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UNIVERSITY OF GHANA 
 
 
 
 
EXPLORING THE IMPACT OF THE NEW PUBLIC SECTOR 
PERFORMANCE MANAGEMENT SYSTEM IN GHANA 
 
 
BY  
 
MOSES ATTA 
(10249569) 
 
 
THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, 
LEGON IN PARTIAL FULFILLMENT OF THE REQUIREMENT 
FOR THE AWARD OF MPHIL PUBLIC ADMINISTRATION 
DEGREE 
 
 
 
 
JULY, 2017
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DECLARATION 
 
I, the author of this dissertation, do solemnly declare that, except for references to other people’s 
work which have been duly acknowledged, the work presented here was done by me as a student 
of the Department of Public Administration and Health Services Management, University of 
Ghana Business School, Legon. 
 
 
 
………………………………………    ……………………….. 
MOSES ATTA        DATE 
(10249569)  
  
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CERTIFICATION 
 
I hereby certify that this thesis was supervised in accordance with the procedures laid down by 
the University of Ghana. 
 
 
 
 
………………………………..     ……………………… 
DR. DANIEL APPIAH        DATE 
        (Supervisor) 
 
 
  
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DEDICATION 
 
This work is dedicated to my parents and siblings whose unfathomable love, care and support 
has brought me this far in the academic ladder. 
 
  
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ACKNOWLEDGEMENT 
 
I first of all, thank God Almighty for keeping me safe and being with me throughout my studies. 
Everything has been possible because of His mercies and grace upon my life. 
I also want to express my profound gratitude to my supervisor Dr. Daniel Appiah for his advice, 
tutorials, directions and his attention despite his tight schedules. Apart from that he has also been 
very influential in class and has a good interpersonal relations with students which is very 
laudable, Sir I thank you and God richly bless you and your family. 
My sincere gratitude goes to my parents for their unflinching support in my education. I thank 
them for their encouragement and financial support. In addition, I thank all my siblings for their 
love and prayers for me especially my brother Cornelius Nyamah for his tremendous support in 
my education.  God bless you all. 
I also express my sincere gratitude to Mrs. Bridget Katsriku (Chairperson of Public Services 
Commission), Mrs. Regina Bagnaba (Ministry of Youth and Sports), Mrs. Gifty Quansah (Ghana 
Tourism Authority), Linda (Ministry of Finance), Mrs. Cecilia (Ministry of Environment, 
Science, Technology and Innovation), Sefakor Attah (Public Procurement Authority) and all 
other Directors and Public officials who in one way or the other took time out of their busy 
schedules to assist me administer questionnaires, gave me the opportunity to interview them and 
also provided useful information for my research.  
Moreover, I thank my friends Emmanuella Asiama-Sampong, Esther Odum, Daniel K. Kombat 
and Prince Asiedu for their encouragement and prayers. God bless you so much. 
Finally I am grateful to all my Mphil course mates for their love, support, care and company for 
a successful academic journey. Love you all guys. 
 
  
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TABLE OF CONTENTS 
 
DECLARATION ............................................................................................................................. I 
CERTIFICATION ...........................................................................................................................II 
DEDICATION .............................................................................................................................. III 
ACKNOWLEDGEMENT ............................................................................................................ IV 
TABLE OF CONTENTS ............................................................................................................... V 
LIST OF TABLES ..................................................................................................................... VIII 
LIST OF FIGURES ....................................................................................................................... IX 
LIST OF ABBREVIATIONS ........................................................................................................ X 
ABSTRACT .................................................................................................................................. XI 
CHAPTER ONE ............................................................................................................................. 1 
INTRODUCTION ........................................................................................................................... 1 
1.1 BACKGROUND OF THE STUDY ................................................................................................. 1 
1.2 RESEARCH PROBLEM .............................................................................................................. 3 
1.4 RESEARCH OBJECTIVES .......................................................................................................... 7 
1.5 RESEARCH QUESTIONS ........................................................................................................... 7 
1.6 SIGNIFICANCE OF THE STUDY ................................................................................................. 8 
1.7 SCOPE OF THE STUDY ............................................................................................................. 8 
1.8 ORGANIZATION OF THE STUDY ............................................................................................... 9 
CHAPTER TWO........................................................................................................................... 10 
LITERATURE REVIEW .............................................................................................................. 10 
2.0 INTRODUCTION ..................................................................................................................... 10 
2.1 THE CONCEPT OF PERFORMANCE MANAGEMENT ................................................................. 10 
2.2 THEORETICAL FRAMEWORK: PRINCIPAL-AGENT THEORY .................................................... 13 
2.2.1 Economic Resources ..................................................................................................... 16 
2.2.2 Communication of accurate Information between Principals and Agents.................... 16 
2.2.3 Enforcement and Compliance Mechanism ................................................................... 17 
2.2.4 Positive Attitude of Agents towards Mandate Performance ......................................... 18 
2.3 PERFORMANCE MANAGEMENT PROCESSES .......................................................................... 20 
2.3.1 Performance Planning and Target Setting .................................................................... 20 
2.3.2 Performance Execution ................................................................................................. 22 
2.3.3 Performance Appraisal.................................................................................................. 23 
2.3.4 Performance Feedback .................................................................................................. 25 
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2.3.5 Decision Making Concerning Rewards, Sanctions and Improvement ......................... 26 
2.4 CHALLENGES OF PERFORMANCE MANAGEMENT IN THE PUBLIC SECTOR ............................. 27 
2.4.1 Technical problems ....................................................................................................... 27 
2.4.2 System Problems ........................................................................................................... 28 
2.4.3 Stakeholder Involvement Problems .............................................................................. 29 
2.5 PERFORMANCE MANAGEMENT REFORMS IN GHANA ............................................................ 29 
2.6 NATURE OF THE PRINCIPAL-AGENT GOVERNANCE FRAMEWORK FOR THE NEW PMS.......... 33 
2.6.1 Role of the Fair Wages and Salaries Commission ........................................................ 35 
2.6.2 Role of the Public Service Commission ....................................................................... 35 
2.6.3 Role of the Office of the Head of Civil Service............................................................ 37 
2.7 CONCLUSION ........................................................................................................................ 38 
CHAPTER THREE ....................................................................................................................... 40 
METHODOLOGY ........................................................................................................................ 40 
3.0 INTRODUCTION ..................................................................................................................... 40 
3.1 RESEARCH PARADIGM .......................................................................................................... 40 
3.2 RESEARCH DESIGN ............................................................................................................... 42 
3.3 UNIT OF ANALYSIS ............................................................................................................... 43 
3.4 RESEARCH APPROACH .......................................................................................................... 43 
3.4.1 Qualitative Approach .................................................................................................... 44 
3.4.2 Interviews ...................................................................................................................... 45 
3.4.3 Quantitative Approach .................................................................................................. 47 
3.5 STUDY AREA ........................................................................................................................ 48 
3.6 STUDY POPULATION ............................................................................................................. 48 
3.7 SAMPLE SIZE AND SAMPLING TECHNIQUE ............................................................................ 49 
3.7.1 Sampling Technique: Selecting Employees for Survey................................................ 51 
3.8 SOURCES OF DATA ................................................................................................................ 53 
3.9 DATA ANALYSIS AND PRESENTATION .................................................................................. 53 
3.10 ETHICAL CONSIDERATIONS................................................................................................. 54 
3.11 LIMITATIONS OF THE STUDY ............................................................................................... 54 
CHAPTER FOUR ......................................................................................................................... 56 
DATA ANALYSIS AND DISCUSSION OF FINDINGS ........................................................... 56 
4.0 INTRODUCTION ..................................................................................................................... 56 
4.1 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS ........................................................... 56 
4.1.1 Gender of Respondents ................................................................................................. 56 
4.1.2 Age of Respondents ...................................................................................................... 57 
4.1.3 Educational Level of Respondents ................................................................................ 58 
4.1.4 Period of joining the Public Service ............................................................................. 58 
4.2 COLLABORATION AMONGST THE PRINCIPAL ACTORS ............................................................ 60 
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4.3 IMPACT OF THE NEW PERFORMANCE MANAGEMENT SYSTEM............................................... 65 
4.3.1 Employee Performance Target Setting ......................................................................... 66 
4.3.2 Employee Performance Execution ................................................................................ 68 
4.3.3 Employee Performance Assessment ............................................................................. 70 
4.3.4 Providing Feedback on Employee Job Performance .................................................... 74 
4.3.5 Decision Making on Employee Performance: Rewards and Sanctions ........................ 77 
4.4 CHALLENGES OF THE NEW PERFORMANCE MANAGEMENT SYSTEM ..................................... 83 
4.4.1 Lack of Rewards and Sanctions for Non-executives .................................................... 85 
4.4.2 Lack of Effective Supervision ...................................................................................... 87 
4.4.3 Failure to link the PMS to Employee Development Training ...................................... 89 
4.4.4 Inadequate Understanding of the New Performance Appraisal Instrument ................. 90 
4.5 CONCLUSION ........................................................................................................................ 92 
CHAPTER FIVE ........................................................................................................................... 94 
SUMMARY, RECOMMENDATIONS AND CONCLUSION ................................................... 94 
5.0 INTRODUCTION ..................................................................................................................... 94 
5.1 SUMMARY OF KEY FINDINGS ................................................................................................. 95 
5.1.1 Collaboration among the Principal Agencies ............................................................... 95 
5.1.2 Impact of the new PMS on Performance Targets Setting ............................................. 96 
5.1.3 Impact of the new PMS on Employee Job Execution................................................... 96 
5.1.4 Impact of the new PMS on Performance Assessment .................................................. 97 
5.1.5 Impact of the new PMS on Feedback on Job Performance .......................................... 97 
5.1.6 Impact of the new PMS on Decision-making about Rewards and Sanctions ............... 98 
5.1.7 Challenges of the new PMS .......................................................................................... 98 
5.2 POLICY RECOMMENDATIONS ................................................................................................ 98 
5.3 CONTRIBUTIONS OF THE STUDY TO THEORY, POLICY AND LITERATURE .............................. 99 
5.4 CONCLUSION ...................................................................................................................... 101 
REFERENCES ............................................................................................................................ 103 
APPENDIX 1 .............................................................................................................................. 112 
APPENDIX 2 .............................................................................................................................. 117 
APPENDIX 3 .............................................................................................................................. 118 
 
 
  
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LIST OF TABLES 
Table 1: Nature of respondents interviewed ................................................................................. 46 
Table 2: Sampled Organizations and Number of Respondents ..................................................... 51 
Table 3: Gender of Respondents ................................................................................................... 57 
Table 4: Age of Group of Respondents ......................................................................................... 57 
Table 5: Educational Level of Respondents .................................................................................. 58 
Table 6: Which of the principal actors would be more effective in designing and implementing a 
job performance system that can improve public sector productivity? ......................................... 64 
Table 7: Perceived link between performance evaluation and promotion .................................... 80 
Table 8: Linking negative employee performance evaluation score to sanctions ......................... 82 
Table 9: Further training are often based on Performance Appraisal reports ............................... 89 
 
  
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LIST OF FIGURES 
Figure 1: A Model of the Principal-Agent Relationship in Ghana’s Public Sector ...................... 34 
Figure 2: Period of joining the Public Service .............................................................................. 59 
Figure 3: Trend Analysis of job performance target ..................................................................... 67 
Figure 4: Trend analysis of performance execution ...................................................................... 69 
Figure 5: Trend analysis of employee job performance appraisal ................................................ 72 
Figure 6: Trend analysis of actors who appraised employee job performance ............................. 73 
Figure 7: Trend Analysis on job performance feedback ............................................................... 75 
Figure 8: Measures to improve PMS in the public sector ............................................................. 84 
 
 
 
 
  
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LIST OF ABBREVIATIONS 
 
CIDA   Canadian International Development Agency 
CIPD    Chartered Institute of Personnel and Development 
CLOGSAG  Civil and Local Government Staff Association of Ghana 
CSPIP   Civil Service Performance Improvement Programme  
CSRP   Civil Service Reform Program  
FWSC   Fair Wages and Salaries Commission  
MDAs   Ministries Departments Agencies 
NPM    New Public Management  
OECD   Organization for Economic Co-operation and Development  
OHCS   Office of the Head of Civil Service  
PMS    Performance Management System  
PNDC   Provisional National Defense Council  
PSC               Public Services Commission 
SAP   Structural Adjustment Programme  
 
 
  
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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 non-
performance 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. 
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CHAPTER ONE 
INTRODUCTION 
 
1.1 Background of the Study 
Performance management has been at the heart of the New Public Management (NPM) (Hood, 
1991; Mwita, 2000; Carlisle, 2007; Ohemeng, 2009; Webb, 2010). Advocates of the NPM 
emphasize that strengthening performance management in the public sector would enhance 
performance of employees and public service performance whiles promoting accountability, 
value for money, and efficient public service delivery and customer satisfaction. Instituting a 
Performance Management System (PMS) in the public sector is necessary to demonstrate to 
stakeholders whether public organizations are performing as expected and that set goals and 
objectives are being achieved (McAdam, Hazlett, and Casey, 2005).  
 
Performance management is seen as a strategic, continuous and integrated process that is deemed 
to enhance employee performance and productivity, and the attainment of organizational goals 
(Armstrong, 2000; Aguinis, 2009; Armstrong and Baron, 2010; Mathis and Jackson 2010) and 
operational process (Briscoe and Claus 2008 cited in CIPD, 2009a). The significance of having a 
PMS to measure and reward employee performance in organizations has been highlighted by 
several scholars. Performance management if effectively done has been found to motivate and 
retain employees in an organization (Shearer, 2006; Armstrong, 2009; Norman and Kabwe, 
2015). Employees are motivated by a system that ensures recognition and appreciation, healthy 
relationships, a favourable working environment, financial reward and feedback on performance 
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(Shearer, 2006). Reforms to create a PMS in the public sector or developing countries have 
therefore been supported by international development organizations (Webb, 2010). 
 
While many studies have shown positive results of performance management in public 
organizations in developed countries (Verbeeten, 2008; CIPD, 2009a; Halachmi, 2011), the 
evidence in developing countries (Polidano, 1999; De Waal, 2007; Mwita, 2000) like Ghana 
show otherwise (Adei and Boachie-Danquah, 2003; Antwi, Analoui, and Nana Agyekum, 2008; 
Ohemeng, 2009; Bawole, et al., 2013). Scholars have identified some key features crucial to the 
success of performance management implementation in the public sector which are usually 
missing in developing countries (Fryer, Anthony and Ogden 2009; Fletcher, 2004; Dodoo, 1997, 
Antwi et al., 2008; CIPD, 2009b; McAdam et al., 2005; Gruman and Saks, 2011; Mathis and 
Jackson, 2011). These features include alignment of the PMS to existing organizational 
strategies; strong leadership commitment; stakeholder involvement and employee engagement; a 
performance management culture recognized to improve and identify good performance, and not 
only as a tool used to victimize or chastise poor performers; sustainable financial and technical 
resource; continuous monitoring and feedback reporting mechanisms; transparency and 
accountability mechanisms; and, workplace ethical values that enhance positive behaviours. 
Performance management, done badly, can disorient employee support and commitment as well 
as breed unproductive activities (CIPD, 2000a; Aguinis 2009). Therefore, it is important that 
public sector reforms in developing countries that seek to introduce or strengthen performance 
management should be studied by scholars to understand the impact.   
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1.2 Research Problem 
Ghana has over the past decades embarked on several public sector reforms to cure the bad 
image of the public sector as visionless, ineffective, inefficient and wasteful, corrupt, non-
performing and unproductive (Antwi et al., 2008; Adei & Boachie-Danquah, 2003; Ayee, 2001). 
Many of the public sector reforms in Ghana sought to build an effective PMS. A Civil Service 
Reform Program (CSRP) (1987-93) which formed part of the World Bank-led Structural 
Adjustment Programme (SAP) was followed by the Civil Service Performance Improvement 
Programme (CSPIP) formally launched in 1995 (Antwi et al., 2008). Issues bothering on 
performance standards and performance measurement, performance appraisals, merit-based 
recruitment, merit-based salary increments, incentives and promotion, signing of performance 
contracts, training and development and other related human resource matters formed part of the 
objectives of the public sector reforms (Adei & Boachie-Danquah, 2003). Despite the huge 
government expenditure in public sector reforms, the results have generally been disappointing 
(Appiah and Abdulai, 2017). 
 
Several studies have highlighted some key challenges inhibiting successful implementation of 
performance management in Ghana’s public sector: lack of local participation and ownership of 
performance management reforms (Dodoo, 1997; Adei and Boachie-Danquah, 2003); absence of 
transformational leadership among chief directors to enforce attitudinal change to embrace a 
performance culture (Adei and Boachie-Danquah, 2003); low level top political and bureaucratic 
commitment in implementation of the reforms (Antwi et al., 2008).  According to Ohemeng 
(2009), institutional and capacity constraints, institutional fragmentation, public apathy and 
leadership support, lack of political will and seriousness, inadequate financial resources, lack of 
institutionalized incentive and sanctions system have hampered the successful implementation of 
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a PMS in the public sector. Moreover, it has been revealed that administrative culture, socio-
cultural norms, values, and political tendencies tend to undermine the objectivity of the 
performance appraisal process (Debrah, 2001; Bawole et al., 2013). 
 
Due to the failure of previous public sector reforms to effectively institute an effective PMS, a 
new PMS was designed, piloted in 2014, and implemented in 2015 across the public sector 
(Public Services Commission, 2014, 2015). According to the Public Services Commission (PSC) 
of Ghana, “The New Performance Management System is based on the principles of 
Accountability, Transparency, Equity and Ownership” (PSC 2014:3, bold emphasis is from 
source). In the new PMS, “every individual including each head of a public service, Chief 
Executive Officer, Chief Director, Head of Departments and Director is to have annual 
performance targets the attainment of which will be enforced by appropriate combinations of 
incentives and sanctions” (PSC 2015:70). This new system seeks to ensure that salary increment, 
promotion, training and development of employees are linked to employee job performance 
(PSC, 2015). This is to establish a performance culture in the public sector that sets objectives, 
targets and aligns staff performance to organizational and national development goals.  
 
The effectiveness of the governance mechanisms for the new performance management system 
also requires examination by scholars. According to Article 196 of the 1992 Constitution of 
Ghana, “The Public Service Commission of Ghana shall have such powers and exercise such 
supervisory, regulatory and consultative functions as Parliament shall, by law, prescribe, 
including as may be applicable, the supervision and regulation of, entrance and promotion 
examinations, recruitment and appointment into or promotions within, the public services, and 
the establishment of standards and guidelines on the terms and conditions of employment in the 
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public services.” In 2007, Government also created an agency called the Fair Wages and Salaries 
Commission (FWSC) to, among other functions related to public sector salary administration, 
“Ensure that the balance of internal consistency, external competitiveness and employee 
performance are fully reflected in the public service pay system” and “advise on performance 
management processes and indicators” (FWSC Act, 2007, section 3).  
 
