A performance measurement model incorporating 360-degree evaluation of corporate values

Abstract

Corporate governance and management by values have become vital for organisations in South Africa. Recent allegations of corruption, corporate failures and the abuse of leadership power highlight the need for solid moral and ethical foundations. A set of shared values in an organisation may prove to be a significant competitive advantage. The competence of employees as reflected through the evaluation of their individual job goals has been widely measured for many years. Currently, limited information is available on the measurement and evaluation of the conformance of employees to corporate values. This study explores the conformance of individual members to core values as part of a regular, systematic performance measurement system. Introducing such a system may assist in enforcing accountability for individual ethical behaviour. Literature on the topic advises that the core values of an organisation should be carefully and correctly identified before individual conformance to the values can be measured. Managing by values entails that preferred behaviours should be entrenched in all codes, policies, and procedures of an organisation, including the performance measurement system. A 360-degree evaluation is considered the most appropriate method to evaluate individual conformance to corporate values. Information gathered from the model development part of this study indicates the following: 360-Degree evaluation of values conformance may be incorporated into any existing performance measurement system that conforms to the criteria established in this study. A performance/values template used for the evaluation of job performance and values conformance results effectively differentiates employees into categories. The model developed in this study was effectively implemented and tested in an organisation. It is expected that the implementation of the model will enhance the performance of individuals and ultimately facilitate the creation of a motivating climate within the organisation.