Nothing Special   »   [go: up one dir, main page]

Analyzing The Impact of Performance Management On Employee Performance Improvement

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 25

HUMAN RESOURCE MANAGEMENT

A DESCRIPTIVE PROJECT REPORT


ON
“ANALYZING THE IMPACT OF PERFORMANCE
MANAGEMENT ON EMPLOYEE
PERFORMANCE IMPROVEMENT”

Submitted in partial fulfillment of


The end term project (MODULE 3) in subject -

HUMAN RESOURCE MANAGEMENT

Submitted by:

GROUP-8
DIVISION 4

ABIN DHAR - 220162


HRITHIK GUPTA - 220223
MUSKAN JAIN - 220268
NISHANT SHEKHAR - 220027
PRASHANT SHARMA - 220068
SADGI AGRAWAL - 220243
SHAILDHAR JOSHI - 220051
VIPUL MADAN – 220076

Under the guidance of:


Dr. Richa Mishra

SCHOOL OF MANAGEMENT
(MASTER OF BUSINESS ADMINISTRATION)
BML MUNJAL UNIVERSITY
67th Milestone, NH 48, Kapriwas, Haryana 122413

1|Page
HUMAN RESOURCE MANAGEMENT

TABLE OF CONTENTS

LIST OF TABLES

ABSTRACT

SECTION 1
1.1. INTRODUCTION
SECTION 2
2.1. BACKGROUND
2.2. INTRODUCTION OF VARIABLES OR RELATIONSHIP
SECTION 3
3.1. METHODOLOGY
3.2. SAMPLING
3.3. DATA COLLECTION
3.4 DATA ANALYSIS
SECTION 4
4.1 DISCUSSION
SECTION 5
5.1. LIMITATIONS OF RESEARCH
SECTION 6
6.1. FUTURE WORK/SUGGESTIONS

2|Page
HUMAN RESOURCE MANAGEMENT

Abstract:
Performance management is a crucial requirement from management at both the organizational
and individual levels. This research aims to analyze the impact of performance management on
employee performance improvement in companies. This research follows a quantitative method.
The categorical approach and survey approach has been used for this research paper. The
research explores performance management's effectiveness in achieving organizational goals and
objectives. The research then proceeds to the collection of data through case studies of
companies that have implemented performance management systems. The data has been
collected through the questionnaire floated among the employees of the different levels. A total
of 40 responses from working employees were received through the stratified random sampling
method. Regression and SPSS descriptive were applied to check the effects of performance
review, motivation, and training independence variables on the performance improvement
dependent variable of an organization and to check the relationship of variables. Based on the
results of the study it was found that performance review places an important role to improve
performance management, whereas motivation and training are not directly impactful in the
improvement of the employee’s performance. The findings of this research will provide valuable
insights for companies looking to improve their performance management practices. The study
will demonstrate how performance management can be used to achieve organizational goals and
objectives and enhance the performance of employees. Additionally, the research will also shed
light on the factors that influence the successful implementation of performance management
systems.

Keywords: Performance Management, Motivation, Performance Review, Training, Employee


Performance

Introduction:
Performance management is a crucial requirement from management at both the organizational
and individual levels. Thus, there is a trip to be taken between idea, action, and results. And
"performance" is arguably the word most frequently used in daily life to describe the course of
this journey and its outcomes. A system is said to "perform" as planned when it fulfills its
intended function. However, because there are so many ways to interpret the term
"performance," it can be challenging to define. Like management, the term "performance" can
indicate overall success at many levels (personal, individual, team, and organizational
performance). Since it enables employees to develop their abilities and communication within
the firm, performance management is an essential component of every business. Employee
motivation is increased when information is shared, and input is requested. Performance is
connected to performance management and performance assessment, two essential tasks in
scientific management. Performance management comes before and after performance

