Abstract:
Ghana has made attempts to institute an effective public sector performance management system
to enhance performance, transparency, accountability and efficient service delivery in the public
sector. This study sought to explore the impact and the challenges of the new Performance
Management System (PMS) in public sector organizations. The study adopted an exploratory
study design and was influenced by the pragmatism research paradigm. Both qualitative and
quantitative approaches were used. Therefore primary data was obtained through the interviews
and survey questionnaires. The principal-agent theory provided the theoretical framework for the
study. Theoretical sampling and convenient sampling were used to select 18 public sector
organizations for the study. Methodologically, the study collected primary data through
interviews with 14 officials (mainly the heads of human resource management departments) and
a survey of the views of 225 employees from 18 public sector organizations. Findings from the
study reveal that the new PMS has impacted positively on the performance management
processes by increasing the involvement of bureaucratic heads and their subordinates in
processes of target setting, performance execution, performance assessment, and performance
feedback. However, the study also found that the new PMS has failed to link employee
performance to pay, rewards and sanctions. The study also identified some challenges of the new
PMS such as the lack of rewards and incentives for non-executives; lack of effective supervision;
inadequate understanding of the new appraisal instrument; failure to enforce sanctions for nonperformance
due to fear of being victimized. The study concluded that though the new PMS is
faced with some challenges, there are clear signs of positive impact on performance management
processes, and for the system to be effective it would require more effort and commitment from
principal agencies (PSC, FWSC, and OHCS) and the leadership of implementing agencies.
