The effectiveness of performance management in KwaZulu-Natal automotive component manufacturers

Abstract

In an increasingly competitive environment, sustaining high performance is critical. Effective performance management can enhance performance to support organisational success. Individuals in organisations want growth, and yet businesses are not leveraging the opportunity to develop them. Literature has identified four elements that influence the effectiveness of performance management. The purpose of this study is to determine the impact that the elements; employees, managers, the performance management system and context, have on the effectiveness of performance management. The study was qualitative and exploratory, involving semi-structured interviews with 22 respondents from four automotive component manufacturers in KwaZulu-Natal. The respondents comprised executives, senior managers, line managers and employees. Each interview was analysed utilising thematic analysis. Findings from the research confirmed the literature that the elements do influence performance management and highlighted two other elements, the human resource department and leadership. The relationships between the elements revealed effects that served as enablers or deterrents to the elements working efficiently. A framework emerged from findings and reviewed literature, which depicts the interconnection of the elements and aspects for businesses to consider, in order to utilise performance management effectively. The findings from this study adds to the existing literature in the field of performance management.