In today’s competitive business
world, it is implicit that organisations can only compete with their rivals by
innovation. Organisations can only innovate by managing their human resources
well. Employees’ performance need to be evaluated for management to be
employee performance is a critical focus of human resource activity in any
institution. It is generally a norm that performance should be recognised as a
way of encouragement to the employees to continuously perform better than
expected. Performance appraisal is considered as a key component in the success
of organisations for most of the twentieth century (Rasch, 2004).
order to achieve this, management must put in place valid and accurate systems
or mechanisms such as performance appraisal processes to rate performance of
employees. Employee performance needs to be appraised so that management will
be informed about their employees. Unfortunately, the number of organisation
using an effective performance appraisal policy is limited (Yalcin, 2002).
Performance appraisal is a key in
human resource management function which is viewed as a subset of performance
management. Rao (2005) explains that performance appraisal is a method of
evaluating the behaviour of employees in the work place; this normally includes
both the quantitative and qualitative aspects of job performance. It helps to
identify and overcome the problems faced by the employees in their work (Mackey
and Johnson, 2000).
Despite the importance
of performance appraisal, it is however the most difficult and most distasteful
human resource management task for line managers to perform. Performance appraisal (PA) has been and still is the most
problematic human resource area and the most avoided or detested human resource
area for line managers and human resource departments alike (Dessler, 2011).
Nurse (2005); states that performance appraisal have the equal probability of
having a bad influence on the organisation as well as on employee performance. According to Mackey and Johnson (2000),
where the performance appraisal improves the work performance and employee
satisfaction, it can also demotivate employees and leaves a bad impression on
the good employees. Most of the employees do not approve of continuous
performance appraisal and also consider it as a burdensome activity (Anderson,
Performance Appraisal process and
employee performance issues have been studied across the globe in both public
and private sector. A lot of organisations in Ghana including the Cocoa
Marketing Company (Ghana) Limited, have set up performance appraisal systems
over the years to implement proficiency and improvement in job
Cocoa Marketing Company Ghana Limited
has experienced a swift surge in its workforce. From the point of view of an
external observer; one can hastily infer that such a large workforce requires
effective monitoring to ascertain individual performance. With the focus of
most businesses driving towards customer satisfaction, performance appraisal
has become an essential portion of business stability and its significance in
the control of business and effective decision making cannot be exaggerated.
Most Organisations place high importance on employee performance because it is
mostly employees that have direct contact with the business processes at both
operational and managerial levels. Grigoroudis and Siskos (2002) states that,
uninterrupted enhancement and client orientation is being adopted by most
companies as a means of augmenting excellent customer satisfaction.
The Ghana Cocoa Marketing Company was established in the year 1961 as a
main subsidiary of the parent company, Ghana Cocoa Board. The company is the world’s biggest and
largest seller and exporter of premium cocoa beans from its origin. Ghana Cocoa
Marketing Company (CMC) through its local and international affiliations and
networks maintain good control over both the domestic supply chain and the
international buying market. The company’s main functions include, among
others: the promotion, sale and delivery of Ghana’s Cocoa to both local cocoa
processors and the international traders and processors. They also support and
finance Ghana’s cocoa sector by facilitating the annual syndicated loan
arrangements from lending international banks.
The Company is committed to innovation in
its business processes and collaborates effectively with stakeholders to meet
the social, economic and environmental challenges of today’s business
environment. Cocoa Marketing Company (Ghana) maintains a superior quality
specification of its products thus requires specific technical skills of its
staff in order to keep them at the forefront of marketing in the international
arena. To this end, it has become important for the company to maintain
employees’ training, development and performance appraisal systems efficiently.
In order to meet specific goals and objectives of the company, policies have
been targeted towards providing for adequate incentives for value-added contributions
made by employees. Cocoa Marketing Company (Ghana) conducts performance
appraisals yearly in order to ensure the precise tracking of employee
Statement of problem
Cocoa Marketing Company (Ghana) observes the appraisal systems just as
their parent company Ghana Cocoa Board has done over the years. Since the establishment of Cocoa Marketing
Company (Ghana), there has been little academic study to establish the
influence of performance appraisal process on employee performance at Cocoa
Marketing Company (Ghana). There has been argument that the appraisal process
of Cocoa Marketing Company (Ghana) has an influence on the performance of
staff. While people are of the view that it has a positive view on employees,
others are of the opposite view. It is for this reason that this study sets out
to investigate on the influence the performance appraisal process has on
employees of Cocoa Marketing Company of Ghana. Findings
from this research work are targeted at helping the management of Cocoa
Marketing Company (Ghana) as well as other organisations to assess the
significance of performance appraisal on employee assessment and the different
ways through which enhancement can be established.
Objectives of the study
This study will be guided by the following
objectives. The study will;
the existing performance appraisal process at Cocoa Marketing Company (Ghana).
the benefits of performance appraisal process at Cocoa Marketing Company
the influence of performance appraisal on the performance of staff at Cocoa
Marketing Company (Ghana).
the challenges of Performance Appraisal process at Cocoa Marketing Company
recommendations on how to improve performance appraisal processes at Cocoa
Marketing Company (Ghana).
the existing performance appraisal process at Cocoa Marketing Company (Ghana)?
the benefits of the existing appraisal system to staff at Cocoa Marketing
the extent of influence the existing performance appraisal process has on
employee performance in Cocoa Marketing Company (Ghana)?
the challenges faced by the management and employees of Cocoa Marketing Company
(Ghana) in the implementation of the performance appraisal process?
the practical measures to improve the performance appraisal process at Cocoa
Marketing Company (Ghana)?
Significance of study
The study is relevant because it will present an all-inclusive model for
management to evaluate staff. Besides it
will help identify flaws and put in place mechanisms to help improve the system
and held employees build confidence in the process. The research will help management of public
sector and similar institutions to identify inefficiencies of their respective
appraisal processes and how they can improve on their system in order to be an
effective enhancement tool for employee performance.
Moreover, it could help the HR to use appraisal to
find loopholes and use findings to improve on future policies. Lastly, this study could help students doing
similar research to simplify and work on reviews and use it as a step for
Scope of the study
Due to the large geographical spread
of Cocoa Marketing Company (Ghana) staff and consequent cost, only staff in the
Accra branch of Cocoa Marketing Company (Ghana) will be involve in this study.
Again, only the junior staffs in the company will be use in this study.
Nevertheless, it is expected that since staff in the Cocoa Marketing Company
(Ghana) face almost the same problems concerning performance appraisal process
throughout the country; the findings from this location can be used for
The study is organised into five main chapters. Chapter one is the main
introductory chapter. It introduces the dissertation’s background of the study,
statement of problem, objectives of the study, research questions, significance
of study, scope of the study and organisation of the study.
Chapter two is the main literature reviewed for
the research. It consists of the relevant literature including key debates,
concepts and theories of the subject under study. Chapter three discusses the
methodology, target population and research sample, data collection instrument
and method of data collection and method of data analysis while Chapter four
covers findings and analysis of the dissertation. It discusses and analyses
data collected in a systematic way to answer the research questions and achieve
the aim of this study. Chapter five is the concluding part of the dissertation.
It summarises the dissertation conclusion, recommendation and contribution made
by the dissertation to existing knowledge.