Evaluation of the appraisal system on employee performance of selected banks in Akim Oda, Ghana

Abstract

This study looks at the effect of performance appraisal system of selected banks in Akim Oda. The specific objectives are to examine the relationship between performance appraisal and employee commitment, the extent to which it affects performance and intention to quit. The study adopted a quantitative method with a sample size of 80. Questionnaire was the main research instrument which was used in the collection of data. Data was analysed with means, standard deviations, frequencies, percentage, correlation analysis, and regression analysis. The results of the research revealed that there was an overwhelming agreement from the respondents affirming that performance appraisal systems exist in the banks. Employees indicated that there are appraisal systems that address employees’ strengths and weaknesses and that the bank have well-defined policy on appraisal of employees. The results showed a positive relationship between performance appraisal and employee commitment. The results of the study also showed a very high satisfaction with the performance appraisal system across all the banks. A relatively higher percentage of the employees indicated that performance appraisal information is not used in improving employee salary. The study concludes that performance appraisal systems affect employee commitment.