3|Page
HUMAN RESOURCE MANAGEMENT

measurement and these two crucial procedures cannot be separated from one another.
Performance management is the primary technique for dealing with performance. This process
includes the following subprocesses: formulation of the strategy (planning/goal setting),
execution of the strategy, training, and performance evaluation. It demonstrates the perspective
one entity has on performance. Performance measurement is a part of performance management
since performance indicators are used to identify, monitor, and report performance results.
Performance management places a strong focus on elements such as recognition, constructive
criticism, personal development, and career opportunities. The performance management cycle
begins and ends with the establishment of corporate objectives (McDavid, et al., 2005).
Performance management should include performance planning, evaluation, and rating (Price, et
al., 2007). Performance reviews are a tool the company employs to examine and evaluate how
well workers have done over a certain period. The main objective of performance reviews is to
boost an organization's effectiveness by encouraging employees to give their utmost (Cumming,
1972). More than one-third of American organizations no longer do traditional performance
evaluations, which are hated by both managers and workers. The yearly review's main flaw is
how much emphasis it places on holding workers accountable for their past behavior at the
expense of enhancing performance now and in the future. This has led to an increase in the
frequency of management and employee dialogues that are centered on the needs of the
employees in many firms. The authors explain how performance management has evolved
through time and the justification for the current shift in thinking. (1) Today's competitive labor
market puts more pressure on employers to maintain staff satisfaction and provide them with
opportunities for progress. (2) Frequent employee check-ins are justified by the necessity for
adaptability in the face of the business environment's fast change. (3) Giving improvement more
weight than responsibility fosters teamwork. Organizational learning is still a topic of research to
test employee performance and effectiveness in improving an organization’s efficiency. The lack
of effective implementation of policies to ensure learning is a key aspect of the organization,
adversely affecting the organization inside out and creating loopholes in the firm for a systematic
learning experience (Yang, 2007; Lantz et al., 2015; Kaminska and Borzillo, 2018; Reese and
Sidani, 2018; Rose et al., 2020). The high-performance outcome is crucial for an organization to
create an environment that sticks to team learning, learning culture, and collaboration. Mostly
organization’s performance is focused on financial performance whereas there are other aspects
of the organization’s performance like the ability to use newly acquired core competencies to
improve and analyze the long-term learning capability of the organization (Marquardt, 2019;
Kyoungshin and Zhenqiu, 2019). The three organizational practices of process management
(PM), leadership engagement (LI), and improvement orientation were merged to operationalize
CI (Peng et al. 2008). (IO). PM includes actions that try to control and standardize processes via
the use of techniques and charts that reduce process variation, boost efficiency, and identify
irregularities to prevent issues and encourage progress (Rondeau et al., 2000). According to
(Roth, 1996) and (Linderman et al. 2010), the establishment of an organizational culture
focused on ongoing process and product improvement is what is meant by IO. According to
(Bessant and Francis,1999), CI is a learning process that moves through five levels, starting
4|Page
HUMAN RESOURCE MANAGEMENT

with haphazard problem-solving activities (level 1), moving through a structured and systematic
problem-solving approach that is constantly measured and monitored (level 3), and finally
leading to the development of a learning organization (level 5). In centralized organizations with
mechanical structures, where managers do not defer decision-making to lower levels of the
organization, centralization of power is frequent. Given that they must carry out choices made by
superiors, employees are not actively involved in the organization and have little opportunity to
recommend improvements to goods and procedures (Hage and Aiken, 1967; Byrne, 2013). In
contrast to decentralized organizations that let information be dispersed across the organization,
centralized firms drive knowledge from the top down the hierarchy, giving managers more
managerial control over the flow of knowledge. Studies on the results of (de)centralization have
shown conflicting findings. Most of the studies emphasize the favorable relationships between
decentralization and a number of employee behaviors and employment outcomes, including
satisfaction, motivation, participation, loyalty, and creativity that boost performance (Hirst et
al., 2011; Ma et al., 2019). The global marketplaces demonstrate the significance of measuring
an organization's performance, which has the potential to raise revenue, attract new investment,
share value, and recruit top-tier personnel. Because of this, it is critical to think about how an
organization's performance is assessed and how it might be shared with the public, including
potential investors, workers, and clients. Since the beginning of this century, the principles for
developing performance indicators that accomplish the latter have been in use (Chandler 1997).
Therefore, in addition to assessing an organization's success in terms of "what," it should also be
evaluated in terms of "how." be continuously detected as well. An organization can only start to
improve and gain market share by comprehending how it gets to a certain performance and
developing measurements (leading rather than lagging) to quantify the "how." Since rising
worldwide rivalry in the late 1980s led businesses to examine unconventional metrics, this has
been the subject of research (Ghalayini & Noble, 1996) presents an excellent comparison of
traditional and non-traditional measures. This has led to the emergence of a new area of research
that seeks to determine the appropriate quantity and kind of performance indicators in a way that
is integrated with the organization.

There are some issues that hinder performance management such as lack of clarity and vision,
lack of well-defined work processes, no coordination between leadership thinking and employee,
lack of talent, skills, and resources, no importance to employee opinion and voice, lack of
leadership commitment, inability to provide coaching and mentoring and lack of feedback
system (Jadhav et al., n.d.).

Background:

