The implementation of performance management (PM) in the public sector remains a challenge and requires an investigation into employees’ perception of PM at Statistics South Africa.
This study investigates the factors that affect employee performance at Statistics South Africa with the aim of providing a management framework for improving the performance of employees.
The motivation for this study was to identify factors that affect employees’ perception of PM at Statistics South Africa. By ascertaining these factors, it may be possible to influence the performance of employees positively.
The study followed a quantitative research approach using an explorative and descriptive design. The population consisted of 3326 employees. The random sample drawn contained 444 respondents, and the realised sample had 303 respondents. This represented a response rate of 68%. Data were collected through a Likert-scale-type questionnaire.
The results showed that employees perceived PM as ineffective and unfair. Various factors affecting PM at Statistics South Africa negatively were revealed. The analysis of the research identified the following performance factors: communication, talent management, retention, recruitment and selection, engagement and motivation.
The findings revealed that employees were not involved in the development and the implementation of PM. Managers and supervisors who are not committed to the PM of their subordinates avoid performance contracting and the conducting of performance reviews. Managers should be encouraged to give feedback to employees and to see PM as a development tool, rather than a compliance matter.
The research study contributes to the understanding of the perception of employees of Statistics South Africa regarding the factors that positively or negatively affect the PM process.
This study focuses on the factors that influence the perception of performance management (PM) at Statistics South Africa with the aim of providing a management framework for improving the performance of employees. Performance management combines and coordinates an organisation’s efforts to grow or become more efficient by motivating employees through evaluation, development, reward and promotion (Watkins & Leigh,
This article reports on a study conducted among employees of Statistics South Africa to measure the impact of PM. Six factors, namely communication, motivation, retention, recruitment and selection, engagement and talent management were used to measure the PM in this study. The study highlights how these variables influence performance positively or negatively.
The objectives of this study are, firstly, to determine those factors that impact positively or negatively on PM at Statistics South Africa. Secondly, the study aims to verify how various demographic groups differ in terms of their perception of PM at Statistics South Africa. Thirdly, the article aims to make conclusions and recommendations on employee perceptions of PM at Statistics South Africa.
This study contributes to the effectiveness of PM by providing a theoretical framework of the factors that influence the effectiveness of PM of employees at Statistics South Africa.
The research questions included the following:
What are the factors that impact on PM at Statistics South Africa?
How do various demographic groups compare in terms of their perception of PM at Statistics South Africa?
What conclusions and recommendations can be made on employee perceptions of PM at Statistics South Africa?
Performance management arrived in the latter part of the 1980s, partly as a reaction to the negative experience of merit rating and management by objectives. Its strength is that it is essentially an integrated approach to managing performance on a continuous basis. The appeal of PM in its authentic form is that it is holistic. It pervades every aspect of running the business and helps to give purpose and meaning to those involved in achieving organisational success (Armstrong,
According to Koontz as quoted by Armstrong (
Management by objectives then came into being during the 1960s, while the term PM was first used in the 1970s. Performance management has emerged, from the 1990s onwards, as an integral part of the human resource management approach to managing an organisation (Fletcher,
Performance management has become more popular as total quality management programmes emphasised using all the management tools, including performance appraisal. It involves the strategic use of performance measures and standards, and aims to establish performance targets and goals and to improve the effectiveness and efficiency of the organisation (Chen,
Performance management is a critical aspect of organisational effectiveness, yet it is considered the ‘Achilles heel’ of human capital management and should therefore be a top priority of managers. Less than one-third of employees believe that their company’s PM process assists them in improving their performance. Performance management regularly ranks among the lowest topics in employee satisfaction surveys (Gruman & Sack,
Performance management places key emphasis on improving organisational performance. Putting less emphasis on input and process control, its proponents argue that performance should be the guiding concept in organisational decision-making, routines and structures and that strategic planning and performance evaluation should be promoted. The PM model is often represented as a cyclical process in which management focuses primarily on defining organisational goals, setting performance targets and subsequently holding employees accountable. This process is then repeated possibly with adjustments in goals, targets or performance indicators reflecting the experiences of previous cycles (Nielsen,
Leonard (
Performance management forms part of a more comprehensive organisation development approach, referred to as the PM system (PMS). Ferreira and Otley (
formal and informal mechanisms, processes, systems, and networks used by organisations for conveying the key objectives and goals elicited by management, for assisting the strategic process and ongoing management through analysis, planning, measurement, control, rewarding, and broadly managing performance, and for supporting and facilitating organizational learning and change. (p. 264)
Performance management system thus refers to broad, over-all, ongoing processes including formal practices, procedures processes and systems, as well as the informal actions and procedures. The focus of this study was specifically on PM which can be seen as an important element of the PMS.
