Implementation Of Performance Management System Research Articles

Implementation of Performance Management Systems in Small Medium and Micro Enterprises

Implementation of Performance Management Systems in Small Medium and Micro Enterprises

Does performance management system implementation reduce fragmentation in an Indonesian local government?

The paper examines whether Performance Management System (PMS) implementation in an Indonesian local government has reduced fragmentation in its administration. A qualitative case study is used, with data collected through in-depth interviews with the key actors, and also focus group discussions. The case site is a city that is implementing PMS while, at the same time, changing its mission from business-oriented growth to be focussed on outcome measures of village empowerment. The findings show that a PMS system was not fully implemented in the organisation. Despite this imperfect implementation, shared goals concerning developmental outcomes have overcome the issue of mission fragmentation, as they focus managers’ attention on organisational and national objectives. This has also led to better cooperation between units and departments/agencies within the city and with the village community. This study offers insights pertaining to PMS implementation and its influence on public administration fragmentation in a unique context.

Effects of performance management systems–strategy alignment on lecturers' engagement with knowledge transfer: A perspective from Spain

AbstractGrowing competition among higher education institutions (HEIs) explains their increasing interest in reinforcing strategies by incorporating knowledge transfer (KT) objectives into their strategic plans. However, this strategic formulation must be aligned with the implementation of performance management systems (PMSs) to properly achieve KT objectives. Thus, the aim of this paper is to examine whether aligning PMSs with KT strategic objectives improves KT performance while misalignment worsens it. To that end, PMSs are measured with respect to planning; cybernetic control; policies and procedures and reward and compensation elements. KT is specified as R&D contracts, extended patents, patents and licences. With a sample of 3812 Spanish university lecturers, we test the theoretical positive and negative effects of PMS–KT strategy alignment and misalignment on KT performance respectively. The results show not only that this alignment is effective for KT strategy implementation but also that misalignment has unintended effects on the achievement of long‐term KT objectives. Therefore, lecturers' behaviour is influenced by how closely KT strategy and PMSs are aligned. The findings are useful for managers and academics to develop PMSs that effectively contribute to the achievement of universities' strategic goals.

Proposed Design of Performance Management System for Business-to-Business Information and Communication Technology of State-Owned Enterprises in Indonesia

As the market competition for ICT products and services for businesses continues to increase, ICT B2B companies are expected to improve their performance in order to win market share. Design and implementation of Performance Management Systems (PMS) are essential components of management control systems for providing the best business solutions. This research proposes a modification of the Malcolm Baldrige Criteria for Performance Excellence (MBCfPE) and Knowledge-Based Performance Management System (KBPMS) frameworks for ICT B2B, given that MBCfPE is utilized for assessing performance excellence in SOEs. The design of the framework incorporates three perspectives: organizational results, internal process, and resource capabilities. According to the research, there are a total of x performance indicators. Using correlation analysis of historical performance indicators to determine the relationship between indicators. The weighting of the performance indicators is based on the scoring reference from MBCfPE. Therefore, the modification of KBPMS design with MBCfPE-based scoring provides an excellent depiction of the performance of B2B ICT at Indonesian SOEs.

Employees’ experiences of change management in the implementation of a performance management system

Orientation: Success in the implementation of a performance management system in an organisation is underpinned by the way a strategic change initiative is effectively managed across all organisational levels.Research purpose: This study explored how employees experienced change management in the implementation of a performance management system.Motivation for the study: Research on the impact of change management on employees in the implementation of performance management systems in organisations is limited, particularly in the South African context, which served as motivation for this study.Research approach, design and method: A qualitative study was employed using semi-structured interviews to collect data from nine participants, selected through purposive sampling. Data were analysed by thematic analysis.Main findings: The study confirmed that the implementation of organisational change affects both employees (cognitively, emotionally and somatically) and leaders (leadership style as defence against change anxiety). Therefore, the preparation, participation and empowerment of and communication with employees, over the entire change process value chain, are crucial for effective implementation of a performance management system.Practical/managerial implications: The study highlights factors that leadership teams and change managers need to consider when introducing change initiatives.Contribution/value-add: This study adds to the knowledge base about the impact of the management of change during the implementation of a performance management system. It thereby highlights the importance of working with participants’ lived, authentic change experiences towards ensuring that change management serves as an anchor and container during system implementation.

