Performance Appraisel

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ZENITH
International Journal of Multidisciplinary Research Vol.2 Issue 6, June 2012, ISSN 2231 5780

PERFORMANCE APPRAISAL AS EMPLOYEE MOTIVATION MECHANISM IN SELECTED FINANCIAL INSTITUTIONS IN KUMASI, ASHANTI REGION OF GHANA DR. KOFI OSEI AKUOKO*
*Vincent de Paul Kanwetuu, Department of Sociology and Social Work, Faculty of Social Sciences, College of Art and Social Work, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.

ABSTRACT Performance appraisal system (PAS) has been viewed by academics and human resource practitioners as an effective tool for human resource management (HRM). Yet effective PAS remains a practical challenge to managers and employees because of cognitive, motivational and behavioural factors. 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. A social survey was conducted among employees of six financial institutions in the Kumasi Metropolis. A survey questionnaire was administered among both managerial and subordinate staff. Data gathered were analyzed quantitatively using both descriptive and inferential statistical tools. It was revealed that employee participation in the appraisal process was generally high and this increased satisfaction and fairness which consequently enhanced employee motivation to perform. It was also revealed that managersubordinate interaction was very cordial and this boosted employee motivation and majority of employees preferred appraisal to be used for satisfying training and development needs of employees. Some recommendations were made. KEYWORDS: Performance appraisal, Human resource management, Motivation, Employee involvement, Financial institutions. ______________________________________________________________________________ INTRODUCTION Research reports indicate that there is widespread use of performance appraisal in work organizations all over the world. This widespread use of PAS can be attributed to human resource specialists, academics and consultants who proclaim that performance appraisal is a critically needed tool for effective human resource management (Locker and Teel, 1997). Performance appraisal dates from the time of World War II. In a broader sense, however, it is one of the oldest professions with origins in Frederick Winslow Taylor's 1911 Time and Motion work, which used the scientific method to assess and improve worker productivity. In Ghana, not until the mid-1990s, the performance management currently being practised in many government organizations across the globe did not exist (Ohemeng, 2009). Before this period, however, organizational performance was assessed through annual reports and financial statements audited www.zenithresearch.org.in

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ZENITH
International Journal of Multidisciplinary Research Vol.2 Issue 6, June 2012, ISSN 2231 5780

by the Auditor-General whilst individual or staff performance was assessed through the Annual Confidential Reports (ACR) (Ohemeng, 2009). PROBLEM STATEMENT: In many organizations, performance appraisal systems (PAS) remain one of the great paradoxes of effective human resource management (Cleveland, Murphy, and Williams, 1989). According to Coens and Jenkins (2000), inaccuracies in appraisal can demotivate employees forcing them to go reading „want ads‟. Ayee (2001) and Nkrumah (1991) in Ohemeng (2009) said that the appraisal system in Ghana was fraught with problems and abuses that made its credibility questionable. A recent study in Barclays Bank Ghana, also reported that employees viewed performance appraisal as discriminatory, punitive and judgemental processes, where cronyism and biased considerations dominated objectivity (Horsoo, 2010). This makes one question the level of employee involvement in the appraisal planning in Ghanaian financial institutions. And would employee involvement in the appraisal planning lead to employee...
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