A proposal for the introduction of a new performance management system in a local manufacturing company : a case study

Abstract

The volume of academic papers and articles on Performance Management Systems (PMS) published in recent times proves that there has been considerable academic and business interest on the subject. According to Bourne et al. (2003) there is evidence that many organisation's attempts to implement performance management systems (PMS) have not been successful. The lack of guidance on PMS implementation is one of the main factors that contribute towards the lack of success in this area. This study followed the implementation of a PMS in a local manufacturing company, and focused specifically on the strategies, processes and best practices used for implementation processes. The study looked at whether the technical knowledge of the PMS can aid the successful implementation of a PMS. The can be done together with strong communication and a sound change management process that fosters the participation of management and employees in goal setting. This research employs the combination of a qualitative case study and survey research and data collected through interviews, focus groups and secondary data analysis. Fourteen employees accepted to participate in the study and have answered questions during a semistructured interview and the focus group sessions. This method was adopted as it provides a better overview of the opinions of the employees than the closed-ended questions of a questionnaire. In fact, the employees felt freer to express their views and provide important insights into the procedures needed to implement a new PMS. This study concludes that a PMS can be implemented within the company by devising the necessary strategy plans and instilling in employees a positive attitude towards work by helping them feel part of the processes of the implementation of a PMS and by illustrating its benefits.