The influence of performance management systems on employee job satisfaction levels at a telecommunications company in South Africa

Orientation: Given the importance of employee job satisfaction to organisational success, job satisfaction is still a common element for any organisation to be successful.Research purpose: To determine to what extent employee perceptions of performance management impact job satisfaction.Motivation for the study: This study was motivated by the relative paucity of extant literature considering the relationship between employee job satisfaction and the implementation of performance management systems within telecommunications companies in South Africa.Research approach/design and method: A survey-based quantitative approach was employed to collect data from 300 employees in a telecommunications company in South Africa. The survey instrument comprised items measuring perceptions of performance management and the performance management system and an adapted Minnesota Satisfaction Questionnaire (MSQ) that was used to evaluate job satisfaction. Survey items were accompanied by a five-point Likert-type scale. A nonprobability convenience sampling method was adopted.Main findings: The results showed that perceived policy implementation and perceived fairness have a positive and significant effect on job satisfaction, with perceived fairness having a greater overall effect.Practical/managerial implications: The implementation of a performance management system should be predicated on fairness and all due efforts to underline and communicate the fairness of the system, coupled with consistent policy implementation, can improve employee job satisfaction.Contribution/value-add: This study more broadly illustrates the importance of perceived fairness and consistent policy application in the implementation of a performance management system to overall employee job satisfaction.

Performance management systems: Trade-off between implementation and strategy development

The aim of this study is to understand how performance management systems (PMS) affect the strategy development process. The research examines PMS implementation and evaluates how the implementation of PMS links measures with rewards, i.e., financial and non-financial, to influence strategy formation. This qualitative study is based on 74 semi-structured face-to-face in-depth interviews with board members, mid-level managers, and other employees in nine organizations. Theory-building is comprised of the transcribed and analyzed interviews using MAXQDA 12 software. Theory-testing, i.e., a verificatory stage, consisted of analyzing previously identified phenomena. Results suggest that PMS affects strategy development processes by influencing both employee relational and calculative trust in their superiors. It also indicates a direct behavioral effect on employee knowledge sharing and manager trust in their subordinates. As a result, this may determine the extent to which managers exploit shared knowledge while formulating a strategy. The research demonstrates there is a trade-off between PMS implementation and strategy development. A gap in the literature is filled by integrating relational and calculative trust with PMS implementation and showing how such changes in trust mediate knowledge sharing behavior and strategy development.

Cognitive biases in implementing a performance management system: behavioral strategy for supporting managers’ decision-making processes

PurposeThe purpose of this paper is twofold: to provide a clear picture on the cognitive biases affecting managers’ decision-making process of implementing a performance management system (PMS), and to identify managerial practices, measures and the key challenges to manage the cognitive biases in the corporate strategy.Design/methodology/approachSemi-structured interviews, based on theoretical milestones of performance management and cognitive psychology, gathered from 104 experienced professionals’ evaluations on the likelihood and impact of managers’ cognitive biases in PMS implementation, potential solutions as well as drivers and connected criticalities.FindingsRecurring cognitive biases, together with considerable impacts, emerged in the first, and most strategic, phases of the PMS implementation. The authors developed a roadmap to support corporate transition to integrate behavioral strategy into the PMS implementation aiming to achieve economically and efficiently sound performance.Research limitations/implicationsFrom the view of proper behavioral strategy affirmation in performance management literature, in a small way, the authors contribute to a desirable taxonomy of cognitive biases so differentiated decision-making scenarios may be built to compare results and draw new observations. Behavioral studies could transversally connect the cognitive biases of performance management to actors’ sociodemographic features and personality types. Practitioners may check biases affecting their organizations by means of the questionnaire and, consequently, adopt the framework illustrated to reduce them.Originality/valuePerformance management literature has constantly investigated positive and negative behavioral factors related to the PMS. This study, instead, makes a theoretical and methodological contribution to the PMS implementation as a decision-making process. The authors propose a theoretical framework that integrates cognitive psychology insights and applies measures to reduce biases.