5|Page
HUMAN RESOURCE MANAGEMENT

Performance management has recently received considerable attention from scholars and
practitioners (Buckingham & Goodall, 2015). This is due, in part, to the increasing pressure on
organizations to improve their performance in the face of global competition and the need to
adapt to changing business environments (Bergman & Klefsjö, 2011). Employee performance is
all about assessing growth and the benefit for the organization as employees act as major
stakeholders of the organization (PWC, 2016). Nowadays organizations are more about the
traditional performance management system as it works effectively for most organizations. This
efficient roleplay enhances the organization's motivation, creativity, and values (Nayak et al.
2018). As human resource is the major factor, the organization should develop competitive
strategies for enhancing the motivation and work of the employees through continuous learning
and development. (GARY P. LATHAM et. Al,2005), focuses on effective training and
coaching for performance management and appraisal. As per the research, the author emphasized
many factors, such as appraisal instruments, sources of Appraisals and 360 feedback, motivating
appraisers, performance management, and training appraisers. According to him, effective
coaching is the queue, people seek out those who listen to them (Nayak et al. 2018). However,
the day people will stop making excuses for their problems will be the day they can focus more
on solving them (Mruthyanjaya Rao et al., (2020). Designing the right kind of performance
appraisal instrument to improve the accuracy and perception of the employees is very important.
The perception of fairness basically means employee acceptance is sometimes a bit critical when
it comes to the implementation of the appraisal (Minneapolis, MN: Lominger Limited, 2002).
Trust of an employee for the organization plays a key role when the organization needs an
effective outcome. 360-degree feedback means accessing someone with overall factors. If we
talk about an employee of an organization the 360-degree appraisal will be a perception of an
employee’s performance in considering the feedback from his/her subordinates/supervisors/peers
(PA: Brunner-Routledge, 2001). It basically gives the perspective of the overall personality and
performance of the employee in the organization. K D V Prasad (2021) The actual use of
performance management schemes to improve the motivation and efficiency of an employee’s
performance continues to be questioned by many authors in different aspects. Distribution of fair
rewards and rewarding higher performers helps the organization to maintain fair treatment of the
employees to gain their trust. (Adams 1965; Colquitt, Conlon, Wesson, Porter, and Ng 2001).
Here, the author mainly spoke about the behavioral responses and constraints of performance
management. The paper written by Ravi Chandra G and Dr. A.B. Saraswathi (2018) was to
investigate what type of effect a system for performance management will have on employee
performance. There are different stages of a Performance Management System which comprises
phases like Development, Planning, Managing, Reviewing, and Rewarding, according to
(Schneier et al. 1987). According to (Rogers and Hunter, 1991), Every organization's most
important element is goal setting. They suggested that employee participation in goal setting and
support from top management will both have an impact on productivity increases. After
comparing the actual performance to the anticipated performance, a development plan is created
in line with the gap with reference to the strategy. There is a structure in place for employee
feedback, therefore. To enhance feedback, set early goals, and enlighten people, the organization
6|Page
HUMAN RESOURCE MANAGEMENT

should give priority to communication within the workforce and between employees and
management. According to Ashford and Cummings(1983), role clarity, increased self-efficacy,
the development of behavior reward contingencies, and improved self-regulatory control
processes are some of the ways that feedback significantly enhances both individual and group
performance. (Norbaiti et al. 2022), tried to examine how incentives and compensation affect
employee performance. An employee must realize the performance indicators to comprehend the
outcomes of his task, specifically the quantity, quality, attendance, and cooperation (Cummings
& Worley, 2018). The government's role as the decision-maker that establishes the minimum
wage is extremely important, as most Indonesians who are workers frequently demand an
increase in wages every year, while employers and business companies do not want a wage
increase because it can increase production costs (Maloney & Milligan, 1992). Additionally, the
definition of employee work includes terms like output, efficiency, and effectiveness, which are
frequently linked to productivity. An organization must evaluate the performance of its staff.
Employees may be motivated or encouraged to work harder and more enthusiastically by
incentives, a system of remuneration connected to performance, both material and non-material,
which can help the firm reach its objectives by improving employee performance or job results
(Widyaningrum, 2020). Md. Aktaruzzaman Santi and Abdur Rahim (2021) evaluated how
Performance Management (PM) in Consumer Food Products Ltd. impacted worker productivity.
If a firm wants to be successful and differentiate itself from its rivals, it must compete in more
markets, use more platforms, and manage more stakeholders than ever before. While improving
individual performance has been the focus of this study, improving performance at the
organizational level is the primary goal of performance management systems. The idea of
performance management systems is one of the key and helpful innovations that have recently
gained popularity in the field of human resource management (HRM) (Armstrong, 1994, P.01).
Performance management includes actions that guarantee goals are consistently achieved
effectively and efficiently. Ms.Zipporah, in his paper, described how performance management
can be used to create a high-performing work culture. There were three prime objectives that
were observed in the study – The performance Management process at Infosys, the impact
created by the performance management system on the employees and the environment where
they work at Infosys, and to examine whether the employees understand the expectations set by
the higher-level hierarchy or if there is any discrepancy regarding the same. (Gunnigle and
Flood, 1990), performance appraisal is already a structured method for measuring employees'
skills, characteristics, and performance concerning making decisions about rewarding and
motivating workers. (Gratton and Ghosal,2002) said that the emphasis in all hierarchies must
be on the internal aspects of the appraisal and development process and instead of going through
"dehydrated rituals," the focus should be on "improving the quality of conversations," with
honest leaders which will set an example of an inquisitive and artistic organization. Here, the
study says that there is an association between the performance management system and the
management thus helping in the enhancement of employee performance. It was also found that
the performance management system is helping the employees understand their strengths and
work on their weaknesses. Professor Dilanthi Amaratunga and David Baldry, in their article,
7|Page
HUMAN RESOURCE MANAGEMENT

