The assessment of the appraisal system of Takoradi branch of Provident Life Assurance Company Limited

Abstract

This study was aimed at assessing the performance appraisal system of Provident Life Assurance Company Limited (PLAC). It therefore looked at the reasons for performance appraisals in the Company. In addition the study examined employees’ level of understanding of the performance appraisal system of the company and whether appraisal reports are used for their intended purposes. The last objective of the study was to measure the frequency of appraisals in a year within the company. Fifty-one (51) respondents made up of forty (43) appraisees and eight (8) appraisers were used as the sample unit for the study. Simple random sampling was used in selecting the respondents from the staff of Takoradi branch of PLAC. The lottery method was used for the selection. Findings from the study revealed that training, salary increases, managing employees and rewarding hard work were identified as the four most important reasons for performance appraisals in the company. It was also observed that, both appraisers and appraisees understand the performance appraisal system of the company. Findings also indicated that, appraisal reports are used for their intended purposes. It was also observed that, performance appraisal exercises are conducted two times in a year. It is therefore recommended that, the human resource department should organize periodic training on performance appraisal for all staffs to reinforce the understanding of employees. Additionally, employees should be allowed to undertake self-review of their performance before appraisal meetings. Again, management of PLAC should strongly link promotion with performance.