In most organisations, nationally and internationally, the PM cycle is a process that stretches over a 12-month period during which performance is planned, executed and assessed. In Statistics South Africa, it must be aligned to the organisation’s annual business plan, which is from 1st April to 31st March of the following year. The 12-month cycle is also linked to the financial year for the purpose of planning, pay progression and other performance-related incentives such as performance awards or cash bonuses. The probation cycle, however, is linked to the appointment date of a jobholder (Department of Public Service & Administration,
Williams (
The
Individual performance must continuously be monitored to enable the identification of performance barriers and changes and to address development and improvement needs as they arise as well as to determine progress and/or identify obstacles in achieving objectives and targets (Department of Public Service and Administration,
Factors that distort appraisals.
Performance standards are the ways the organisation goes about meeting its mission statement. These may include ethical values and levels of quality (Sandler & Keefe,
Based on a careful revision of the theory available, the researchers have identified the specific factors that may affect PM at Statistics South Africa. These identified factors formed the basis of the questionnaire that was developed and are explained below:
A deductive, quantitative-descriptive approach was adopted to examine the impact of PM on employee’s performance in Statistics South Africa. This type of research involves identifying the characteristics of an observed phenomenon (Saunders, Lewis, & Thornhill,
As this study examines the impact of factors affecting the employee performance, the employees of Statistics South Africa have been taken as a target population. Simple random sampling was used to select the study subjects from a list of names as this improves the reliability and generalisability of statistical results. According to Blair and Blair (
A questionnaire was compiled based on the theoretical framework, compiled from a close scrutiny of the literature. The questionnaire contained a five-point Likert-type scale instrument, with values ranging from 1 (strongly disagree), 2 (disagree), 3 (neutral), 4 (agree) to 5 (strongly agree) to measure responses. The questionnaire was divided into two sections, namely: Section A required biographic information such as age, gender, language, designation, education, employment and years of service. Section B contained questions in relation to factors affecting PM at Statistics South Africa. The survey consisted of the following factors: talent management, engagement, recruitment and selection, retention, motivation and communication. There were five questions posed in relation to each factor (sub-dimension) and therefore a total of 30 questions were posed to the respondents.
Permission was obtained from the Statistician-General of Statistics South Africa to distribute the questionnaire to the targeted population. Each questionnaire was accompanied by a covering letter, explaining the purpose of the study, promising confidentiality and voluntary participation, the importance of participation, potential benefits and contact information. The questionnaire was distributed electronically via a link, to those employees who were stationed at head office, as well as those stationed at provincial offices.
The Statistical Package for Social Sciences (SPSS) version 20.0 was employed for the data analysis. Descriptive analysis includes frequencies and percentages, and reliability tests include Cronbach’s alpha (Bouwan & Ling,
The factors that emerged are demonstrated in
Rotated factor pattern of the factor analysis.
Rotated factor pattern | Factor 1 | Factor 2 | Factor 3 | Factor 4 | Factor 5 | Factor 6 | Factor 7 |
---|---|---|---|---|---|---|---|
‘There is communication channels in my organisation.’ | 0.802 | - | - | - | - | - | - |
‘I can to share meaning through communication.’ | 0.782 | - | - | - | - | - | - |
Employees always receive feedback.’ | 0.770 | - | - | - | - | - | - |
‘I feel at liberty to communicate with management.’ | 0.704 | - | - | - | - | - | - |
‘At work, my opinions seem to count.’ | 0.644 | - | - | - | - | - | - |
‘My organisation communicates about change management.’ | 0.549 | - | - | - | - | - | - |
‘I am satisfied with my organisation. | 0.475 | - | - | - | - | - | - |
‘HRM provides information relating to talent.’ | - | 0.793 | - | - | - | - | - |
‘A rotation process exists to rotated talent.’ | - | 0.752 | - | - | - | - | - |
‘Talent management system attracts talent.’ | - | 0.719 | - | - | - | - | - |
‘Natural talents have been assessed.’ | - | 0.579 | - | - | - | - | - |
