An investigation into the challenges of performance appraisal in Ghanaian organizations: A case study of Olam Ghana Limited
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Date
2013-09-03
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Abstract
Staff performance appraisal is a necessary and beneficial process in the work
environment. It systematically gives a description of an employee’s strength and
weaknesses. The system is however sometimes fraught with some challenges. This study
therefore examined the challenges of performance appraisal at Olam Ghana Limited.
Data was obtained through the use of questionnaire and interview sessions involving 220
respondents which included all categories of staff of the company. Data presentation and
discussion were supported with tables. The study found that the company undertakes two
major appraisals in each Financial Year with a good feedback system. The first is done in
February and the final one done in July to end the Financial Year. The company adopts a
combination of the Management by Objective and Self-Appraisal Techniques in
appraising its staff. Results, as well as strengths and weaknesses are discussed and
scoreboards are kept at the branch offices to provide feedback to employees on their
performance. Management has instituted some incentive packages based on
performance. Among the challenges revealed by the study include a general apathy by
workers, lack of commitment especially by line managers towards the appraisal system,
low salary levels and disparities in both salary structure and incentive packages. Some
workers also perceived some biases in the company’s appraisal system. Lastly, the study
revealed the failure of management of Olam to conduct investigation into performance
gaps. The study recommended among others: the need for management to give the
necessary support to facilitate efficiency and effectiveness in the company’s appraisal
system; adequate training for line managers on appraisal processes to appreciate
appraisal benefits, minimize biases and errors and maximize fairness; rewards should
also be adequate and uniform to serve as a form of motivation to employees. Finally,
proper assessment of performance gaps should be conducted so that appropriate training
can be identified and developed to improve staff performance.
Description
A thesis submitted to the Department of Managerial Science, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION (HUMAN RESOURCE).