The implementation of PMS in Italian universities: A longitudinal analysis

Starting from the 1990s, the New Public Management (NPM) has been the most inspiring principle of public sector reforms in Europe. The Higher Education (HE) sector is among the different fields in which the implementation of NPM reforms have been controversial. Based on the NPM framework, most HE reforms have focused on enhancing universities' accountability and transparency through performance measurement and performance management (Rabovsky, 2014; Rebora and Turri, 2011). The effects of the implementation of this "calculative technologies" is, however, still under investigated (Arnaboldi et al., 2016). Using documentary analysis as research methodology, this paper investigates implementation trajectories of performance management system (PMS) in Italian universities (Marchi, 2015). Specifically, this is a longitudinal documentary analysis and it offers the results from a content analysis of the Performance Plan (PP) and the Performance Report (PR) of 66 Italian Universities in two periods, i.e. 2016 and 2018. Furthermore, the longitudinal documentary analysis adopts the matrix from a previous study (Dal Molin et al., 2017), which matches the "quality of PMS" and the "expected use of PMS". The main objective of this study is to investigate if the "implementation gap" (Ongaro and Valotti, 2008) highlighted in previous studies (e.g. Dal Molin et al., 2017) has been fulfilled and in which elements it is possible to observe such improvement. As main result, the study shows that the implementation gap is still strongly present, from 2012 until now, and a formal compliance with the law still persists (Allini et al., 2020). There are areas of improvement related to external accountability and compliance, however, this is not supported by an internal use based on internal accountability (Tieghi et al., 2018).

Influence of Training and Development on Human Resources Performance in South Africa

Training involves the knowledge, skills and attitudes required by an individual to perform effectively in assigned tasks. The proper implementation of training and development programmes in any organization ultimately enhances employee performance. This study is aimed towards conceptualizing on the framework of training and development as a driver for performance of municipal council employees in South Africa. The study adopted a review of past empirical articles to build a conceptual framework of training and development as a driver for performance of municipal council employees in Republic of South Africa. The study revealed that training and development did have an influence on employee performance. The study also identified a performance management system linked to the personal development plan as an essential tool. The study recommended that the proper implementation of Performance Management Systems linked to appropriate individual performance development plans be implemented. The recommendations could be used in improving training and development and managing employee performance. The study further contributed to knowledge in implementing human resources development policies. It will be valuable in the upliftment of the social economy of South Africa. Keywords: Training and Development, Human Resources Development, Organizational Performance, Employee Performance.

Factors Influencing Implementation of Performance Management Programmes in South African Universities

Performance management is a concept that helps in the improvement of results by providing the means for individuals to perform well within an agreed framework of planned goals, standards and competency requirements. It includes developing an understanding about what needs to be achieved and how it must be achieved. Hence, the aim of this study was to review the factors influencing implementation of performance management programmes in South African Universities. This study was a conceptual study that examined the factors that influence successful implementation of performance management programmes, and classified the importance of a performance management system in South African Universities. An archival investigation was used to conduct the study through in-depth study of past literatures, such as textbooks, newspaper articles, company websites, journals and conference publications. This approach was chosen because it was the most effective method to carry out an informative review of the factors that influence successful implementation of performance management programmes, and classify the importance of a performance management system in South African Universities. In this study, the researchers reported that performance management implementation is influenced by a number of factors which include but not limited to shortage of staffs in the human resource department. In addition, human resource personnel require training on how performance management should be implemented. The study also reported that there is only a partial trust in the relationship between managers and the staffs. In other words, employees often resist the implementation of performance management and are either ready or educated about the performance management system. However, if properly adopted, the study suggested that effective implementation of performance management system will improve employees and organisational performance. Such policy must be discussed with all stakeholders so that they will not be caught unaware. Hence, performance management needs to be piloted before final implementation. Keywords: Organizational Performance, Performance Management, Business Policy, Stakeholders, Human Resources, Literature Review.

