Performance appraisal as employee motivation mechanism in financial institutions in Ghana: a study of employees of selected financial institutions in Kumasi

Loading...
Thumbnail Image
Date
2011
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The performance appraisal system (PAS) has been viewed by academics and human resource practitioners as an effective tool for human resource management. Yet effective PAS remains a practical challenge to managers and employees because of cognitive, motivational and behavioural factors. In Ghana, empirical evidence indicates that PAS began in the mid-1990s as annual confidential reports in public organisations but it took a top-down approach which did not pass the test of employee motivation. A review of recent studies also showed that employees in some financial institutions viewed PAS as discriminatory, punitive and judgemental where bias and cronyism replaced objectivity. These reports make one wonder what appraisal approaches were used and the level of employee involvement in the appraisal process especially in financial institutions. Would participatory approaches engender perception of fairness and satisfaction with appraisal process and outcome? And would participatory approaches pass the test of employee motivation and increase productivity? To find answers to these questions, a social survey was conducted among employees of six financial institutions in the Kumasi Metropolis. The institutions were sampled based on convenience and proximity while the employees were sampled using the proportionate random sampling technique. A survey questionnaire was administered among both managerial and subordinate staff. The data gathered were analysed quantitatively using both descriptive and inferential statistical tools. The descriptive statistical tools used included frequency tables, pie charts, bar charts and percentages which permitted comparison of responses. The inferential statistical tools used involved scatter plots and correlation tables which permitted tests of relationship between variables. The findings of the study revealed that employee participation in the appraisal process was generally high and this increased satisfaction and fairness with both appraisal process and outcome. It also increased employee motivation to perform. The findings again indicated that manager/subordinate interaction was very cordial and this also boosted employee motivation. Furthermore, whereas managers mostly used appraisal for rewards administration such as promotion, pay increase, and bonuses; majority of employees preferred appraisal to be used for training and development. Finally, it was found out that the performance appraisal system in financial institutions in Ghana was effective in promoting employee motivation and productivity.
Description
A thesis submitted to the Department of Sociology and Social Work, Kwame Nkrumah University of Science and Technology,in partial fulfilment of the requirements for the award of the degree of Master of Arts in Sociology,
Keywords
Citation