‘Rotation process to rotate talents.’ | - | - | 0.747 | - | - | - | - |
‘Management contributes to retention of employees.’ | - | - | 0.738 | - | - | - | - |
‘My organisation is aware that the employee turnover impacts negatively on its service delivery.’ | - | - | 0.681 | - | - | - | - |
‘My organisation’s PM reviews and rewards are effective for employee retention.’ | - | - | 0.596 | - | - | - | - |
‘Job-related questions were posed during the interview.’ | - | - | - | 0.764 | - | - | - |
‘I believe that R&S policy at Statistics South Africa is clear.’ | - | - | - | 0.661 | - | - | - |
‘The advert gave the information I needed about the position.’ | - | - | - | 0.653 | - | - | - |
‘I did receive acknowledgement of receipt of my application.’ | - | - | - | 0.518 | - | - | - |
‘I believe that HRM provides good service.’ | - | - | - | 0.439 | - | - | - |
‘My colleagues work equally as hard as I do.’ | - | - | - | - | 0.721 | - | - |
‘My fellow employees are committed to doing quality work.’ | - | - | - | - | 0.691 | - | - |
‘I feel remuneration is always motivating.’ | - | - | - | - | 0.486 | - | - |
‘I know what is expected of me at work. | - | - | - | - | - | 0.755 | - |
‘I feel I do my job up to standard.’ | - | - | - | - | - | 0.490 | - |
‘In the last 7 days, I have received recognition or praise.’ | - | - | - | - | - | - | 0.643 |
‘I use my natural talents daily by doing what I do best.’ | - | - | - | - | - | - | 0.551 |
‘My supervisor encourages my self-development and learning.’ | - | - | - | - | - | - | 0.510 |
PM, performance management; R&S, recruitment and selection; HRM, human resource management.
As one of the seven initial factors had only two items loading on it (the initial factor 6), it was not retained. As a rule of thumb, there should be at least three items loading on a factor for meaning interpretations to be made (Walsh,
Cronbach’s alpha for six factors affecting performance management at Statistics South Africa.
Factor | Scale | Cronbach’s alpha based on standardised items | No. of items |
---|---|---|---|
Factor 1 | Communication | 0.885 | 5 |
Factor 2 | Talent management | 0.834 | 5 |
Factor 3 | Retention | 0.819 | 5 |
Factor 4 | Recruitment and selection | 0.750 | 5 |
Factor 5 | Engagement | 0.768 | 5 |
Factor 6 | Motivation | 0.714 | 5 |
The empirical results in
Total variance explained by each factor.
Factor 1: Communication | Factor 2: Talent management | Factor 3: Retention | Factor 4: Recruitment and selection | Factor 5: Engagement | Factor 6: Motivation |
---|---|---|---|---|---|
5.0920825 | 3.1284030 | 2.8346709 | 2.3723304 | 1.9961577 | 1.7350634 |
From
The Pearson chi-squire statistics, as calculated for the demographical variables, are presented in
Pearson correlations in terms of demographical variables.
Pearson chi-square | Value |
Df | Asymp. sig. (2-sided) |
---|---|---|---|
Age | 28.949 | 16 | 0.024 |
Gender | 12.540 | 4 | 0.014 |
Highest qualification completed | 45.170 | 28 | 0.021 |
Employment classes | 48.959 | 28 | 0.008 |
Years of service | 62.673 | 28 | 0.000 |
, Cronbach alpha.
Asymp. sig., asymptotic significance (
The results in
The first research question was concerned with identifying the factors that affect PM at Statistics South Africa. Six factors that play a role in employees’ perception of PM emerged, namely communication, talent management, retention, recruitment and selection, engagement and motivation. In addition, the empirical study confirmed the reliability of each of these the factors.
The empirical results thus supported the view of Leonard (
As talent is considered the most critical source of success in an organisation (Phillips & Edwards,
The second research question sought to investigate how various demographic groups compare in terms of their perception of PM at Statistics South Africa. It is noteworthy that there are many similarities in the way different demographical groups perceive the factors that affect PM at Statistics South Africa. If the first factor, communication, is considered, the empirical results showed that employees of different ages, genders, educational levels and years of service all perceived communication to be an important determinant of PM. The second factor, talent management, was perceived similarly among the employees of different age groups, genders, employment classes and years of service. Also, the third factor, retention, was perceived in the same way by different ages, genders, educational levels, employment classes and years of service. It is encouraging that the results seem to indicate that employees are perceiving PM at Statistics South Africa the same, across different demographical groups, as it may be an indication that all employees are fairly treated in the same manner.
