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SURNAME:
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Katjirua
Date:……………………..
FIRST NAME:
Erica Vitjitua
STUDENT NUMBER:
20013582
COURSE TITLE:
Masters of Leadership & Change Management /Cohort9
TOPIC:
assessment of the implementation of performance
management system on organisation performance at
National Housing Enterprises, Namibia.
SUPERVISOR:
Professor Martin Dandira
ASSIGNMENT DUE DATE:
1.
BACKGROUND TO THE STUDY
Most businesses are increasingly becoming interested in how their organisations’
performance can be improved thorugh effective implementation of performance
management systems. Organisational performance involves three main areas which are
financial performance, market performance and shareholder value. As observed by Derrick, J
(2020). financial performance of an organisation which shows whether or not a company is
achieving its financial objectives is , inter alia, linked to how well a company is implementing
its performance management system. The importance of a well implemented performance
management system to organisational performance is shown by Walmart International, the
world ‘s top revenue generating company. According to Briggs (2021) Walmart
International’s effective performace management system implementation , is one among
other factors responsible for creating a workforce that has made it to be the world’s top
revenue generating company, with (US) Revenue: $524 billion in 2021.
In addition, Derrick, J (2020).opines that market performance, another core area for
organisation performance can be improved through effective implementation of a
performance management system. A study by Bratton and Gold (2020) indicates that
Coca-Cola Company managed to had a 20.8% global market share of beverages in 2019.
One factor that has made Coke enjoy such a large market share has been its effective
implementation of basic steps of performance management system which are from planning
to coaching and feedback.
Equally, Rothman(2019) observes that a well implemted performance management system
helps to improve shareholder value performance. Shareholder value performance looks at
how much a company enriches its shareholders This means, a poorly implemented
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performance management system, affects its financial performance, which in turn impacts on
its organiationa performance. Connected to this, Bratton and Gold (2020) reveal that KFC’s
360º Feedback performance management system has enabled it to achieve its objective of
creating value for shareholders. What this means is that KFC‘s organisational performance is
improved through this 360º Feedback performance management system tool. Accenture a
multinational company with over 300 000 employees also successfully implemented
performance management system which has impacted positively on organisational
performance (Zhang 2016). According Mustafa (2016) organisations that have properly
implemented performance management systems have more often been rewarded with
improved organisation performance. The (NHE) was established as a state enterprise for the
building of houses in Namibia. Like most organisations, the NHE adopted a performance
management system to enhance its organisational performance. This study therefore, seeks
to assess the implementation of performance management system on organisational
performance at National Housing Enterprises, Namibia.
2. STATEMENT OF THE PROBLEM
The NHE was established to provide affordable housing to Namibia nationals. Organisational
performance for this enterprise would be measured through the achievement of three critical
objectives of its strategic plan, which are market performance, financial performance and
shareholder value performance. The market performance objective entails NHE to build 1250
houses per year (Maria Hamutenya and Andrew Kathindi 2021). The financial performance
objective requires NHE to grow its loan book and thus improve its cash flow. Finally, the
shareholder value performance objective seeks to make NHE self-sustainable by not
depending on government funding for its operation. A performance management system was
implemented to help the organisation achieve these objectives.
However organisation performance at NHE has shown that this State Owned Enterprise has
not been able to achieve its objectives. According The New Era (2020) the NHE only
managed to build 335 houses in its financial year 2019-2020 as opposed to the envisaged
1250 houses. Equally the Observer (2022) revealed that NHE had failed to grow its loan
book. In addition, Mbathera, (2021) reported that NHE was experiencing financial
challenges as shown by its inability to provide audited financial statements in the past four
years. Thus NHE’s failure to achieve its critical objectives is an indication that its organisation
performance has not been favourable.
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This observation of an unfavourable organisation performance at NHE, despite the
implementation of performance management system, brought a concern to the researcher.
Thus the researcher seeks to assess the implementation of performance management
system on organisation performance at NHE. This will shed light on whether the manner in
which the PMS is being implemented at NHE has contributed towards challenges of
organisational performance or not.
3. OBJECTIVES OF THE STUDY
3.1 The main objective
The main objective of the study is to assess the impact of the performance management
system on organisation performance, identify challenges and offer recommendations.
3.2 Sub-objectives
To assess employees’ perception on the implementation of the performance management
system of the National Housing Enterprise of Namibia.
To examine how the implementation process of performance management system has
affected organisation performance at NHE
To design best practices for improving implementation of the performance management
system at National Housing Enterprise.
4. THE RESEARCH QUESTIONS
4.1
Main research question
To what extent does the performance management system influence organisations
performance?
4.2
Sub questions
What are the perceptions of employees on the implementation of the performance
management system for National Housing Enterprise?
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How has the manner of implementing performance management system at NHE affected
organisational performance?
