Divisional Performance Evaluation Tools Employed by Indigenous Ghanaian Banks

Abstract

Few studies have been undertaken on performance measures in service institutions, especially in developing countries like Ghana.  There exists no empirical research on how local Ghanaian banks evaluate the performance of their branches and of the branch managers.  The purpose of this study is to identify the performances measures used by local Ghanaian banks to measure the performance of their branches. Financial and non-financial statistics were collected from indigenous Ghanaian banks.  Statistical tools such as mean, variances and standard deviations, tables and graphs are used to analyze responses obtained in arriving at the study’s findings.  Ranking techniques were also employed in accessing the relative importance of the various financial and non-financial performance measures.  The research findings indicated that local Ghanaian banks are employing both financial and non-financial performance measures in accessing performance.  However, most of them considered the financial performance measures as more important than non-financial performance measures when evaluating the performance of their branches.

Keywords: Division, performance measurement, Ghana, Banks.