Effect of Performance Management System on Employee Performance: A Case Study of Un-Habitat-Somalia Programme

Abstract

Performance Management System is influential in cascading a company’s vision, mission and goals from the administration to every worker. If executed properly, it provides a commendable valuation of worker performance that revel how employees have each added value to the company’s general objectives. Relatively little studies, however, have been carried out to back the interpretation that PMSs have any influence let only establishing a positive influence on companies’ functioning within the Somali economy. The studies reviewed have also not concentrated on the PMS aspects of performance measurements, performance standards, quality improvement, and progress reporting and their effect on employee performance. The general objective of the study was to determine the effect of performance management systems on employee performance at UN-Habitat, Somalia Programme. The study additionally aimed on addressing the subsequent specific objective; the effect of performance standards, performance measurements, quality improvement process, and progress reporting on performance at UN-Habitat Somalia Programme. This study adopted a descriptive research design. A quantitative approach was applied on the effects of performance management systems on employee performance. The independent variables comprised; performance standards, performance measurements, quality improvement process, and progress reporting and the implications on employee performance as the dependent variable. All employees in UN-Habitat Somalia Programme who are 50 in number formed the study population. Since the population is relatively small, the study carried out a census of all 50 employees. To analyze the respondents’ demographic features, percentages and frequencies were utilized. In establishing the relationship amongst the dependent and independent variables, the researcher used inferential statistics which comprised of regression and correlation analysis. The study established that performance standards, performance measurement, and quality improvement processes, had no significant association nor relationship with employee performance. However, the study established that progress reporting had both a significant positive association and relationship with employee performance. The correlation analysis r (0.517) = 0.000, p < 0.5 exhibited significant positive association. The regression analysis also exhibited that progress reporting has a significant positive influence on employee performance B (0.474), t (3.820) = 0.000 < 0.05. The coefficient obtained, indicates that a unit increase in progress reporting would translate to an increment in 0.474 units of employee performance. The study made recommendations to the policy makers at Institute of Human Resources, other bodies, human resource practitioners, and consultants should not implement performance standards, performance measurement, and quality improvement processes in isolation, but rather implements all the aspects of a performance management system in order to promote the performance of employees. Finally, recommendations were made to the human resource sector to implement progress reporting so as to augment employee performance. Thus, recommendations were made that the stakeholders should; give employees fair feedback, discuss regularly about employees performance, engage in providing positive feedback for good performers rather than condemning the poor ones, give feedback to employees that agrees with what they have in reality attained, provide relevant feedback on job performance, make sure how the organization gives feedback bring satisfaction to employee that is fair and unbiased, establish an appeal process for employees not satisfied with the progress reporting process, and utilize progress reporting as a decision making tool for enhancing the performance of employees. This abstract is incomplete…the findings should be organized based on the objectives. The same applies to conclusion and recommendations