Organisation performance improvement through performance management systems and performance-driven behavior : a case study

Abstract

Organisations face numerous challenges with the implementation and running of Performance Management Systems (PMSs), not due to their lack of benefits, but rather due to problems related to how measures elicit concrete focused actions, harnessing and directing the organisation’s energy towards performance improvement. A PMS’s success is thus measured by the level of positive stimulus it injects into the behaviour of the employees, and by its’ effectiveness in promoting Performance-driven Behaviour leading to companies reaching a High Performance Organisation (HPO) status. The purpose of this study is to analyse the effectiveness of the PMS of an aviation organisation, specifically MRO Malta, in triggering such Performance-Driven Behaviour. The case study is based on Dr Andre de Waal’s Performance Management Analysis Tool (PMA) and HPO Framework, combined into one questionnaire distributed at all functional levels and departments of the organisation. A deep analysis of the employees’ perception of the PMS and HPO Factors, highlighting their strengths and weaknesses, followed. A subsequent correlation analysis between the PMA’s Performance-driven Behaviour dimensions and the HPO Framework characteristics, identified which PMS dimensions have the greatest positive effect on the organisation’s high performance, thus requiring a higher level of attention. The results of the study show that although several improvements are required, to some extent MRO Malta’s PMS does exhibit the critical Performance-driven Behaviour Dimensions, and the organisation already has the basis of the critical characteristics for achieving a HPO status. The discussion highlights the main improvements required, whilst providing a priority ranking of the PMA Dimensions, HPO Factors and employee groups that need to be tackled first to accelerate MRO Malta’s chances of becoming a HPO. The study concludes that by implementing the suggested improvements with the given priorities, MRO Malta stands a good chance of achieving a HPO status in the least time possible through Performance-Driven Behaviour triggered by its PMS.