Lessons from mandated implementation of a performance management system

PurposeLean-inspired approaches and performance management systems are being implemented in public healthcare organisations internationally. However, the literature is inconclusive regarding the benefits of these management tools and there is a lack of knowledge regarding processes for large-scale implementation of these tools. This article aims to describe the implementation process and to better understand how this process influences the mandated performance management system.Design/methodology/approachThis research is based on a comparative case study of three healthcare organisations in Canada. Data consist documents, non-participant observation and semi-structured interviews with key actors (n = 30). Analysis is based on a sociotechnical approach to management tools that considers organisational context, and the tool's technical substrate, theory of action and managerial philosophy.FindingsResults show that despite a standardised national mandate, the tool as implemented varied between organisations in terms of technical substrate and managerial philosophy. These variations are explained by the flexibility of the technical substrate, the lack of clarity of the managerial philosophy, and some contextual elements. Successful implementation may rest upon high hybridization of the tool on these different dimensions. A precise and prescribed technical substrate is not sufficient to guarantee implementation of a managerial philosophy.Practical implicationsMandated implementation of management tools may be more successful if it is explicit on the managerial philosophy, the technical substrate and the link between the two, and if it provides some leeway to adapt both to the organisational context.Originality/valueThis is one of the few studies to describe and analyse the process involved in mandated large-scale implementation of performance management systems in public healthcare organisations.

Are Traditional Performance Reviews Outdated? An Empirical Analysis on Continuous, Real-Time Feedback in the Workplace

In order to deliver real-time feedback to support employee development and rapid innovation, many companies are replacing formal review-based performance management with systems that enable frequent and continuous employee evaluation. Real-time feedback applications enable supervisors and employees to give, seek, and receive competency-based feedback using their computers, smartphones, or other devices. In this study, we examine the role of one such real-time feedback application to understand its effects on employee performance appraisals. First, we seek better understanding of how workplace relationships affect employee feedback across managers, colleagues, and direct reports and find that feedback tends to be more critical when given by managers. What is even more important from an industry perspective is the role of preferential treatment and retaliation. Managers can be more transactional, but colleagues are not. We also highlight a series of gender observations: men rate women higher than men, and women rate men and women similar to how men rate men. We conclude by finding that positive real-time feedback has a stronger effect on an employee’s future ratings than negative feedback. Our findings have direct implications for the design and implementation of performance management systems and highlight how companies can use information systems to create an innovative human resource operation that delivers flexibility and agility.

Disablers in the Implementation of Performance Management System in the Zambian Public sector

Disablers in the Implementation of Performance Management System in the Zambian Public sector

Implementing traditional performance management in the innovative age: A new model for Botswana’s public sector

Background: Public statements on the deteriorating quality of public service in Botswana resulted in the implementation of performance management systems (PMS) in 1999 to restore the public’s confidence in the ability of the public service to deliver quality service. However, this has not yielded the required results as student performance and service provision continue to decline. Aim: This theoretical article is aimed at developing a performance management model that would replace the current one which has failed to motivate employees to improve performance. Setting: The study was located within the innovation theory and focused on the two biggest ministries in Botswana, namely, local government and the education ministry. Methods: The grounded theory was used to collect data through the mixed approach. Purposive sampling was used to select 80 employees, with each ministry providing 40 participants. Participants from the local government ministry work at headquarters and 30 participants of the education ministry also work at headquarters with the other 10 working as school managers. Results: Findings of the study revealed that the current model had the following challenges in motivating employees to improve performance: lack of incentives, amount of paperwork and complexity of forms, relevance of information on performance development plan forms, the five-point rating scale and the performance review meetings. Conclusion: The current model has failed to motivate employees because it lacks performance incentives and focuses on rating employees instead of improving employee performance through coaching. The Public Service Integrated PMS is proposed.

Frontline managers' implementation of the formal and informal performance management systems

PurposeThe implementation of performance management is the responsibility of managers; more importantly, a key part of a frontline manager's role is ensuring that frontline employees are performing by meeting organisational goals. Existing research has shown a lack of focus on the role of frontline managers in the implementation of performance management systems despite plenty of research on the separate topics of frontline managers and performance management. This article aims to understand how frontline managers connect the intended performance management system, through components and processes developed by the human resources department and higher levels of management, with their employees' performance.Design/methodology/approachThis study used a qualitative method, conducting semi-structured interviews with 57 participants from two Singapore public sector organisations to understand the interaction between the formal and informal performance management systems.FindingsThe authors found that frontline managers used the formal and informal performance management systems in the organisation to manage the demands of their role. Notably, the expectations that superiors and subordinates have heavily influences how the frontline managers choose to implement their performance management responsibilities.Originality/valueThe article uses systems theory to illustrate and explain the complex and dynamic nature of PM in practice through the FLM's implementation of the formal and informal PM systems. The primary contribution of the study is through demonstrating under what situations do frontline managers use the formal and informal performance systems in a complementary manner within the constraints placed on them.