The governance mechanisms for the new PMS recognize that there is the need for the PSC and 
FWSC to collaborate effectively in the design and implementation of a performance 
management system that links employee job performance to the public service pay system (PSC 
2015). The manual for the new PMS states that “By its mandate, the PSC, in collaboration with 
the FWSC is responsible for developing the guidelines and standards, which shall provide the 
framework for institutionalization of the PMS in public service organizations” (PSC 2015:77). 
Further, “The PSC in collaboration with the Fair Wages and Salaries Commission shall ensure 
that performance in the public service is monitored. Outstanding performance shall be rewarded 
and poor or unsatisfactory performance managed or sanctioned” (PSC 2015:69-70). Towards this 
end, the policy document states that “The PSC and the FWSC shall put in place monitoring and 
evaluation mechanism to ensure compliance with this policy by all institutions” (PSC 2015:77). 
Principal-agent theorists in public administration (Dixit, 2002) have noted that public sector 
employees (as agents) usually have multiple principals, all trying to influence the actions of the 
employees. The issue is that multiple principal actors in the public sector usually find it difficult 
to overcome the problem of “complexity of joint action” in the implementation of a common 
policy (Pressman and Wildavsky, 1984; Ayee, 1994; Ohemeng and Anebo, 2012). Therefore, the 
extent to which the PSC and the FWSC will be able to overcome the problem and collaborate 
effectively in the implementation of the new PMS is an interesting issue for research.  
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The new PMS places responsibilities on the public sector bureaucratic leadership (Chief 
Directors, Chief Executive Officers, Directors, and Head of departments) to ensure its successful 
implementation. A newly developed Human Resource Management Policy Framework and 
Manual for the Public Services (hereafter referred to as the ‘PMS policy manual’) states that 
“The Chief Directors or Chief Executives and Heads of the Public Services are responsible for 
the administration and enforcement of the PMS in their respective organizations” (PSC 
2015:77). Meanwhile, since 2013, the Office of the Head of Civil Service (OHCS) which is 
responsible for managing all human resources in the Civil Service Since 2013, signs 
performance agreements with Chief Directors in all the Ministries of the civil service and also 
assesses the performance of the Chief Directors at the end of the year (Appiah and Abdulai, 
2017). To ensure the commitment of the bureaucratic leadership to enforce the new PMS, the 
policy manual states that Chief Directors or Chief Executives and their immediate deputies shall 
be assessed using “a performance agreement which shall be written and agreed upon by both the 
officials and their n   individual governing boards or councils” (PSC 2015:77). Moreover, “Merit 
Awards will be considered for those Chief Directors who achieve over 90% of their deliverables. 
The Chief Director is expected to produce at least 70% of the deliverables to avoid prescribed 
sanctions” (PSC, 2015:136). Interestingly, the policy manual does not define any specific role 
for the OHCS in the implementation of the new PMS. Three years into the implementation of the 
new PMS, an important question for research is to examine to what extent have the public sector 
bureaucratic leadership been committed to enforcing the processes of setting performance targets 
for employees, assessing employee job performance, and providing evaluation feedbacks to the 
employees? Further, to what extent have the PSC, FWSC, and OHCS been able to collaborate 
effectively to implement the new PMS? These matters need to be explored by researchers. 
 
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The new PMS introduced into Ghana’s public sector in 2015 is now in its third year of 
implementation. But there is no published academic study that explores the impact of the new 
PMS. There was the need for scholars to explore the impact the new PMS has had on 
performance management processes in the public sector. Therefore, the purpose of this study is 
to explore the impact and challenges of the new PMS in Ghana’s public sector. 
1.3 Research Objectives 
To achieve the research purpose, the following specific objectives underpinned the study: 
1. To examine the nature of the governance framework for the enforcement of the new 
PMS. 
2. To investigate the nature of collaboration between the PSC, OHCS, and FWSC in 
ensuring the compliance of all public sector organizations with the new PMS.   
3. To investigate the impact of the new PMS on the commitment of the bureaucratic heads 
and lower-level employees in public sector organizations to undertake the activities of 
employee performance target setting, employee performance assessment, employee 
performance feedback and decision making on rewards and sanctions. 
4. To investigate the challenges of the new PMS and make policy recommendations. 
1.4 Research Questions 
1. What is the nature of the governance framework for the enforcement of the new PMS?  
2. What is the nature of collaboration between the PSC, OHCS, and FWSC in ensuring the 
compliance of all public sector organizations with the new PMS? 
3. What is the impact of the new PMS on the commitment of bureaucratic heads and lower-
level employees in public sector organizations to undertake the activities of performance 
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target setting, performance assessment, performance feedback and decision making on 
rewards and sanctions? 
4. What are the emerging challenges affecting the new PMS?  
1.5 Significance of the Study 
This study makes significant contribution to research, practice and policy on performance 
management in the Ghana’s public sector. In relation to research, this study theoretically and 
empirically contributes to existing literature on performance management in Ghana. Concerning 
significance to practice, the study could be considered as one of the performance audits 
envisaged by the PSC due to the fact that no evaluative study has been conducted by the PSC on 
the new PMS in public organizations since its implementation as at the time this study was 
conducted. This study therefore is likely to be a useful reference material for practitioners who 
seek to understand and improve the new PMS. It offers useful insights into the role of the 
principal implementation actors especially the PSC, FWSC and OHCS. Constraints inhibiting 
the successful implementation of the new PMS have been highlighted by the study to enable the 
PSC and various implementing organizations to deal with the constraints. The study also had a 
policy dimension by bringing new information to light necessary to re-examine the current 
practice of performance management in the public sector. The study made necessary policy 
recommendations that may influence the practice of performance management in the public 
sector.  
1.6 Scope of the Study 
The scope of this study can be classified into two categories: geographical and organizational. 
Geographically, the study involved public sector employees, Ministries and agencies domiciled 
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in Accra in the Greater Accra region of Ghana. Although the majority of the Ministries and 
agencies involved in the study have offices in all the ten regions of Ghana, the findings do not 
necessary apply to the offices outside the Greater Accra region. The study also focuses on 
performance management at the individual employee level and not the organizational level.  
1.7 Organization of the Study 
The study is organized into five chapters and structured as follows. The first chapter has 
presented the background of the study, the research problem, research objectives, research 
questions to be answered, significance of the study, and scope of the study. Chapter two focuses 
on a review of the relevant empirical and theoretical literature that helps to understand the nature 
of performance management. The various concepts underpinning the study were defined and the 
principal-agent theoretical framework employed for the study is discussed. Chapter three 
presents the research methodology of the study which highlights the sources of data for analysis, 
sampling techniques and sample size, data collection instrument and methods, the nature of data 
presentation and analysis, and ethical considerations. Chapter four is devoted to the analysis and 
discussion of the research findings drawing comparisons between theory and the practice of 
performance management in Ghana’s public sector. Finally chapter five summarizes the findings 
and conclusions drawn from the study, and makes policy recommendations.  
 
 
 
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CHAPTER TWO 
LITERATURE REVIEW 
2.0 Introduction 
This chapter presents a review of relevant conceptual, empirical and theoretical literature on 
performance management. It begins with a review of the literature on the conceptualization of 
performance management from various scholarly perspectives. It is followed by a discussion of 
the principal-agent theoretical framework underpinning this study. The next section looks at 
discussions on the process of performance management. Finally the chapter presents issues 
arising in the literature concerning the implementation of an effective performance management 
system in Ghana’s public sector.  
2.1 The Concept of Performance Management 
The literature indicates that the term ‘performance management’ was first used by Beer and Ruh 
(1976) in their study ‘Re-engineering Performance Management, Breakthroughs in achieving 
strategy through people’ in which they asserted that practical challenges and experiences of 
employees on the job coupled with effective supervisor guidance and feedback best enhance 
performance in an organization (Armstrong & Baron, 2004). Their study ignited a new 
philosophy of performance management that looks beyond the spheres of annual performance 
appraisal or evaluation system. 
 
Since the 1970s, the concept of performance management has gained a high degree of scholarly 
and business interest as a key management tool (Norman and Kabwe, 2015; Maley, 2014; CIPD, 
2009a; Fryer et al., 2009). However, there has been so much confusion over the meaning of the 
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term ‘performance management’. Whilst others have considered it as an appraisal process, others 
have defined it in terms of performance-related pay, and yet some have looked at it in terms of 
training and development. In the last two decades, the concept has been seen as a continuous, 
strategic activity that involves managing employee behaviour towards achieving high 
performance and commitment in an organization (Armstrong, 2000; Aguinis, 2009). It has 
attained a more pivotal role in strategic human resource management process as very crucial tool 
for performance improvement and achieving organizational goals (CIPD, 2009b; Maley, 2014).   
 
Performance management has been defined in several ways by various authors. Weiss and Hartle 
(1997:1) defined performance management as “a process for establishing a shared understanding 
about what is to be achieved and how it is to be achieved, and an approach to  managing people 
that increases the probability of achieving success”. Similarly, Armstrong (2000:1) defines 
performance management as “a strategic and integrated process that delivers sustained success to 
organizations by improving the performance of people who work in them and by developing the 
capabilities of individual contributors and teams.” From the foregoing definitions, it is evident 
that whilst Weiss and Hartle (1997) view performance management as a process that creates an 
agreement and shared understanding between managers and employees about targets and tasks, 
Armstrong (2000) identifies the concept to be a more strategic and integrated process. Strategic 
and integrated in the sense that it aligns individual objectives and responsibilities to overall 
organizational goals and mission. 
 
Armstrong (2000) looks at performance management as an integrated process in two ways; first 
vertical integration which involves aligning organizational, team and individual objectives; and, 
secondly, horizontal integration which involves linking all the various aspects and cross cutting 
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activities in the organization in a coherent manner towards the management and development of 
people. Creating such integration, agreement and shared understanding is hinged on effective 
communication between managers and subordinates. In this light, Mathis and Jackson (2010) 
assert that positive communication in an organization is very imperative because it strengthens 
the whole process of performance management. 
 
Weiss and Hartle (1997), and Armstrong (2000) agree in their definitions that performance 
management is about managing employees, the most important asset in an organization to 
improve their performance. They further agree on the fact that improving employee performance 
culminates into overall organizational success. However, according to Armstrong (2000), the 
conceptualization of performance management should focus more on the development of 
employees’ capabilities to improve their performance in an organization.  
 
Other scholars have also defined performance management by using a stages approach which 
identifies the various stages involved in the process of performance management (Aguinis, 2009; 
Norman and Kabwe, 2015). For instance, Verbeeten (2008:428) sees performance management 
as “the process of defining goals, selecting strategies to achieve those goals, allocating decision 
rights, and measuring and rewarding performance.” Similarly Aguinis (2009:2) defines 
performance management as “a continuous process of identifying, measuring and developing 
performance in organizations by linking each individual’s performance and objectives to the 
organization’s overall mission and goals.” Norman and Kabwe (2015:213) offers a more 
comprehensive definition where they define performance management as “a strategic and 
continuous process between managers and employees that includes planning, reviewing and 
appraising performance in order to correct poor performance, to sustain good performance and to 
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improve performance through the harmonization of individual and organizational objectives, to 
create a high performing culture where performance management is embraced by all employees 
and managers.” Following Weiss and Hartle (1997) and Armstrong (2000), Norman and Kabwe 
emphasize the fact that performance management can only be effective if it is fully accepted and 
embraced by both employees and managers. 
 
The various definitions above clearly indicate some form of agreement among scholars about 
what the concept of performance management entails. It is agreed that performance management 
is a strategic and continuous process involving a series of activities undertaken to manage 
individual and organizational performance in an organization. For the purpose of this study, the 
stages approach is followed to define performance management as a continuous process of 
integrating employee and organizational and strategic targets, performance execution, appraising 
performance, providing feedback, and enforcement of decisions concerning rewards, sanctions 
and improvement. The ultimate goal of performance management should be to improve 
organizational performance, rather than what Armstrong and Murlis (1998, cited in Armstrong, 
2009:619) call as a “dishonest annual ritual” of “praising performance” (Bawole, et. al., 2013). 
The process of improving organizational performance may include providing career 
development training to fill performance gaps identified. The essence of employee performance 
management is to improve individual performance to achieve organizational goals. 
2.2 Theoretical Framework: Principal-Agent Theory 
Underpinning this study is the Principal-Agent theory, a mostly and widely used theoretical 
framework in the performance management literature (Van Slyke, 2007; Verbeeten, 2008; 
Heinrich and Marschke, 2010), because of its usefulness in providing in-depth understanding and 
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relevant information that are fundamental to the creation and implementation of any performance 
management system based on an incentive scheme or contractual agreement between a principal 
actor and an implementing agent. According to this theory, a principal actor contracts an agent to 
perform tasks on behalf of the former in return for agreed upon rewards. The agent is deemed to 
possess requisite expertise in terms of knowledge, skills and ability to execute the tasks and 
programs of the principal. Based on contractual agreement between the principal and the agent, 
contractual terms bothering on inputs, processes, expected outcomes, performance standards and 
indicators are clearly established. The principal actor must establish with the agent performance-
reporting and monitoring mechanisms, compensation or reward schemes and sanctions for 
executing the tasks and programs of the principal (O’Flynn 2007; Van Slyke, 2007). 
 
 Underpinning the principal-agent theory are two assumptions: first is the goal conflict that exists 
between the ‘power and budget/wealth maximizing’ principal and the ‘utility-maximizing’ agent; 
and, secondly, there exist moral hazards problems as a result of the agent possessing some vital 
information about actual performance which can be exploited by the agent to satisfy his or her 
self-interest at the expense of the interest of the principal (Waterman and Meier, 1998; O’Flynn, 
2007; Van Slyke, 2007). The principal can combat these problems at an increasing cost by 
aligning the actions of the agent to the aspirations or goals of the principal through contractual 
agreement on an incentive and sanction system, as well as creating and effective performance 
reporting and monitoring mechanism (Kassim  and Menon, 2003; Van Slyke, 2007). The theory 
has been found suitable for investigating the effectiveness of performance management systems 
created by organizations to ensure the responsiveness of employees to their responsibilities.   
 
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Principal-Agent relationship tends to be more complex in the public sector. The public sector is 
usually characterized with multiple stakeholders and principals, as well as multiple tasks and 
goals which are usually ambiguous (Waterman and Meier, 1998; Dixit, 2002; Burgess and Ratto, 
2003; McAdam et al., 2005; Verbeeten, 2008). In the public sector, agents usually have multiple 
principals, all trying to influence the actions of the agents. The existence of multiple principals in 
the public sector is due to the fact that outcomes of activities of the agent affect several people 
and groups (stakeholders) (Dixit, 2002).  
 
In addition to the complexity of principal-agent relationship in the public sector, Dixit (2002) 
notes the hierarchical nature of principal-agent relationship in the public sector where agents 
occupying higher level management positions are principals to lower level staff. Principal-agent 
relationship can thus occur between a government agency (as the agent) and its political heads or 
clients or citizens (as principals), or within a government institution or agency with top level 
managers as principals and low level staff as agents.  
 
In the public sector, the government (and their third-party principal actors) may introduce a PMS 
to monitor, measure, reward, and sanction the performance of public sector employees (as 
government agents). Such a system may seek to align agents’ performance to pay and other 
incentives. However, introducing and effectively instituting a PMS in a public sector where the 
employees are yet to embrace a performance system linked to economic and symbolic rewards 
may depend to a larger extent on the interrelationship between the following factors: the 
provision of adequate economic incentives and resources; effective communication of accurate 
information between principals and agents; effective enforcement mechanism; and positive 
attitude of the agents towards the system. These factors are discussed in turn.  
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2.2.1 Economic Resources 
The availability of adequate resources is very necessary and crucial for effectiveness of 
performance management in the public sector (De Waal and Counet, 2009; Julnes and Holzer, 
2001). In the principal-agent relationship, the principal is responsible for providing the agent 
with adequate resources to ensure that they are able to carry out their tasks effectively (Turner 
and Müller, 2004). In the same way, the government is expected to make available adequate 
resources if performance management is to be effectively implemented and instituted in public 
organizations. Adequate budgetary allocation of funds for performance management is vital to 
finance training programs on performance management, enhance effective enforcement of 
legally mandated functions; and, to make available adequate funding for incentives and other 
forms of rewards for employees performance. 
2.2.2 Communication of accurate Information between Principals and Agents 
One essence of performance management is to address the information asymmetry problem 
between the principal and agent. For performance management to be effective it depends on the 
extent to which accurate information are transmitted and shared between agents and principals 
through a reliable channel of communication (Turner and Müller, 2004; Müller and Turner, 
2005; Aguinis, 2009).  Effective communication enables the principal to obtain full and accurate 
information on the performances of agents. It also ensures that agents obtain full and relevant 
information regarding incentives, clearly understand policy standards, objectives and directives. 
Clearly communicating the purpose and merit of performance management go a long a way to 
build the support of both principals and agents for the PMS. 
 
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Performance management should clearly define organizational mission, goals and objectives and 
communicated to employees. Employees are therefore made aware of their individual 
responsibilities and objectives, targets and accepted behavior to exhibit in the discharge of their 
duties (Verbeeten, 2008). In addition, employees should receive feedback from their assessors 
regarding their performance ratings and the areas they need to improve (Aguinis, 2009). 
Performance managers should ensures that performance information generated from appraisals is 
effectively communicated to all stakeholders to enhance proper transparency and accountability.  
 
One main purpose for implementing performance management in the public sector is to enhance 
transparency and ensure accountability (De Bruijn, 2002; Heinrich, 2002; Ohemeng, 2009; 
Halachmi, 2011). According to Verbeeten (2008) performance management enables performance 
to be measured against set objectives and targets which should make it possible for politicians 
and public managers to account to citizens the purposes for the use of public resources and also 
to be held accountable for poor performance with a clear understanding of dismissal or demotion 
as consequence. Accountability can be achieved if performance information is made transparent 
through regular publicized performance reports to all stakeholders.  
2.2.3 Enforcement and Compliance Mechanism 
From the principal-agent theory, a goal of the principals is to ensure that the agent’s behavior is 
aligned towards their goals and aspirations. As such enforcement mechanism is very essential to 
monitor and ensure that agents comply and carry out legally mandated policy objectives and 
tasks of the principals. According to Sabatier and Mazmanian (1979:493) enforcement 
mechanism is necessary because “implementing officials cannot be necessarily trusted to act in a 
manner consistent with statutory objectives”. The use or threat of the use of sanctions and 
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incentives has been a commonly advocated mechanism for ensuring compliance and execution 
of policy standards and objectives enshrined in the contractual agreement between the principal 
and agent (Kassim and Menon, 2003).  
 
In the public sector, governments usually contract a third party agency to act as principal to 
provide constant oversight and monitoring of the behavior of agents to ensure that policy 
standards and objectives are complied with (Sabatier and Mazmanian, 1979; McCubbins and 
Schwartz, 1984). Whichever form of enforcement mechanism is adopted by governments as the 
primary principal actor tends to be very costly. And the extent to which enforcement can be 
effective thrives on the availability of economic resources, credible sanctions regime, and 
political commitment towards enforcement of contractual agreement with bureaucratic officials 
(agents) (North, 1991, 2003). Political will and commitment may be demonstrated by 
government in two ways: first, by devoting more resources and incentives to enforcement, and 
second, by ensuring that performance information from agents is utilized even when results 
contradict the political agenda of government. In sum, credible organizational enforcement 
mechanisms are very necessary in the principal-agent relationship to ensure compliance of terms 
in the contractual agreement between the principal and agent. 
2.2.4 Positive Attitude of Agents towards Mandate Performance 
The principal-agent logic holds that agents are rational and self-seeking individuals who are 
motivated by incentives and ready to execute tasks that they deem to increase their wealth and 
would conversely shirk responsibility on tasks they perceive to affect their economic well-being. 
This makes the attitude and perception of agents an important variable in the effectiveness of 
performance management in the public sector. The attitude, positive or negative towards the 
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PMS will determine whether implementation may be carried out to the end or not. Agents’ 
attitudes and dispositions such as ability, technical expertise, willingness to change, knowledge 
and understanding of the performance management system, personal values and interests, level 
of support are all very important for successful execution of the policies and objectives of the 
principal (Durant, 1984; Makinde, 2005). 
 
