The focus of this research is in the area of performance-appraisals (PA) systems. Performance-appraisal is a key component of Human Resource Management (HRM) in every organization and one of the most vital responsibilities for human-resources and line managers/supervisors. A well-designed and implemented formal PA system can serve many valuable purposes in the manager-subordinate relationship (Longenecker et al., 1988). However, it is often perceived as a cumbersome and destructive procedure by both managers and subordinates, and most subordinates dread them almost as much as managers hate conducting them (Lee, 1996).
This study aimed at reviewing the effectiveness of the performance-appraisal system at Wenchi Methodist Hospital and examine how the managers and the subordinates affect the effectiveness of the system. The research design for this thesis is of an explanatory nature with some descriptive elements. The study adopted a survey strategy and used self-administered questionnaire to gather data from managers and employees of the hospital. The sample for the study included 30 supervisors and 30 employees. The study findings revealed several potential impediments that clearly limit the effectiveness of the system, primarily because the managers’ and subordinates’ attitude towards the PA system.