What are the ways in which the implementation of performance management system at
National Housing Enterprise can be improved?
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LITERATURE REVIEW
Performance management system is mainly aimed at improving the performance of
individual employees so that organisational performance is enhanced. However as opined by
Armstrong (2019) most employees tend to have incorrect views about performance
management. This is echoed by Botha, Blom & Modipane (2019) who posit that poor
implementation of PMS often makes employees feel that PMS is a waste of resources. In
addition to this, Derrick, J (2020). notes that employees might feel that PMS is a
management program whereby management use it to find faults with employees. At the
same time Armstrong (2019) indicates that in cases where management do not involve
employees in the formulation of PMS objectives and activities employees and up resenting
the program. They end up feeling that it has no impact on their personal performance but is
all about enhancing the interests of management whenever individual or team performance
goals are achieved. At the same time, Gungor (2016) notes that whenever PMS is poorly
implemented employees end up viewing it as a trial program in which their performance is
criticised. They fail to view it as an improvement process. Equally, Bratton and Gold (2020)
observe that employees tend to feel that PMS are not important because they feel that no
matter how good an employee performs subjective biases by management always override
the individual employee’s performance. Thus a study by Wachiuri (2018) indicated that
employees in most traditional societies tend to view PMS as a western management tool that
does not fit in African traditional systems where the spirit of “Ubuntu” is viewed as important,
whereby collective efforts are meant to supersede individual efforts. Thus African employees
in African traditional societies view PMS as a western tool meant to alienate individuals at the
workplaces by creating competition among employees. Equally Derrick (2020) reveal that
employees in traditional societies feel that PMS goes against most cultures , because it gives
management teams which may be young to supervise and evaluate performances of senior
elderly people who might be employed in ranks lower than them.
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According to Cuschieri (2018) effective implementation of PMS that leads to improved
organisational performance predominantly lies with management teams. In light of this
(Ramanuj 2017) posits that management must be able to clearly define and articulate
organisational and employee objectives to ensure effective implementation of PMS.
Furthermore, Castleberry & Nolen (2018) observe that management ought to collaborate with
employees in the designing of steps to achieve employee and organisational objectives. At
the same time Cuschieri (2018) posits that management teams should ensure that the
designed procedures are practiced and result oriented. Equally, Mustafa (2016) emphasises
on importance of communication between management teams and employees during the
implementation of PMS. This is supported by Armstrong (2019). who argues that the reason
why implementation of most PMS end up in yielding little success is because of poor
communication between managers and employees on organisational goals and individual
goals. Castleberry & Nolen (2018) also opine that management teams should be able to
communicate with employees of what is expected of them and their actual performance and
at the same time relaying proper feedback to subordinates. More important , Derrick (2020
argues that mangers should be able to cultivate organisational culture within employees that
makes them view the implementation of PMS more positively so that individual employees’
performance goals are achieved which ultimately leads to improved organisational
performance. Equally Agarwal (2011) opines that giving employees relevant and timeous
feedback enhances the individual employees to make adjustments that are needed for them
to achieve performance goals. At the same time Mustafa (2016) insists that PMS
implementation can be improved when management teams deliver objective and supportive
feedback with a spirit of respect. It is also important for management to gather information
from different sources and document all activities carried out during implementation of PMS
while offering merit based rewards. In addition to this Derrick (2020 opines that management
teams ought to be adequately trained so that they are able to implement PMS more
effectively. Finally Agarwal (2011) argues that management should ensure total
involvement of all employees during the PMS implementation process if individual employee
performance is to be value-added so that organisational performance is improved.
.
Theoretical Framework
This study will be guided by Mabey’s Performance Management Cycle. According to
Agarwal (2011) this model consists of, setting of objectives, measuring of performance,
feedback of results, rewards (based on outcomes) and finally amendments to objectives and
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activities. Thus Mabey stated that effective implementation of steps in this PMC model would
improve organisation performance.
Adapted from Project Guru (2011)
According to Castleberry & Nolen (2018) setting of objectives is an important aspect of the
PMS cycle. These objectives that are set for employees are to be aligned with strategic
objectives of the organisation. Hence through this lens the researcher will be able to
ascertain how the setting of objectives for employees is impacting on organisation
performance. The next part of the PMS cycle is measurement of performance. Mustafa
(2016) opines that measurement of performance involves checking whether employees are
achieving the objectives which were collaborately set by leadership and employees. Thus by
using this model as a lens to this study the researcher will be able to find out how the
measurement of performance of employees at NHE is impacting on the overall organisation
performance. Furthermore, Mabey’s PMS model emphasises on importance of feedback to
employees once the measurement of performance has been done (Ramanuj 2017).