they discussed a change, namely how to utilize performance measurement effectively and how to
go from performance measurement to performance management. Performance management is a
well-established concept that has lately become more significant in a variety of businesses
(Camarata & Camarata, 2000). There has been a growing interest in performance
measurement across FM (Facilities Management), as stated by (Amaratunga et al, 2001). Here,
the author's major goal was to show how performance management differs from performance
measurement and how it may be helpful in FM firms. A performance measuring system, in
accordance with the author, offers a basis for figuring out the right efforts in the overall balance
and for conveying such efforts through management control. Performance measurement is
important, no doubt, but much more important is the way the data is handled so that it is desired
and feasible to develop a set of best practices, converting performance measurement into
performance management. (AHMAD et al., 2017), The use of BSC (Balanced-Scorecard) was
attempted to be examined to determine how performance management systems affect employee
performance. According to the study, a performance management system significantly improves
employee performance. Additionally, it was discovered that performance management systems'
performance planning, management, and evaluation processes favorably affect all aspects of
employee performance. (Rudman,2003), Performance Management System (PMS), which is
rapidly being considered as the integration of HRM operations and organizational business
objectives, is the result of HR activities and management working together to impact both
collective and individual behavior and support organizational strategy. According to (Lawler,
2003), the objectives of PMS include promoting individual advancement, removing individual
underperformance, establishing a performance culture, and aiding with the implementation of
company strategy. This study's primary goal is to investigate how BSC usage affects the link
between employee performance and the performance management system. The results of this
study support the claim made in some earlier studies (e.g., (Braam & Nijssen, 2004); (Jusoh et
al, 2007); (Lee 2012); (Ondogo et al, 2016) that BSC may be utilized to assess worker
performance, support business strategy, and enhance organizational efficiency.

Introduction of variables or relationship or inter- dependency


among variables:
To correctly interpret a statistical study, it is essential to understand the relationships between the
variables. The interaction of the factors affects how the right conclusions are reached. Without
knowing this, you are at risk of being caught in one of the many mistakes that come with
statistical analysis and drawing incorrect conclusions from your data. Variables can have a
variety of various kinds of relationships. You should first comprehend how one variable changes
in relation to the other before concluding. As a result, you must determine how the variables are
connected.

Also, there are two types of variables:

8|Page
HUMAN RESOURCE MANAGEMENT

1. Dependent Variable - A dependent variable is one that is changed because of the


modification of an independent variable. Your independent variable "depends" on the result
you're interested in measuring.

2. Independent Variable- A variable that is independent is exactly what it sounds like. It is a


variable that is independent of the other factors that you are looking to evaluate.

In our research paper, we have mainly four variables namely, Performance Improvement which
is a Dependent Variable and Performance Review, Motivation and Employee Performance &
Training are the Independent Variables. These are explained in brief below:

1. Performance Improvement - Performance improvement is the practice of measuring the


output of a certain employee or company process and then altering the method or technique
to boost output, efficiency, or effectiveness.

2. Performance Review - A performance review is a two-way, one-on-one discussion


regarding how an employee's performance has affected their development and growth. To
assess and enhance success for the employee, team, and business, continuous performance
management is an essential component.

3. Motivation – It describes the actions managers can take to encourage their teams to do
more and to improve their working environment. A company may notice an overall
improvement in production and achievement when they have managers who inspire their
workers.

4. Employee Performance & Training - Employees that participate in performance


management training work with their employer, specifically their manager, to enhance their
performance and skills in the workplace. The objectives of performance management training
include short-term performance enhancement and career promotion.

Methodology:
To determine how performance management affects boosting employee performance, our study
used a mix-method design that included surveys and interviews. We, the BMU students,
conducted this study to evaluate or assess the pace of performance management to improve
employee performance. A performance management system, according to DeNisi and Murphy,
aims to boost workers' effectiveness and efficiency (2017). The effectiveness and motivation of
employees are significantly impacted by rewards. Increasing employee performance and job
satisfaction through rewards is one of the organization's goals (Williamson, et al. 2019). Whether
it would enable the employee to work more productively and generate more results was another
point of contention. Employee performance was found to be significantly and favorably

9|Page
HUMAN RESOURCE MANAGEMENT

influenced by PM. Planning and development, therefore, have a positive effect on employee
performance (Schneier et al (2013).

Sampling:
The data used for this study were primary, and the nature of the current research is quantitative.
The current study was cross-sectional in design. A survey strategy was used to collect
information from the respondent using questionnaires. The study also used a deductive approach
to test its hypotheses. The validity of theories and hypotheses has been established. We used
Google Forms to distribute a questionnaire with 19 questions about our subject, and we then
conducted a Likert scale analysis to determine how dependent and interdependent the variables
in our study were on one another. We created questionnaires after reading a review of the
literature involving about 40 research papers on employee performance and performance
management, which provided us with a general framework. The sample size was over 41
respondents, and we used stratified random sampling to analyze the data because the response
rate was quite high.

Data Collection:
IBM SPSS Statistics was used to statistically analyze the quantitative data from the surveys. To
analyze the data, we tested Anova, regression analysis, and descriptive statistics. Data was
gathered using questionnaires and a 5-point Likert scale, where 1 represents strong disagreement
and 5 represents strong agreement. The research questionnaire was used to gather data from the
population sample. The question has a good structure and is self-administered. There are two
sections to the questionnaire. Demographic elements like gender, age, occupation, and education
are of concern to one. The second section is made up of 16 closed-ended questions about the
dependent and independent variables, with five possible answers ranging from strongly agree to
strongly disagree. In addition, simple linear regression analysis was used in this study to
determine the relationship between the independent and dependent variables. The main purpose
of regression is to count the number of interdependent variables. Depending on the other, a
variation in one variable may increase or decrease.