Van Meter and Van Horn (1975) identified three elements of agent’s response that may influence 
their ability and willingness to execute a policy: first, agent’s cognition of the policy; second, the 
direction of agent’s response toward the policy; and, third, the intensity of that response. Agents’ 
cognition of the policy implies their understanding and comprehension of the goals, standards 
and objectives of the policy. Agents cannot execute a policy without a clear understanding of the 
intent, standards and objectives of the policy. Agents clearly need sound knowledge and 
understanding of the laws and administrative statutes governing the contractual agreement with 
the principal to enhance their support for the objectives and goals of the principal. The direction 
of the agents’ attitude towards the policy implies whether they accept or reject the policy. Agents 
will willingly execute policy they accept and where they reject the policy goals, implementation 
would be a failure (De Waal and Counet, 2009). Policy goals may be rejected when they violate 
agents’ personal values, interests or ethical values; and, where they require greater amount of 
behavioural change (Durant, 1984; Makinde, 2005; Julnes and Holzer, 2001). Lastly, the 
intensity of the attitude of agents affects policy execution. Intense negative attitude towards a 
policy may lead to complete and open rejection of the policies of principal. Less intense attitude 
toward a policy may lead to a lackadaisical behaviour or low level of commitment from agents.  
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2.3 Performance Management Processes 
As indicated above, there is a considerable agreement among scholars concerning the fact that 
performance management is a continuous cyclical process and not a once annual activity (Weis 
and Hurtle, 1997; Armstrong, 2009; Verbeeten, 2008, Aguinis, 2009; Mathis and Jackson, 2010; 
Norman and Kabwe, 2015). As asserted by Mathis and Jackson (2010:320) “successful 
performance management is a circular process that requires a system of administrative tools that 
effectively structures the dialogue between managers and their employees, and the motivation to 
utilize the system in a productive way.” At the individual employee level of analysis, the 
performance management process involves five main processes including (i) setting employee 
performance targets, (ii) performance execution, (iii) performance appraisal, (iv) performance 
feedback, and (v) enforcement of decisions concerning rewards, sanctions and improvement. 
Whiles agents have the responsibility of ensuring performance execution, principal actors and 
performance managers have a greater responsibility in ensuring the success of the remaining four 
processes. It seems that the success of a performance management system depends largely on 
principals and their performance managers than on agents.  
2.3.1 Performance Planning and Target Setting 
According to Aguinis (2009) before an employee can execute a job, two very important and 
necessary conditions need to be satisfied. The first condition is that employees must have 
knowledge and understanding of the organization’s mission and goals. The Organization’s 
mission implies the purpose of an organization’s existence or “reason for being” (David, 
2011:44), and the goals are what they want to achieve. Organizations seeking to introduce 
performance management need to clearly define its mission and goals which are effectively 
communicated and disseminated throughout the organization (Armstrong, 2009). Through this 
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employees are made aware of the very purpose of the existence of the organization, the 
organizational goals as well as the various strategies to achieve these goals. Knowledge and 
understanding of organizational mission and goals enables department, unit and individual 
employee goals and objectives to be established towards the achievement of overall 
organizational goals (Aguinis, 2009; Mathis and Jackson, 2010; David, 2011). The second 
condition is for the employee to have in-depth knowledge and understanding of the job to be 
performed and the targets to be achieved. According to Aguinis (2009) such knowledge and 
understanding of the job can be enhanced through proper job analysis. Armstrong (2009:444) 
defines job analysis as “the process of collecting, analyzing and setting out information about the 
content of jobs in order to provide the basis for a job description and data for recruitment, 
training, job evaluation and performance management.” Job analysis provides information 
concerning the tasks, duties, behaviours, knowledge, skills and abilities required for a particular 
job. This enables employees to know and understand what they are expected to do and how to do 
it. Job analysis enables the employee and employer to set clear performance targets for future 
evaluation and decisions concerning rewards, sanctions and improvement. According to Mathis 
and Jackson (2010), job analysis enhances the determination of performance standards with 
which to assess and evaluate the job performance of employees. 
Performance target setting involves a meeting between manager and employee where there is 
discussion and agreement concerning the specific objectives, expected results to attain, job duties 
and tasks to be performed, behaviours expected, requisites competencies needed to perform the 
job and performance standards with which to measure and evaluate job performance. It is 
important to ensure that employee objectives and targets are specific, measurable, achievable, 
realistic and time-bound (Armstrong, 2009). According to Mathis and Jackson (2010) employees 
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including well-intentioned employees do not always know what they are required to do and 
achieve which makes the performance planning very necessary. At the performance target setting 
stage, the manager and employee may develop a development plan to help improve and develop 
the skills, abilities or competencies of employee in order to meet pre-established performance 
targets and results (Aguinis, 2009; Armstrong, 2009). The development plan aims to improve 
employee performance by developing and improving their ability to perform job duties well and 
also assume wider responsibilities. The development plan may include training and development 
activities such as learning, coaching, job enrichment, and mentoring (Armstrong, 2009). 
2.3.2 Performance Execution 
The performance execution stage is where the individual employee undertakes day-to-day job 
responsibilities, tasks and activities geared toward achieving set targets or results. The employee 
is committed to goal achievement, collects and shares performance data with the supervisor. 
There are regular meetings with the supervisor to discuss and identify barriers preventing the 
employee from achieving performance targets and results. Communication between the 
employee and supervisor is very crucial at this stage. The employee seeks direction and guidance 
through coaching from the supervisor and request feedback on progress of their performance in 
relation to the achievement of targets.  
 
Aguinis (2009) notes that the supervisor plays a key role in this stage of the process to ensure 
employees achieve performance targets. The supervisor ensures that needed resources are 
provided to enable employees perform their jobs effectively, observes and documents 
performance behavior of employees as well as provide feedback and direction where necessary. 
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In addition, the supervisor updates the employee on changes in employee objectives or goals 
which may be as a result of a change in organizational objectives or goals. 
2.3.3 Performance Appraisal 
Following performance execution, an appraisal of the employee’s performance in relation to pre-
established objectives and targets is carried out. Performance appraisal is the formal assessment 
and rating of employee performance by their managers over the course of the specified review 
period (Armstrong, 2006). Performance appraisal may take place once or twice a year – mid-year 
review or annual review. The employee undertakes self-assessment to ascertain whether desired 
behaviours have been exhibited on the job as well as desired results and targets have been 
successfully achieved. Similar assessment may be carried out by supervisor, colleague workers 
and customers of the organization (Aguinis, 2009).  
 
It is very important that both employee and supervisor partake in the assessment process because 
it provides relevant information to be used in the performance review stage (Armstrong, 2009). 
Aguinis (2009) highlights the importance of employee self-assessment in enabling the employee 
to identify differences and discrepancies between his or her evaluation and that of the supervisor; 
increasing employee’s satisfaction and acceptance of the performance management system. 
Performance appraisal is therefore a very important, pivotal and indispensable stage of the whole 
performance management process.  
 
Information from performance appraisal has been identified to be used usually for two main 
purposes: administrative decision-making purposes and development purposes (Fink and 
Longenecker 1998; DeNisi and Pritchard 2006; Aguinis, 2009; Armstrong, 2009; Brown and 
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Benson, 2010; Mathis and Jackson, 2010). For administrative decision-making purposes, 
information from performance appraisal is useful to enhance administrative decision-making on 
promotions, demotions, transfers, rewards and incentives, and termination of employment. 
According to Mathis and Jackson (2010), performance appraisal is an effective tool to link 
salary, incentives and other rewards to job performance. In relation to the development purposes, 
performance appraisal enables managers to identify the strengths, weakness, potential as well as 
the training needs of their subordinates. At the performance appraisal stage, managers are able to 
identify the areas employees may need further training to improve their future job performance 
and also promote their career progression. 
 
The performance appraisal stage is a very critical stage of the performance management process 
that may affect the success of the whole PMS if poorly done (CIPD, 2000a; Mathis and Jackson, 
2010). Bond and Fox (2007) note that measuring the performance of employees accurately and 
objectively is a difficult task to undertake. In the Ghana Civil Service, according to Bawole et al. 
(2013:958), the performance appraisal process usually lacks objectivity because “Some 
supervisors are said to be chronically guilty of poor performance and so do not have the moral 
courage to realistically appraise their subordinates. The second elements were superstition and 
spirituality and that supervisors are sometimes fearful that subordinates would invoke spiritual 
curses against them if they rated them poorly.” The challenge for the new PMS introduced in the 
public sector is to ensure objectivity of supervisors in appraising performance. Inaccurately and 
subjectively done, performance appraisal can damage the relationship between supervisors and 
their subordinates, affect employees commitment and support for the PMS as well as misdirect 
rewards and training efforts (Aguinis, 2009; Mathis & Jackson, 2010). 
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Negative perception among employees towards performance appraisal or review can affect their 
support and commitment towards the implementation and sustainability of the PMS (Greenberg, 
1986; Boachie-Mensah and Seidu, 2012; Bekele, Shigutu and Tensay, 2014; Ghauri, Ehtasham 
and Neck, 2014). Fletcher and Bailey (2003) have therefore argued that measuring the 
performance of employees accurately and objectively forms the very basis of a true and accurate 
system of performance management in organizations.  
2.3.4 Performance Feedback 
Feedback on job performance usually involves a meeting between supervisors and their 
employees where performance results or ratings are discussed. Providing feedback on job 
performance has been recognized as a key component of an effective performance management 
system (Mathis and Jackson 2010; Armstrong, 2009; Rankin and Kleiner, 1988). It has been 
deemed to be very crucial to employee performance improvement and development (Kuvaas, 
2011; Armstrong, 2009). After a successful performance evaluation, there is the need for 
managers or supervisors to communicate performance results to their employees to enable them 
obtain information on their performance as well as have a clear understanding of how they 
performed against set or expected performance targets and standards. 
 
According to Mathis and Jackson (2010), in providing feedback on job performance managers or 
supervisors must not only focus on discussing performance ratings or how employees performed 
but must also focus on discussing keys areas of improvement as well as employee development 
and training needs. An effective performance feedback has been argued to shape employee 
behaviour and attitude (Armstrong, 2009; Levy and Williams, 2004). According to Armstrong 
(2009), feedback enables employees identify the discrepancy between their actions and expected 
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behaviour and take corrective measures to tackle the discrepancy. Similarly, Levy and Williams 
(2004) note that the perceived credibility, frequency and quality of feedback tend to affect 
employees’ behaviour and attitudes. Feedback on job performance moreover provides prior 
information to employees regarding decisions on rewards or sanctions which tend to enhance 
their satisfaction and acceptance of such decisions. 
2.3.5 Decision Making Concerning Rewards, Sanctions and Improvement 
Performance management systems incorporate a reward and sanctions mechanism for rewarding 
high performance and punishing non-performance. After a successful performance review, 
feedback and information from performance appraisal guides decision making on who is to 
receive rewards and other incentives, and who is to be sanctioned or to receive training to 
improve performance. Thus, at this stage rewards and incentives are given to performing 
employees for meeting performance targets. Rewards may be financial thus involving salary 
increment or incentives; and symbolic involving recognition and other non-financial accolades.  
 
Rewarding employees for performance enhances their motivation, attitudes and behaviors 
towards work (Goncharuk and Monat, 2009). In situations where employee performs below 
accepted and agreed-upon performance targets, sanctions may be applied in the form demotion, 
reduction of salary and dismissal in extreme cases. Decisions on the type of training needed to 
improve the identified weaknesses of employees are also taken at this stage.  
 
Based on information obtained from performance appraisal stage, the results may necessitate 
changes in organizational focus, goals, and strategies. These changes may be as a result of the 
fact that organizational goals were achieved and therefore the need for a new one or may be as a 
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result of the inability to achieve organizational goals because they were highly ambitious. This 
prompts the development of new mission, organizational goals and strategies ushering into the 
prerequisite stage and starting the whole performance management process all over again. 
2.4 Challenges of Performance Management in the Public Sector 
Despite popular support, the implementation of performance management in the public sector 
has been met with some challenges and controversies (Gianakis, 2002; Van Thiel and Leeuw, 
2002; Radnor and McGuire, 2004). Bolton (2003) notes that the public sector is a “slightly 
different” environment and as such some private sector approaches, methodologies, tools and 
techniques need to be modified or translated to ensure their relevance in the public sector. 
McAdam et al. (2005) attribute the challenges of performance management in the public sector 
to the existence of multiple stakeholders. Consequently, McAdam et al. (2005) argues that 
modifications of private sector approaches, methodologies, tools and techniques may not be 
sufficient enough to reflect public sector reality to address the multiple interests of public sector 
stakeholders. Talbot (2005) therefore suggests that a specific model of performance management 
that will fit the unique public sector environment is required. Fryer et al (2009) have classified 
the challenges of performance management in the public sector into three categories: (i) 
technical problems, (ii) system problems, and (iii) stakeholder involvement problems. These 
problems are briefly elaborated below.  
2.4.1 Technical problems 
Technical problems relate to issues bothering on performance indicators, collection and 
interpretation of data as well as issues relating to reporting of performance information. The 
choice of performance measurement indicators has been an issue of much controversy in the 
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literature. One side of the argument has been that performance indicators should center on 
outcomes of service delivery rather than on output (or quantity produced) (Hatry, 2002; Stevens 
et al., 2006). The main reason has been that the public sector is mostly service-oriented and as 
such concerned with intangible attributes or products that are valued and of more importance to 
citizens such as accountability, fairness, justice and equity (Van Thiel and Leeuw, 2002).  
 
A setback of measuring public sector employee performance based on outcome is the fact that it 
is difficult to quantify and hard to measure (Van Dooren, 2011). Furthermore, whilst others have 
also stressed on the need for a focus on behavior-based performance indicators (Fryer et al., 
2009; Mathis and Jackson, 2010), Stevens et al. (2006) are advocating for a combination of 
employee behaviour, outputs and outcomes in the measurement of employee performance. Due 
to the multifaceted nature of the public sector, utilizing multiple indicators may be required in 
order to satisfy all stakeholder interests (Van Thiel and Leeuw, 2002; Verbeeten, 2008).  
2.4.2 System Problems 
System problems involve challenges that arise in attempt to integrate PMS with the 
organizational system in the public sector. De Waal and Counet (2009) identified some system 
challenges militating against performance management success to include lack of adequate 
resources; absence of a clear and understandable organizational strategy; non-linkage of 
performance indicators to department and individual objectives; non-linkage between PMS and 
reward/incentives system; and, absence of performance culture in the organization. Verbeeten 
(2008) notes the ambiguity of public sector organizational goals and objectives as a major 
systemic challenge to performance management. Contextual factors such as a country’s 
institutional structural arrangements and organizational culture have also been identified to play 
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key roles in the success or failure of performance management systems in the public sector 
(Chen et al., 2006; Newcomer and Caudle, 2011; Rhodes et al., 2012; Bawole, et. al., 2013). 
2.4.3 Stakeholder Involvement Problems 
Stakeholder involvement challenges bothers predominantly on attitudes and behaviours of 
stakeholders with regards to their participation in the PMS. Stakeholder involvement problems 
of performance management identified in literature include lack of stakeholder ownership of the 
PMS (Chen et al., 2006; De Waal and Counet, 2009; Van Dooren, 2011); lack of political and 
bureaucratic leadership commitment (Antwi et al., 2008, De Waal and Counet, 2009; Siddiquee, 
2014); lack of citizen involvement (McAdam et al., 2005; Verbeeten 2008; Siddiquee, 2014); 
lack of employee participation (Dodoo, 1997; Fletcher, 2004; Chen et al., 2006; Gruman et al., 
2011); lack of knowledge, understanding and skills (Hansson et al., 2003; Chen et al., 2006; De 
Waal and Counet, 2009); and, employee resistance and negative attitude towards PMS(Chen et 
al, 2006; De Waal and Counet, 2009). Performance management systems must therefore take 
cognizance of stakeholder behavioural factors in order to be effective. This study focuses on 
exploring the impact of the new PMS on the behaviours of bureaucratic leaders and lower-level 
employees with regards to setting performance targets, appraising performance, providing 
performance feedback. It also examines perceptions of employees concerning the enforcement of 
decisions about rewards, sanctions and employee development through training. 
2.5 Performance Management Reforms in Ghana 
Over the past three decades, Ghana has embarked on several reforms to revamp and improve its 
public administrative system (Dodoo, 1997; Antwi et al., 2008; Bawole, et. al., 2013). The 
reforms have been geared towards enhancing efficiency and effectiveness in public service 
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delivery. Performance management in public organizations has been a key objective of the 
reforms. The intent has been to enhance individual performance which would culminate to 
overall organizational performance towards accelerated national development. 
 
Following the implementation the World Bank-led SAP (1987-93), it became imperative for the 
government of Ghana under the Provisional National Defense Council (PNDC) to undertake the 
CSRP. This reform program was mainly to tackle human resource issues to reinvigorate 
performance of the public sector, which would enhance the successful implementation of the 
SAP. Performance management formed main part of the tenets of this reform which sought to 
introduce a performance appraisal system, a merit-based promotion system, development of 
training plans, a new income policy and financial pay rationalization schemes (Adei and 
Boachie-Danquah, 2003).  
 
However, the CSRP failed to institute an effective PMS. Lack of local participation and 
ownership of the programme has been advanced as one main constraint to the success of the 
CSRP (Dodoo, 1997; Adei and Boachie-Danquah, 2003). Dodoo (1997) highlights how crucial 
employee participation in the formulation and drafting of reforms is to the success of such 
reforms. Employee participation creates a sense of purpose and ownership of reforms which 
invariably boosts their commitment in the implementation of the reforms. Adei and Boachie 
(2003) noted that the programme was ‘top-down’ in nature. It was formulated and crafted mainly 
by foreign consultants and experts and handed over down to local public servants for 
implementation. It therefore lacked public servants support and commitment for successful 
implementation. Instituting any PMS in the public sector requires public employees’ 
involvement in the designing stage to ensure clear understanding of performance indicators, 
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target and measurement. Through stakeholder participation public servants are abreast with the 
merits of the performance system which enhances their support.  
 
Consequently a new reform called the Civil Service Performance Improvement Program 
(CSPIP) was launched in 1994 to combine the ‘top-down’ process with the ‘bottom-up’ process 
to facilitate participation by the Ministries, Departments and Agencies (MDAs) and their 
employees in the design and implementation of performance improvements plans (Dodoo, 
1997). The CSPIP sought to introduce through a consultative and participatory approach in 
performance management as well as the introduction of performance contract or agreement to 
ensure that individual performance targets are linked to organizational goals. However, despite 
its consultative and participatory approach, the CSPIP also failed to institute a performance-
driven culture in the public sector over more than a decade of its implementation.  
 
A number of constraints to the success of instituting an effective PMS in Ghana’s public sector 
have been identified (Adei and Boachie-Danquah, 2003; Antwi et al., 2008). According to Adei 
and Boachie-Danquah (2003), attitudinal change to embrace a performance-driven culture is a 
challenge in the public sector. In the Ghanaian environment where culture permeates every 
human setting, workplace attitudes also tend to be influenced and shaped by cultural values.  
Any reform that seeks to change the work attitudes of employee is always bound to face some 
level of resistance. Therefore, there is the need for a performance management reform 
programme that tackles the prevailing organizational culture and entrenched workplace attitudes 
in the public sector in order to ensure successful implementation.  
 
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Transformational leadership among bureaucratic elites (particularly chief directors, chief 
executives, and directors) have been identified by Adei and Boachie-Danquah (2003) and Antwi, 
et al (2008) as a very important missing element required to drive home any meaningful change 
in performance management. In the words of Adei and Boachie-Danquah (2003:29) “The 
performance contracts were signed but the managers remained typically Ghanaian.” The 
assumption of an ‘overnight’ attitudinal change on the part of public servants because of the 
introduction of performance contracts and brochures on work ethics was misplaced. Performance 
contracts were not followed up with any action and remained just paper work. According to 
Antwi et al. (2008), the frequent changing of bureaucratic elites in the public sector also resulted 
in loss of interest in enforcing reforms. Top-level support and commitment in the 
implementation of the reforms was ‘cosmetic’. Wholehearted political support for bureaucratic 
elites is a very essential ingredient required to ensure bureaucratic commitment to public sector 
reforms (Antwi et al., 2008; Appiah and Abdulai, 2017).  
 
In his study ‘Constraints in the implementation of performance management systems in 
developing countries: The Ghanaian Case’, Ohemeng (2009) also identified institutional and 
capacity constraints such as institutional fragmentation in decision making, socio-cultural norms, 
public ignorance and apathy, lack of political will and seriousness, inadequate financial 
resources, and lack of institutionalized incentives and sanctions system as factors that hampered 
the successful implementation of a PMS in the public sector. Identifying and tackling these 
constraints is very crucial to the success of future performance management reforms. 
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2.6 Nature of the Principal-Agent Governance Framework for the New PMS 
To understand the impact of the new PMS implemented in Ghana’s public sector, it is important 
to first specify the nature of governance framework concerning the institutionalization and 
enforcement of the new PMS in the public sector. The principal-agent theoretical framework will 
help to specify the nature and roles of the principal actors that seek to monitor, evaluate, reward 
and sanction public sector employees as agents mandated to perform some public services. 
Principal-Agent relationship tends to be more complex in the public sector.  
 
