Pay for Performance: Evaluating Performance Appraisal and Merit Pay Increase in the University of Education, Winneba.

Abstract

The study assessed the effectiveness of the performance appraisal scheme as a compensation tool in granting merit pay increase (annual increment). The Expectation Theory Model was used to understand the trend in high performance rating. It appeared that the performance appraisal system is unable to discriminate effectively among different levels of performance and that merit award (annual increment) to staff was automatic. The subject of rewarding staff in the University should be given greater attention.