Abstract:
ORIENTATION : To remain competitive South African organisations must improve their
operational efficiency by lowering manufacturing and service costs, and the key is the
performance of its employees.
RESEARCH PURPOSE : The purpose of the study was twofold: firstly, to establish if there is a
relationship between performance management and employee engagement; and secondly
to ascertain if performance management can be rebooted through increased employee
engagement.
MOTIVATION FOR THE STUDY : Organisations that measure and manage performance generally
outperform those that do not. Organisations need to understand what drives employee
engagement and performance to outperform their competitors.
RESEARCH APPROACH, DESIGN AND METHOD : A qualitative approach was employed that included
a review of research articles and interviews with employees from various functions across all
levels within operations of a fast-moving consumer goods organisation based in Gauteng.
A sample size of 20 employees was used.
MAIN FINDINGS : The results suggest that a relationship exists between performance management
and employee engagement and that an increase in employee engagement would result in
improved performance of employees and subsequently the organisation. The study revealed
that whilst engagement and communication occur across all levels within the organisation,
there is still a significant gap. The messages and expectations are not simple enough to be
understood. Employees are not empowered to have a voice which causes them to be
demotivated. Supportive management, which is fundamental to the success of performance
management, is lacking.
PRACTICAL/MANAGERIAL IMPLICATIONS : The insight from this study may be used to change the
way organisations engage with employees and manage performance to ensure it is a beneficial
exercise that adds value to all stakeholders.
CONTRIBUTION/VALUE-ADD : This study will contribute towards organisations understanding the
relationship between performance management and employee engagement and how to
leverage this towards improving operational efficiency and organisational effectiveness.