As previously indicated in the discussion of the principal-agent theoretical framework, the public 
sector is usually characterized with multiple principals and agents which are usually difficult to 
clearly specify (Waterman and Meier, 1998; Dixit, 2002; Burgess and Ratto, 2003; McAdam et 
al., 2005; Verbeeten, 2008). In the public sector, policy implementing agents usually have 
multiple organizations in hierarchical relationships as principals all trying to influence the 
actions of the agents. Principal-agent theorists do not have fixed sets of principals and agents. In 
Ghana’s public sector, for theoretical analytical purposes, the elected Government may be 
considered as the primary principal (first-tier principal) who has given policies and programs to 
agential public sector Ministries, Departments, and Agencies (MDAs) to implement to achieve 
the political interests of the President. The MDAs are hereby conceived as the agents of the 
Government. For theoretical simplification, it is useful to assume that the Government has 
created some organizations to act on its behalf as second-tier principal actors that have been 
given the authority to monitor, evaluate, reward, and sanction the performance of the agential 
MDAs. In this study, the second-tier principal actors created by the Government are the PSC, 
OHCS and FWSC. A model of the principal-agent structural relationship in this study is depicted 
below in Figure 1.  
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Figure 1: A Model of the Principal-Agent Relationship in Ghana’s Public Sector 
 
 
 Government 1st Tier Principal 
 
 
OHCS PSC FWSC 
 2
nd Tier Principal 
 
 
 MDAs 
(Chief Directors/ 1st Tier Agent 
 Chief Executives) 
 
Directors, 
nd
 Heads of 2  Tier Agent 
Departments 
 
 
Individual 3rd Tier Agent 
 Employees 
Source: Author 
 
The above complexity of principal-agent relationship in the public sector, where agential 
organizations like the PSC occupying higher level hierarchical positions are considered as 
principals to lower level organizations has been noted by principal-agent theorists (Dixit, 2002). 
For the purpose of understanding the impact of the new PMS, the concept of ‘principal actor’ 
shall refer to the second-tier principal actors (PSC, OHCS, and FWSC) whiles the remaining 
fifteen public sector Ministries and autonomous agencies involved in the study are classified as 
agents. There are various levels or tiers of agents within the MDAs: the Chief Directors and 
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Chief Executives constitute the first-tier of agents in the MDAs, the Directors and various Heads 
of Department (HoDs) constitute the second-tier of agents, and the individual employees who are 
subordinates of the Directors and HoDs are classified as third-tier agents. The role of the second-
tier principal actors (PSC, OHCS, FWSC) in the new PMS is described in turn.     
2.6.1 Role of the Fair Wages and Salaries Commission 
The FWSC was established by the FWSC Act, 2007 (Act 737) and mandated mainly to oversee 
salary and pay policy issues in the Public service. The mandate and some functions of the FWSC 
include “To develop and advise Government on and ensure that decisions are implemented on 
matters related to (i) Salaries, wages, grading, classification (ii) Job analysis and job evaluation, 
(iii) Performance management and indicators, and (iv) Allowances and benefits in the public 
service with the ultimate objective of consolidation of the allowances and benefits; and…Ensure 
that the balance of internal consistency, external competitiveness and employee performance are 
fully reflected in the public service pay system.” The role of the FWSC as specified in the policy 
governing the new PMS is linked to the role of the PSC described below.   
2.6.2 Role of the Public Service Commission 
The 1992 Constitution of Ghana (Article 194) established the PSC and mandated it to basically 
design guidelines for, and supervise, human resource management issues in the public service. 
Article 196 of the 1992 Constitution stipulates that “the PSC shall have such powers and 
exercise such supervisory, regulatory and consultative functions as Parliament shall, by law, 
prescribe, including as may be applicable, the supervision and regulation of, entrance and 
promotion examinations, recruitment and appointment into or promotions within, the public 
services, and the establishment of standards and guidelines on the terms and conditions of 
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employment in the public services.” The organizational structure and responsibilities of the PSC 
has been elaborated in the Public Service Commission Act, 1994, (Act 482). Among its 
numerous functions, the PSC is mandated “to provide a standard framework for evaluating and 
classifying jobs in the Public Services”; “to oversee the human resources development activities 
of the Public Services organizations to ensure career planning and career development in the 
Public Services; and, “to prescribe a standard framework for the provision of incentive schemes 
to promote higher productivity.” Basically, these functions concern the design and 
implementation of an incentivized human resource and performance management system to 
ensure public sector productivity.    
 
The new PMS policy stipulates that in order to ensure the success of the new PMS in the public 
sector, “By its mandate, the PSC, in collaboration with the FWSC is responsible for developing 
the guidelines and standards, which shall provide the framework for institutionalization of the 
PMS in public service organizations” (PSC 2015:77). For emphasis, the role of the PSC and the 
FWSC are principal actors responsible for monitoring and evaluating the performance of the 
MDAs in the new PMS is stated as follows: “The PSC in collaboration with the Fair Wages and 
Salaries Commission shall ensure that performance in the public service is monitored. 
Outstanding performance shall be rewarded and poor or unsatisfactory performance managed or 
sanctioned” (PSC 2015:69-70). The new PMS policy states that “The PSC and the FWSC shall 
put in place monitoring and evaluation mechanism to ensure compliance with this policy by all 
institutions” (PSC 2015:77). The PSC and FWSC are therefore required to collaborate 
effectively to be able to jointly design, monitor and evaluate the new PMS.    
 
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 2.6.3 Role of the Office of the Head of Civil Service 
The OHCS was established by the Civil Service law, 1993 (PNDCL 327), which mandates the 
office to among other functions “ensure general efficiency of the Civil Service”; “have overall 
charge of all civil servants”; “ensure the effective implementation of Government policies and 
plans for which the Service has responsibility; “advise on conduct of management audits and 
review”, “initiate action on pay policy for the Service”; and, “determine and advise on 
manpower limits for the Service.” It can be seen that the role of the OHCS overlaps with that of 
the PSC and FWSC in the area of initiating action on pay policy for public servants; whiles the 
OHCS and PSC have overlapping roles in the management of public servants.  
 
The law establishing the OHCS states that “There shall be in the Civil Service the Ministries 
consisting of such departments as the President may determine. A Ministry shall be the highest 
organization for the respective sector and is constituted of the departments and divisions, and 
responsible for the sector” (Section 11, clause 2 of the Civil Service law). The employees of nine 
(9) Ministries were involved in a survey for this study (see appendix 2 and 3). The management 
of the performance of civil servants under the various public sector Ministries to ensure effective 
and efficient implementation of Government policies is the specific domain of the OHCS. It is 
clear that the OHCS is required to collaborate with the PSC and FWSC to achieve its goals.    
 
The policy governing the new PMS only acknowledges that “The Office of the Head of the Civil 
Service has responsibility for the management of human resources of the civil service” (PSC, 
2015:11). Beyond this, the policy does not specify any specific role for the OHCS to perform. 
Interestingly, the policy states that “The Chief Directors or Chief Executives and Heads of the 
Public Services are responsible for the administration and enforcement of the PMS in their 
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respective organizations” (PSC 2015:77). The OHCS is the principal actor with the mandate to 
manage the performance of civil servants in Ghana. Since 2013, at the beginning of every year, 
the OHCS signs performance agreements with Chief Directors in all the Ministries and also 
assesses the performance of the Chief Directors at the end of the year (Appiah and Abdulai, 
2017). The PSC and FWSC therefore cannot effectively design a system that monitors and 
evaluates the performance of civil servants without the cooperation and support of the OHCS.  
 
It can be seen that effective collaboration between the three principal actors (PSC, OHCS, and 
FWSC) is sine qua non to the success of the new PMS. While the OHCS has direct supervisory 
authority for all the public sector Ministries, the PSC has direct supervisory authority over all 
other public sector organizations including the civil service. And the FWSC is expected to 
design and initiative action on a pay system for employees in the public service. Whether or not 
they have been able to collaborate effectively to design and implement the new PMS is an issue 
that shall be analyzed and discussed later in the study.  
2.7 Conclusion 
This chapter has reviewed literature on the concept of performance management; the principal-
agent theoretical framework underpinning the study, the purpose and process of performance 
management, empirical findings on the challenges that have characterized the implementation of 
performance management in the public sector, particularly in Ghana. It is evident that 
implementing a PMS in Ghana’s public sector has not been devoid of challenges. Several 
constraints have bedeviled the quest to institute an effective performance management culture in 
the public organizations. It is therefore imperative that the new PMS introduced in 2015 should 
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be studied by scholars to find out if it has been able to overcome at least some of the numerous 
past challenges to make some positive impact. This is what this study tries to do.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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CHAPTER THREE 
METHODOLOGY 
 
3.0 Introduction 
This chapter presents the research methodology the study employed. It highlights the research 
paradigm, research design and approach, study area, the population of the study, sample size and 
sampling techniques, sources of data, the methods used in data collection, the unit of analysis, 
method of data analysis, ethical considerations and limitations of the study.  
3.1 Research Paradigm 
Scholars have advocated for researchers to provide a discussion of the philosophical paradigms 
underpinning their research (Alise and Teddlie, 2010; Creswell and Plano Clark, 2011; Shannon-
Baker, 2016). According to Morgan (2007:49) research paradigms refers to “systems of beliefs 
and practices that influence how researchers select both the questions they study and methods 
that they use to study them.” Similarly, Jonker and Pennink (2010:3) defines research paradigm 
as “a set of fundamental assumptions and beliefs as to how the world is perceived, which then 
serves as a thinking framework that guides the behaviour of the researcher.” According to 
Shannon-Baker (2016) paradigms help shape a researcher’s approach to a research problem and 
provide suggestions as to how to address the problem considering certain world beliefs.  
 
This study was influenced by the pragmatism paradigm or perspective. Shannon-Baker 
(2016:322) notes that “pragmatism is outcome-oriented and interested in determining the 
meaning of things or focusing on the product of the research.” A pragmatist researcher is 
concerned with translating knowledge into action and is therefore so much interested in the 
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practical consequences of knowledge. Pragmatists accept and use concepts that support action to 
be relevant. The pragmatist is committed to understanding the difference knowledge would make 
if put in practice and seeks to provide practical solutions to practical problems of the society 
(Goldkuhl, 2004; Hall, 2012; Shannon-Baker, 2016). Hall (2012:4) for instance highlights that 
pragmatism is committed “toward solving practical problems in the real world rather than on 
assumptions about the nature of knowledge.” Pragmatists recognize the fact that different ways 
exist for conducting research and interpreting the world. Thus there is no single view that can 
describe entire picture of a phenomenon and that there exist multiple realities.  
 
Pragmatists tend to combine both quantitative and qualitative research approaches and as such 
combines both positivism and interpretivism perspectives in a single research depending on the 
nature of research questions (Johnson and Onwuegbuzie, 2004; Morgan, 2007; Shannon-Baker, 
2016). Pragmatists therefore ask ‘what’, ‘how’ and ‘why questions’. They are concerned with 
“what works and how and why it works” as well as “what does not work and how and why it 
does not work” (Goldkuhl, 2004:10). This implies the application of multiple methods of data 
collection, description and analysis. This is because pragmatists are free to use whatever research 
method, techniques procedures and process that they deem best to meet their purpose. As noted 
by Robson (1993:291 cited in Felizer, 2010), pragmatism allows the researcher not to “be a 
prisoner of a particular research method or technique.” The researcher may therefore follow the 
tenets of subjectivity and/or objectivity in the collection and analysis of different types of data 
(Morgan, 2007; Shannon-Baker 2016).  
 
The pragmatism philosophical paradigm was of relevance to this study as it enabled the 
researcher to combine both qualitative and quantitative methods in data analysis. The 
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experiences of the public sector employees with the new PMS influenced greatly the nature of 
data collection and analysis. Research about human actions (concerning performance target 
setting, performance execution, performance appraisal, and decision-making on rewards and 
sanctions) enabled the researcher ask questions that related to ‘what, how and why’ in order to 
explore all issues in relation to the implementation and impact of the new PMS. Pragmatically, 
the primary concern of the study is not to advance a particular theory but to understand the 
impact of the new PMS and make relevant recommendations to improve the policy if need be.   
3.2 Research Design 
According to Rowley (2002:18) research design refers to “the logic that links the data to be 
collected and the conclusions to be drawn to the initial questions of a study; it is an action plan 
for getting from the questions to conclusions.” Research design provides a sense of direction or 
blueprint in relation to what questions to study, what data to be collected as well as how, when 
and where data are to be collected, and how to analyze data (Yin, 2003). This study adopted an 
exploratory design to explore the impact of the new PMS in public sector organizations. A study 
is deemed exploratory when it investigates a phenomenon of which little is known or there is 
lack of detailed preliminary research (Kothari, 2004). According to Pinsonneault and Kraemer 
(1993), an exploratory study enables the researcher discover new dimensions of the population 
of interest, gain in-depth and better understanding of a phenomenon or situation and provides 
foundation for future more rigorous studies. The choice of the exploratory design was because it 
is suitable for unraveling a relatively phenomenon (or policy) under study of which no known 
research has been done. Exploratory research approach enabled the researcher to adopt both 
qualitative and quantitative data collection methods in order to have an in-depth understanding 
of all issues pertaining to the impact of the new PMS in public sector organizations. 
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3.3 Unit of Analysis 
Clearly defining the unit of analysis in any research has been deemed very important and 
necessary though has been a challenge for many researchers (Yin, 2003; Baxter and Jack, 2008). 
The unit of analysis simply refers to ‘what’ or ‘whom’ is being studied or analyzed (Baxter and 
Jack 2008). It simply implies the unit being observed. Determining the unit of analysis is 
required to shape the research approach in the collection of appropriate kinds of data for 
answering the research questions. The unit of analysis for this study was new PMS being 
implemented in Ghana’s public sector organizations. Specifically, the study focused its unit of 
analysis at the micro individual level of employee performance management. It is individual 
employees whose actions either enable or constrain the attainment of organizational objectives.  
3.4 Research Approach 
Influenced by the pragmatism perspective in the pursuit of understanding the impact of the new 
PMS on performance target setting, job execution, performance appraisal, performance 
feedback, and performance decision-making; this study adopted a combination of both 
qualitative and quantitative approaches in the collection and analysis of data (Johnson and 
Onwuegbuzie, 2004; Johnson, Onwuegbuzie and Turner, 2007). Johnson and Onwuegbuzie 
(2004:17) defines mixed methods approach as “the class of research where the researcher mixes 
or combines quantitative and qualitative research techniques, methods, approaches, concepts or 
language into a single study.” The use of mixed methods approach is the due to the fact that both 
the subjective experiences of selected individual employees and the aggregated opinions of 
surveyed employees would be important for understanding the impact of the new PMS.  
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As noted by Silverman (2013), no one method, whether qualitative or quantitative, is inherently 
better than the other. Adopting a mixture of both approaches enable one approach to complement 
the other’s strengths and weakness (Morgan, 2007; Shannon-Baker, 2016). According to 
Johnson et al. (2007), mixed method approach may be adopted to provide breadth, that is to gain 
a better and in-depth understanding of the subject matter; for corroboration purposes, that is to 
ensure findings from using different methods of data collection are consistent; and to enable the 
researcher meet the aims of the research project. 
3.4.1 Qualitative Approach 
Qualitative approach to research is where the researcher study things in their natural settings, 
attempting to make sense of, or to interpret, phenomena in terms of the meanings people bring to 
them (Denzin and Lincoln, 2000; Silverman, 2013). It is therefore focused on the exploration of 
individuals’ own accounts of their attitudes, perceptions, beliefs, views, motivations and 
behavior, feelings, the meanings and interpretations given to events and things. According to 
Johnson and Onwuegbuzie (2004), a key strength of qualitative research is the fact that it 
enhances a deeper understanding and description of participants’ personal experiences in their 
own words and this helps in exploring how and why a phenomenon occurred.  
 
This study adopted the qualitative approach to get an in-depth understanding of how the new 
performance management system works in actual practice and some of the challenges associated 
with the implementation of the system from the perspectives of both directors and employees.  
Through semi-structured interviews, bureaucratic leaders and lower-level employees were 
allowed to express their views and opinions on the new PMS and also provide insight and 
responses to questions posed by the researcher. The qualitative approach allowed the researcher 
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some subjectivity in the use of open-ended and follow-up or probing questions. However, since 
the new PMS is supposed to be experienced by over hundred thousand employees in the public 
sector, relying on the views of a handful of employees to draw reliable conclusions is not 
considered to be representative of the huge population of employees (Silverman, 2013). The 
qualitative approach is deficient in exploring the impact of a policy affecting huge populations; 
and, therefore, the researcher complemented the qualitative interview data obtained from 
respondents with survey of hundreds of employees to generate quantitative data through 
statistical analysis and interpretations. Before the quantitative approach is discussed, the nature 
of the qualitative interview data collected is described below. 
3.4.2 Interviews 
Interviews involve a purposive conversation between the researcher and participants in an 
interactive manner to obtain participants’ responses to questions in their own words (Silverman, 
2013). A semi-structured interview technique was adopted, which is a type of interview where 
some questions are predetermined and new or probing questions come up as the interview 
unfolds. The semi-structured interview involved only open-ended questions. The semi-structured 
interview employed enabled the researcher some form of flexibility to approach participants 
differently in relation to order of questions while still maintaining the same themes of questions 
across. The interviews lasted within an average time of 30 minutes. The interview participants 
were mainly heads of department (Directors) of the human resource departments in public sector 
organizations. The human resource departments (‘Units’ and ‘Divisions’ are collectively referred 
to as departments for the purpose of analysis) are responsible for managing the new PMS in their 
respective organizations. The human resource departments therefore usually had more 
information about the processes, impact and challenges of the new PMS.  
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The researcher purposively targeted the Directors of the human resource departments for 
interview to explore their opinions, perspectives and interpretations of issues on the new PMS 
being implemented in their organizations. However, at the Ministry of Works and Housing the 
Director of the Human Resource department who had recently been transferred to the Ministry 
directed the researcher to speak to the Director of another department who was deemed to have 
more insight into personnel management issues in the Ministry. A total of fourteen (14) officials 
were interviewed. Due to time constraints the researcher was not able to interview the Directors 
of the human resource departments in all the selected organizations. Table 1 below presents the 
organizations covered by the researcher for interviews.  
Table 1: Nature of respondents interviewed 
Interviews in Sampled Organizations Position Number of 
Respondents 
Public Services Commission Director 2 
Fair Wages and Salaries Commission Director, Human Resource 1 
Department 
Office of the Head of Civil Service Deputy Director, Human 1 
Resource Department  
Ministry of Finance Deputy Director, Human 1 
Resource Department 
Ministry of Youth and Sports Human Resource Officer 1 
Ministry of Works and Housing Director, Human Resource 2 
Department 
Ministry of Information Human Resource Officer 1 
Ministry of Environment, Science and Director, Human Resource 1 
Technology Department 
Ministry of Local Government and Rural  Director, Human Resource 1 
Development Department 
Audit Service  Director, Human Resource 1 
Department 
Ghana Revenue Authority Deputy Commissioner 1 
Ghana Tourism Authority Director, Human Resource 1 
Department 
Total  14 
 
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Some of the interviews were recorded on tape following the participants’ consent and permission 
whilst other respondents did not consent to the recording of the interview. In the latter situation 
the researcher resorted to taking notes or recording responses in notepads. The recorded 
interviews on tape allowed the researcher to transcribe participants’ responses verbatim which 
enabled the researcher have an accurate account of the discussions with participants and this 
prevented loss of information since not all information can be written down during an interview. 
Now the quantitative approach that complemented the interview data is discussed below.   
3.4.3 Quantitative Approach 
Quantitative approach to research seeks to explain phenomena by collecting numerical data 
which are analyzed using statistical presentations and interpretations (Kothari, 2004; Creswell, 
2013). It is used to determine or measure the extent to which a phenomenon or problem occur or 
relationship between aspects of a phenomenon. As a result, it is applicable to phenomena that 
can be expressed in numerical form or in terms of quantity or amount. This approach enabled the 
researcher to conduct a survey of employees in the various organizations involved in the study to 
obtain their preferences from a number of close-ended issues or indicate whether or not a 
specified activity (for instance target setting) relating to performance management has occurred.  
 
