Email this article 
An Assessment of the Impact of Performance Management on Employee and Organization Performance - Evidence from Selected Private Organizations in Tanzania
Abstract
Performance management is one of the important key activities performed by organizations to monitor the performance of their employees. Organizations must regularly evaluate the performance of their employees in order to understand their current and future abilities. The purpose of this paper is to assess the impact of performance management on employee and organizational performance. The study adopted a cross-sectional survey research design and involved a sample size of 120 human resource officers and managers from selected private organizations in Tanzania. Data was collected using structured questionnaires and interviews and analyzed using descriptive and inferential statistics and the results presented using tables. The findings of the study reveal that private organizations practice performance management and have effective performance management system to evaluate/appraise the performance of their employees. Moreover, the findings reveal that there is a significant relationship between performance management and employee performance as well as between performance management and organizational performance. The study recommends the need of the private organizations to maintain and continue practising and implementing effective performance management systems, also to continue evaluating the performance of their employees frequently because it helps to determine training needs and at the same time acts as a motivational strategy hence leads to a better performance of employees and organization.
Full Text:
PDFReferences
Aforo, A. A., & Antwi, K. A. (2012). Evaluation of the performance appraisal systems in KNUST and GIMPA libraries, 3(8), 301–306.
Aguinis, H. (2009). Performance Management. (2nd Ed.). India. Dorling Kindersley.
Alexander, D. M. (2006). How do 360 degree performance reviews affect employee attitudes, effectiveness and performance? In Schmidt Labor Research Center Seminar Research Series. Retrieved from http:www.uri.edu/research/Irc/.
Armstrong, M. (1994). Performance Management: Key Strategies and Practical Guidelines: London, UK.
Armstrong, M., & Baron, A., (2005). Managing Performance: Performance management in action. Chartered Institute of Personnel and Development. London.
Atiomo, A. C. (2000). Human Resource Management. Malthouse Management Science Books. Lagos.
Bernthal, P., Rogers, R., & Smith, A. (2003). Managing Performance: Building Accountability for Organisational Success, Pittsburgh PA: Development Dimensions International.
Bredrup, H. (1995). Background for performance management, In A. Rolstadas (ed.) Performance management: A Basiness Process Benchmarking Approach, Lodnon: Chapman & Hall. https://doi.org/10.1007/978-94-011-1212-3_4
Bridger, E. (2014). Employee engagement. London: Kogan Page.
Briscoe, D. B., & Claus, L. M. (2008). Employee performance management: policies and practices in multinational corporations, Performance Management Systems: A Global Perspective, (Ed) PW Budwah and DeNisi, Routledge, Abingdon.
Bruce, J. (2014). Risky business: How social psychology can help improve corporate risk management. Business Horizons, 57(4), 551-557. https://doi.org/10.1016/j.bushor.2014.03.002
Brudan, A. (2010). Rediscovering performance management: systems, learning and integration. Measuring Business Excellence, 14(1), 109. https://doi.org/10.1108/13683041011027490
Campbell, R. B., & Garfinkel, L. M. (1996). Performance Management Strategies for Success. Human Resource Magazine, No. 41-98, June.
Chan, Y. (2004). Performance measurement and adoption of balanced scorecards: A survey of municipal governments in the USA and Canada. The International Journal of Public Sector Management, 17(3), 204-221. https://doi.org/10.1108/09513550410530144
Chartered Institute of Personnel and Development. (2005). Performance Management Survey Report. CIPD, London.
Chubb, C., Reilly, P., & Brown, D. (2011). Performance Management: Literature Review. IES Report, Brighton: Institute for Employment Studies.
Clake, R. (2011). Chartered Institute of Personnel and Development Annual Conference and Exhibition, Manchester, UK, November 9-10. Strategic HR Review, 10(2). https://doi.org/10.1108/shr.2011.37210bac.005
Clark, R. (1988). Australian human resources management: framework and practice. Sydney. McGraw-Hill Book Company.