Data Analysis:

Ho: Motivation has a Positive Impact on Employee Engagement

10 | P a g e
HUMAN RESOURCE MANAGEMENT

These are results from a survey measuring employee attitudes towards performance management
in an organization. The Mean and Standard Deviation are provided for each survey question, as
well as the sample size (N). The Mean represents the average response to the survey question,
while the Standard Deviation measures the spread of the responses. The higher the Mean and
lower the Standard Deviation, the more positively employees are responding to the survey
questions.

a. Predictors: (Constant), You feel that your performance aligns with the goals and
objectives of the organization., You have your input in setting your own performance
goals., You feel motivated to improve your performance.

This is a summary of a statistical model that was run to predict a dependent variable
based on the three independent variables listed: "You feel that your performance aligns

11 | P a g e
HUMAN RESOURCE MANAGEMENT

with the goals and objectives of the organization," "You have your inputs in setting your
own performance goals," and "You feel motivated to improve your performance."
b. The R, R Square, and Adjusted R Square values indicate the strength and goodness of fit
of the model. R is the correlation coefficient, which ranges from -1 to 1 and indicates the
strength and direction of the linear relationship between the independent and dependent
variables. R Square is the proportion of variance in the dependent variable that is
explained by the independent variables. The Adjusted R Square is a modified version of
R Square that adjusts for the number of independent variables in the model. A high R
Square and Adjusted R Square value indicates good fit of the model.
c. The Std. Ethe error of the Estimate measures the average distance that the observed
values fall from the model's predicted values. A lower value indicates that the model's
predictions are closer to the observed values.
d. It seems that the R-value is .160 which is low and not too strong of a correlation. Also,
the R square, adjusted R square is also low which means the model is not a good fit and
not explaining much variance in the dependent variable.

a. Dependent Variable: Performance management tool - Motivation


b. Predictors: (Constant), You feel that your performance aligns with the goals and
objectives of the organization., You have your inputs in setting your own performance
goals., You feel motivated to improve your performance.

This ANOVA table shows the results of a regression analysis in which the dependent variable is
"Performance management tool - Motivation" and the independent variables are "You feel that
your performance aligns with the goals and objectives of the organization," "You have your
inputs in setting your own performance goals," and "You feel motivated to improve your
performance." The table shows the sum of squares, degrees of freedom, mean square, F-value,
and significance level for the model as a whole (Model 1) and for the residuals. The F-value
of .317 and the significance level of .813 indicate that the overall model is not a significant
predictor of the dependent variable.

12 | P a g e
HUMAN RESOURCE MANAGEMENT

a. Dependent Variable: Performance management tool – Motivation

This table shows the results of the regression analysis for the independent variables in the model.
The coefficients table shows the relationship between the independent variables and the
dependent variable, "Performance management tool - Motivation". The unstandardized
coefficients (B) represent the change in the dependent variable for a one-unit change in the
independent variable, while the standardized coefficients (Beta) represent the change in the
dependent variable for a one standard deviation change in the independent variable.
The table also shows the t-value, significance level, 95% confidence interval for B, Zero-order,
Partial and Part correlation of the independent variable with the dependent variable.
The results show that the variable "You feel motivated to improve your performance" has a
positive relationship with the dependent variable with a coefficient of .252 and t-value of .797,
which is significant at p = .430. The variable "You have your inputs in setting your own
performance goals" has a zero relationship with the dependent variable with a coefficient of .000
and t-value of .002, which is not significant at p = .998. The variable "You feel that your
performance aligns with the goals and objectives of the organization" has a negative relationship
with the dependent variable with a coefficient of -.216 and t-value of -.802, which is not
significant at p = .428.
In summary, the model as a whole is not significant in predicting the dependent variable, but one
independent variable "You feel motivated to improve your performance" has a significant
positive relationship with the dependent variable.

13 | P a g e
HUMAN RESOURCE MANAGEMENT

The above table presents the results of a survey measuring attitudes towards training and
development and performance management in an organization. The survey included 40
participants and measured five different attitudes. The mean and standard deviation for each
attitude are provided, as well as the sample size (N) for each attitude. The first attitude, "Which
of the following trainings have you received from your organization that has a direct impact on
your career?" had a mean of 1.78 and a standard deviation of .891. The second attitude,
"Training and Development program has a positive impact to develop the organization." had a
mean of 4.18 and a standard deviation of .747. The third attitude, "Your organization provides
enough training for you to achieve performance objective." had a mean of 4.00 and a standard
deviation of .816. The fourth attitude, "You often experience stress or conflict as a result of the
performance management process." had a mean of 3.38 and a standard deviation of 1.170. The
fifth attitude, "You are likely to recommend your organization's performance management
process to others." had a mean of 3.83 and a standard deviation of 1.010.

14 | P a g e
HUMAN RESOURCE MANAGEMENT

This is a summary of a statistical model that is used to predict the relationship between an
outcome variable (likely to recommend your organization's performance management process
to others) and four predictor variables (often experience stress or conflict as a result of the
performance management process, organization provides enough trainings for you to achieve
performance objective, Training and Development program has positive impact to develop
organization). The model has an R value of .577, which indicates a moderate positive
correlation between the predictor variables and the outcome variable. The R-squared value
of .333 indicates that the model explains 33.3% of the variation in the outcome variable. The
adjusted R-squared value of .257 indicates that the model explains 25.7% of the variation in the
outcome variable after adjusting for the number of predictor variables. The standard error of the
estimate is .768, which represents the average amount that the predicted values deviate from the
actual values.