A survey questionnaire was designed in such a way that responses from respondents could be 
analyzed using statistical presentations and interpretations. The questionnaire was tested and 
refined with a selected number of public sector workers who were also students doing the Master 
of Public Administration programme at the University of Ghana Business School. The 
questionnaire used for the survey consisted of mostly close-ended questions and very few open-
ended ones. The close-ended questions had a list of predetermined responses for respondents to 
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select from. The open-ended questions however required respondents to provide responses to 
those questions in their own words. Statistical aggregations of coded responses across eighteen 
organizations involved in the study have been used to corroborate or reject meanings derived 
from the interviews. 
3.5 Study Area 
Both the qualitative and quantitative data were collected from public sector organizations located 
in Accra, the capital city of Ghana, located in the Greater Accra Region. The choice of study 
area was influenced by the criteria for the selection of sampled organizations: regulatory 
institutions of the new PMS; ‘good performing’ and ‘poor performing’ organizations identified 
by Owusu (2006; 2012); and organizations trained by PSC on the new PMS. All organizations in 
the three categorizations are domiciled in the Accra. All the principal organizations (Public 
Service Commission, Office of the Head of Civil Service, and Fair Wages and Salaries 
Commission) responsible for designing and supervising the implementation of the new PMS are 
located in Accra. All the organizations that have been trained by the Public Service Commission 
to understand the new PMS are either located in Accra or have their head offices in Accra. The 
researcher therefore collected the data from the organizations in Accra for a better exploration of 
the impact of the new PMS in the public sector organizations. Most of the organizations involved 
in the study are located near each other at the center of Accra in an area popularly called 
‘Ministries’ which hubs most of the central government Ministries and Agencies. 
3.6 Study Population 
Kothari (2004:55) defines study population to encompass “all items in any field of inquiry.”  The 
population thus refers to all cases or items from which a sample is selected (Wilson, 2010). The 
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population of organizations for this study encompassed three sets of organizations: first, all the 
three principal organizations with responsibility to supervise and monitor the implementation of 
the new PMS; second, all the thirty (30) public sector organizations that have been trained by the 
PSC to understand the new PMS (see appendix 2); and, third, all the 19 public sector 
organizations identified in a study by Owusu (2006; 2012) as ‘good performing’ and ‘poor 
performing’ organizations (see appendix 3). Three of the 30 organizations trained by the PSC 
were also inclusive of the 19 organizations used in the study by Owusu (2012). Therefore, the 
total population of organizations for the study was 49 (3+30+19-3=49). The research selected 
eighteen (18) of the organizations to study the impact of the new PMS. How the eighteen 
organizations and some of their employees were sampled for the study is discussed in turn.  
3.7 Sample Size and Sampling Technique 
The sample size or sample is the number of items that have been selected from the population 
(Kothari, 2004). Determining the sample size for any study is very critical since the aim is to 
draw inferences from the sample to make some judgment or draw conclusions about the 
population. According to Kothari (2004), the choice of sample size may be influenced greatly by 
budgetary constraints but the researcher must not lose sight of the parameters of interest.  
 
As already indicated above, the total population of organizations of research interest was 49. 
Three of the organizations (PSC, OHCS, FWSC) were the principal actors with responsibility for 
the design of the new PMS and monitoring of implementation. Finding the views of all three 
organizations was important so they were all included in whatever sample size was to be used. 
All the three organizations responded positively and timely to the research. The selection of the 
principal actors for the study is based on the sampling technique generally referred to as 
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theoretical sampling. Theoretical sampling is where the researcher’s selection of samples is 
influenced or driven by a theory (Teddlie and Yu, 2007; Oppong, 2013) – in the case of the 
research it was driven by the principal-agent theory. According to Glasow (2005), theoretical 
sampling enables the purposive selection of organizations that exhibit the desired characteristics 
in line with the focus of the study. Similarly in the words of Oppong (2013:205) “theoretical 
sampling essentially enables the researcher to select a segment of the population of study as the 
sample in line with decision rules as informed by the purpose of the study as well as insights 
gained from emerging data collection and theorizing arising therein.” 
 
The remaining 46 organizations were grouped into Ministries (11) and autonomous agencies 
(35). The researcher intended to cover all the 11 Ministries but two of them delayed in 
responding timely. Therefore, nine (9) Ministries were involved in the study. The researcher 
randomly selected six (6) out of the 35 autonomous agencies due to resource constraints to cover 
all the agencies. A total number of eighteen (18) public organizations were therefore involved in 
the study as shown in Table 2 below.  
 
 
 
 
 
 
 
 
 
 
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Table 2: Sampled Organizations and Number of Respondents 
Sampled Organizations Number of Respondents 
Regulatory Agencies  
1. Public Services Commission 10 
2. Fair Wages and Salaries Commission 9 
3. Office of the Head of Civil Service 10 
Ministries  
1. Ministry of Health  16 
2. Ministry of Finance 16 
3. Ministry of Education 17 
4. Ministry of Information 15 
5. Ministry of Youth and Sports 12 
6. Ministry of Works and Housing 18 
7. Ministry of Food and Agriculture 19 
8. Ministry of Environment, Science and Technology 9 
9. Ministry of Local Government and Rural  Development 15 
Agencies  
1. Audit Service  8 
2. Ghana Revenue Authority 10 
3. Ghana Tourism Authority 8 
4. Ghana Standards Authority 8 
5. Foods and Drugs Authority 10 
6. Public Procurement Authority 15 
Total 225 
3.7.1 Sampling Technique: Selecting Employees for Survey 
Since the unit of analysis of the study is at the individual employee level of performance 
management to explore the impact of the new PMS on employee target setting, performance 
execution, performance appraisal, performance feedback, and performance decision-making, it is 
important for the researcher to determine how many individual employees were to be surveyed 
for their opinions and how the individual employees were to be reached.  
 
Based on interactions with heads of the human resource departments of many of the organization 
selected for the study, it became clear that many human resource units had no clear idea of the 
exact number and locations of their employees within the Greater Accra region. The majority of 
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the human resource departments were however willing to help distribute the survey 
questionnaires. It became clear to the researcher that convenient sampling would be the most 
appropriate approach to collect the survey data within the available short period. Convenience 
sampling on the other hand is a non-probability sampling where the researcher select samples or 
members of the target population based on certain conditions such as geographical proximity, 
availability at the time of the study, easy accessibility or willingness to participate in the study 
(Kothari, 2004; Farrokhi and Mahmoudi-Hamidabad, 2012). One key weakness of convenience 
sampling as highlighted by several scholars is the fact that selection of samples is likely to be 
biased (Farrokhi and Mahmoudi-Hamidabad, 2012; Oppong, 2013). 
 
Each Ministry was given twenty five (25) questionnaires for distribution to their employees, and 
each autonomous agency was given 15 questionnaires. In most cases the questionnaires were 
usually collected and administered by officials working in the human resource departments of 
the public sector Ministries and Agencies. Only in few occasions that the researcher had to go 
from office to office to hand out questionnaires to respondents. Many of the Ministries and 
agencies struggled to retrieve all the questionnaires. Since the new PMS was implemented in 
2015, the study was interested in the views of employees who had joined the public service at 
least since 2014 to permit a trend analysis of the impact of the new PMS. The year 2014 served 
as the baseline for impact analysis. The organizations that opted to distribute the questionnaires 
to employees were told to focus on only employees who joined the public service before 2015. 
However, after editing the questionnaires administered by the organizations, it was realized that 
40 of the questionnaires had been filled by employees who joined the public service in 2015, 
2016, or 2017.  These questionnaires were discarded as a quality control measure. In all a total of 
225 respondents questionnaires were selected to be used for the analysis of the study. In a 
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nutshell, the study adopted a mixed approach of theoretical sampling of a one set of 
organizations, random sampling of another set of some organizations, and convenience sampling 
employees in the collection of data for the analysis of the research questions.  
3.8 Sources of Data 
From the above discussion of the research approach, it is clear that the studied relied heavily on 
data sources of data comprising of (i) interviews with largely bureaucratic elites (Directors, 
Commissioners, Deputy Directors, and other officials); and, (ii) survey of 225 employees from 
different levels of public sector organizations. Secondary sources of information have also been 
used in the study. Secondary data are those which other researchers have collected (Silverman, 
2013), and comprised books, journal articles, Acts of Parliament and the 1992 Constitution, 
organizational reports, and public documents. Data from these secondary sources provided 
insights and understanding of the conceptual and theoretical frameworks that unpin the 
interpretation of the primary data collected from public sector employees.  
3.9 Data Analysis and Presentation 
The study used both qualitative and quantitative data from the interviews and employee survey 
to analyze the impact of the new PMS using the themes of performance target setting, 
performance appraisal, performance feedback, and performance decision-making distilled from 
the literature on the process of performance management. The principal-agent theory also 
provided theoretical framework for understanding the roles of principals (PSC, OHCS, and 
FWSC) and agents (Ministries and Agencies implementing the new PMS). 
 
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The quantitative data obtained from closed-ended responses to the survey questionnaires were 
coded and entered into the computer for analysis using the Statistical Package for Social 
Scientists (SPSS). The quantitative data were therefore analyzed and presented using descriptive 
statistics including frequency distribution tables, graphs and percentages to determine the 
proportion of respondents choosing the various responses and also enabled interpretations and 
meanings drawn to answer research questions. Direct quotations from the qualitative interviews 
have also been used in the thematic analysis of the impact of the new PMS.  
3.10 Ethical Considerations 
In the course of undertaking the study, all ethical codes and conventions of the University of 
Ghana were respected and adhered to by the researcher. Respondents were assured full 
anonymity and confidentiality of personal information provided especially in relation to names. 
Moreover, respondents were made to understand that partaking in the study was voluntary and 
that their responses to questions were just for the purpose of the study and not for any other 
purpose. Prior to data collection, introductory letters were sent to all organizations involved in 
the study to seek their consent and approval before actual data collection commenced. 
3.11 Limitations of the study 
Some challenges were encountered in the course of the study. The first challenge was the fact 
that most of the public organizations delayed in given approval for the researcher to proceed 
with the data collection. In some organizations, the researcher had to submit new introductory 
letters because the earlier letters submitted could not be traced by the organizations. 
 
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Another challenge was that some public sector employees approached by the researcher to fill 
the questionnaires were not very cooperative and others delayed for weeks in filling the 
questionnaires. The support offered by the Human Resource department of many organizations 
in the distribution of the questionnaires was invaluable. There were instances where some 
questionnaires could not be retrieved because the respondents failed to fill them. In addition, the 
study required employees who were employed before 2015 to answer the questionnaires; 
however, despite clear instructions to directors who administered questionnaires to their 
employees, some of the questionnaires returned had employees who had joined the public 
service after 2014 which meant that those questionnaires had to be taken out. Financial 
challenges also limited the number of the organizations used for the survey.  
 
Despite the above challenges, it is hoped that the overall information gained from 239 public 
sector employees through interviews and survey were enough to provide valid and reliable 
analysis of the research questions. Again, in spite of the challenges, it is also hoped that the 
analysis presented in the next chapter helps other researchers and policy stakeholders to 
understand the impact of the new PMS.  
 
 
 
 
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CHAPTER FOUR 
DATA ANALYSIS AND DISCUSSION OF FINDINGS 
 
4.0 Introduction 
This chapter presents the analysis and theoretical discussion of data gathered on the impact of 
the new PMS introduced in Ghana’s public sector in 2015. The chapter first presents the 
demographic characteristics of the public sector employees who participated in the survey (valid 
respondents). The chapter then focuses on analysis and discussion of the extent of collaboration 
among the principal actors (PSC, OHCS, and FWSC) in the design, monitoring and evaluation of 
the new performance management system (PMS). The analysis moves to explore the challenges 
of the new PMS. The findings are briefly highlighted in the concluding section. 
4.1 Demographic Characteristics of Respondents 
The demographic characteristics of respondents investigated were gender, age, level of education 
attained and period of joining the public service.  
4.1.1 Gender of Respondents 
Table 3 below shows the gender distribution of respondents involved in the study. The data 
shows that 54.5% of the respondents were male and 45.5% were females. This indicates a fair 
representation of males and females considering the male dominance in the public sector. 
 
 
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Table 3: Gender of Respondents 
 Frequency Percent Valid Percent Cumulative Percent 
Male 121 53.8 54.5 54.5 
Valid Female 101 44.9 45.5 100.0 
Total 222 98.7 100.0  
Missing System 3 1.3   
Total 225 100.0   
 
4.1.2 Age of Respondents 
The age distribution of respondents shown in Table 4 below shows that most of the respondents 
representing 48.2% fall within 30-39 age group, 28.4%  had their ages within 40-49 age group, 
14.4% fall within the 20-29 age group, 8.6%  within the 50-59 age group and only 1 respondent 
representing 0.5% was 60 years or above. It is evident most of the respondents involved in the 
study were 30 years and above. 
 
Table 4: Age of Group of Respondents 
 Frequency Percent Valid Percent Cumulative Percent 
20 - 29 32 14.2 14.4 14.4 
30 - 39 107 47.6 48.2 62.6 
40 - 49 63 28.0 28.4 91.0 
Valid 
50 - 59 19 8.4 8.6 99.5 
60 and above 1 .4 0.5 100.0 
Total 222 98.7 100.0  
Missing System 3 1.3   
Total 225 100.0   
 
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4.1.3 Educational Level of Respondents 
The highest educational level attained by respondents is shown in Table 5 below. It is evident 
from the table that a majority of the respondents (49.5%) had attained Bachelor degree, 35.6% 
had attained Master degree level, 7.7% had Higher National Diploma, 5.5% had attained other 
qualifications and a minimum of 1.4% respondents had PhD degree as their highest educational 
level attained. The educational characteristics show how the public sector is filled with educated 
individuals which is very imperative for organizational performance. It also suggests that they 
understood the questionnaire administered in the English language. 
 
Table 5: Educational Level of Respondents 
 Frequency Percent Valid Percent Cumulative 
Percent 
Higher National 
17 7.6 7.7 7.7 
Diploma 
Bachelor 
110 48.9 49.5 57.2 
degree 
Valid Master degree 79 35.1 35.6 92.8 
PhD degree 3 1.3 1.4 94.1 
Other 13 5.8 5.9 100.0 
Total 222 98.7 100.0  
Missing System 3 1.3   
Total 225 100.0   
 
4.1.4 Period of joining the Public Service 
Figure 2 below highlights the various periods respondents joined the public service. Each period 
represents a regime under a new government. The graph indicates that most of the respondents 
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representing 30.3% joined the public service within 2009-2012 period followed by 19.3% 
respondents who joined the service within 2013-2016 period. The 1997-2000 period had 14.2% 
respondents joining the service in that period whilst 13.8% joined within 2005-2008 period, 
10.6% joined within the 2001-2004 period and the 1979-1992 and 1993-1996 periods having 
6.4% and 5.5% respondents respectively joining the service in those periods. The information 
clearly shows that the study involved respondents from various regimes of government. 
 
Figure 2: Period of joining the Public Service 
35.0%
30.3%
30.0%
25.0%
19.3%
20.0%
14.2%
15.0% 13.8%
10.6%
10.0%
6.4% 5.5%
5.0%
0.0%
 
 
Given the above background information about the survey respondents, the study now moves to 
analyze the key questions concerning the nature of collaboration among the three principal actors 
with responsibility to design, monitor, evaluate and improve the system; and, the impact of the 
new PMS on the process of performance management.  
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4.2 Collaboration amongst the principal actors 
From the principal-agent theory standpoint, the existence of the three principal actors (PSC, 
OHCS and FWSC) involved in instituting an effective performance management system in the 
public sector clearly reflects a multiple principals scenario where same agents are supposed to be 
dealing with multiple principals. This therefore calls for effective collaboration and cooperation 
between the principals to ensure the success of the new PMS (PSC, 2015).   
 
The study therefore sought to examine the nature of collaboration between these principal actors. 
Interviews with Directors from the three principal institutions and other public sector 
organizations involved in the study revealed that collaboration between the principals have not 
been very effective, especially between the PSC and FWSC. The study gathered that the lack of 
effective collaboration between the PSC and FWSC was as a result of role disagreements and 
conflict between the two organizations as to who should really be in charge of performance 
management in the public sector. A Deputy Director of OHCS commenting on the relationship 
between the PSC, OHCS, and FWSC as to who is in charge of the new PMS had this to say: 
 “This issue I can’t answer, they (PSC and FWSC) are still struggling over it, we don’t 
really know who is in charge but we at OHCS are doing our own work.” 
 
It also emerged from the interviews that in 2015, the Presidency and labour unions tried to 
mediate and resolve the jurisdictional conflict between the PSC and FWSC. An official 
agreement popularly called the ‘Takoradi Communiqué ’that was reached between the PSC, 
organized labour unions, resolved that to effectively link public sector pay to productivity, “the 
PSC proposals be adopted as the basis for developing a Performance Management System”. The 
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communiqué reiterated that “there should be effective collaboration” between the FWSC and the 
PSC to ensure that “a robust system be established to evaluate performance in the public 
service”. In spite of the ‘Takoradi agreement’ reached in 2015, there is evidence to suggest that 
the PSC and FWSC are “still struggling” over which of them should be in charge over the design 
and implementation of a PMS for the public sector.  In an interview with a Director of the 
FWSC, he indicated that the FWSC was involved in the designing of the new PMS with the PSC 
but the FWSC opted out of the process due to some disagreements with the PSC in relation to 
roles and responsibilities.  
 
To date, the FWSC and the PSC have not been able to overcome their turf war to collaborate 
effectively to design and implement a system that links public sector pay to the new PMS. In an 
interview, this is what a Director of the FWSC he had to say in relation to whether the new PMS 
is linked to public sector pay: 
 “Currently the new PMS is not linked to pay. Measures have been developed that will 
ensure employees are paid and rewarded based on performance, but it is yet to be 
implemented because of lack of funds which have been a great challenge. We are looking 
for ways to raise funds and also seeking for Donor support to help with funding.” 
The reason why the new PMS is not yet linked to pay goes beyond the lack of funds. It is 
unlikely that the availability of adequate donor funds will lead to the creation of a link between 
the new PMS and public sector pay system. The provision of donor funds could rather deepen 
the conflict between the PSC and the FWSC over who should get a bigger share of the funds.     
 
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Meanwhile, officially and publicly, the OHCS recognizes and implements the new PMS initiated 
by the PSC, but it appears that the OHCS has been doing their “own work” independently in 
monitoring and evaluating employee performance within the public sector Ministries. It is 
important to note that the OHCS re-introduced the signing of performance agreement with Chief 
Directors of public sector Ministries two years before the PSC rolled out the new PMS in 2015.   
Since 2013, every year the OHCS has continued to sign and evaluates performance agreement 
with the Chief Directors (Appiah and Abdulai, 2017). The following account was given in an 
interview with a Deputy Director of the OHCS: 
“In 2013 the signing of performance agreements for Chief Directors was reintroduced. 
In 2011 five (5) Chief Directors signed, no evaluation; in 2012 no signing, no evaluation; 
in 2013 twenty-six (26) signing, all evaluated, in 2014 twenty-six (26) signing, all 
evaluated except two (2) who were indisposed. In 2015 twenty seven (27) Chief Directors 
signing, twenty six (26) evaluated, one (1) was not well, and in 2016 twenty seven (27) 
Chief Directors signing and all evaluated.”  
 
