Employees’ perceived effectiveness of the performance management system at a North-West provincial government department

Abstract

Orientation: The implementation of the performance management system (PMS) within a specific North-West provincial government department appears to be ineffective. Research purpose: To measure employees’ perceived effectiveness of the PMS. Motivation for the study: Employees’ experiences of employee PMSs may be different from that which it intends. The motivation for this study was to quantify employees’ perceptions of PMS effectiveness. Research approach/design and method: The researchers used a quantitative research approach and collected data using self-administered e-mail questionnaires on a total population of 247 employees at a North-West provincial government department. Main findings: Utilising two measurement constructs, namely, performance management accuracy and fairness, the study revealed that employees perceived the PMS as effective. However, some deficiencies were identified. The major shortcomings related to the lack of coaching provided and manager’s non-compliance with procedural, distributive and procedural justice principles. The overall mean score of the perceived accuracy was slightly above the midpoint of the range, indicating that employees perceived PMS as accurate, and were generally satisfied with the implementation of the system. However, employees perceived the PMS as unfair. Practical/managerial implications: A perception of effective and accurate PMS does not translate into perceptions of fairness. When employees feel unfairly treated during the appraisal system, morale and performance are likely to be adversely affected. Coaching and/or training related to PMS remains imperative. Contribution/value-add: This study contributes to the body of knowledge by quantifying the perceptions of employees regarding the factors that determine the effectiveness of PMS, namely, accuracy and fairness. It contributes towards the theory and practice regarding employees’ perceived effectiveness of the PMS.

Keywords

• accuracy
• fairness
• feedback and coaching
• justice
• performance appraisal
• performance management system
• performance management effectiveness
• performance planning
• outcomes