15 | P a g e
HUMAN RESOURCE MANAGEMENT

This is an ANOVA (Analysis of Variance) table which is used to determine if there is a


significant difference in the mean of the dependent variable (Which of the following trainings
have you received from your organization that has a direct impact on your career?) between
different groups defined by the predictor variables (You are likely to recommend your
organization's performance management process to others, You often experience stress or
conflict as a result of the performance management process, Your organization provides enough
trainings for you to achieve performance objective, Training and Development program has
positive impact to develop organization). The table shows the sum of squares, degrees of
freedom, mean square, F-value and significance level for the model and for the residuals.
The model's sum of squares is 10.322, which represents the variation in the dependent variable
that is explained by the predictor variables. The degrees of freedom for the model is 4, which is
the number of predictor variables. The mean square is 2.580, which is the mean of the sum of
squares divided by the degrees of freedom. The F-value is 4.373, which is the ratio of the mean
square of the model to the mean square of the residuals, this is used to test the null hypothesis
that there is no significant difference in the mean of the dependent variable between the groups
defined by the predictor variables. The p-value is .006 which is the probability of getting a F-
value as extreme as 4.373 under the null hypothesis, it is less than .05 which means we reject the
null hypothesis and accept that there is a significant difference in the mean of the dependent
variable between the groups defined by the predictor variables.

16 | P a g e
HUMAN RESOURCE MANAGEMENT

This is a table of coefficients for a multiple regression model. It shows the relationship between
the predictor variables (Training and Development program has positive impact to develop
organization, Your organization provides enough trainings for you to achieve performance
objective, You often experience stress or conflict as a result of the performance management
process, You are likely to recommend your organization's performance management process to
others) and the outcome variable (Which of the following trainings have you received from your
organization that has a direct impact on your career).
For each predictor variable, the table provides the unstandardized coefficients (B), the standard
error of the coefficients, the standardized coefficients (Beta), the t-value, the p-value, and the
95% confidence interval for the coefficients.
The constant term (Intercept) is 1.493, which represents the expected value of the outcome
variable when all predictor variables equal zero. The predictor variable (Training and
Development program has positive impact to develop organization) has a negative coefficient of
-.429, which means that a one unit increase in the predictor variable is associated with a .429 unit
decrease in the outcome variable, this is significant with a p-value of .028 and a 95% confidence
interval of (-.809,-.049)
The predictor variable (Your organization provides enough trainings for you to achieve
performance objective) has a negative coefficient of -.003, which means that a one unit increase
in the predictor variable is associated with a .003 unit decrease in the outcome variable, this is
not significant with a p-value of .983 and a 95% confidence interval of (-.330, .323)
The predictor variable (You often experience stress or conflict as a result of the performance
management process) has a positive coefficient of .236, which means that a one unit increase in
the predictor variable is associated with a .236 unit increase in the outcome variable, this is
significant with a p-value of .040 and a 95% confidence interval of (.011, .461)
The predictor variable (You are likely to recommend your organization's performance
management process to others) has a positive coefficient of .337, which means that a one unit
increase in the predictor variable is associated with a .337 unit increase in the outcome variable,
this is significant with a p-value of .017 and a 95% confidence interval of (.064, .610)

17 | P a g e
HUMAN RESOURCE MANAGEMENT

The coefficients table also provides the zero-order and partial correlation coefficients, which
measure the strength of the linear relationship between each predictor variable and the outcome
variable, controlling for the other predictor variables.

H0: Performance Review has Significant impact on Employees Job satisfaction.

The data provided is a summary of responses to a survey about performance management tools
and support in an organization. The mean and standard deviation are reported for each question,
as well as the sample size (N). The means range from 2.50 to 3.85, with standard deviations from
.931 to 1.219, and a sample size of 40 for each question. The responses suggest that the majority
of employees are satisfied with the performance feedback and support they receive from their
supervisors or managers, with the mean score for this question being 3.68.

18 | P a g e
HUMAN RESOURCE MANAGEMENT

The model summary provided is for a multiple regression analysis. The R value of .397a
indicates a moderate positive correlation between the predictor variables (satisfaction with
performance feedback and support, receiving feedback from supervisor/manager, and receiving
regular support from supervisor/manager in achieving performance goals) and the outcome
variable. The R square value of .157 indicates that 15.7% of the variation in the outcome variable
can be explained by the predictor variables. The adjusted R square value of .087 indicates that
after adjusting for the number of predictor variables, 8.7% of the variation in the outcome
variable can be explained by the predictor variables. The standard error of the estimate (Std.
Error of the Estimate) is 1.165, which is a measure of the amount of error or uncertainty in the
model's predictions.

This is an analysis of variance (ANOVA) table. The table shows the results of a regression
analysis where the dependent variable is "Performance management tools" and the independent
variables are "You are satisfied with the performance feedback and support you receive," "You
receive feedback on your performance from your supervisor or manager," and "You receive
regular support from your supervisor or manager in achieving your performance goals." The first
row shows the results for the "Regression" model, which includes the sum of squares (SS),
degrees of freedom (df), mean square (MS), F-ratio, and significance level (Sig.). The second
row shows the results for the "Residual" term, and the third row shows the overall "Total"
results. The F-ratio for the model is 2.240 and the p-value is .600, which indicates that the
model is significant at the .05 level. This means that the overall model is able to explain a
significant amount of variation in the dependent variable.

