The Effects of Centrally Managed Wages and Salaries on the Performance of Employees’ of Tamale Teaching Hospital.

Abstract

The objective of this study was to evaluate the effects of centrally managed wages and salaries on the performance of employees of the health sector. The study used Tamale Teaching hospital as a case study. The research design adopted for this study was a descriptive cross-sectional study. Likert type questionnaire was developed based on the objectives of the study and administered to staff of Tamale Teaching Hospital. A convenient sampling method was used to select respondents. It was found that centrally managed wages and salaries influenced the productivity of employees. Generally, a significant number of respondents agreed that centrally managed wages and salaries influence the productivity of staff. Most respondents were of the view that decentralization of wages and salaries administration can be done but not completely and be linked to the central system and further suggested that ICT can be helpful to link the decentralized organisation to the centralized system. The study also recommended that the capacity of the various Departments and Budget Management Centres need to be built to enable them have some level of control to ensure that processing of wages and salaries can be expedited. To ensure performance is maximized, there is the need to also understand other factors that influence the employees’ performance apart from management of wages and salaries centrally. This way, effectiveness is brought in to all public sector management.