Some of the exceptions that were identified included a discovery that employees indicated a lack of confidence in their prospects of promotion within Statistics South Africa. This may be a contributing factor in the negative perception by respondents towards PM, where the age group 30–39 felt that superior work performance is not recognised. In this study, it was also discovered that employees from the age groups 30–39 and 40–49 felt that the economic climate affects their satisfaction with their salary level to a higher extent, compared to their counterparts. This may be an example of extrinsic motivation, referring to performance that is contingent upon the attainment of an outcome that is separable from the action itself (Legault, 2016, p. 1). Lastly, employees from the age group 40–49 felt more positive about the materials and equipment to do their work effectively and were also more satisfied with the retention process at Statistics South Africa.
The third aim of this article was to make conclusions and recommendations on employees’ perception of PM at Statistics South Africa. Based on the human resource management literature reviewed and the empirical results obtained, the following recommendations are made:
As the results of this study emphasised the importance of communication, managers must focus on providing clear communication on performance expectations and goals. Employees also need continuous constructive feedback on their performance, so that they can adjust their performance as needed informed. Critical decisions and instructions should be communicated timeously to promote transparency and keep employees motivated and engaged.
Performance management as a development tool rather than a compliance matter. When PM is used as a tool to develop employees, it encourages staff motivation by exploring alternative remuneration and reward systems that complement the organisation’s traditional rewards.
Considering the importance of talent management, identified as the second most influential factor in PM at Statistics South Africa, managers must incorporate career management conversations in the PM process. The implementation of the talent management strategy should be fast tracked. Human resource practitioners should encourage job rotation, job shadowing and mentoring programmes to enhance the experience and exposure of high-performance employees at Statistics South Africa. High performing staff can also be considered for secondment to other divisions or departments to gain experience and exposure.
This study confirmed the importance of fair recruitment and selection practices as a factor in determining employees’ perception of the success of PM. Recruitment and selection should be transparent, fair and open in order to motivate internal employees to continuously improve their performance.
Although not all good performances can be rewarded through promotion, an effective remuneration strategy can introduce other forms of recognition of superior performance. An example could be a ‘staff awards day’ where high performing employees are publicly commended and recognised by the Head of Department. Certificates and small cash awards can be given with clear citations of the reason for the award. This could address both the motivation and employee engagement factors that determine employee’s perception of PM. If employees understand what is expected, invest effort in improving their performance and then receive recognition, their perception of PM will improve.
This study has identified significant factors that affect employee’s performance at Statistics South Africa. The findings of this research show that management people are not committed to their PM of their subordinate. This weakness about the lack of participation for the employees should be addressed to ensure that employees perceive the PM process as fair.
Limited prior research findings on employees’ perception of PM at Statistics South Africa were available. A self-report questionnaire was used and the answers were dependent on employees’ memories. The sample was influenced by some employees being on maternity and vacation leave.
The results of this study revealed the positive and negative factors affecting PM in Statistics South Africa. These factors need to be addressed to ensure a gradual sustainable progress in improving the performance of employees within Statistics South Africa. Further research can be conducted in the following areas:
This investigation can be expanded by doing research at other government departments.
The perception of employees of PM within Statistics South Africa is in a broader perspective.
Further research is needed to validate these results in a few government departments.
The study has identified unique factors that affect PM at Statistics South Africa. It was therefore concluded that:
Most of the employees within Statistics South Africa believe that talent management is a challenge. This is an area which the management of Statistics South Africa should address. Statistics South Africa should introduce a system that will be able to attract the competent employee in order to avoid staff turnover.
More than half of the employees maintain that there is no job rotation process in Statistics South Africa. It can be concluded that the majority of the respondents within Statistics South Africa believe that there is no job rotation process in the organisation, which is a concern that the organisation should address.
Nearly half of the employees responded negatively regarding information related to a talent management system. This may be regarded as a negative response that reveals that the human resource processes regarding talent management are not clear to the employees. This is an area in which management must ensure that they conduct workshops with their employees to create an awareness of the policies that affect employees within the organisation.
Some employees claim that their abilities are not assessed by the organisation. Management fails to implement a retention policy and strategy.
A perceived lack of positive contributions from management towards the retention of employees within the organisation exists. Some employees responded that the organisation’s performance reviews and rewards are not effective. Opportunities for promotion are not adequate. Further to that, employees do not receive recognition for doing good work. There is a lack of feedback from management.
The authors would like to thank the Statistician-General Dr Pali Lehohla for granting permission to distribute the questionnaires to the targeted employees, statisticians who have analysed the data as well as the respondents who completed the questionnaires.
The authors declare that they have no financial or personal relationship that may have inappropriately influenced them in writing this article.
M.S. was the principal investigator responsible for the fieldwork. A.B. and C.B. were involved in helping to design and supervise the project.