Pengaruh Karakteristik Manajemen Kinerja Terhadap Kinerja Aparatur Pemerintah

The decline or low public confidence in government institutions is a fundamental problem in Indonesia as well as in developed countries. The decline of trust occurred among others due to the rampant corruption cases conducted by public officials and non-conformity of services provided to the expectations of the community. To overcome this it is necessary to make efforts by the government to restore public confidence in government institutions. Implementation of performance management system can be one of the efforts to improve the performance of the apparatus and restore public confidence in government institutions. An effective performance management system should be supported by the characteristics of a good performance management system. This study focuses on the characteristics of performance management system activities and structure of performance management systems. This research uses explanatory quantitative method with sample of 116 employees who work in the Agency of Financial and Development Supervision. The results of the analysis show that the performance management system activities and structure of performance management systems have a significant and positive effect on the performance of the apparatus.

Challenges in the Implementation of Performance Management System in Namibian Public Sector

Organizational performance of the management system helps top management achieve strategic business objectives and goals. It provides valid and useful information for making strategic decisions concerning employees. It includes information on employee’ performance, and organizational and supervisor’s expectations. Despite the benefits arising from the implementation of a well-designed performance management system, the public sector in Namibia still faces challenges when it comes to its realization. It is against this background that this study aimed to investigate the challenges faced by the public sector in the implementation of a performance management system in Namibia. The study used a qualitative research method and collected data through interviews. The sample consists of 42 participants. The data gathered was reviewed against the literature on the subject. The thematic data analysis technique was used to analyze the data, where core topics emerging from the discussion and interviews were grouped and analyzed. This research identifies a lack of training and proper orientation in performance management as primary challenges in adopting a performance management system in the public sector. The other contributing factors include inadequate monitoring and evaluation, the shortage of policies supporting the implementation process, poor communication in performance planning, performance reviews, poor feedback on performance and lack of employee involvement in the implementation of the performance management system. Hence, management should provide training and workshops to sensitize the employees on the aims and benefits of a performance management system and develop policies to enforce compliance in the public sector.

Factors Influencing Employee Perception on Performance Management System

Without the employee feedback, the developed performance management system (PMS) cannot be assumed as an effective system that able to stimulate their workers to achieve the company’s objectives and targets. This paper aims to identify the implementation of performance management system in the company, to analyze the factors that affect employee perception on PMS, and subsequently to determine the relationship between factors influencing employee perception and PMS. 119 questionnaires were distributed to employees in Company X. The response rate is 43% of the total sample. The finding shows that the respondents strongly agreed on the implemented PMS in the company. Also, employee participation was the highest factor that influencing employee perception of PMS, followed by employee knowledge and skills, and rating techniques. Overall, each of the factors had a significant relationship with the PMS. This study may assist managers in improving their communication with employees on their work performance. Therefore, this will increase the employee understanding of how they have been assessed and feel that the process is fair. Later, this will ensure a positive employee perception of the implemented PMS.

PERFORMANCE MANAGEMENT SYSTEM IN SECONDARY SCHOOLS IN MAURITIUS: DOES IT SERVE ITS PURPOSE?

This paper examined the implementation of the performance management system (PMS) in state secondary schools. It investigated about the motives for the implementation in schools and its effectiveness. A structured questionnaire was used to collect data from a sample size of 100 educators from 5 state secondary schools. Individual interviews were also carried out with 5 school principals to gather information about the implementation of PMS in state secondary schools. The mixed method approach highlighted the motives for the introduction of PMS in schools and the perceptions of the participants of the effectiveness of its implementation. This study reveals that educators do not have a positive view about PMS to improving their performance in teaching. However, principals have rather positive attitudes to the implementation of PMS. The findings have proved to be mixed. For example, though educators approved the implementation of this tool, yet they are stressed and they are frustrated. It hampers collaborative work and the sharing of good practice among educators. This affects the school effectiveness. It is recommended that there is an urgent need to review the process to ensure that the principles of PMS are taken into consideration for it to be successfully implemented in schools in Mauritius. Article visualizations: