INFLUENCE OF PERFORMANCE MANAGEMENT ON EMPLOYEE ENGAGEMENT: THE CASE OF SMALL AND MEDIUM ENTERPRISES IN KUMASI METROPOLIS, GHANA

Abstract

ABSTRACT This study examines the influence of performance management on employee engagement: the case of Small and Medium Enterprises in Kumasi Metropolis, Ghana. The objectives of this study were to investigate the respondents' assessment of performance management, to assess the impact of Performance goal setting on employee engagement among the SMEs in Kumasi, to investigate the influence of performance monitoring on employee engagement among SMEs in Kumasi and lately to analyses the effect of performance appraisal on employee engagement among SMEs in Kumasi. The sampling techniques used in this research was sample random sampling technique. The population of the study were SMEs, and the sample size were 286 employees of SMEs. This is the primary research and data has been collected through questionnaire and for analysis purpose SPSS software have been used. The study found out that the majority of the respondents indicated that the net profit of the organization last year was between 10000-15000GH, the impact of Performance agreement/goal setting on the employee engagement among the SMEs in Kumasi. I know my goals in the organization as an employee were ranked first with (M:3.4354, SD:1.2824) while I have the needed resources to meet my performance goals was ranked second with (M:3.1487, SD:1.5321). I understand the role of the goal setting in my performance was ranked third with (M:3.0245, SD:0.9852). The study recommend the SME managers should emphasize investing in strategies that will promote employee well-being and provide safe working conditions to realize the benefits of having an engaged workforce to enhance productivity and SME managers, through HR policy crafting and implementation, are in a good position to positively influence the employee engagement levels in the organisation, to increase productivity.