Assessment of Performance Management System in Standard Chartered Bank, Kenya

Abstract

The performance management at Standard Charted Bank Kenya involves the employees setting their objectives, performance appraisal done twice in a year, providing feedback to the employees and rewards by management. The study sought to determine the influence of the Performance Management System on employee’s performance. The study objectives were to assess employee’s perception of how the objectives of the performance management system are set; to assess employee’s perception of the performance appraisal system; to assess employee’s perception on the nature of feedback after an appraisal and to assess the association between employee’s perception of the performance management system and their performance. The study used the descriptive research design; it adopted a quantitative approach to measure how the performance management practices influenced employee’s performance. A total of 120 respondents were reached who are employees in Nairobi. Stratified sampling was used to divide the employees into eight strata. Data was analyzed using SPSS for descriptive, inferential statistics such as correlations, Cronbach’s alpha and regression analysis. The findings revealed that the performance management practices, setting objectives, performance appraisal, feedback and reward, influenced employees’ performance positively. The employees perceived the setting objectives to be credible as they were involved in the whole process and communication was done promptly. They also perceived the performance appraisal system to be credible, however, most employees perceive the process to be unfair and biased. On feedback process, most employees perceived the feedback process unfair but if given it could influence their performance positively. Lastly, employees perceived the rewards they receive to be unfair. The study recommends that the performance management practices should be optimized to improve employee’s performance thus achieving the overall organization goals.