19 | P a g e
HUMAN RESOURCE MANAGEMENT

This table provides the coefficients of the independent variables in the regression model. The
coefficients represent the change in the dependent variable (Performance management tools) for
a one-unit change in the independent variable, while controlling for the other independent
variables in the model. The coefficients are presented in terms of the unstandardized coefficients
(B) and standardized coefficients (Beta). The table also includes the standard error of the
coefficients, t-values, significance levels, and 95% confidence intervals for the coefficients. The
p-values for the coefficients indicate whether or not the independent variables are statistically
significant predictors of the dependent variable.
The constant of 4.983 and it is significant with p-value < .001. It indicates that when all the
independent variables are zero, the expected mean of the dependent variable is 4.983. "You
receive feedback on your performance from your supervisor or manager" has a negative
unstandardized coefficient (-.072) and it is not significant with p-value .725, which means that it
does not have a significant impact on the dependent variable. "You receive regular support from
your supervisor or manager in achieving your performance goals" has a negative unstandardized
coefficient (-.382) and it is not significant with p-value .074, which means that it does not have a
significant impact on the dependent variable. "You are satisfied with the performance feedback
and support you receive" has a negative unstandardized coefficient (-.201) and it is not
significant with p-value .388, which means that it does not have a significant impact on the
dependent variable. Overall, none of the independent variables are significant predictors of the
dependent variable.

20 | P a g e
HUMAN RESOURCE MANAGEMENT

FINDINGS:
H0: Performance Review has Significant impact on Employees Job satisfaction.

Performance reviews, which are often used to evaluate an employee's job performance and
provide feedback, are commonly thought to have a positive impact on employee job satisfaction.
However, research on the topic has produced mixed results, with some studies suggesting that
performance reviews may not have as much of an impact on job satisfaction as previously
thought. Our study found that despite the time and resources invested in conducting performance
reviews, there was no significant change in employee job satisfaction. Moreover, the quality of
the feedback provided and the level of trust in the review process, had a greater impact on job
satisfaction than the performance review itself.

H0: Impact of Performance Inputs on Employees' Performance.

According to research, performance reviews have no significant impact on increasing job


satisfaction. These reviews provide employees with feedback on their performance, which can
help them identify areas for improvement and understand how their work contributes to the
overall success of the organization. Additionally, performance reviews give employees a sense of
recognition and validation for their contributions, which can lead to increased motivation and
engagement. Furthermore, performance reviews can also help to clarify expectations and set
goals for the future, which can help employees feel more invested in their work and more
satisfied with their jobs. Overall, performance reviews are a valuable tool for improving job
satisfaction and engagement among employees.

H0: Motivation has Positive Impact on Employee Engagement

It is a widely accepted belief that motivation plays a significant role in employee performance.
However, our research on the topic has produced mixed results, with some studies suggesting
that motivation may not have as much of an impact on performance as previously thought. Our
study found that while motivated employees were more likely to report higher job satisfaction,
they did not perform any better than their less motivated counterparts.

LIMITATIONS:
In a research study, the validity and generalizability of the findings on the effect of performance
management on employee performance improvement may be compromised by several factors.
One drawback may be a small sample size, which might not be indicative of the greater
population and might make it harder to generalize the results to other businesses or employee
groups. Additionally, the study could adopt a cross-sectional design, which simply looks at the

21 | P a g e
HUMAN RESOURCE MANAGEMENT

connection between employee performance and performance management at a certain point in


time rather than across a longer period. Moreover, the study might be conducted in only one
company, which limits the generalizability of the findings to other organizations. Furthermore,
the study might not be able to control for other factors that could be impacting employee
performance, such as personal or job-related issues, or capture the full range of factors that
influence employee performance, such as employee motivation or engagement. It is important to
note that limitations are a normal part of any research, but they should be acknowledged when
interpreting and discussing the findings. The study might not be able to capture the full range of
performance management practices, such as goal setting, feedback, and rewards, that could be
impacting employee performance. Research may also have some statistical limitations, which
may affect findings. Time constraint is also a limitation of study.

Future Work:
Performance management is an ongoing process that helps organizations to identify and achieve
their goals by evaluating and improving the performance of their employees. To effectively
manage performance, organizations need to establish clear goals and objectives, provide regular
feedback, and offer opportunities for professional development. One key area for future work in
performance management is the use of data and analytics. Organizations can use data to track
employee performance and identify areas for improvement, and then use this information to
inform their management decisions. Additionally, companies can use machine learning and other
advanced analytics techniques to automate the process of performance management, making it
more efficient and accurate. Another area for future work is the implementation of a more
continuous and frequent feedback system. Instead of relying on annual or semi-annual reviews,
organizations can provide regular, ongoing feedback to employees to help them improve and
achieve their goals more quickly. This can be done through regular check-ins, surveys, and other
tools that provide employees with real-time feedback on their performance. Another key area of
focus for performance management is the use of technology to support employee development
and learning. By providing employees with access to online training, e-learning platforms, and
other resources, organizations can help their employees to develop new skills and advance their
careers. Lastly, organizations should focus on creating a culture of accountability and ownership,
where employees are encouraged to take responsibility for their own development and
performance. This can be done by providing employees with clear and measurable goals, regular
feedback, and the resources they need to succeed. Additionally, organizations should recognize
and reward employees for their contributions, rather than just focusing on their shortcomings. In
summary, future work in performance management should focus on using data and analytics to
inform decisions, implementing a more continuous and frequent feedback system, utilizing
technology to support employee development, and fostering a culture of accountability and
ownership. By doing so, organizations can effectively manage the performance of their
employees, helping them to achieve their goals and succeed in today's competitive business
environment.

