Performance Management, A New Strategy for Improving Public Sectors Effectiveness
Chapter One
Objectives of the study
The objectives of this study are to critically examine the veritable of performance management to the corporate performance and highlight the importance of performance management:
- To know how personal development influence corporate performance.
- To find out how compensation influences corporate performance.
- To identify how employee performances influence institution performance.
- To know the performance management system and how it helps in institutional development.e. Access the veritable of performance management, weakness, strength and support
- Finally, to present suggestions and recommendations to the organization on performance management scheme.
CHAPTER TWO
LITERATURE REVIEW
Introduction
In this chapter the researcher analyzed the existing literature authored by different writers. Literature review of an extensive nature was carried out to enable an understanding of the impact of performance management systems on employee performance.
Conceptual definitions
Armstrong (2004) defined performance Management as a means of getting better results from the whole organizations by understanding and managing within an agreed framework, performance of planned goals, standards and competence requirements.
Performance management
“Performance management is a process of designing and executing motivational strategies, interventions and drivers with on objective to transform the raw potential of human resource into performance. All human beings possess potential within themselves in a few or more functional areas. However, utilization and conversion of this potential into deliverable performances is often sub optimal due to a variety of reasons. Performance management acts as an agent in converting the potential into performance by removing the intermediate barriers as well as motivating the human resource” (Kandula, 2006).
The study of performance management has been popular within human resource management study. Performance is defined as deploying and managing the components of the causal model that lead to the timely attainment of stated objectives within constraints specific to the firm and to the situation (Lebas, 1995). At an organizational level of analysis it’s assumed that an organization that is performing well is one that is successfully attaining its objectives; in other words, one that is effectively implementing an appropriate strategy (Otley, 1999).
According to Otley (1999), a general performance management considers such problems: What are the key objectives that are central to the organization`s overall future success, and how does it go about evaluating its achievement for each of these objectives? What strategies and plans has the organization adopted and what are the processes and activities that it has decided will be required for it to successfully implement these? How does it assess and measure the performance of these activities? What level of performance does the organization need to achieve in each of the areas defined in the above two questions, and how does it go about setting appropriate performance targets for them? What rewards will managers (and other employee) gain by achieving these performance targets (or conversely, what penalties will they suffer by failing to achieving them)?
According to Fletcher (2001), who gave a completed and comprehensive HR related performance management definition which is “an approach to creating a shared vision of the purpose and aims of the organization, helping each individual employee understand and recognize their part in contributing to them, and in so doing manage and enhance the performance of both the individual; and the organization”. Similarly, performance management is management processes for ensuring employees are focusing on their work efforts in ways that contribute to achieving the organization’s mission. It consists of three phases: Setting expectations for employee performance, maintaining a dialogue between supervisors and employees to keep performance on track and measuring actual performance relative to performance expectation.
Performance management involves managing employee efforts, based on measured performance outcomes. Therefore determining what constitutes good performance and how the different aspects of high performance can be measured is critical to the design of an effective performance management process. And performance management effectiveness increase when there is ongoing feedback, behavior-based measures are used and preset goals and trained raters are employed (Lawler, 2003).
Employee performance
Employee performance defined as the record of outcomes achieved for each job function, during a specified period of time (Deadrick and Gardner’s, 1997).If viewed in this way performance is represented as a distribution of outcomes achieved and performance could be measured by using a variety of parameters which describe an employee’s paten of performance overtime.
Aguinis (2009) described that “the definition of performance does not include the results of an employee’s behavior, but only the behaviors themselves. Performance is about behavior or what employees do, not about what employees produce or the outcomes of their work”. Perceived employee performance represents the general belief of the employee about his behavior and contributions in the success of organization. Employee performance may be taken in the perspective of three factors which makes possible to perform better than others, determinants of performance may be such as “declarative knowledge”, “procedural knowledge” and “motivation” (McCloy et al., 1994).
Huselid (1995) have argued that the effectiveness will transfer on the behavior of employees as a result of human resource management, which also proves a positive association. Carlson et al. (2006) proposed five human resource management practices that affect performance which are setting competitive compensation level, training and development, performance appraisal, recruitment package, and maintaining morale.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter focuses on the methodology, which was used in the study. It shows how data was collected from various sources and the techniques by which data was analyzed.
Research design
Research design can be conceived as a mixed methods study employing a case study design to assess the impact of performance management systems on employee performance. Performance management system is the main independent variable upon which employee performance is dependent. The study took a convergent design under mixed methods where by qualitative and quantitative data were collected concurrently. The analysis of data was done separately and merged at the point of interpretation, to obtain a complete understanding of the research problem.
Population of the study
The study involved 120 respondents randomly selected from a total population of 150 employees of the University of Uyo. This sample size has been selected given the limited time and financial constraints of this study. By using a case study design findings were representative of the populations from which the sample was drawn but was expected to have limited external validity (Generalization).
These included 5 top management, 10 administrators, 80 teaching staff, and 25 non- teaching staff. Stratified sampling which involves identifying groups in the population was used.
Sampling Techniques
The study used random sampling. This technique involves identifying groups in the population and enables generalization with a margin of error that is statistically determinable. According to sample theory the size of our sample greatly influences our ability to generalize results back to the population we are investigating. According to Gold, David (1969), Sample theory centers on the central limit theorem, which briefly states that, as sample size N becomes large, the sampling distribution of the mean becomes approximately normal. Also, the sampling distribution will fall around the variable’s population mean. A sample of 120 employees was randomly selected to present the entire employees of University of Uyo which is estimated to be 150+. The theory can be shown below as follows illustrating the 95% confidence interval of 5%.