Cleveland, J. N., Murphy, K. R., & Williams, R. E. (1989). Multiple uses of performance appraisal: Prevalence and correlates. Journal of Applied Psychology, 74(1), 130-135. https://doi.org/10.1037/0021-9010.74.1.130
Conway, J. M. (1996). Analysis and Design of Multitrait-Multirater Performance Appraisal Studies. Journal of Management, 22(1), 139. https://doi.org/10.1177/014920639602200106
Costello, S. J. (1994). Effective Performance Management, New York: Irwin.
Cummings, M. W. (1972). Theory and Practice. William Heinemann Ltd. London.
De Nisi, A. & Griffin, R. (2008). Human Resource Management. (8th ed.). Boston: Houghton Mifflin Company.
DeCenzo, D. A., & Robbins, S. P. (1999). Human resource management. (6th Ed.). New York: John Wiley & Sons, Inc.
Dessler, G. (2004). A Framework for Human Resource Management (3rd ed.). Upper Saddle River, New Jersey: Pearson Education, Inc.
Egginton, B. E. (2010). Introduction of formal performance appraisal of academic staff. The management challenges associated with effective implementation. Educational Management Administration and Leadership, 38(1), 119–133. https://doi.org/10.1177/1741143209351660
Erasmus, B., Swanepoel, B., Schenk, H., van der Westhuizen, E. J., Wessels, J. S. (2005). South African human resource management for the public sector. Cape Town: Juta.
Fakharyan, M. R. J., Dini, B., & Dehafarin, E. (2012). The Effect of Performance Appraisal Satisfaction on Employee’s Outputs Implying on the Moderating Role of Motivation in Workplace. International Journal of Business and Management Tomorrow, 2(4), 2249–9962.
Fletcher, C. (2004). Appraisal and Feedback, Making Performance Review Work. London: Chartered Institute of Personnel and Development.
Fletcher, C., & Williams, R. (1996). Performance Management, Job Satisfaction and Organizational Commitment, British Journal of Management, 7, 169-179. https://doi.org/10.1111/j.1467-8551.1996.tb00112.x
Folger, R., Konovsky, M. A. & Cropanzano, R. (1992). A due process metaphor for performance appraisal. Research in Organizational Behavior, 14(1), 129-177.
Foot, M., & Hook, C. (2011). Introducing Human Resource Management (6th ed.). Italy: Rotolito Lombarda.
Gold, J., Thorpe, R., & Mumford, A. (2010). Gower handbook of leadership and management development. Burlington, VT: Gower.
Graham, J. (2004). Developing a performance-based culture. The Journal for Quality and Participation, 27(1), 4-8.
Haines III, V. Y., & St-Onge, S. (2012). Performance management effectiveness: practices or context? The International Journal of Human Resource Management, 23(6), 1158-1175. https://doi.org/10.1080/09585192.2011.561230
Hartog, D. N., Boselie, P., & Paauwe, J. (2004). Performance Management: A Model and Research Agenda. Applied Psychology: An International Review, 53(4), 556-569. https://doi.org/10.1111/j.1464-0597.2004.00188.x
Institute of Personnel Management. (1992). Performance Management in the UK – An Analysis of the Issues. I.P.M. London.
Jawahar, I. M., & Stone, T. H. (1997). Appraisal Purpose Versus Perceived Consequences: The effects of appraisal purpose, Perceived Consequences, and Rater Self-Monitoring on Leniency of Ratings and Decisions. Research and Practice in Human Resource Management, 5(1), 33-54.
Lam, T., & Lee, S. (2012). Family ownership, board committees and firm performance: evidence from Hong Kong. Corporate Governance, 3(12), 353–366. https://doi.org/10.1108/14720701211234609
Laurie, J. M. (2007). Management and organizational behabviour (8th.ed.). Harlow: Financial Times Prentice Hall.
Lawler, E., Benson, G., & McDermott, M. (2012). 'What Makes Performance Appraisals Effective?', Compensation & Benefits Review, 44(4),191-200. https://doi.org/10.1177/0886368712462331
Lee, N. (2006). Measuring the performance of public sector organizations: a case study on public school in Malaysia. Journal of Measuring Business Excellence, 10(4), 50-64. https://doi.org/10.1108/13683040610719272
Levy, P. E., & Williams, J. R. (2004). The social context of performance appraisal : a review and framework for the future. Journal of Management, 30(6), 881–905. https://doi.org/10.1016/j.jm.2004.06.005
Macky, K., & Johnson, G. (2000). The strategic Management of Human Resources in New Zealand. Auckland, New Zealand: Irwin/McGraw-Hill
Martin, J. (2009). Human resource management. Los Angeles: SAGE.
