Relationship between performance management principles and firm performance: A survey of companies quoted in the Nairobi stock exchange
Abstract
The concept of Performance Management is one of the most recent developments in the sphere
ofHuman Resource Management (HRM). Many companies now make use of this concept since
it has proved to be a strategic and integrated process that delivers sustained success to
organisations by improving the performance of the people who work in them and by developing
the capabilities of individual contributors and teams. Performance Management is used in all
kinds of companies: hospitals, industries, universities, transport, government and commercial
enterprises.
Despite all these, very little is known about Performance Management in the Kenyan situation.
The contemporary workplace in Kenya offers many challenges yet no studies have been done to
find out if indeed any of the firms is using performance management or even if performance
management is delivering its intended benefits to those who use it.
This study sought to determine the extent to which executives in companies quoted in the
Nairobi Stock Exchange have implemented the Performance Management and also to assess the
relationship between the extent of application and organisational performance. The study was
carried out using structured questionnaires; the target respondents were Human Resource
Managers.The response rate to the questionnaire was 60%. The data was analysed using both
descriptive and inferential statistical analyses. The findings were:
1. There is a high level of awareness and application of the Performance Management concept.
2. Performance Management improves employee performance and a high level of its
application improves organisational performance.
Sponsorhip
University of NairobiPublisher
School of Business
Subject
Relationship between performance managementPrinciples and firm performance
Nairobi stock exchange