Using performance management techniques to enhance employee and organisational effectiveness

Abstract

This project is to explore the performance management techniques that are used by organisations to enhance organisational and employee effectiveness. The organisation chosen for this research falls into the small to medium enterprise category and is a consulting firm. This project attempts to define performance management, differentiates performance management systems and performance appraisal, and explains the three approaches to performance management.

Further to this, it explores the various motivation theories that are associated with performance management. Performance and rewards are closely correlated; therefore, rewards management systems are also discussed in this project and how it contributes toward organisational and employee effectiveness. The various characteristics of performance management and the performance management process are outlined and how it affects employees and the organisation as a whole.

Finally an attempt is made to validate the link between human resources, strategy and performance management.

Both quantitative and qualitative approaches are used in this project to collect data and a total of 64 respondents (which constitute 100%) took part in the quantitative study. For the qualitative study, a total of 5 personnel from the senior management team were interviewed. The data collected were uploaded into SPSS and analysed. The results from the analysis were used to test the null and alternative hypotheses. It has been specifically requested by the participating consulting firm not to mention the name of the organisation and therefore, the researcher has refrained from doing so.

The results suggested that the main aim of the performance management system is to achieve organisational goals and having a clear, concise and well defined job descriptions play a crucial role in employee performance. Furthermore, it was found that the organisational mission and vision play an important role in the development and implementation of performance management policies and practices in an organisation, which must be specific, measurable, achievable, realistic and time bound.

However, the performance management process itself should be an ongoing process. In addition to this, motivation was found to be an important factor in employee performance; however, while rewards motivates employees the disciplinary procedures seem to demotivate employees and reduces employee performance. Clear links between performance management, HR, employees and organisational strategy were identified and these elements in an organisation are intertwined to attain organisational effectiveness.