The foregoing shows that the OHCS has been effective in ensuring that Chief Directors are given 
targets to achieve and at the end of the year their performance are assessed in relation to the set 
targets.  The OHCS can be seen to be playing an effective role in ensuring that the performance 
agreements signed by Chief Directors promote a performance driven-culture within the public 
sector Ministries. This is because the performance of Chief Directors is dependent on the 
execution of performance agreements that Chief Directors sign in turn with their Directors and 
Heads of Departments. The Chief Directors performance agreement therefore has the rippling 
effect of driving performance among bureaucratic heads in the Ministries.  
 
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It also emerged from interviews that the OHCS has provided training on the new PMS for 
bureaucratic heads in the Ministries. This is what the Deputy Director said as a response to a 
question on whether the OHCS has trained the various Ministries on the new PMS: 
“Oh yes! With the introduction of the performance agreement document we had to go 
round and sit with the Chief Directors and their team, take them through the entire 
document for them to understand. The agreement document comes along with guidelines 
too and defines some of the things in the agreement.” 
 
Training is very important to enhance the understanding of bureaucratic heads about the new 
PMS to ensure successful implementation. Effective understanding of the PMS enhances 
leadership commitment and builds their support for the system (De Waal and Counet, 2009). 
Previous PMSs have been hampered by lack of understanding and leadership commitment 
(Antwi et al., 2009; Dodoo, 1997). Effective and regular training is very necessary for the new 
PMS to be successful. 
 
The study tried to find out from employees within the public sector institutions as to which of the 
three principal actors they think “will be more effective in designing and implementing a job 
performance system that can improve public sector productivity?” The responses from 
employees of the PSC, OHCS and FWSC highlight internal disagreements over which of them 
should be in charge of designing and implementing a performance management system for their 
agents. The responses also highlight the divided allegiance between the public sector Ministries 
and the autonomous public sector agencies: while the Ministries supported the OHCS, the 
autonomous agencies supported the PSC. The responses are presented below in Table 6. 
 
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Table 6: Which of the principal actors would be more effective in designing and 
implementing a job performance system that can improve public sector productivity? 
 “Which of the following organizations do you  
 think would be more effective in designing and  
 implementing a job performance system that can  
 improve public sector productivity?”  
PSC FWSC OHCS Others Total 
OHCS 5 1 2 0 8 
62.5% 12.5% 25% 0% 100% 
FWSC 1 5 0 3 9 
11.1% 55.6% 0% 33.3% 100% 
PSC 10 0 0 0 10 
100% 0% 0% 0% 100% 
Public Sector 34 2 82 8 126 
Ministries 27% 1.6% 65.1% 6.3% 100% 
Public Sector 48 3 1 1 53 
Agencies 90.6% 5.7% 1.9% 1.9% 100% 
 98 11 85 12 206 
Total 47.6% 5.3% 41.3% 5.8% 100% 
 
 
Responses in table 6 above show how public sector employees are divided as to which of the 
three principal actors will be more effective in designing and implementing a productive PMS. 
Employees of the PSC are unanimous in their verdict (100%) that it is only the PSC that will be 
more effective in designing and implementing a productive PMS. About 89% of the employees 
of the FWSC disagreed that the PSC would be the most effective. About 55% of employees of 
the FWSC claimed that it is the FWSC that will be more effective doing the job. Among 
employees of the OHCS, the majority of respondents (62.5%) pointed to the PSC as the principal 
actor that will be more effective; while 25% of the employees claimed that it is the OHCS itself 
that can do the job. One respondent from the OHCS pointed to the FWSC.  
 
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The important point from the above findings in table 6 is that there is some internal division 
among the principal actors as to who will be more effective in designing and implementing a 
productive PMS. This internal division has hampered their ability to collaborate effectively to 
improve the new PMS. During the interviews, one of the Directors emphasized the usual advice 
given to the principal actors to ensure the effective implementation of the new PMS:  
“PSC should be able to work with OHCS and FWSC. If we want to link performance to 
pay they should work together. Looking at our public sector structure, effective 
collaboration among key stakeholders is very necessary if performance management is to 
be successful.” 
There is no doubt that the existence of multiple principals (PSC, FWSC and OHCS) requires 
effective collaboration and cooperation to ensure that the new PMS is successfully implemented 
in the public sector. As noted by O’Toole and Montjoy (1984) inter-organizational cooperation is 
very crucial to successful implementation of any program or policy in the public sector. The 
problem is how to resolve the internal turf conflicts among the principal actors to ensure their 
effective collaboration in the design, monitoring, evaluation and improvement of the new PMS.   
4.3 Impact of the new Performance Management System 
Against the background of internal conflicts among the principal actors, what has been the 
impact of the new PMS on performance management processes? The study sought to explore the 
impact the new PMS has had on performance target setting, assessment, feedback, and decision 
making on rewards and sanctions since it was rolled out in the public sector. 
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4.3.1 Employee Performance Target Setting 
Target setting is the beginning of the performance management process and it is expected to 
occur in January of every year (PSC, 2015). Chief Directors are required to set their targets 
which would then influence Directors targets as well as deputy directors’ targets and that of their 
subordinates (PSC, 2015). The essence is to align organizational goals and objectives to 
employees’ targets and responsibilities (Aguinis, 2009).  
 
The Chief Director’s performance agreement contains the vision, mission, strategic objectives, 
top priority areas, key result areas, overall targets to achieve; specific timelines indicated for the 
activities outlined and the means of verification of achieved the targets for the year under 
consideration. After completion of the document, Chief Directors of the various Ministries sign a 
performance agreement with the Head of Civil Service witnessed by their sector Ministers. For 
the autonomous agencies, the Chief Directors sign performance agreement with their oversight 
Ministry witnessed by their Board Chairmen. 
 
Directors or Heads of department in all the sampled organizations sign performance agreement 
with their Chief Directors. They are also expected to complete their performance agreement 
document which highlights their priority areas, strategic objectives, key results areas, targets to 
be achieved, timelines and means of verification of achieved targets for the year. At the 
individual level, deputy directors and their subordinates meet their respective supervisors to 
discuss key result areas and agree on targets to be achieved for the year. Target setting for all 
employees are expected to be completed by the end of January (PSC, 2015). 
 
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A survey was conducted to examine the extent to which employees have been given job 
performance targets to achieve since 2014. Respondents were asked to indicate whether they had 
job performance targets in 2014, 2015 and 2016. Responses from the survey illustrated in Figure 
3 below revealed that in 2014 most of the respondents (69.8%) were given job performance 
targets to achieve. In 2015, 79.6% of the respondents indicated that they had job performance 
targets, whilst in the year 2016, majority of the respondents (84%) responded that they had job 
performance targets. A trend analysis of the three years under review shows that there has been 
some improvement in the extent to which employees are given job performance target.  
 
Figure 3: Trend Analysis of job performance target 
I had a job performance target
90.0%
80.0%
84.0%
70.0% 79.6%
60.0% 69.8%
50.0%
40.0% Yes
30.0%
20.0%
10.0%
0.0%
2014 2015 2016
 
 
The findings above clearly show that since the introduction of the new PMS the extent to which 
employees are given performance targets has increased. In relation to target setting, a deputy 
director remarked as follows: 
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“During the planning phase the supervisors would have to sit with the subordinates so 
that you agree on the work area, then you give the person a target that you want to be 
achieved but it must be agreed. In the previous staff appraisal system, people were 
abusing it because supervisors will say to their subordinates ‘you go and complete it and 
bring it’, that kind of thing. So the new system is meant to address those challenges so 
that it is being organized in such a way that there are meetings throughout. So at the 
planning stage, there is a need for subordinates to have meeting with supervisors to 
agree with what is to be achieved for the year. Each directorate and all staff has to go 
through it, and a report showing all staff have gone through it is submitted to the HR.” 
 
From the principal-agent theoretical standpoint, setting of targets is very important in enhancing 
an effective principal-agent relationship. Whereas the Principals rely on targets to evaluate the 
performance of the agents and hold agents accountable, agents need targets to know the specific 
tasks and responsibilities to accomplish and also to determine their level of performance at the 
end of the accounting year. Hence targets provide a basis or standard for measuring agent’s 
performance and decision making on rewards and sanctions (Ferreira and Otley, 2009). The 
increasing trend in the setting of performance targets indicates that supervisors are becoming 
increasingly committed to setting targets for their subordinates to enhance performance.  
4.3.2 Employee Performance Execution 
Performance execution stage is where the employee or agent actually performs or executes tasks 
or responsibilities towards the achievement of performance targets. All needed resources are 
expected to be provided by the principal to ensure that employees are able to perform their tasks 
effectively. The study sought to examine the extent to which employees have been performing 
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their tasks and achieving their job performance targets between 2014 and 2016. Respondents 
were therefore asked to indicate whether they achieved their job performance targets in 2014, 
2015 and 2016. Responses from the respondents are illustrated in Figure 4 below. 
Figure 4: Trend analysis of performance execution 
I achieved my job performance target 
90.0%
80.0% 82.2%
77.8%
70.0%
60.0% 67.6%
50.0%
40.0% Yes
30.0%
20.0%
10.0%
0.0%
2014 2015 2016
 
 
Data shown in Figure 4 above reveal that in 2014 67.6% respondents indicated that they 
achieved their job target; in 2015 77.8% respondents responded that they achieved their targets 
and finally in 2016, 82.2% respondents indicated they achieved their job performance targets. 
The trend analysis clearly reveals an increase in the percentages of employees who claimed to 
have achieved their job targets over the three year period under consideration. It can therefore be 
argued that since the implementation of the new PMS, there has been an improvement in the 
performance of employees towards the achievement of their job targets.  
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However, the question that needs to be answered is to what extent are the claims of the 
employees (agents) of achieving their job targets is a reflection of the reality. The principal-agent 
theory holds that through an effective monitoring mechanism, the principal can be able to verify 
whether indeed an agent is really performing tasks as expected and have been able to achieve job 
targets or not. A Director of the PSC said in an interview, “Currently we don’t actually know the 
specific organizations actually going by the new guidelines but I think a study like yours can 
help us know for now which organizations are implementing the new system.”  
 
The above response clearly reveals an incidence of lack of proper supervision and monitoring on 
the part of the PSC to audit performance management practices of public sector organizations to 
determine effectiveness of the new PMS. With the PSC as principal failing to monitor and audit 
performance management practices in public organizations since the introduction of the new 
PMS, to what extent can they determine whether indeed public employees are indeed performing 
as expected or verify their target achievement claims. The onus therefore lies on the bureaucratic 
heads (Chief Directors, Directors, Supervisors, and Heads of departments) to ensure that their 
subordinates have actually achieved their targets.   
4.3.3 Employee Performance Assessment 
Performance assessment or evaluation is a very important stage in the performance management 
process as it facilitates administrative decision making on salary, promotion, and sanctions. It 
also enhances identification of employees’ strengths and weaknesses (Fink and Longenecker 
1998; DeNisi and Pritchard 2006; Brown and Benson, 2010; Mathis and Jackson, 2010). From 
the principal-agent perspective, performance assessment serves as a control mechanism for the 
principal to overcome adverse selection and moral hazard problems. Through performance 
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assessment the principal is able to obtain information regarding certain personal traits of the 
agent such as skills, honesty, credibility and diligence, and trustworthiness. Moreover, 
performance assessment enables the principal to determine to a larger extent if the actions of the 
agents were geared towards set targets and interests of the principal, and also hold the agent 
accountable for the use of resources provided.  
 
The new PMS requires that job performance of all public employees at all levels are assessed or 
evaluated against set targets at the end of the year (PSC, 2015). The study sought to examine the 
extent to which employee performance are assessed or evaluated in order to determine the 
impact the new PMS has had on employee performance assessment. Respondents in the survey 
were asked to indicate whether their performance was assessed in 2014, 2015 and 2016. The 
study findings presented in Figure 5 below indicated that in 2014, 67.6% of the employees 
responded that their performance was assessed. In 2015, 79.1% of the employees indicated that 
their job performance was assessed whilst in 2016, 84.4% employees indicated that their 
performance was assessed. 
 
 
 
 
 
 
 
 
 
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Figure 5: Trend analysis of employee job performance appraisal 
My job performance was assessed
90.0%
84.4%
80.0%
79.1%
70.0%
60.0% 67.6%
50.0%
40.0%
Yes
30.0%
20.0%
10.0%
0.0%
2014 2015 2016
 
 
It is very evident from the trend analysis above that there has been a positive upsurge in the 
percentages of employees whose job performance were assessed between 2014 and 2016. This 
clearly indicates an improvement in the extent to which employees job performance are assessed 
in the public sector since the introduction of the new PMS. The increasing trend in performance 
assessment implies more effort from supervisors (principals) is being geared towards holding 
public employees (agents) accountable to determine how productive they use their time and 
public resources in office. The essence of this is that employees are forced to develop positive 
attitude towards work recognizing that their performance would be assessed at the end of the 
year. This would enhance performance and productivity in the public sector.  
 
From the foregoing analysis, there is a clear indication that there has improvement in the 
performance assessment. This requires some explanation. The study asked respondents to 
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indicate who evaluated or assessed their job performance in each of the years under 
consideration. The findings are shown by Figure 6 below.  
 
Figure 6: Trend analysis of actors who appraised employee job performance 
Who within your organisation evaluated your job performance
60.0%
Head of Department
50.0% 49.3%
40.0% 43.1%40.9%
Unclear definition of 
31.1%
30.0% supervisor (eg. My 
31.6%
27% boss, my 
supervisor, HR, General 
20.0%
Administration etc)
Chief Director/Chief 
10.0% Executive
3.1% 3.1% 3.1%
0.0%
2014 2015 2016
 
 
 
Figure 6 above reveals that in 2014, 40.9% of the respondents indicated they were assessed by 
their Heads of department, 27% indicated they were assessed by their supervisors, and only 3.1% 
indicated they were assessed by their Chief Director/Chief Executive. It is important to state that 
the nature of the ‘Supervisors’ was not always specified by the respondents. However, some 
respondents indicated their supervisors to be ‘my boss’, ‘my supervisor’, ‘human resource’ (HR) 
department, and ‘General Administration’ department. In 2015, 43.1% of the respondents 
indicated that they were assessed by their Heads of department, 31.6% indicated that their 
supervisors assessed them, and 3.1% indicated that they have been assessed by their Chief 
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Directors/Chief Executives. Finally in 2016, 49.3% of those whose performance had been 
assessed indicated that their Heads of department assessed their job performance, 31.1% 
indicated that they were assessed by their supervisors, and 3.1% indicated that they were 
assessed by their Chief Directors/Chief Executives. The trend analysis clearly shows that from 
2014 to 2016 there has been an increasing involvement by Heads of department and Supervisors 
in the assessment of their subordinates. The study attributes this improvement to leadership role 
and involvement in the process. In the new PMS, the bureaucratic heads and other supervisors 
are required to sit down with their subordinates to assess their performance based on set targets 
and provide feedback on their job performance (PSC, 2015). The increasing involvement of 
bureaucratic heads in performance assessment indicates that the heads are obtaining more 
information about their employees in relation to their performance skills and attitudes to work. 
 
4.3.4 Providing Feedback on Employee Job Performance 
Providing feedback to employees on their job performance is deemed very important in any 
PMS. According to Aguinis (2009) feedback on job performance if provided effectively not only 
improves performance but also boost employees confidence and satisfaction with the 
performance management system. Armstrong (2006) likewise notes that feedback on job 
performance enhances employees awareness of the job areas they need to improve and provides 
information to employees as to whether they are performing to expected levels or not.   
 
From the principal-agent theoretical perspective, feedback is very important because the 
principal needs to provide information as to the extent to which targets or expectations were 
achieved or fulfilled. Such feedback or information allows the agent to draw lessons learned for 
future job performance and also determine training needs and whether to be rewarded or 
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sanctioned. Due to the importance of bureaucratic heads providing performance feedback, 
respondents were asked to indicate whether they received feedback on their job performance in 
2014, 2015 and 2016. The responses are illustrated in Figure 7 below.  
 
Figure 7: Trend Analysis on job performance feedback 
I received feedback on my job performance 
90.0%
80.0%
70.0% 76.9%
73.3%
60.0%
63.1%
50.0%
40.0% Yes
30.0%
20.0%
10.0%
0.0%
2014 2015 2016
 
 
 
Data collected (see Figure 7 above) shows that in 2014, 63.1% of the respondents indicated that 
they received feedback on their job performance. The year 2015 witnessed a significant increase 
in the percentage of employees who received feedback on their job performance with 73.3% 
employees responding that they had feedback on their job performance from their supervisors. In 
2016, the trend continued with a further increase in the percentage of employees who were given 
feedback on their job performance as the year recorded 76.9% of the employees receiving 
feedback on their job performance. This goes to show a positive improvement in the extent to 
which employees receive feedback from their supervisors on how they are performing. This tend 
to enable employees know whether they are achieving their targets or not, motivates employees 
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to improve their performance and also identify their strengths and weaknesses. The improvement 
in employees receiving performance feedback signifies that bureaucratic heads are increasingly 
providing feedback on job performance to their subordinates. Interviews with directors revealed 
that many supervisors provide feedback to their employees. A Deputy Director remarked when 
asked if employees receive feedback on job performance: 
“Yes they do. They have access to the document because after they sit with their boss 
they are aware. The original plan of the performance appraisal is you are sitting with 
your boss and he is appraising you so whatever he is putting on paper is not strange, you 
know it. So staff are aware, they have feedback because the document comes back to 
them before it is sent to HR.” 
 
Similarly another director recounted in a response to whether employees receive feedback: 
“Yes. That is an internal thing because obviously your boss should be able once you are 
sitting and talking over things, the person must be able to give feedback whether you are 
doing well or not. So employees get feedback from their supervisors. At the end of the 
year when you do the appraisal it goes through the same process, everybody is 
appraised, final scores are given and feedback.” 
 
The increasing trend in the provision of job performance feedback reveals the active involvement 
of bureaucratic heads in the performance management process. But the analysis also suggests 
that some bureaucratic heads who assess the performance of their subordinates are reluctant to 
provide feedback to the subordinates. For instance, in 2016, the percentage of the employees 
who claimed that their jobs were assessed by bureaucratic heads and supervisors is 84.4%. 
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However, only 76.9% of the employees indicated that they had received feedback on their 
performance. All bureaucratic heads should be encouraged to provide performance feedback to 
their subordinates. But the important finding about the impact of the new PMS is that 
bureaucratic heads are now increasingly committed in assessing the performance of their 
subordinates and providing performance feedback.  The theoretical conclusion of this positive 
trend is that communication between the principals and agents in relation to job performance is 
gradually improving which allows agents to receive feedback on their job performance.  
4.3.5 Decision Making on Employee Performance: Rewards and Sanctions 
Drawing from the principal-agent perspective, after an agent has performed tasks, the principal is 
expected to take decisions to either reward the agent for good performance or sanction the agent 
for poor performance after a performance assessment has been completed. The new PMS policy 
guidelines oblige heads of organizations and supervisors to make decisions on rewards, 
sanctions, promotion and training based on information obtained from the performance appraisal 
reports (PSC, 2015). The study therefore explored the extent to which the employees perceive 
that the new PMS is linked to decision making on rewards and sanctions.  
4.3.5.1 Rewards: Linking performance to pay 
Rewards whether financial or non-financial have been recognized to enhance employee 
performance, foster positive work behavior and attitude towards the performance management 
system (Jenkins, Mitra, Gupta and Shaw, 1998; Ferreira and Otley, 2009). In a principal-agent 
relationship, rewards in the form of salary increase, promotion and other non-financial rewards 
such as recognition and awards are necessary to ensure that agents perform their tasks in 
accordance with the interests of the principal (Kassim and Menon, 2003). This is because from 
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the principal-agent theoretical perspective, agents are recognized to be utility maximizing 
individuals and therefore respond positively to economic incentives and other form of rewards 
(Waterman and Meier, 1998; O’Flynn, 2007; Van Slyke, 2007). In addition, rewarding agents for 
performance of their tasks in the contractual agreement encourages future performance and also 
builds trust and effective relationship between both parties as the principal would be seen to be 
also performing his part of the contractual agreement (Broadbent, Dietrich and Laughlin, 1996). 
 
