CHAPTER ONE:

INTRODUCTION

1.1 Background to the Study

Performance management system is a continuous process of improving individuals, team and organizational performance. Performance management has to be the core of all organizations since it gives strategic direction and how resources are going to be distributed towards the achievement of set goals and objectives. Employee performance management system has been popular within human resource management study, involves managing employee efforts, based on measured performance outcomes. Armstrong (2004) defined performance management as a means of getting better results from the whole organization by understanding and managing within an agreed framework, performance of planned goals, standards and competence requirements. Bacal (1999) defines performance management as an ongoing communication process, undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing clear expectations and understanding about: the essential job functions an employee is expected to do; how the employee's

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job contributes to the goals of the organization. The emphasis of performance management systems is on continuously improving organizational performance, and this is achieved through improved individual employee performance (Macky & Johnson, 2000).

The aim of performance management system is to improve service delivery through effective and efficient application of resources. Thus, performance management should be an important step in the organization's human resource management system and influences employee performance and then organizational performance. Performance management as a process for ensuring employees focus on their work in ways that contribute to achieving the organization's mission is indispensable for a business organization. Moreover, it is important for employees and managers to understand that performance management and performance management systems are the key determinants of an organization's long-term success or failure. Also, understanding how human resources management practices influence employee performance could help organizations setting up a better management system, and finally improve employee performance and organizational performance. . In this perspective, employee performance is

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tightly related to organizational performance, effective and efficient employee performance will positively influence organizational performance. According to the resource-based view, employees are the resources and assets of an organization. Consequently, organizations need to figure out strategies for identifying, encouraging, measuring, evaluating, improving and rewarding employees' performance at work. This means that, performance management and appraisal systems have come to play an indispensable role in helping organizations to reach their goals of productivity (Stevers & Joyce, 2000).

Public sector organizations encountered some problems in employee performance management. They complained about a low performance of employees, such that even workers themselves have also been worried about their own level of performance. Some of them believe if one’s output is high, it will motivate one much towards working harder and thereby increasing performance, as high output makes one to be satisfied. Public sector cannot withstand the competition; this is also attributed to low-performance especially in the industries in the public sectors. It can be seen that low-performance is a general issue in an organization and also a big

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problem in public sector and it adversely affects the productivities. Incompetence of employee skill and knowledge has affected their performance and all those in the performance management system do not possess appropriate knowledge, attitude and skills to utilize the system. This resulted from lack of training and development intervention in the public sector. Lack of commitment, lack of evaluation affects employee performance management system because in many organizations the evaluation process is not conducted at regular intervals

The prospect of employee Performance management system is important for an organization, as it helps organizations ensuring employees to work hard to achieving the organization's mission and objectives. Performance management sets expectations for employee performance and motivates employees to work hard in ways that is expected by the organization. Macky and Johnson (2000) pressed that the prospect of performance management system is on continuously improving organizational performance, and this is achieved by improved individual employee performance. Similarly, from the suggestion of Lawler (2003), the objectives often include motivating performance, helping individuals

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develop their skills, building a performance culture, determining who should be promoted, eliminating individuals who are poor performers, and helping implement business strategies. The main purpose of the performance management system is to ensure that: the work performed by employees accomplishes the work of the company; awards and salary increases based on employee performance are distributed accordingly; Opportunities for employee development are identified; and employee performance that does not meet expectations is addressed. Thus, improving employee performance by using performance management system is a way to improve organizational performance. However, organizations recently are utilizing the use of information communication technology to enhance the skills of employee for effective performance. They make use of ICT to retrieve information from the web. ICT holds the promise of effectiveness, efficiency, accuracy and transparency in the public service delivery. Public organization has made it mandatory for public officers to undergo ICT training for the purpose of furthering service and performance in public service, i.e. use of ICT, in particular the internet, to deliver public services in a much more convenient-customer oriented and cost effective way. The

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intervention of ICT in performance management system improved employee performance as well as organization productivities in as much as organizations make use of e-recruitment, e- training and e-performance appraisal in their human resource processes. The most significant out- comes were the increase of speed in processes, standardization, elimination of distance constraints and possibilities for data archiving(Ruben, Daisaku & Duncan 2011). It is important to mention that in order to achieve better results in employee performance management system, organization should involve ICT in their activities.

This work provides an assessment of the problem and prospects of employee performance management system in the public service with the intervention of ICT in the public sector.

1.2       Statement of the Research Problem

Employee performance management system increases performance of both employee and organization and later results to increase in efficient and effectiveness of productivity in the public sector.

The process of performance management system in the public sector is not without a number of problems thus: employee performance management

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system is not adequately improved public sector performance; inadequate employee knowledge and skills affects employee performance management in the public sector which might affect the employee’s ability to meet the performance expectations, it is best practice to make reasonable efforts to accommodate the employee in the short term. The employee remains responsible for performance. Lack of monitoring and evaluation affect employee performance management in the public sector, employee performance system does not effectively increase productivity in the public sector; and it also affects collection, interpretation of information thus affect decision making in the organization. Again lack of employee commitment to work which eventually lead to poor productivity as well as the negative influence on the organization is also eminent. Poor performance which is mostly as a result of inability to do job due to incompetence or unwillingness and lack of training which may result in demotion as well as termination of employee appointment in the public sector could all be attributed to low performance. As such, before one can fix low performance, they have to understand its cause. Does it come from lack of ability or low motivation? Incorrect diagnoses can lead to lots of problems later on. If one believes an

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employee is not making enough of an effort, they will likely put increased pressure on him or her to perform. But if the real issue is inability, then increased pressure may only make the problem worse. Hence, all these problems are hindering the performance management of Federal Inland

Revenue Services (FIRS) as the case study, thus it slows down the effectiveness and efficiency of the organization as well as the performance of the employees.

1.3Research Questions

v Of what significant is employee knowledge and skills to employee performance management in the public sector?

v To what extent does lack of monitoring and evaluation affect employee performance management in the public sector?

v How does low performance relates with employee performance management in the public sector?

1.4Objectives of the Study.

v To examine the significance of which inadequate employee knowledge and skills on employee performance management in

the public sector.

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v