Performance management systems and monetary incentives in the Ghanaian manufacturing sector

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This study examined the performance management systems in the Ghanaian manufacturing sector. In addition the study explored the relationship between monetary incentives and the effectiveness of performance management systems. Using the case study research approach and questionnaires, eighty five (85) participants from the Kumasi plant of The Coca Cola Bottling Company Ghana Limited (TCCBCGL) were selected for the study. Results from descriptive statistics and Pearson product moment of correlation coefficient (Pearson r) indicate that the performance management system at the TCCBCGL encourages employees to achieve higher levels of performance. Also the system was found to encourage the development of the full capacities and potentials of employee. Furthermore most of the employees were satisfied with the existing performance management system that is in place at the TCCBCGL. Finally, it was found that employees who value monetary incentives were more likely to perceive performance management systems that take into account the importance of monetary incentives as more effective. It is therefore recommended that performance management systems should be designed in a manner that will enable employees use the system in a manner that brings visible and value added benefits.
A thesis submitted to the Graduate School of Business KNUST, Kumasi, in partial fulfillment of the requirements for the award of a degree in Masters of Business Administration (HUMAN RESOURCE MANAGEMENT).