McDavid, J., & Hawthorn, L. (2005). Program evaluation & performance measurement, SAGE Publications, Inc.
Meyer, H. H., Kay, E., & French, J. R. P. (1965). Split roles in performance appraisal. Harvard Business Review, 43(1), 123-129.
Murphy, T. H. (2004). Performance Appraisal, ABA Labour and Employment Law Section Equal Employment Opportunity Committee, Mid-winter meeting, March 24-27.
Newstrom, J. (2011). Organizational behaviour. Boston: McGraw-Hill/Irwin.
Newstrom, J. W. (2007). Supervision: managing for results. 9th edition. Boston. McGraw-Hill Irwin.
Palethorpe, R. (2011). Learning and Development. Industrial and Commercial Training, 43(6), 394-395. https://doi.org/10.1108/00197851111160531
Parker, D., Waller, K., & Xu, H. (2013). Private and public services: productivity and performance migration. International Journal of Productivity and Performance Management 62(6), 652-664. https://doi.org/10.1108/IJPPM-10-2012-0119
Pearce, J. L., & Porter, L. W. (1996). Employee Responses to Formal Performance Appraisal Feedback. Journal of Applied Psychology, 71(2), 211-218. https://doi.org/10.1037/0021-9010.71.2.211
Price, C., Novak, A., & Medical Group Management Association. (2007). HR Policies & Procedures Manual for Medical Practices, (4th Ed.). Published by Medical Group Management Association.
Pulakos, E. D. (2004). Performance management: A roadmap for developing, implementing and evaluating performance management systems. SHRM Foundation: Alexandria, VA.
Rees, W, D., & Porter, C. (2003). Appraisal pitfalls and the training implications - part 1’, Industrial and Commercial Training, 35(6/7), 280-284. https://doi.org/10.1108/00197850310501677
Roberts, G. (2002). Employee performance Appraisal System participation: A technique that works. Public Personnel Management, 31(3). https://doi.org/10.1177/009102600203100306
Rodgers, R., & Hunter, J. E. (1991). Impact of management by objectives on organizational productivity. Journal of Applied Psychology, 76(2), 322-336. https://doi.org/10.1037/0021-9010.76.2.322
Rogers, S. (1990). Performance management in Local Government, Harlow, Essex: Longman.
Saeed, M. K., & Shahbaz, N. (2011). Employees’ perceptions about the effectiveness of performance appraisals : The Case of Pakistan. SIU Journal of Management, 1(1), 58–75.
Stalz, R. K. (1966). Executive Development New Perspective. Harvard Business Reviews, 44(133-143).
Tobin, D., & Pettingell, M. (2008). The AMA guide to management development. New York: AMACOM/American Management Association.
Torrington, D., Hall, L., & Taylor, R. (2008). Human Resource Management. Prentice Hall Financial Times, Essex.
Varma, A., Budwhar, P., & DeNisi, A. (2008). Performance Management systems: A Global Perspective. Routledge. London and New York, P.I.
Vignaswaran, R. (2005). The relationship between performance appraisal satisfaction and employee outcomes: A study conducted in peninsular Malaysia. Retrieved from http://dspace.fsktm.um.edu.my/bitstream/1812/729/1/
Vukotich, G. (2014). 360° Feedback: Ready, Fire, Aim-Issues With Improper Implementation. Performance Improvement., 53(1), 30-35. https://doi.org/10.1002/pfi.21390
Williams, R. (2002). Managing Employee Performance: Design and Implementation in Organisations. London: Thomson Learning.
DOI: https://doi.org/10.5296/ijhrs.v8i3.13415
Copyright (c) 2018 Janes O. Samwel
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
International Journal of Human Resource Studies ISSN 2162-3058
Email: ijhrs@macrothink.org
Copyright © Macrothink Institute
To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.
------------------------------------------------------------------------------------------------------------------------------------------------------
