An Investigation into the Impact of Performance Management Systems on Employee Productivity: The Case Study of Information and Communication Technologies (ICT) Companies in Harare, Zimbabwe

Nobuhle Ziyaminyana ,Oliver Pwaka

doi:10.7176/ejbm/11-3-04

Abstract

The study investigated the impact of performance management systems on employee productivity using a case study of information and communication technologies (ICT) companies in Harare. The major motivation to conduct the study was because of low employee productivity. The ICT sector, like many other sectors, is faced with a myriad of challenges including a high degree of competition in the market due to the entrance of new players in a dynamic business environment. The objectives of the study were to determine various impacts on productivity and make recommendations for appropriate performance management systems for the organisations. The study adopted a descriptive research design for the collection of primary data. Stratified sampling was adopted to ten organisations for the study. A sample of 312 respondents was selected from 1428 employees. The study concluded that performance appraisal did have an impact on employee productivity. Based on the conclusions, there is a need for the management and the governing committees to explain the value and importance of performance appraisal as well as management expectations from employees. This helps employees to have a buy-in from conception to completion; hence it would be natural for employees to adopt the system, as they will be part and parcel to the system. It is suggested that the Human Resources departments foster better working relationships with employees in order to educate and update them on requirements; hence general employee productivity will be improved. Keywords : employee productivity; employee relationships; ICT sector. DOI : 10.7176/EJBM/11-3-04

Highlights

The competitive business environment had been going through various changes that would need organisations to constantly reposition themselves through the reviews of performance management systems
Descriptive research was used for the study because of its ability to explore more in detail about employee productivity and performance management systems
5.4 Conclusions The conclusions drawn from the study were as follows: 5.4.1 Importance of performance appraisal in relation to employee productivity Based on the findings from the survey, the study concluded that performance appraisal did have much of an impact on the improvement of employee productivity, to a larger extent

Summary

Introduction

The competitive business environment had been going through various changes that would need organisations to constantly reposition themselves through the reviews of performance management systems. 1.2 The background to the problem Increased competition in the global operating business environment had been forcing organisations to restrategize and re-think so as to maintain a competitive advantage in the business arena. Organisations in various sectors had been facing a myriad of challenges including a high degree of competition in the market due to the entrance of new players and the dynamic business environment (Jacobsen & Andersen, 2014). This was noted by Watkins and Leigh (2012), who opine that the market scenario in many business sectors has been characterised by uncertainty, ambiguity, complexity and volatility. Performance management systems had been viewed as a catalyst for increasing employees’ productivity in organisations (Jagoda, Lonseth & Lonseth, 2013)

Objectives

Methods

Results

Conclusion