERFORMANCE FEEDBACK SYSTEM; AN EVALUATION OF ITS IMPACT  ON EMPLOYEE PERFORMANCE IN COMMERCIAL BANK CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In the twenty-first century, employees are recognized as the most valuable assets for achieving an organization's vision, mission, and strategic objectives. Throughout the process, from planning to implementation of strategies, employees are fundamental to ensuring overall organizational performance for maximum efficiency and effectiveness. Ahmad, Farrukh, and Nazir (2018) assert that the achievement of goals and the overall performance of an organization hinge on employees' willingness to utilize their innovation, knowledge, and capabilities in support of the organization's objectives. According to Cole (2019), a fundamental assumption of performance management is that providing people with feedback about their performance will motivate and empower them to improve.

However, Kayode (2020) points out that this assumption does not always hold true, as many employees dislike receiving performance feedback, and the feedback they do receive is often inconsistent and unreliable, which can ultimately be counterproductive to employee performance. On the other hand, Kurt (209) elucidates that performance feedback system stands as a significant point of contention within management circles. Despite managers employing performance feedback systems, the outcomes consistently disappoint, indicating a shortfall in the process. One of the key responsibilities of managers is to ensure organizational effectiveness and efficiency, necessitating the assessment of individual performance levels. According to Brumbach (2018), performance includes both results and behavior, each subject to independent judgment. Furthermore, performance feedback measurement, often synonymous with performance appraisal, presents a daunting task for human resources departments in many organizations, with its regular execution being crucial. However, imperfect execution of performance feedback can lead to discontent among employees, perceived as unfair and ineffective.

Armstrong and Baron (2019) assert that performance is a multidimensional concept, its measurement reliant on various factors. Additionally, the negative ramifications of performance feedback in organizations have garnered significant concern, particularly in instances where appropriate tools for staff performance evaluation are lacking. To ascertain the fulfillment of organizational strategy, organizations must establish robust performance feedback systems, as advocated by Armstrong (2019). Line managers are pivotal in ensuring the success of performance management, while senior management shoulders the responsibility of resource management to achieve organizational objectives. Various tools, frameworks, and techniques are available to aid managers in meeting their obligations. Additionally, leading organizations prioritize the implementation of value-based performance measurement systems, facilitating the establishment of mutually agreed-upon performance goals and desired outcomes. Performance measurements yield data crucial for assessing the organization's trajectory, enabling the design, control, and accountability of staff performance in alignment with organizational strategy (Henri, 2019). Therefore, a survey will be conducted on performance feedback system; an evaluation of its impact  on employee performance in commercial bank Cameroon.

1.2 Statement of the Problem

The performance feedback system  holds significant importance within banking industry. Its increasing reliance is driven by organizational objectives aimed at influencing employee behavior and attitudes to ultimately enhance organizational performance. This reliance is supported by various factors: the establishment of clear performance objectives at the beginning of evaluation cycles, continuous monitoring of performance to aid underperformers, and recognition of outstanding performance through rewards, often in the form of increased pay. However, the effectiveness of these outcomes is contingent upon the quality of the performance feedback process. Omusebe et al. (2020) emphasize that performance feedback is multifaceted and subject to variability, particularly when supervisors are tasked with making subjective assessments of employee performance. It encompasses aspects such as work planning, setting mutually agreed-upon performance targets, providing feedback, and generating reports. Similarly, it is interlinked with numerous other human resource management systems and procedures, including staff development, career progression, recruitment, placement, and the implementation of incentives and disciplinary measures.

Moreover, relying solely on human judgment in the absence of a formal appraisal system can pose significant problems for an organization's motivation, ethical standards, and legal compliance. Without a systematic evaluation framework, ensuring fairness, accuracy, legality, and defensibility becomes challenging. In the Cameroonian banking sector, there is a prevailing practice of utilizing an objective-based performance appraisal system that focuses primarily on individual goals and objectives, rather than assessing the skills and abilities necessary to perform job duties effectively. This approach has raised concerns regarding its impact on employee performance and job satisfaction. Preliminary inquiries into the banking industry reveal that employees present during assessments often express anxiety due to the perceived lack of utility in the appraisal results, viewing them as mere formalities. Additionally, consistent feedback is reportedly lacking, indicating potential shortcomings in the appraisal process. Hence, it is in the light of these that the study seeks to assess performance feedback system; an evaluation of its impact  on employee performance in commercial bank.

1.3 Objectives of the Study

The main purpose of this study is to assess performance feedback system; an evaluation of its impact  on employee performance in commercial bank. Specifically, the study will;

1. Assess the current performance feedback system implemented in the Commercial bank Cameroon

2. Investigate the  impact of performance feedback system on employee performance in Commercial Bank Cameroon.

3. Assess employee perceptions of the effectiveness  of performance feedback system in Commercial Bank Cameroon

1.4 Research Questions

The following questions have been prepared for the study:

What is the current performance feedback system in place at the Commercial Bank Cameroon?

What are the effects of the performance feedback system on employee performance within the Commercial Bank Cameroon?

How do employees perceive the effectiveness of the performance feedback system within the Commercial Bank Cameroon?

1.5 Research Hypotheses

Ho: There is no significant impact of performance feedback system on employee performance in commercial bank in Cameroon.

Ha: There is a significant impact of performance feedback system on employee performance in commercial bank in Cameroon.

1.6 Significance of the Study

Various organizations, stakeholders, management, financial institutions, and commercial banks will be informed of the study's findings. Employees will be given the chance to express their personal opinions about the organization's performance review process and offer suggestions for how the company could increase output. The management will also gain from the study since the results and suggestions from the respondents will be shared with them. They will learn about the advantages of a well-executed performance review and how it affects workers' productivity.Additionally, other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to performance feedback system; an evaluation of its impact  on employee performance in commercial bank.

1.7 Scope of the study

The scope of this study is boarded on performance feedback system; an evaluation of its impact  on employee performance in commercial bank. Empirically, this study will assess the current performance feedback system implemented in the Commercial bank Cameroon, investigate the  impact of performance feedback system on employee performance in Commercial Bank Cameroon and assess employee perceptions of the effectiveness  of performance feedback system in Commercial Bank Cameroon.

Geographically, the study will be delimited to staff of some selected Commercial Bank in Douala, Cameroon

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Employee: is an individual who works for an organization or company in exchange for compensation, such as a salary or wages.

Performance: is the accomplishment of tasks, activities, or functions with a certain level of effectiveness and efficiency.

Productivity: is a measure for efficiency that shows the proportion of input to output in a system or process.

Banking Sector: a financial institution that provide various financial services, including accepting deposits, lending money, and facilitating transactions.

Performance appraisal: refers to the systematic evaluation of an employee's performance within an organization.

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