The research revealed that South African organisations, more specifically within KZN, use performance management systems to implement business strategy. Based on these findings, it is recommended that managers review their views on performance management systems and key performance areas to ensure successful strategy implementation and execution.
Introduction
Motivation for the Study
The primary motivation of this study is to determine whether employees' goals are aligned with the company's strategic objectives, and if so, whether employees are aware of this alignment and of the company's strategy. It will also benefit organizations by illustrating that the performance management system and key performance areas are not just the function of the HR department, but should be the primary concern of every manager and employee as these are ultimately the functions that give life to the HR department. business strategy.
Focus of the Study
HR practices can only be effective if they are aligned with the strategic direction of the organization. HR strategy involves the development of the human capital pool that gives an organization “the unique ability to adapt to an ever-changing environment” (Noe, Hollenbeck, Gerhart and Wright: 2006: 61).
Problem Statement
However, it has recently been observed that in several organizations the performance appraisal process is practiced as a mere formality, not as a significant tool to achieve the goals of the organization. However, this ritual is practiced only at the base of the hierarchy, while synchronizing the organization's strategic business needs and plans with the key performance areas of those individuals occupying the top level of the hierarchy.
Objectives
Over time, the role of the HR function has evolved into that of a strategic partner whose strategies are aligned with the organization's business strategies. To determine whether employees are aware of the importance of their KPAs in achieving the company's goals.
Research Questions
To make a comparison between different levels of employees' awareness of their KPAs and their impact on the company's goals. Do employees know the importance of having a performance management system in place at their workplaces.
Limitations of the Study
Are employees aware of the importance of KPA review and contracting with their line managers.
Chapter Structure
Research design and instruments, data collection methods, sampling techniques and use of questionnaires will also be discussed. This chapter provides a critical assessment of this study as well as recommendations for future studies.
Summary
The data from this study is statistically analyzed, interpreted and presented in the form of tables and graphs.
Introduction
A few definitions
Just as performance management has been defined as “the means by which managers ensure that the activities and results of employees are consistent with the organization's goals” (Noe et al, 2006, p. 330), the definition should also be clear. of performance appraisal and explicitly illustrate the link between an employee's performance and the organization's goals. Performance management must be used as a strategic tool for it to be truly effective in the organization, i.e.
The Company Strategy
The third condition for success is that the company's strategy must be centrally concerned with the creation and exploitation of its distinctive competencies. Strategy must be translated into concrete action, and that action must be carefully implemented” (Pearce and Robinson 1995, p. 323).
Human Resources Strategy
How can HR Strategy add value to an organisation?
HR strategy implies the development of a pool of human capital that gives the organization a “unique ability to adapt to an ever-changing environment” (Noe et al 2006, p. 61). Development also means the transition of an organization into a learning or knowledge organization in which employees constantly expand their abilities to achieve the desired results.
Performance Management and Key Performance Areas
Beischel and Smith (1991, cited in Rouse and Putterill 2003, p. 792) proposed the link structure model that explicitly focused on the structure of the measures that link critical success factors to process levels. A sense of balance is conveyed between the macro and micro views of the organization and their interactions.
An organisational model of Performance Management
These contributions provide an integrated approach to performance management that illustrates a holistic approach to managing the performance of the workforce or organizations. Important component of this organizational model of the performance management system is the organization's strategy.
Vision & Strategy
Parker (2000, cited in Lowe & Jones 2004) is of the opinion that performance measures should be continually reviewed to ensure that it is still aligned with the strategy. These actions and results are then translated into a set of performance measures that continually link strategy to performance requirements through continuous learning (Parker 2000, cited in Lowe and Jones 2004).
Summary
Introduction
What is Research?
What Leedy and Ormrod (2005) offer is that research takes place in a format, a chronological path of inquiry, in search of empirical evidence to prove or disprove the problem or question that started the research process; and research involves the application of various methods and techniques to create scientifically obtained knowledge by using objective methods and procedures.
Types of Research
Qualitative Research
- The qualitative research process
- Qualitative Research Methods
- Reliability and Validity of Qualitative Research
- Analysis of the data
- The critique of qualitative research
This follows with the collection of further data and repeated interpretation of the data (step four). One of the main problems with qualitative research is that it very quickly generates a large, cumbersome database due to its reliance on prose in the form of such media as field notes, interview transcripts or documents (Bryman & Bell 2007, p. 579). . One of the most notable developments in qualitative research in recent years is the advent of computer software that facilitates the analysis of qualitative data.
