Employee performance and performance management systems : a case study

Abstract

This qualitative study examined the benefits and limitations of the performance management system of a Maltese organisation. Additionally, the study investigated the management’s perspective on how a reward system would affect performance outcomes in the organisation. First-hand accounts of managers’ experiences with the current evaluation system was derived from eight face-to-face interviews. All the participants were managers with less than ten direct subordinates in their division. The findings revealed a lack of agreement amongst managers on whether a reward system should be implemented within the current system. Moreover, there was a lack of standardisation in the way that feedback was shared with subordinates. This was especially noted when some managers admitted that it was a struggle for them to give negative or constructive feedback during performance reviews. Overall, participants valued the importance of regular communication and practiced it throughout their daily routine at work. Management also acknowledged the importance of having a good performance management system within the organisation. Based on the findings, it was recommended that each department should implement specific Key Performance Indicators in addition to the current review system to help clarify and set goals. This would also help managers to accurately measure their subordinate’s performance. Such a system would then make it easier to implement performance-based rewards which could then vary according to the performance level achieved during each review. Moreover, it was recommended that managers should receive more training on how to execute a performance evaluation properly, especially on the issue of disclosing negative feedback to their subordinates. Lastly, the organisation should consider amending the review cycle, particularly, by reducing the frequency of the reviews and drafting new questions. These new questions, together with the current set of questions, would both be used and alternated from one review to the other. The new set of question would help to address technical performance areas which are currently not being considered or examined by the organisation.