1.1 Background of the research
Performance management (PM) includes activities which ensure that
goals are consistently being met in an effective and efficient manner.
Performance management can focus on the performance of an organization, a
department, employee, or even the processes to build a product or
service, as well as many[quantify] other areas.
PM is also knownas a process by which organizations align their
resources, systems and employees to strategic objectives and priorities.
Armstrong and Baron (1998) defined it as a “strategic and integrated
approach to increase the effectiveness of companies by improving the
performance of the people who work in them and by developing the
capabilities of teams and individual contributors.”
Zaffron, Logan, Steve, David (Feb 2009) Said it may be possible to
get all employees to reconcile personal goals with organizational goals
and increase productivity and profitability of an organization using
this process. It can be applied by organizations or a single department
or section inside an organization, as well as an individual person.
Swiss, James E. (2005) The performance process is appropriately named
the self-propelled performance process (SPPP).
David (Feb 2009) in his comment concerning this research area said,
First, a commitment analysis must be done where a job mission statement
is drawn up for each job. The job mission statement is a job definition
in terms of purpose, customers, product and scope. The aim with this
analysis is to determine the continuous key objectives and performance
standards for each job position.
Following the commitment analysis is the work analysis of a
particular job in terms of the reporting structure and job description.
If a job description is not available, then a systems analysis can be
done to draw up a job description. The aim with this analysis is to
determine the continuous critical objectives and performance standards
for each job.
Werner Erhard, Michael C. Jensen, and their colleagues have developed
a new approach to improving performance in organizations. Their model
stresses how the constraints imposed by one’s own worldview can impede
cognitive abilities that would otherwise be available. Their work delves
into the source of performance, which is not accessible by mere linear
cause-and-effect analysis. They assert that the level of performance
that people achieve correlates with how work situations occur to them
and that language (including what is said and unsaid in conversations)
plays a major role in how situations occur to the performer. According
to Madden, Bartley J. (September 2014), They assert that substantial
gains in performance are more likely to be achieved by management
understanding how employees perceive the world and then encouraging and
implementing changes that make sense to employees' worldview.
Madden, Bartley J. (September 2014) in his research, has this to
contributed. In organizational development (OD), performance can be
thought of as Actual Results vs Desired Results. Any discrepancy, where
Actual is less than Desired, could constitute the performance
improvement zone. Performance management and improvement can be thought
of as a cycle:
1. Performance planning where goals and objectives are established
2. Performance coaching where a manager intervenes to give feedback and adjust performance
3. Performance appraisal where individual performance is formally documented and feedback delivered
A performance problem is any gap between Desired Results and Actual
Results. Performance improvement is any effort targeted at closing the
gap between Actual Results and Desired Results.
Other organizational development definitions are slightly different.
The U.S. Office of Personnel Management (OPM) indicates that Performance
Management consists of a system or process whereby:
Work is planned and expectations are set
Performance of work is monitored
Staff ability to perform is developed and enhanced
Performance is rated or measured and the ratings summarized
Top performance is rewarded.
A review from A Handbook for Measuring Employee Performance, by the US Office of Personnel Management (2005)
1.2 Statement of research problem
Performance management being a systematic process by which an
agency/corporate involves its employees, as individuals and members of a
group, in improving organizational effectiveness in the accomplishment
of corporate mission and goals. Many organization ignore, the fact that
Performance management enhance corporate performance, because of that
they show no regards to it. Due to that the organization fails and
remains stagnant. With the little issue discovered by the researcher in
many organization, the researcher now took it upon herself to carry out
this research work. “Performance management - a veritable tool for
The following problem has been notified by the researcher in this Institute as a problem it has in performance management
1. That the institution do not have a standing performance management scheme used for staff evaluation.
2. That this institutions evaluate staffs not based on merit but on sentiment and bribery.
1.3 Objectives of the study
The objectives of this study are to critically examine the veritable
of performance management to the corporate performance and highlight the
importance of performance management:
a. The adequacy of the basis and the fundamental that guides its principles.
b. The degree to which the performance management increase corporate performance on workers.
c. The working principles of the organization on workers performance management.
d. The influence that performance management has on organizational performance.
e. Access the veritable of performance management, weakness, strength and support
f. Finally, to present suggestions and recommendations to the organization on performance management scheme.
1.4 Significance of the study
This study is a very important one and most significant in any
organization to its growth and success, performance management has been a
strategic means which many organizations uses to motivate and enhance
productivity from the worker. Performance management, its report serves
as a “prima facie” evidence on the staff input or work force to the
organization as well as his performance and could be relied upon as a
certificate, performance management should be done in every business
firm. Therefore, this research work will explore on one among the most
essential factor to organization growth.
1.5 Research question
In order to determine the impact of performance management to
corporate performance of business organizations, it is pertinent to test
the following question;
1. Does the organization have a standing performance management scheme which is used for staff evaluation?
2. Is this organization performance management based on merit or on sentiment or bribery?
3. Do the company comply strictly with the regulation for the performance management?
4. Is there any significance impact on performance management to the organization growth and productivity?
5. How often do the organization carry out performance management service?
The above questions will be constructed as the questionnaires for
this study and will be administered and analyze for a better results and
1.6 Research Hypothesis
The following null and alternative hypothesis shall be tested in this
research works, using 0.5% degree of error to get its significance.
1. H0: Performance management is not significantly related to corporate performance.
Hi: Performance management is significantly related to corporate performance.
2. H0: Even at a true and standard performance management
services there will be no significance impact to the organizational
Hi: If there is a true and standard performance management services there will be a high organizational performance.
1.7 Limitation of the study
The limitations encountered by the researcher of this work are given as follows:
a. The confidential nature of organizational information in business posed as a problem to this study.
b. The researcher was unable to reach all the members of the sample as a result of their frequent travels and busy schedule.
c. The sample used in the research though representative but it
is relatively small compared to the population, as a result of lack of
financial with which to carry out the research on a greater sample.
1.8 Definition of terms
Performance management systems, which typically
include performance appraisal and employee development, are the
“Achilles’ heel” of human resources management. They suffer flaws in
many organizations, with employees and managers regularly bemoaning
their ineffectiveness. A recent survey by Watson Wyatt showed that only
three out of 10 workers agree that their company’s performance
management system helps improve performance. Less than 40 percent of
employees said their systems established clear performance goals,
generated honest feedback or used technology to streamline the process.
While these results suggest that there may be poorly designed
performance management systems in many organizations, it is typically
not poorly developed tools and processes that cause difficulties with
performance management. Rather, difficulties arise because, at its core,
performance management is a highly personal and often threatening
process for both managers and employees.
Management: the act of controlling activities