A key feature of the new PMS is to ensure that performance is linked to pay and other rewards in 
the public sector (PSC, 2015). However, the study found that the new PMS yet to be linked to 
pay. A Director at the FWSC had this to say in relation to whether the new PMS is linked to pay: 
 “Currently the new PMS is not linked to pay. Measures have been developed that will 
ensure employees are paid and rewarded based on performance, but it is yet to be 
implemented because of lack of funds which have been a great challenge. We are looking 
for ways to raise funds and also seeking for Donor support to help with funding.” 
 
 The study found that some form of rewards has been created by the OHCS for Chief Directors 
who distinguish themselves in the performance of their duties. An interview with a Deputy 
Director at the OHCS revealed that since 2014 the OHCS has been organizing performance 
awards ceremonies to publicly recognize and reward good performing Chief Directors in the 
Ministries. This is the account of the Deputy Director on rewards: 
“We do have a ceremony that we reward or award good performing Chief Directors. We 
normally do plaques and citations for them. We seek support from the Civil and Local 
Government Staff Association of Ghana to organize the programme for the Chief 
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Directors. In 2014 as part of the reward the Chief Director of Ministry of Food and 
Agriculture was sent to the Public Administration School in France for a short course in 
Management and Leadership. In 2015 the Canadian International Development Agency 
(CIDA) took the first two performing Chief Directors to UK for a short management 
course. In 2016 we rewarded the best performing Chief Director for 2015 and just 
recently we held a ceremony to award good performing Chief Directors for 2016.” 
 
The existence of this awards scheme for Chief Directors is to encourage Chief Directors to 
ensure that the performance management system is strictly and effectively enforced in their 
respective organizations due to the fact their performance is hinged on the performance of their 
subordinates.  
Below the Chief Director/Executive level, the only form of reward available to employees was 
promotion.  The study gathered from the interviews that the only reward employees receive for 
good performance is to be promoted. In a response to how good performing employees are 
rewarded, a Director of one of the Ministries had this to say: 
“Unfortunately, I am not aware if this system is tied to any form of rewards as in 
financial rewards. What I know is one is able to track performance of staff and then if 
they are due for promotion and have other requirements for promotion, we submit the 
performance evaluation report on their behalf for promotion. So that is the reward I 
know, promotion reward not financial reward. No event is organized to reward good 
performing employees.” 
In relation to the issue of whether the PMS is linked to promotion, respondents were asked to 
indicate their level of agreement with the statement that ‘A positive performance evaluation 
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score could lead to my promotion’. Table 7 below shows the extent to which public sector 
employees perceive that the PMS is linked to promotion.  
 
Table 7: Perceived link between performance evaluation and promotion 
 A positive performance evaluation score could lead to  
my promotion  
I strongly I disagree Neutral I agree I strongly  
disagree agree Total 
Categories of Regulatory 0 1 2 16 9 28 
Public Sector Institutions 0% 3.6% 7.1% 57.1% 32.1% 100% 
Organizations Public Sector 3 18 14 60 41 136 
Ministries 2.2% 13.2% 10.3% 44.1% 30.1% 100% 
Public Sector 0 2 7 30 19% 58 
Agencies 0% 3.4% 12.1% 51.7% 32.8% 100% 
Total 3 21 23 106 69 222 
1.4% 9.5% 10.4% 47.7% 31.1% 100% 
 
The majority of public sector employees perceive that the PMS is linked to their promotion. 
Table 7 shows that 89.2% of the respondents in the principal regulatory institutions (PSC, 
FWSC, OHCS) agree that a positive evaluation score could lead to their promotion. In the public 
sector Ministries, majority (74.2%) of the respondents agree that positive performance 
evaluation can cause one’s promotion in the public service. In the autonomous public sector 
Agencies, 84.5% of the respondents agree that positive performance evaluation score could lead 
to their promotion. 
 
The general agreement of respondents from the various categories shows that employees 
perceive that workers with a positive performance evaluation score stand a chance of being 
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promoted when their promotion is due. It is therefore clear that promotion in the public service 
to some extent is based on the performance of employees. This finding is consistent with 
previous studies by Bawole et al (2013) and Ohemeng (2015) which identified that performance 
appraisals are mainly used for promotion purposes and as a result most employees only show 
interest in completing their appraisal reports when they are due for promotion.  
4.3.5.2 Sanctions against Poor Employee Job Performance 
The threat or use of sanctions may be imposed to punish poor performance and encourage good 
performance (Aguinis, 2009; Kassim and Menon, 2003). From the principal-agent perspective, 
sanctions are imposed by the principal to agents who perform poorly or actions are incongruence 
with the interests and aspirations of the principal (Ebrahim, 2003; Kassim and Menon, 2003). In 
order to promote productivity and accountability in the public service, the new PMS makes 
provisions for the sanctioning of employees who perform poorly. The new PMS policy makes 
provisions for sanctions in the form of demotion or reassignment, reduced duties and termination 
of appointment as a result of consistent poor performance (PSC, 2015:76). 
 
The study sought to find out whether employees perceive that poor performance is sanctioned 
since the introduction of the new PMS. Respondents were asked to indicate their level of 
agreement or disagreement with the statement that ‘A negative performance evaluation score 
could lead to my dismissal’. Responses illustrated in table 8 below reveal that among the 
principal regulatory institutions (PSC, OHCS, FWSC) only 24.1% agree that negative 
performance evaluation score could lead to their dismissal, with 44.8% of the respondents 
disagreeing. It seems that majority of the principal actors think that the punishment of dismissal 
is either rarely used or will never be used to punish poor performance in the public sector. 
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Similarly, only 29.8% of employees in the public sector Ministries agree that they could be 
dismissed as a result of poor performance, while 46.3% disagree. Interestingly, in the 
autonomous public sector agencies 43.1% agreed to the statement that a negative performance 
evaluation score could lead to their dismissal, with 32.7% disagreeing. This suggest that the use 
of dismissal as a form of sanction for poor performance in the autonomous agencies is higher (or 
widely perceived to be real) than it is the case in the public sector Ministries. Advocates of the 
new public management doctrines (Osborne and Gaebler, 1993) argue that the conversion of 
civil service departments into autonomous agencies is more likely to increase efficiency because 
the autonomous agencies will be able to exercise the authority to dismiss non-performing 
employees than is the case in the traditional civil service.  
 
Table 8: Linking negative employee performance evaluation score to sanctions 
 A negative performance evaluation score could lead to  
my dismissal  
I strongly I disagree Neutral I agree I strongly  
disagree agree Total 
Categories of Regulatory 1 12 9 2 5 29 
Public Sector Institutions 3.4% 41.4% 31% 6.9% 17.2% 100% 
Organizations Public Sector 12 50 32 29 11 134 
Ministries 9% 37.3% 23.9% 21.6% 8.2% 100% 
Public Sector 2 17 14 20 5 58 
Agencies 3.4% 29.3% 24.1% 34.5% 8.6% 100% 
Total 15 79 55 51 21 221 
6.8% 35.7% 24.9% 23.1% 9.5% 100% 
 
Overall, most of the respondents surveyed (42.5%) in the public sector disagree that a negative 
performance evaluation score could lead to their dismissal whilst 32.6% agree. The findings 
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above clearly indicate that the severe sanctions of dismissal for poor performance appear to be 
far-fetched for the majority of public sector employees. This perception is even greater within 
the principal agencies that are expected to exercise the power of dismissal in extreme cases of 
poor performance. It should therefore not be surprising that in the public sector Ministries the 
majority of employees do not believe that poor performance can lead to dismissal. A Director in 
the public sector Ministries remarked that “once appraisal is done, it is put on record. It becomes 
handy when it comes to promotion.” This statement clearly implies that until employees are due 
for promotion, they are not sanctioned for poor performance. From the principal-agent theory 
perspective absence or failure to sanction poor performance means that the agent is likely to 
pursue his interest at the expense of the interests of the principal because sanctions are necessary 
to deter the agent from any unproductive behavior.  
4.4 Challenges of the new Performance Management System 
An objective of the study was to identify some of the challenges of the new PMS in public sector 
organizations. To uncover the challenges of the new PMS, the survey respondents were asked to 
indicate measures that should be put in place to improve the PMS in their respective public 
organizations. A wide range of measures were suggested by respondents which were categorized 
into common occurring themes illustrated in Figure 8 below. 
 
 
 
 
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Figure 8: Measures to improve PMS in the public sector 
Strengthen job 
Others supervision
17% 18%
Motivate 
Set appropriate hardworking with 
and clear financial 
performance rewards/material 
targets and rewards
indicators 21%
10%
Provide relevant 
training for 
employees
12%
Sanction poor 
performing 
Provide adequate 
Link promotion to employees
resources/logistics
performance 11%
9%
appraisal
3%  
 
Figure 8 above illustrates a wide range of suggestions on how the new PMS could be improved 
in the public sector. Most of the respondents (21%) suggested the need to motivate hardworking 
employees with financial or material rewards, 18% suggested that job supervision needs to be 
strengthen if the PMS is to be effective. Providing relevant training for employees was also 
deemed very necessary for PMS to be effective (12%).  Moreover 10% respondents indicated the 
need for the sanctioning of poor performing employees and another 10% hinted on the need for 
supervisors to set clear and appropriate performance targets and indicators to improve the PMS. 
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Provision of adequate resources and logistics was suggested by 9% respondents and 3% 
indicated the need to link promotion to performance appraisal to improve PMS. About 17% of 
the respondents indicated other measures such as effective implementation of the PMS, revising 
the PMS to enable electronic performance evaluation to avoid human bias, improving the 
performance appraisal process, dealing with political interference in job performance, and 
ensuring fairness and transparency in the PMS. The above corrective measures are suggestive of 
the challenges facing the new PMS. Among the numerous challenges given by employees, the 
most salient challenges are (i) lack of rewards and sanctions for job performance by non-
executives, (ii) lack of effective supervision, and (iii) failure to link the PMS to employee 
development training. Many of the Directors also pointed to inadequate understanding of the 
new appraisal instrument as a major challenge. These four challenges are discussed below: 
4.4.1 Lack of Rewards and Sanctions for Non-executives 
Lack of rewards and incentives was a key challenge in the previous performance management 
system replaced by the new PMS (Ohemeng, 2009). The study identified that the current system 
is also faced with similar challenge of rewarding good performing employees below the level of 
the Chief Directors and Chief Executives. A Director made the following remark: 
“Chief Directors are rewarded. For directors level so far I haven’t seen any form of 
rewards and at the individual level too nothing has been done.” 
It is clear that though the new PMS seeks to ensure that employees are rewarded for good 
performance, it is yet to be a reality in the public sector especially at the non-executive level. The 
absence of rewards and incentives for good performance has the tendency of making employees 
lose confidence, satisfaction in the system, and develop a negative attitude towards the system by 
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regarding the system as not rewarding (De Waal and Counet, 2009). From the principal-agent 
perspective, the effect of absence of rewards and incentives is that agents are likely to pursue 
their own private interests and not the interest of the principal, and as a result agents would not 
perform to the expectations of the principal. 
 
Many of the Directors interviewed emphasized the need to ensure that the system is linked to 
rewards and sanctions. Responses from the interviews indicated that public employees are very 
concerned with the absence of rewards for good performance and sanctions for poor 
performance. There was general acceptance of the fact that rewards and sanctions in the public 
sector need to be promoted for the new PMS to be effective. The following were the words of a 
Director concerning rewards and sanctions: 
“I think performance management can work in the public sector. The only problem is the 
rewards and sanctions aspect which is yet to be seen. If the system is effectively linked to 
rewards and sanctions, I think we will take a leap forward as far as performance and 
productivity in the public sector is concerned.” 
 
Rewards and sanctions are very crucial for employee performance and effectiveness of any PMS 
(De Waal and Counet, 2009). Failure to sanction employees for poor performance in the public 
service was attributed to directors’ lack of confidence and fear of being victimized.  This is the 
account of a Director concerning the issue of sanctioning poor job performance: 
 “This is difficult to implement in the public sector because many directors lack the 
confidence to dismiss poor performing employees due to fear of being branded as wicked 
and all that.” 
 
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The above finding is consistent with study findings by Bawole et al., (2013) where they 
identified fear of being victimized or intimidated for various political and socio-cultural reasons 
such superstitions and spirituality, as inhibiting objectivity in performance appraisals and the 
effectiveness of performance management in the public service. The new PMS seems to be 
stifled with the non-enforcement of appropriate sanctions for poor job performance. In the 
principal-agent theoretical relationship, rewards and incentives for performance as well as the 
credible threat of the use of sanctions enhances performance and build trust between the 
principal and agent (Ferreira and Otley, 2009; Ebrahim, 2003). 
4.4.2 Lack of Effective Supervision 
Despite the increasing involvement of leadership in the performance management process as 
illustrated above, responses from the interviews revealed that regular supervision has not been 
very effective and has been a challenge to the effectiveness of the new PMS. Interviewees hinted 
on non-involvement and weak supervision on the part of some directors and supervisors in the 
performance management process. In the words of a Director: 
“Lack of supervision is an issue. Some of these things it doesn’t come out in the open. We 
have cases where you can have a boss tell subordinate that ‘go and complete the thing 
and bring it and let me sign’. So the subordinate has to manipulate the figures and 
comments and all that and all the supervisor would do is just append the signature and 
they would not even have time to write any comment that the officer is hard working or 
need to put in more effort, everything is done by the appraisee. That shouldn’t be the 
practice but sometimes we find that situation.” 
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A situation where supervisors fail to do effective supervision and allow subordinates to set 
targets for themselves and evaluated themselves as indicated above do not enhance the 
effectiveness of performance management. Another Director interviewed emphasized,  
“For me what we need to do to improve is to make sure supervision is strong. In schedule 
2 of the Director’s performance agreement, one of the key result areas, each director 
must develop job schedule for all the staff under them. We brought in that to address that 
thing of people coming to work and not working or idling around. Who is making sure 
that it is done? Developing a job schedule for all staff under you is very tedious, I have 
17 officers, but I sit down and generate mine but others they don’t do it.” 
Responding in a similar fashion, another Director had this to say: 
“One thing we need to put in place is to strengthen supervision. We need to encourage 
supervisors to take up their role because for performance management to be effective, 
supervisors need to take up their role and perform it well.” 
The above responses clearly indicate that the issue of supervision should be critically examined 
and strengthened if the new PMS is to be effective and successful. Without effective supervision, 
performance assessment may tend to be overly subjective which would not reflect true employee 
performance. In the long run employee performance and development would not improve and 
would affect organizational performance. Moreover, the lack of effective supervision would 
make subordinates put in less effort or no priority or seriousness in working with the PMS. This 
leads to the ineffectiveness and failure of the PMS (De Waal and Counet, 2009). 
 
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4.4.3 Failure to link the PMS to Employee Development Training 
A key purpose of any performance management system is to improve performance by 
identifying employee weaknesses and job areas requiring improvement and prescribing the 
requisite training to tackle those deficiencies (Aguinis, 2009; Armstrong, 2009; Mathis and 
Jackson, 2010). In this regard an objective of the new PMS is to ensure that performance 
appraisal reports are linked to training and development in the public service (PSC, 2015). Thus, 
appraisal reports must influence training plans and the selection of employees for training in 
order to improve performance. Respondents were therefore asked to express their agreement or 
disagreement with the statement that ‘Nominations for further training are often based on 
performance appraisal reports’. More than a third of the respondents (36.7%) suggested that the 
selection of employees for further training is often not based on the results of the performance 
appraisal reports. If this response is true, it should be addressed to ensure the building of a more 
competent pool of personnel in the public sector. Responses are illustrated in table 9 below. 
 
Table 9: Further training are often based on Performance Appraisal reports 
 Frequency Percent Valid Percent Cumulative Percent 
I strongly disagree 26 11.6 11.8 11.8 
I disagree 55 24.4 24.9 36.7 
Neutral 62 27.6 28.1 64.7 
Valid 
I agree 64 28.4 29.0 93.7 
I strongly agree 14 6.2 6.3 100.0 
Total 221 98.2 100.0  
Missing System 4 1.8   
Total 225 100.0   
 
 
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Responses illustrated in table 9 above indicate that only 35.3% respondents agree that 
nominations for further training are often based on appraisal reports. This suggests that 
bureaucratic heads are not perceived to mostly use the performance appraisal reports when 
selecting employees for further training. The implication of this is that the future performance of 
poor performing employees is not likely to improve if their skills and capacity deficiencies 
identified in performance appraisal reports are not addressed. To ensure improved employee 
performance and development, information from appraisal reports must guide the selection of 
employees for training and also the type of training given to employees. 
4.4.4 Inadequate Understanding of the New Performance Appraisal Instrument 
The introduction of the new PMS in the public sector came along with a new performance 
appraisal instrument that all employees are expected to complete with their supervisors. The 
appraisal instrument requires supervisors and their subordinates to define the targets, assess 
results and comments on the employees’ job performance. However, the study induced from the 
interviews with bureaucratic heads and supervisors that many employees and supervisors 
struggle completing the document due to the inadequate comprehension and understanding of the 
appraisal instrument. This is what a Director remarked about the appraisal instrument: 
“People are complaining about the appraisal instrument that it is too cumbersome 
because they don’t understand the terminologies used, and they don’t understand the key 
results areas, how to set SMART targets is also a challenge even for the supervisors, it’s 
a problem. As for the individual level, to be frank, if they (supervisors) don’t help them, 
they don’t even bother to fill it.” 
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The study further gathered from the interviews that despite the fact that many employees have 
received several training on the new instrument, some employees still express outcry of the 
difficulty in understanding and completing the document. A Director expressed this concern: 
“We have received training from both PSC and OHCS but staff complained so much 
about it such that in 2015 we didn’t get an appreciable number of people to even 
complete the document. Everybody was saying I don’t understand it and all that. Even in 
this year we have had two weeks training sessions for almost 90% of our staff again on 
the document because people were complaining about it. People feel the 11-page 
document is too much for performance appraisal. At the end of the day what they do is 
that one person does it well and then everybody comes to look on and copy and 
reproduce, this is unfortunate.” 
The foregoing clearly raises the concern as to whether it is the trainings that have been 
ineffective or the appraisal instrument is just too complex to understand. A Director indicated in 
an interview that the training on how to complete the document is not the solution to this 
challenge but that the appraisal instrument needs to be revised: 
“The appraisal document is very difficult to understand despite several training. That is 
the problem we are facing with our staff. So the document needs to be revised because I 
don’t think it is only training that will resolve this issue.” 
The effect of the difficulty in understanding the appraisal instrument as can be observed in the 
above statements is that it constrains objective performance assessment and provision of accurate 
performance information. In addition it discourages some employees from participating in the 
appraisal process which then affects the success and effectiveness of the new PMS. As noted by 
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De Waal and Counet (2009), in a situation where employees in an organization lack adequate 
understanding of the PMS or aspect of it, it is likely that the PMS will not be used properly or 
not at all. An agents’ willingness to execute tasks in the interest of the principal is partly 
influenced by their cognition of the appraisal process (Van Meter and Van Horn (1975).  
4.5 Conclusion 
This chapter has provided an analysis and discussion of research findings on the impact of the 
new PMS in Ghana’s public sector on the performance management processes of target setting, 
performance execution, performance appraisal, performance feedback and performance decision-
making concerning sanctions and rewards. There is a clear indication that in spite of the lack of 
strong cooperation among the PSC, FWSC and OHCS in the implementation of the new PMS, 
the introduction of the new PMS into the public sector has improved the performance 
management processes of target setting, appraisal and feedback. Employees also claimed to have 
improved in their performance execution since the introduction of the new PMS. Based on the 
analysis above, the improvement in the performance management processes could be attributed 
to the increasing involvement of bureaucratic heads (particularly Heads of departments and 
supervisors) within the public sector Ministries and autonomous agencies.  
 