Quantitative Research
- The quantitative research process
- The main elements of quantitative analysis
- Reliability and validation of Quantitative Research
- Collection of data in quantitative analysis
- Data Analysis
- Critique of quantitative analysis
The majority of respondents (45%) worked in public companies, listed on the JSE, while the second highest number of respondents were from private companies (41%). 7 The employees' perception of whether their Key Performance Areas contribute to realizing the organisation's strategy. Employees in the lower levels of the hierarchy agreed that their KPAs made valuable contributions to the organization.
6 Perceptions of rank in the organization in terms of achieving organizational goals. Sixty-nine percent of respondents agreed and twenty-five percent strongly agreed that their KPAs made a valuable contribution to the organization. Six percent of respondents agreed that their manager discussed their performance and encouraged them.
My KPAs/CPAs/KPIs contribute to the achievement of the short and long term goals of the organization.
Aim and Objectives of this Study
Data Collection Strategies
This took the form of a self-administered questionnaire consisting of both open and closed questions to be completed by a random sample from various South African organizations located in KZN, ie. employees belonging to different levels of the organizations. The questions were structured in a way that did not harm the organizations in any way and the respondents were assured of the confidentiality of this study.
Research Design and Methods
Description and Purpose
- Construction of the Instrument
- Recruitment of Study Participants
The rule of thumb for sample size is "the bigger the sample, the better" (Leedy &. When determining sample size, the researcher must consider the size of the population; as a general rule, the be the variance of the variable, the larger the sample required;
Pretesting and Validation
Administration of the Questionnaire
The questionnaire consisted of the consent letter, a cover letter illustrating the purpose of the research and the respondents' role in this research; as well as the research questions. This electronic method gave confirmation that the questionnaire was delivered to the respondents; and where questionnaires were not answered, reminders were sent to the respondents.
Analysis of the Data
Summary
Introduction
Descriptive Statistics of the Independent Variables
There was no significant difference between male and female respondents; men in the majority, 55%; and women, who make up 45% of respondents. Figure 4.3 shows that the least of these respondents were colored (8%), while the most Indian respondents were white and 14% were black. None of the respondents were employed in closed companies, 2% of them did not know in which organization they worked, and 6% of them worked in public companies that are not listed on the stock exchange.
Descriptive Statistics of the Dependent Variables
Twenty-eight percent of respondents strongly agreed, while 6% of respondents disagreed that their KPAs contributed to the delivery of the organization's strategy. None of the respondents from any sector disagreed that their KPAs contributed to achieving the organization's objectives. Nineteen percent of respondents disagree that their KPA ratings have a positive impact on their job performance.
Summary
Introduction
Demographics
Findings of the Study
Only forty-nine percent of respondents agreed that KPAs are used to assess business success and future plans. Analysis of this objective reveals that only forty-nine percent of respondents understood the meaning and importance of the performance management system the first time it was presented to them. I was clearly informed and understood the meaning and importance of key performance areas the first time it was presented to me” with which seventy-nine percent of respondents agreed.
Summary
Introduction
Has the problem been solved?
Implications of this Research
Limitations and Recommendations for Future Studies
A study of this caliber will illustrate whether employees who form the base of the hierarchy are familiar with organizational strategy and whether they fully understand the importance of their key performance areas in relation to organizational strategy compared to those employees who occupy the upper levels. . of the hierarchy. A study of employees who occupy only the base of the hierarchy may generate a different picture of which key performance areas and whether they feel that their key performance areas are related to the organization's strategy. Results on objective 1 and objective 2 are inconsistent, which may be attributed to some respondents' skepticism towards the confidentiality of surveys.
Specific recommendations for this study
Employees must be well informed about the precise reason why they are being assigned to perform the tasks required for successful strategy implementation. A good performance management system must be in place so that the strategy can be clearly defined, it can be properly communicated to all employees and measures and controls can be put in place to ensure successful implementation of the strategy. The performance appraisal initiative should be the platform that managers use to communicate and bring to life the organization's long- and short-term strategic objectives.
Conclusion
The design and implementation of the balanced scorecard – an analysis of three companies in practice. Emerging strategy and the measurement of performance: The formulation of micro-level performance indicators.
Because my line manager is sincere about my performance in the business unit and in the company. My line manager understands the objectives of my business unit and where this fits into the objectives of the company. The KPAs/CPAs/KPIs and performance management systems in my organization are a fair way to assess my performance.
