An Assessment of Performance Appraisal System in Savings and Loans Companies in Ghana: Evidence from Kumasi Metropolis

This study seeks to assess the performance appraisal system in savings and loans companies in Kumasi Metropolis. In all 120 respondents were selected for the study from five Savings and Loans companies. Data was gathered through the use of questionnaires, and descriptive inferential statistics was used to analyze the data. This result revealed that a large proportion of the respondents are aware of performance policies. However only a few of them are knowledgeable about the policies hence employees’ exposure to the appraisal policies and procedures might be due to chance rather than the companies being proactive in educating their employees on the policies and procedures. The study also revealed that performance appraisal has a positive relationship with training and development. Hence, management commitment to the performance appraisal process will lead to a more than proportionate increase in employee training and development. Managers must therefore put in place measures that will ensure that employees are educated about the use of the performance appraisal system and be committed to performance appraisal to improve employee performance through training and development.