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The benefit of performance management is to have value for money and make local authorities more responsive to the needs of the grassroots. Therefore, the study addresses the perceived challenges which have been taken-for-granted in institutionalising performance culture at the local level in the context of sub-Sharan Africa. The purpose of this research is to investigate the progress and challenges affecting the institutionalisation of performance management in local government authorities to understand how these impediments impacts on performance culture in local governance. Using two major secondary data sources from Local Government Service, the study analyzes the contents of four key performance areas and the performance rating of local government authorities in Ghana . The study finds evidence to support that performance management may be an alternative tool to enhance the performance of local authorities. However , insufficient resource allocation, the absence of performance improvement programs and involvement of employees remains a challenge.

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