The Impact of Performance Management in Business With in Insurance Industry in Kenya: the Case of Salama Insurance Broker

Abstract

Performance Management is an incentive that leads to enhanced business performance if handled well. However, if the process is poorly implemented , it can potentially impact on the Business Performance negatively. It is against this background that the Researcher has been motivated to establish the extent to which Performance Management influences Business Performance. Therefore the major objective of the Study is to find out the effect of Performance Management on Business Performance The study is based in Nairobi where Salama Insurance Broker is located. Data will be collected through the aid of questionnaires and face to face interviews. Descriptive and Qualitative research designs will also be employed. The target population is SIB Administration, Finance,, Underwriting and Claims employees with a sample size of 50. The Study Findings were that Performance tools in practise was hazy and only known to the Managers. The study further revealed that Staff appraisal took place when time lapse was too long to make any meaningful impact on the individual performance. In addition, the Performance Management training methods were not clear to the employees. The Study conclusions were that the Management did not communicate to the employees the benefits of the Performance Management tools neither were they consulted on choosing the methods. The Study further concluded that the Performance Training methods lacked to deliver the intended benefits but rather caused anxiety among the employees and brought down the productivity of the Organisation. The Study recommendations were that employees should participate in choosing the Performance Management tools and let them know that this would be the basis of assessing their future productivity. The Study further recommended that the Management should design Performance Training Methods that are easy to understand and translate to enhance productivity.