Factors that influence performance management at a large refinery in the North-West Province
Abstract
Performance management applied correctly can significantly contribute to the satisfaction
and motivation of employees, which can result in considerable positive outcomes for both the
employer and the employee. The process employed at the company under investigation does
not seem to contribute to the improvement of overall company performance. Certain factors
associated with the process and the perceptions of those subjected to it, might explain it.
The objective of this study was to identify factors generally regarded as important for
effective performance management, through a comprehensive literature study and to measure
the gap between what the employees of this company expect and what they experience in
terms of each of these factors. Forty-nine factors have been identified from the literature. In
general the authors agree about the influence of the identified factors on performance
management. For ease of reference, these factors were grouped and classified in four
categories namely those that relate to system, the rater, the ratee and to the performance
goals.
A questionnaire, compiled by the author in collaboration with Statistical Consultation
Services of the NWU, Potchefstroom Campus, was used as measuring instrument for the
empirical study. A survey was conducted to measure the gap between what the employees of
the company expect and what they experience in terms of each of these factors. Forty-six of
the fifty-eight members of the target population (employees at management level) took part
in the survey. All questionnaires were completed in the presence of the author.
The data in this study was an availability sample and interpretation of the results was thus by
using effect sizes (d-values). Forty-one of the forty-nine items measured were found to have
effect sizes, which are large enough to be significant in practice. Lack of trust in the system
and unequal treatment of all participants to the process have the largest d-values.
In view of the large number of factors with significant differences between what the
managers expect and what they experience, it is recommended that the company starts off by
selecting those factors which relate to trust, holistically deal with those first, and then measure the success rate before moving on to the next group of factors with large d-values.
Repeating the survey on other business units in the group, which generally, repeatedly
perform better in terms of operational targets is recommended for further related study.