The effectiveness of performance management at Bidvest Bank Ltd.

Abstract

Performance management is a concept which is quite often misconstrued by management. It may often be seen as a means of measurement to engage against poor performing people within an organisation. Performance management practices historically dealt with financial achievements associated with operational goals of an organisation. In modern business, performance management is associated with far more strategic intention than in the past. Performance management systems allow organisations to track each and every element and employee involved in achieving the organisations goals; it also allows management to effectively measure key performance areas, in order to evaluate their contribution towards operational success. The aim of this study was to identify what the management team at Bidvest Bank Ltd felt about the current performance management practice adopted by the organisation and how effective they felt this practice to be. For the purposes of this study non-probability sampling was used. The participants were chosen from a population of two hundred and thirty managers and supervisors at Bidvest Bank Ltd. One hundred and fourteen completed responses were received. The study found that management at Bidvest Bank Ltd felt the current performance management practice to be in need of revision. It was also found that new age performance management practices, such as online performance systems should be utilised at Bidvest Bank Ltd. It was also found that a low level of understanding, regarding components of effective performance management occurred amongst managers at Bidvest Bank Ltd. In order to improve performance management at Bidvest Bank the following are recommended: managers and supervisors need to have a better understanding of the critical elements that encompass effective performance management, which requires investment in training and development focussing on the soft skills such as setting objectives and conducting appraisal meetings. However, in order for performance appraisals to be more effective, managers need to be trained in the use of the balanced scorecard and the 360 degree review process. A number of limitations including: sample size and career succession planning were identified in this study. These limitations can be overcome by conducting a companywide survey which could be distributed to all employees which allows for analysis of effective performance management and its association with career succession planning.