Performance Appraisal and Employee Performance in Public Organisations: A Case of The Social Security and National Insurance Trust, Ghana

Abstract

Performance appraisal is a formal, structured system of measuring and evaluating an employee‟s job, related behaviors and outcomes to discover how and why the employee is presently performing on the job. It presents the organization with how the employee can perform more effectively in the future so that the employee, organization and society all benefit. This makes it an essential tool for enhancing organizational performance. Although performance appraisal has extensively been studied in both, private and public sector organizations, there is limited knowledge on how this tool is applied to enhance organizational performance in public organizations that are engaged in the provision of social services. This study attempts to respond to this gap with a case study from the Social Security and National Insurance Trust (SSNIT) of Ghana. Employing a qualitative case study design, this research interviews 12 staff made up of Human Resource Officials, Departmental Heads and other mid and lower level officers of SSNIT using the purposive sampling technique. From a thematic content analysis, this research found an online-based „management by objective‟ performance appraisal system called the Oracle Performance Management System, which management use to set performance targets from the national level. These targets help the appraisers to easily determine areas of success or failure of employees‟ performance. The study established five key performance indicators: satisfaction, information-based rewards and sanctions, improved internally generated funds, and employee training strategic plan and talent development as peculiar to a service oriented public organization like the SSNIT. However, these variables were critically challenged by administrative laxities, internet-network connectivity problems, and socio-cultural variables. The study makes specific relevant recommendations to improve the effectiveness in the current system towards achieving the primary goal of enhancing organizational performance.