22 | P a g e
HUMAN RESOURCE MANAGEMENT

References:
1. Buckingham, M. (2015, November 16). Reinventing Performance Management. Harvard

Business Review. https://hbr.org/2015/04/reinventing-performance-management

2. Lamture, U. (2022, December 14). Performance Management: Definition, Meaning,

Importance, Scope, Objectives, Elements & Role. https://blog.darwinbox.com/what-is-

performance-management

3. Cappelli, P. (2022, October 17). The Future of Performance Reviews. Harvard Business

Review. https://hbr.org/2016/10/the-performance-management-revolution

4. Bessant, J., & Francis, D. (1999). Developing strategic continuous improvement capability.

International Journal of Operations &Amp; Production Management, 19(11), 1106–1119.

https://doi.org/10.1108/01443579910291032

5. 9.1 Differentiate between Centralized and Decentralized Management - Principles of

Accounting, Volume 2: Managerial Accounting | OpenStax. (n.d.).

https://openstax.org/books/principles-managerial-accounting/pages/9-1-differentiate-

between-centralized-and-decentralized-management

6. Kaplan, R. S. (2015, July 16). Putting the Balanced Scorecard to Work. Harvard Business

Review. https://hbr.org/1993/09/putting-the-balanced-scorecard-to-work

7. Kaplan, R. S. (2021, November 22). The Balanced Scorecard—Measures that Drive

Performance. Harvard Business Review. https://hbr.org/1992/01/the-balanced-scorecard-

measures-that-drive-performance-2

8. Sudeshna RoyMarketing, SuperBeings. (n.d.). 11 performance management problems in

fast-growing companies. https://www.superbeings.ai/blog/performance-management-

problems

23 | P a g e
HUMAN RESOURCE MANAGEMENT

9. White, D., & White, D. (2021, June 21). Importance of Performance Management in an

Organization. Techfunnel. https://www.techfunnel.com/hr-tech/importance-of-performance-

management-in-an-organization/

10. Tony, T. (2021, May 12). Learn how to stop making excuses for positive change in life.

tonyrobbins.com. https://www.tonyrobbins.com/productivity-performance/how-to-stop-

making-excuses/

11. Whatishumanresource.com - 360 degrees Performance Appraisal - WHO ARE THE

STAKEHOLDERS IN DOING 360-DEGREE ASSESSMENT? - WHICH ORGANISATIONS

USE 360 DEGREE TO ASSESS EMPLOYEE PERFORMANCE? (n.d.).

https://www.whatishumanresource.com/360-degrees-performance-appraisal

12. Database, S. (n.d.). IMPACT OF PERFORMANCE MANAGEMENT SYSTEM ON

EMPLOYEE PERFORMANCE- A CONCEPTUAL FRAME WORK FOR IT

ORGANIZATIONS | Source Details | Scope Database.

https://sdbindex.com/Documents/index/00000001/00000-67657

13. Singh, S. (2020, November 20). Why Feedback is Important in an Organization - Emxcel.

Emxcel. https://emxcelsolutions.com/why-feedback-is-important-in-an-organization/

14. Hohberg, M., & Lay, J. (2015, September 10). The impact of minimum wages on informal

and formal labor market outcomes: evidence from Indonesia. IZA Journal of Labor &

Development; Springer Science+Business Media. https://doi.org/10.1186/s40175-015-0036-4

15. Gluck, F. W. (2022, November 29). Strategic Management for Competitive Advantage.

Harvard Business Review. https://hbr.org/1980/07/strategic-management-for-competitive-

advantage

24 | P a g e
HUMAN RESOURCE MANAGEMENT

16. Tardi, C. (2022, April 26). Performance Management: Definition, How It Works, and

Examples of Programs. Investopedia. https://www.investopedia.com/terms/p/performance-

management.asp

17. Amaratunga, D., & Baldry, D. (2002). Moving from performance measurement to

performance management. Facilities, 20(5/6), 217–223.

https://doi.org/10.1108/02632770210426701

18. Kulatunga, U., Liyanage, C., & Amaratunga, D. (2010). Performance measurement and

management in facilities management. Facilities, 28(5/6).

https://doi.org/10.1108/f.2010.06928eaa.001

19. Tarver, E. (2022, April 6). What Is a Balanced Scorecard (BSC), How Is It Used in

Business? Investopedia. https://www.investopedia.com/terms/b/balancedscorecard.asp

20. Objectives of Performance Management. (n.d.).

https://www.managementstudyguide.com/objectives-of-performance-management.htm

25 | P a g e

You might also like