Feedback involves employees presenting their views on how well they performed while
management team shows the employees on how well they met their goals (Pulakos, Hanson,
and Arad & Moye 2015). This is also a time when solutions to problems are discussed while
future development opportunities are discussed. Again, through the lens of Mabey’s model
the researcher will be able to find out how NHE management‘s feedback process is
impacting on the performance of their organisation. The next stage after feedback, is
rewards. According to Agarwal (2011) this stage is crucial to performance management and
management should not overlook it while implementing performance management systems.
These rewards should be merit based (Pulakos, Hanson, Arad & Moye 2015). Thus this
researcher will use Mabey’s PMS cycle to find out how the rewarding of employees is
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affecting NHE‘s organisation performance. The final stage of Mabey’s PMS cycle is
amendment of objectives and activities. This a stage whereby management in consultation
with management team redefine their objectives and restructure activities meant for their
attainment. Finally, by using Mabey’s PMS model as lens to this study the researcher will be
able to find out how the process of amending objectives and restructuring activities at NHE is
affecting the organisation’s performance.
6. PROPOSED RESEARCH METHODOLOGY
6.1 Research Philosophy
This study will follow an Interpretivist philosophy because this philosophy, requires a study to
go deep into people’s behaviours so as to obtain a better understanding of their feelings and
emotions (Creswell and Creswell 2017). The Interpretivist philosophy will be apt for this study
because assessing how the PMS at NHE is being implemented requires collecting of in-depth
data on the feelings and emotions of the employees at this organisation.
6.2 Research Approach
The proposed study will adopt a qualitative research approach. The reasons for adopting this
approach is that it reduces the risks of getting negative reactions from participants due to
ineffective communication, it produces faster results and it also enables collection of genuine
ideas from appropriate socioeconomics demographics (Leedy & Ormrod 2015).
6.3 Research Design
The researcher is going to use the exploratory research design in this study. According to
Leedy & Ormrod (2015) the exploratory research is used to investigate a problem that has not
been studied or thoroughly investigated in the past and does not offer conclusive answers to
the problem. This research design will therefore be most suitable in this study because there
is not much research that has been done on how NHE has been implementing its PMS.
6.4 Population
In research investigations population refers to the total number of elements the researcher is
interested in investigating (Creswell, 2017). The population for the study is 125.
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6.5 Sample Size
Purposive sampling will be used to select twelve (12) participants, which are four managers
and eight operational employees. The criteria for purpose sampling will be on work experience
at NHE and expertise on implementation of PMS.
6.6 Data collection
Interviews with the research participants will be used to obtain in depth data, (Castleberry &
Nolen 2018).These interviews will be done over the cell phone so as to comply with Covid
health protocols.
6.7 Data Analysis
The ATLAS. It application software, will be used to analyse data. This software will be
suitable because it will help to break down, reorganise and regroup data according to
themes, categories and areas of interest to this study. ATLAS.ti will also enhance
consistency on how data will be handled throughout the research, (Ngalande and Mkwinda
2016)
6.8 Trustworthiness, credibility, and confirmability
To ensure credibility triangulation and member check will be used. In order to ensure
transferability, the researcher’s bias will not be used to skew the interpretation of the
participant’s responses.
6.9 Ethical considerations
The researcher will ensure adherence to ethical principles of disclosure, voluntary and
harmlessness to respondents, confidentiality, and professionalism as advocated by (Leedy &
Ormrod 2015). Participants will be assured that the information which they will provide will be
kept in strict confidence.
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6.10 Limitations
Difficulties may be experienced in accessing useful information from the participants, as they
might be unwilling to provide some data that might be pertinent to the study. The researcher
will arrange zoom meetings to counter the fear of interaction which is due to Covid pandemic.
.6.11 Assumption
The assumption of the study is that SMART organisational objectives, clear performance
plans, effective monitoring and evaluation and fair reward systems motivates employees to
meet organisation’s performance objectives.
6.12 SIGNIFICANCE OF THE STUDY
The findings of the proposed study will help managers in examining and finding solutions to
gaps and challenges identified during and after the employee performance evaluation process.
The findings, recommendations will be beneficial to other organisations looking for ways to
improve their performance management systems.
References
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Albright, D. (2018
Botha, P. A., Blom, T., & Modipane, P. I. (2019). Employees’ perceived effectiveness of the
performance management system at a North-West provincial government
Bratton J and Gold J (2020). Human Resources Management, Theory and Practice, Sage
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Castleberry, A., & Nolen, A. (2018). Thematic analysis of qualitative research data: is it as
easy as it sounds? Currents of the impact of performance management on employee and
organization performance-evidence from selected private organizations in
Tanzania. International Journal of Human Resource Studies, 8(3), 199217-199217.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed
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Cuschieri, R. (2018). Breaking barriers through managing change: an empirical holistic change
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