Chapter 1:  Introduction

Performance Appraisal systems in many organizations remain one of the great paradoxes of effective human resource management. They provide valuable performance information to a number of critical human resource activities such as the allocation of rewards, pay, promotions, and feedback on assessment of training needs and other human resource systems evaluation.

 The success or failure of a performance appraisal program depends to a large extent on the philosophy underlying it and its connection with the overall business goals and the attitude and skills of those responsible for its administration in the organization

 Despite advances in appraisal technology, organizations and more especially employees in both the public and private sectors, continue to express disappointment in performance appraisal systems. The effectiveness of performance appraisal systems has become a mirage. It continues to be a compelling but unrealized goal. A growing number of observers point out that performance appraisal systems have failed to realize their full potential.

 1.1 Statement of the Problem

Performance appraisal systems generally remain an elusive goal. They are not satisfactory enough to provide adequate, timely and reliable information on employee performance. They lack the effectiveness or impact that they are intended for.

1.2 Objectives of the Study

To effectively evaluate the whole performance management performance appraisal system of the Ghana Commercial Bank, general and specific objectives must be clearly spelt out. These will serve as a guide throughout the study.

1.2.1. General Objective

The general objective is to find out whether performance appraisal systems are effective in big public organizations.

1.2.2. Specific Objectives

  The following are the specific objectives of the study:

• To examine the performance appraisal system of Ghana Commercial Bank.
• To critically examine the use to which the feedback from the appraisal is put.
• To investigate how top management views the present appraisal system and the role they play as far as the system is concerned.
• To find out what the employees think about the current appraisal system.
• To ascertain the effectiveness of the performance appraisal system at Ghana Commercial Bank.
• To determine ways for a more effective appraisal system.

1.3 Research Questions

The premise for this research is that performance appraisal is seen as a mere paper work which does not serve the purposes it is intended for. The following questions will be answered in the findings:

• What are the objectives of the performance appraisal system?
• What are outcomes of the performance appraisal system?
• What effect does it have on organizational performance?

1.4 Significance of the Study

This section seeks to explain the importance this study and the critical role that performance appraisals play in organizations.

• To highlight the significance of   Performance Appraisal system.
• To espouse the fact that an effective performance appraisal can motivate staff.
• To espouse the weaknesses of the present performance appraisal system at Ghana Commercial Bank and make recommendations.
• The study will also contribute to knowledge and literature in that it will make recommendations on how the performance appraisal can be more effective at the bank.

1.5 Definitions

Winston and Creamer (1997) state, “Performance Appraisal is an organizational system comprising deliberate processes for determining staff accomplishments to improve staff effectiveness”.

Laurie Mullins (1999) defines performance appraisal system as “the process of management, which involves a continuous judgement on the behaviour and performance of stay”. He further observed that one way in which to review the performance and potential of staff is through a performance appraisal system. According to Bates and Holton (1995) “Performance is a multi-dimensional construct, the measurement of which varies depending on a variety of factors.

Bernedin et al (1995) are concerned about the fact that performance is more of the outcomes of work because they provide the strongest linkage to the strategic goals of the organization, customer satisfaction and economic contributions.

1.5.1 Literature Review

There is a wide existing body of Knowledge on performance appraisal system. This study will attempt to review some of this knowledge, acknowledge the sources and also throw more light on the components of performance appraisal system. Measuring human performance has long been of interest to researchers and practitioners. The process in measuring and evaluating human capital that has received much attention in the literature is performance appraisal. Avery and Murphy (1998) noted that performance appraisal research has focused on three general streams:

• Developing instruments to more accurately and objectively measure human performance
• Supervisors and employee characteristics as sources of potential and actual bias in the ratings of performance appraisal system.
• Users and types of performance appraisal systems within organizations.

Similarly, Monica Belcourt and Sherman Snell (1999) reiterated that performance appraisal systems are among the most useful tools an organization can use to maintain and enhance productivity and facilitate process toward strategic goals. They further discussed that it is through this system that employees work are assessed to match organizational needs.

Michael Armstrong (2001) also emphasized that performance appraisal system should not be seen as a top-down, backward-looking form of appraising people. It is a forward-looking and developmental tool, a framework in which managers support their team members rather than dictating to them. Furthermore its impact on results will be much more significant if it is regarded as a transformational tool.

1.6 Methodology

Sources of data for this study will be from both primary and secondary. The primary data will be gathered by the use of tools like interviews and questionnaires, which will be administered to some selected employees of Ghana Commercial bank. The researcher is looking at a sample size of about 100 comprising of 40junior, 50senior and 10top management. This will include banking and non-banking staff. The sampling method that will be adopted is random sampling.

Secondary data will be collected from books, journals, newsletters, and periodicals, papers presented by human resource practitioners and from the Internet.

1.7 Data Analysis

On completion of collection of data through interviews, questionnaires and other documents such as annual reports, data will be collated and interpreted.

1.7.1 Data Presentation

Data will be presented through the use of graphs, frequency tables and pie charts.

1.7.2 Data Analysis

Primary data collected from the field would be analysed both qualitatively and quantitatively. Qualitatively it would be done through the application of theories.

Quantitatively graphs, facts, figures etc will be used to analyse data collected.

1.8 Scope and Limitations

Due to time constraint, financial resources and the large population size of Ghana Commercial Bank throughout the country, the study will be limited to Head Office, High Street and Liberty House branches. Management was unwilling to allow the performance appraisal forms outside the bank premises since they were considered confidential and not for public consumption hence they are not attached to this long essay.

1.9 Organisation of the Essay

This essay starts off with a dedication, declaration, abstract, acknowledgement and table of contents. The first chapter is the research proposal. This is an outline of the essay and is the plan of action of the study. The second chapter reviews the existing and relevant literature to familiarize every reader of the essay with the existing body of knowledge on performance management performance appraisal and also defines the parameters of the study. Chapter three gives a genesis of Ghana Commercial Bank and provides an insight on the critical role it plays inGhanaand beyond. The fourth chapter focuses on the methodology of the study i.e. the methods, tools, processes and procedures by which the research will be carried out. Methodology clarifies the modes of design, collection and

collation of data, interpretation and methods of analysis of data gathered from the bank. Finally the last chapter five discusses the results, findings, recommendations and conclusions of the whole long essay. A bibliography of references and appendices of organogram of GCB, questionnaires administered and the performance appraisal forms of the bank can be found at the last pages.