Performance Management and Employee Satisfaction in Insurance Company of East Africa, Kisumu Branch

Abstract

Performance management is concerned with enhancing employee performance at work as well as providing them with satisfaction. In its entirety, performance management is primary to the success of any organization considering the global competition and turbulence in the business arena. It is concerned with satisfying the needs and expectations of an organization's stakeholders; employees included.

This study was carried out to establish the employee performance management process used in Insurance Company of East Africa, Kisumu Branch. In addition, it was aimed at determining the influence of employee performance management process on employee satisfaction. It employed a case study research design. Data analysis was conducted using descriptive statistics such as the mean, percentages and frequencies. The data was further subjected to Pearson's Correlation analysis to determine the influence of performance management process on employee satisfaction.

The findings indicated that Insurance Company of East Africa, Kisumu Branch has an employee performance management process which incorporates: performance and development agreement; managing employee performance throughout the year and conducting formal performance review. The study therefore agrees with Gareth et al (2000) who suggest that organizations adopt employee performance management as a competitive strategy. The study also established that 66% of employees in the branch were satisfied with the employee performance management process in place.

The study further revealed that employee performance management process enhances employee satisfaction and vice versa. This concurs with Robson et al (2005) whose study suggested that organizations that implement 'good practices', such as employee performance management, and who are achieving organizational results are likely to be closer to satisfying their staff. The organization, however, scored poorly in areas such as team work 44% and work environment where 34%. It is recommended that a similar study be replicated in the other branches or the organization as a whole to ascertain consistency with these findings, given that it was limited to one branch.