Consistent and active leadership involvement has been influential in the improvement of the 
performance management process in the public organizations. This clearly indicates that 
leadership in public sector organizations have taken up their roles and responsibilities in 
enforcing the implementation of the new PMS in their organization. This finding is consistent 
with findings in previous studies that have established that leadership commitment and 
involvement is very critical to the success of performance management reforms.  
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Key challenges of the new PMS highlighted included the failure to link the new PMS to rewards 
and sanctions for job performance, weak supervision, inadequate understanding of the new 
appraisal instrument, and weak linkage of the PMS to employee development. The success of the 
new PMS may depend on resolving these challenges. Then next chapter presents policy 
recommendations, highlights the contributions of the study, and concludes the study. 
 
 
 
 
 
 
 
 
 
 
 
 
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CHAPTER FIVE 
SUMMARY, RECOMMENDATIONS AND CONCLUSION 
 
5.0 Introduction 
In 2015, a new performance management system (PMS) was introduced to be implemented by 
public sector organizations in Ghana. The principal actors mandated to collaborate to design, 
implement, monitor, and evaluate the new PMS were the Public Service Commission (PSC), Fair 
Wages and Salaries Commission (FWSC), and Office of the Head of Civil Service (OHCS). 
First, the study sought to find out the extent to which the three principal actors have been able to 
collaborate effectively in the design and implementation of the new PMS. Second, the study 
sought to investigate the impact of the new PMS on the performance management of employees 
with regards to the processes of job performance target setting, job execution, performance 
appraisal, performance feedback, and decision-making concerning rewards and sanctions in line 
with the nature of job performance. And, third, the study sought to explore the challenges of the 
new PMS. The study employed the principal-agent theory to guide the collection and analysis of 
relevant primary and secondary data. 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. Secondary data 
obtained from journal articles, books, policy documents, and legal enactments were also useful 
for the analysis. This concluding chapter of the study presents a summary of the key findings and 
some policy recommendations to improve the new PMS.  
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5.1 Summary of key findings 
This section summarizes the key findings concerning the impact of the new PMS on the 
performance management processes of employee job performance target setting, performance 
execution, performance appraisal, performance feedback, and performance decision-making of 
concerning rewards and sanctions. It also summarizes the key findings on the extent to which the 
three principal actors collaborated in the design and implementation of the new PMS. Finally, it 
summarizes the findings about the challenges of the new PMS.  
5.1.1 Collaboration among the Principal Agencies 
The study found that the overlapping and conflicting legal mandates of the principal actors with 
regards to initiating action on public sector pay policy and performance management has 
generated turf conflicts, rather than effective collaboration, among the PSC, FWSC and OHCS. 
Particularly the PSC and FWSC have been at loggerheads since the introduction of the new 
PMS. While all the employees of the PSC surveyed for the study claim that the PSC will be the 
most effective actor to design and implement the PMS for the public sector, the majority of the 
employees of the FWSC claimed that it is the FWSC that will be more effective in performing 
that function. While the majority of officials of the OHCS think that it is the PSC that will be 
more effective in the design and implementation of the PMS, there are some officials who also 
think that the OHSC itself or the FWSC are better placed to do a more effective job than the 
PSC. The key finding here was that the principal actors have not been able to cooperate 
effectively in the design and implementation of the new PMS. This has undermined the capacity 
of the actors to design a PMS that links employee performance to pay, rewards and sanctions.  
 
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5.1.2 Impact of the new PMS on Performance Targets Setting 
The study found that since the introduction of the new PMS there has been an increasing trend in 
the percentage of public sector employees who are given performance targets. In 2014, 69.8% of 
employees claimed to have been given performance targets as against 79.6% in 2015 and 84% in 
2016. The study found that the introduction of performance agreements for bureaucratic heads 
by the OHCS, and its consolidation by the new PMS, has helped to increase the participation of 
the bureaucratic heads in the setting of performance targets for public sector employees.  
5.1.3 Impact of the new PMS on Employee Job Execution 
The study also found that since the introduction of the new PMS, more public sector employees 
now claim to have executed and achieved their job performance targets than previously. In 2014, 
a year before the introduction of the new PMS, 67.6% of public sector employees surveyed 
indicated that they achieved their job target for 2014. In 2016, the number of employees 
surveyed who claimed to have achieved their targets jumped to 82.2%. Through interviews with 
bureaucratic heads, it was discovered that not all reported cases of job execution reflects the 
reality on the ground due to inadequate understanding of the appraisal form among some 
employees. However, the study found that the PSC which has been mandated to carry out annual 
performance audits in the public sector has not been able to do so to verify employee claims of 
job execution. Therefore, the PSC has inadequate knowledge of exactly how the new PMS has 
been implemented in the public sector let alone assess the rising claims of job execution.  
 
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5.1.4 Impact of the new PMS on Performance Assessment 
In relation to performance assessment, the new PMS requires that job performance of all public 
employees at all levels are assessed or evaluated against set targets at the end of the year. The 
study found that since the introduction of the new PMS, employee job performance is 
increasingly being assessed by bureaucratic heads. It was revealed from the survey conducted 
that from 2014 to 2016, the percentages of employees whose performance were assessed 
increased from 67.6% to 84.4%.Whether or not the employees have been able to achieve their 
targets, the increasing involvement of bureaucratic heads in the assessment of their employees is 
a positive sign that the new PMS is overcoming the problem of lack of leadership commitment to 
employee appraisal reported by some scholars in previous studies (Antwi, et al., 2008).  
5.1.5 Impact of the new PMS on Feedback on Job Performance 
The study sought to find out the impact of the new PMS on feedback by examining the extent to 
which respondents receive feedback on their job performance since the implementation of the 
new PMS in the public sector. The study found a positive trend in the percentage of respondents 
who receive feedback on job performance between 2014 and 2016. In 2014, 63.1% of the 
respondents indicated that they received feedback on their job performance, in 2015 and 2016, 
73.3% and 76.9% respondents respectively received feedback from various categories of 
bureaucratic heads and supervisors in the public sector. The provision of feedback by 
bureaucratic heads is likely to help improve the performance of employees. The study however 
also noted that the percentage of employees who received feedback from their bureaucratic heads 
was lower than the percentage of employees whose performance were appraised.   
 
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5.1.6 Impact of the new PMS on Decision-making about Rewards and Sanctions 
A key objective of the new PMS is to link the assessment of employee performance to employee 
pay and sanctions. The study found that the new PMS has not been able to achieve the objective 
of linking employee performance and productivity to pay. The study however identified that 
rewards for good performance occurred mainly at the level of the Chief Directors. However, like 
all other employees in the public sector, the salaries of Chief Directors are not linked to the pay 
system. The study found that the only form of reward available to employees was promotion 
when an employee is actually due for his or her promotion. Employees whose performance 
appraisal reports show unsatisfactory job performance could be denied their promotion. In the 
area of sanctions for poor performing employees, the study found that bureaucratic heads even in 
the principal agencies are reluctant to enforce severe sanctions such as dismissal.  
5.1.7 Challenges of the new PMS 
The study sought to explore the challenges hampering the effectiveness of the new PMS in 
public organizations. The study identified the following challenges the lack of rewards and 
incentives for good performing non-executives; lack of effective job supervision; inadequate 
understanding of the new appraisal instrument despite many trainings for organizations; and, 
failure to enforce severe sanctions for non-performance. 
5.2 Policy Recommendations 
In view of the findings discussed above, the study makes the following policy recommendations 
towards the effective and successful implementation of the new PMS in the public sector: 
 First, the PSC, OHCS, and FWSC must effectively collaborate to monitor and evaluate 
performance management practices in public organizations. Regular audit of performance 
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management practices in public organizations should be conducted to ensure compliance 
to the new PMS policy guidelines and also identify organizations which are not 
complying with the new performance management policy. Non-complying organizations 
should be sanctioned and best performing organizations should be rewarded.  
 
 Second, the bureaucratic heads and leadership of public sector agencies should sustain 
and increase their involvement in the performance management processes of target 
setting, assessment, and feedback for their employees to enhance organizational 
performance. The effective implementation of the performance agreement mechanisms at 
the level of the bureaucratic heads is likely to help increase the involvement of Chief 
Directors, Directors and Heads of departments in the new PMS.  
 
 Third, there is the need for the new PMS to be linked to pay, rewards and sanctions to 
motivate employees to perform their responsibilities above expectations. This means that 
there is the need for strong collaboration between the PSC, the FWSC and other 
stakeholders to design and implement a credible system of performance management that 
links employee performance to pay and sanctions. Bureaucratic heads should also be 
supported to undertake objective performance assessment of employees as a requirement 
for the creation of an equitable system where performance is linked to remuneration.  
5.3 Contributions of the Study to Theory, Policy and Literature 
The study has also contributed to the literature on the principal-agent theory. Findings from the 
study support the proposition of the principal-agent theory that the increasing involvement of 
bureaucratic heads or leaders in monitoring and evaluating the performance of their subordinates 
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(agents) is more likely to increase performance execution by the agents. The study could 
however not verify the extent to which the use of rewards and sanctions by principals impact on 
performance execution. This is due to the failure of the principal actors implementing the new 
PMS to systematically link employee performance reports to pay and sanctions. According to the 
principal-agent theory, rewards and sanctions are very important to ensure agents exhibit actions 
that are consistent with interests of the principal (O’Flynn 2007; Van Slyke, 2007; Waterman 
and Meier 1998). This is an area of research that can be pursued by other scholars in future if the 
principal actors succeed in linking the new PMS to employees pay.  
 
In addition, according to the principal-agent theory, the agents are likely to pursue their interests 
where principal fails to monitor agential performance (Kassim and Menon, 2003). The findings 
of the study appear to suggest that due to lack of monitoring by the PSC, the public sector 
employees in the Ministries and autonomous agencies have not fully complied with the policy 
guidelines of the new PMS. Failure of the principal actor to monitor the actions of implementing 
agencies contributes to information asymmetry problem which undermine the capacity of the 
principal to determine whether the actions of agents merits the rewards given, or whether the 
actions of the agents are aligned with interests of the principal (Waterman and Meier, 1998; 
O’Flynn, 2007; Van Slyke, 2007). This has been the situation with the PSC as they have not 
been able to determine which public sector organizations are complying with the policy 
guidelines of the new PMS due to the failure of the former to conducts performance audits. 
 
The study has also contributed to the literature on public sector performance management in 
Ghana. The study has clearly highlighted the importance and impact of active leadership role and 
involvement in promoting the effectiveness of performance management processes. The study 
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complements previous studies (Antwi et al., 2008) that highlighted the role of leadership 
involvement and commitment as a critical factor to the success of public sector reforms. This 
study supports the conclusion that leadership involvement and commitment is imperative for 
successful implementation of performance management reforms.  
 
Finally, by identifying key challenges inhibiting the effective implementation of the new PMS in 
public sector organizations, the study is also likely to contribute to future policy-making in the 
area of performance management in Ghana. At this juncture, it is important to repeat the view of 
a Director of the PSC about the potential importance of this study: “Currently we don’t actually 
know the specific organizations actually going by the new guidelines but I think a study like 
yours can help us know for now which organizations are implementing the new system.”  It is 
hoped that the study is actually used by the PSC and other relevant policy stakeholders.  
5.4 Conclusion 
Implementing a PMS in the public sector is of great importance to enhance accountability, 
transparency, employee performance and productivity. However, implementing a PMS in the 
public sector is an arduous task bound to meet some challenges. This calls for continuous 
attention and commitment from political and bureaucratic leaders of public organizations to 
ensure that performance management is effectively institutionalized in the public sector. This 
study has explored the impact and challenges of the new PMS in Ghana’s public sector. The 
findings of the study suggest that the new PMS has impacted positively on the performance 
management processes of employee performance target setting, performance assessment and 
performance feedback due to the increasing involvement of bureaucratic leaders in the processes. 
However, the new PMS has failed to link employee performance to pay and sanctions as 
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intended. In addition the new PMS is faced with some challenges which need to be tackled to 
ensure its effectiveness in promoting public sector productivity. The study concludes that 
although 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 actors, bureaucratic heads and all employees.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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APPENDIX 1 
 
 UNIVERSITY OF GHANA 
(All rights reserved) 
 DEPARTMENT OF PUBLIC ADMINISTRATION AND HEALTH 
SERVICES MANAGEMENT 
 
PERFORMANCE MANAGEMENT RESEARCH QUESTIONNAIRE 
 
Thank you for your time and help in answering this survey questionnaire. My name is Moses 
Atta. I am doing a study as part of the requirement for the award of the Master of Philosophy 
Public Administration degree at the University of Ghana. I seek to understand the impact and 
challenges of the performance management system. I humbly seek your honest responses to the 
questions below. Your participation in this study is absolutely voluntary and your survey 
responses will be strictly confidential in compliance with the ethical guidelines of the 
Universities of Ghana. The study will be used for only academic purposes. I am grateful for your 
support. 
 
SECTION A: BACKGROUND INFORMATION 
 
Q1: Gender: [ ]   Male [ ] Female 
 
Q2: Please what is your age group?  
 o 20–29 
o 30–39 
o 40–49 
o 50–59 
o 60 and above 
 
Q3: What is the highest level of education that you have completed?  
 o Higher National Diploma 
o Bachelor degree 
o Master degree 
o PhD degree 
o Other: (specify)…………………………………………………………………………. 
 
Q4: What is your current job position…………………………………………………………… 
 
Q5: What is the name of your public sector organization?……………………………… 
 
Q6: Which year did you join the Public Service?................................................................. 
 
Q7: Which year did you join this organization?..................................................... 
 
Q8. What is the range of your salary? 
a. Less than 1000 cedis  
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b. 1000-2499 cedis  
c. 2500-3999 cedis  
d. 4000-5500 cedis  
e. More than 5500 cedis  
f. Don’t remember / prefer not to respond  
 
SECTION B: PERFORMANCE MANAGEMENT SYSTEM 
 
Q9. Which of the following BEST DESCRIBES how you came to be employed in the public 
sector. Please select only ONE response for this question. 
 
 A family member or friend helped me to get employed. 
 I was employed after doing National Service / Attachment 
 Through a political party connection 
I did an exam/interview, and I did not have any personal or political connections 
 
 
Q10. Please indicate below (tick) whether or not a job performance target was set for you to 
achieve, and whether or not you were able to achieve your target, for the years indicated 
below. 
 
 I had a job performance target I achieved my job performance target 
 2014 2015 2016 2014 2015 2016 
Yes       
No       
 
 
Q11. Please indicate whether or not your job performance was assessed or evaluated, and 
whether or not you received feedback on your performance, for the years indicated below. 
 
 My job performance was assessed I received feedback on my job performance 
 2014 2015 2016 2014 2015 2016 
Yes       
No       
 
 
Q12. Who within your organization evaluated your job performance for the years 2014, 2015 
and 2016? (Please if you do not know say so) 
 
 Who within your organization evaluated your job performance? 
 2014 
 2015 
2016 
 
Q13. Has a job performance target been set for you to achieve for the year 2017? 
(a) Yes (b) No 
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Q14. Has a job performance target been set for the Chief Executive/Chief Director of 
t his organization to achieve for the year 2017? 
(a) Yes (b) No (c) I don’t know 
 
Q15. Which external public sector organization assessed the performance of your organization 
for the years 2014, 2015, and 2016? (If more than one external organization assessed the 
performance of your organization please write the names of all the organizations.) 
 
 
2014 
 
2015 
 
2016 
 
 
Q16. Which of the following organizations do you think would be more effective in designing 
and implementing a job performance system that can improve public sector productivity? 
 
Tick only one 
 organization 
 Public Services Commission 
 Fair Wages and Salaries Commission 
 Office of the Head of Civil Service 
 Office of the President 
 Ministry of Finance 
Controller and Accountant General Department 
 
Q17. Please give a brief reason for why you selected the organization in Q.16. 
……………..............………………………………………………………………………………
…………………………………………………………………………………………………… 
 
Q18. Have you ever been posted or transferred from one public service 
organization to another public service organization? (a) Yes (b) No 
 
Q19. If yes to Q18, which of the following do you think was the main reason for your 
posting/transfer? (Please tick only the one you believe to be the main reason) 
 
(a) It was used to build the administrative capacity of this organization  
(b) It was used to punish me for my political views against the government  
( c) It was used to help me meet a personal need (e.g. join family, education, health issues)  
(d) I don’t know/I prefer not to answer  
 
Q20. Which of the following do you think is mostly used to effect staff postings and transfers in 
the Public Service? (Please tick only the one you consider to be mostly used) 
 
(a) It is used to build the administrative capacity of the Ministries, Departments, and Agencies  
(b) It is used to punish Government political opponents  
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(c) It is used to punish employees who misconduct themselves  
(d) It is used to help employees of MMDAs to meet their personal needs (e.g. family/health)  
 
Q21. To what extent do you agree or disagree with the following statements regarding the 
public sector and the performance management system in your organization? 
 
 I strongly I Neutral I Agree I strongly 
 disagree disagree   Agree 
If I put in more effort at work, I will get a      
better performance evaluation score      
If I am paid higher salary, I will put in      
more effort at work      
A positive performance evaluation score      
could lead to my promotion      
A negative performance evaluation score      
could lead to my dismissal      
There are clear performance indicators to      
evaluate my job performance      
I understand the measures/indicators used      
to evaluate my job performance      
Promotion is largely based on one’s      
political party affiliation      
Promotion is largely based on increasing      
years of service and not on job      
performance evaluation scores      
Promotion is largely based on academic      
qualifications and not on job performance      
      
Promotion is largely based on personal      
connections and not on job performance      
      
Nominations for further training are often      
based on Performance Appraisal reports      
      
Job performance supervision is weak in this      
organization or Ministry      
      
I am satisfied with performance management      
system in my organization      
      
Every new Government should appoint the      
Chief Directors they want to work with      
      
 
Q22. Finally, in your view, what should be done to improve the performance management 
system?……………………………………………………………………………………………
……………………………………………………………………………………………………
…………………………………………………………………………………………………… 
 
THANK YOU FOR YOUR TIME AND COOPERATION!!
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APPENDIX 2 
 
List of public organizations trained by the Public Services Commission as at the time of the 
research (Source: provided by the PSC) 
1. Ghana Tourism Authority  
2. National Communication Authority 
3. Nursing and Midwifery Council (NMC) 
4. Legal Aid Scheme 
5. Ghana Statistical Service 
6. GRATIS 
7. Microfinance and Small Loans Center (MASLOC) 
8. Internal Audit Agency 
9. National Pensions Regulatory Authority 
10. Public Procurement Authority 
11. Ghana Aids Commission 
12. Ministry of Health (PPME) 
13. Water Resources Commission 
14. Information Services Department  
15. Pharmacy Council 
16. National Teaching Council/GES 
17. Food & Drugs Authority 
18. Ghana Meteorological Agency 
19. Financial Intelligence Center 
20. National Labour Commission 
21. National Youth Authority 
22. Ghana Library Authority 
23. National Population Council 
24. Ghana Education Service(HQ) 
25. Ghana Revenue Authority 
26. National Development Planning Commission (NDPC) 
27. Ministry of Foreign Affairs Research Division 
28. GES Greater Accra Regional Office 
29. GES Upper West Regional Office 
30. Traditional Medicine Practice Council 
 
 
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APPENDIX 3 
 
List of ‘Good Performing’ and ‘Poor Performing’ Organizations Identified by Owusu 
(2006; 2012) 
‘Good Performers’ 
Ghana Investment Promotion Council  
Internal Revenue Service  
Ministry of Finance  
Ministry of Food and Agriculture  
Ministry of Health  
Ministry of Interior  
Ministry of Local Government & Rural Development 
Ministry of Roads and Transport  
National Electoral Commission  
 
‘Poor Performers’ 
Audit Service  
Department of Community Development 
Department of Parks and Gardens 
Department of Social Welfare 
Ghana National Fire Service 
Information Service Department 
Ministry of Tourism 
Ministry of Works and Housing 
Ministry of Youth, Sports and Education 
Ministry of Environment and Science 
 
 
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