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
Introduction
The purpose of this study was to find out the impact of performance management systems on corporate performance. This chapter presents the findings of the study. The coverage will be on the analysis, presentation and evaluation of data taken from the sample population.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Introduction
The researcher has analyzed that performance management system has an impact on employee performance in the public sector effectiveness. When employees performs well the achievement of intended objectives in the institution matures quickly. Performance management systems provide valuable information for corporate management; their purpose is to align performance of every employee with corporate strategy and objectives.
Summary of the major findings
The impact of performance management systems on changing the way employee work
From the findings 46.7% of the respondents were of the opinion that PMS has changed the way they work through training in terms of imparting knowledge to meet challenges which arise at work. This is an indicator that PMS has a role to play at work, 36.7% were of the opinion that PMS has not changed the way they work while 16.6% of the respondents didn’t know whether PMS has impact on their work or not. This could be brought by lack of awareness, or how performance management process has been operated in the institution.
The impact performance management systems has on setting and achieving meaningful goals
From the findings, it was observed that PMS has helped employees to set and achieve meaningful goals,64.2% of the respondents believed that PMS has helped them while 14.2% were of the opinion that it has not helped them,21.6% didn’t know if it has helped them or not.
Aim of performance management system
One of the aims of PMS is to make and help the organization achieve its goals by making the work well done .From the findings, it was observed that 57.5 % of the respondents agreed PMS help them get work well done in the institution. 17.5 % disagreed that PMS helps them get the work well done in the institution, while 25% didn’t know whether PMS helps them get the work well done or not. PMS has components which facilitate the way of tackling issues in the work.
PMS on developing key competencies in the work
From the findings, 65% were of the opinion that PMS helps them develop key competencies in their work.PMS helps in developing capabilities, skills and knowledge needed in work. One of the key practices of PMS is to identify weak areas and try to suggest how to develop competencies that will enhance the work well done.
The role of performance management systems on good and poor performers
From the findings,53.3% were of the opinion that PMS differentiate poor from good performers in the institution. PMS deals with training, mentoring and developing employees for the better success of the organization or institution, so it does not end up identifying poor and good performers but also developing employees to better work performance.
Main purpose of the PMS in the institution
From the findings, the main purpose of the PMS in the institution is to help institution translate and put into outline the strategies that are likely to be employed by the institution for the purpose of attaining the desirable goals, also PMS helps to improve and articulate a shared understanding of institution objectives and priorities.
Compensation on employee performance
From the findings, the transparency of PMS allows identification, recognition and appreciation of employee performance to facilitate the achievement of the institutional goals. These have lead to the production of an employee who is committed and motivated to work.
Interpretation as one of the aspects of PMS.
From the findings, 86.7 % indicated that PMS do interpret the employee’s performance outcome. One of the important aspect of PMS is to interpret employee’s outcome, this is to allow employee be aware of what their employers are expecting from them and what they should attain at work.
Conclusion
The objectives of the study were met and the research questions were answered. From the study it was concluded that, there is a relationship between performance management system and employee performance. Performance management systems trigger the achievement of institution goals by influencing employee performance.
Performance management systems give directions on what to be done, the mode of doing it and give indicators for the outcomes. Performance management systems improve both quality and quantity of work done and bring all activities in line with institution or organization goals.
Performance management systems link the employee performance and success of the institution, as a result of developing employee’ skills and competences. Developing, planning and managing, and reviewing employee performance has been most important aspects for PMS.
Performance management system is not a tool that is not well known by many employees in higher learning institutions. The most known type of evaluation which is much also practiced in many of the institutions is performance appraisal which is done annually.
Many of the reasons institution report disappointing results from their PMS can be attributed to either implementation or execution, resulting in line managers and employees not taking ownership of the process and treating the PMS as a compliance activity rather than an opportunity to improve performance. When these issues are addressed, and the institution commits resources to the process, the institution can expect benefit.
Although from the observations, it has been revealed that PMS has a lot of benefit to employees and institution at large but it has not yet been utilized to maximum point of getting the benefit out of it.
Institutions implementing PMS must take a holistic approach remembering that PMS involves far more than performing an annual appraisal and expecting performance to improve as a result. As stated by Latham et al. (2005) and Ken Sheridan (2009, pers. comm. 19 September 2009), the cultural transformation to performance based can take years to achieve and requires the organizations to commit the necessary resources. A PMS can be a critical tool for the organization to achieve the transformation.
Recommendations
The institution must view PMS as holistically, encompassing all the elements such as institution culture. Without this capability or desire the PMS is likely to become a compliance activity rather than adding value to the organization and individual employees.
Sensitization to all employees must be taken into account to create awareness on the implications of performance management systems. PMS tool provides tangible benefits to the institutions, including ability to ensure development plans in line with “set objectives and ensure there is a direct correlation between the two thus providing employees with growth and opportunity within the institution.
Line managers should be trained properly to conduct the employee performance review as one of the elements of PMS. They also need to understand the importance of conducting employee performance review in long term perspective. They should be given motivation to carry out these human resource activities as well as make them aware about the consequences of not allowing the set guideline, which can be ensured by evaluating their performances on all managerial activities especially on human resource management.
There should be reasonable compensation for higher performers.PMS has a role to play in terms of rewarding higher performers but high performance should be proportional to its reward if we are to increase the morale of the employees.
There should be a clear methodology while conducting performance management systems to avoid misconception of it. Strategies should be clearly understood as well as expectation of the outcome.
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