The relationship between performance management system and organizational performance at the Standard Chatered Bank Kenya Limited
This study was set out to investigate the relationship between performance management systems and organizational performance at Standard Chartered Bank KenyaLimited. The objectives of this study were to determine performance management system adoption at Standard Chartered Bank Kenya Limited and to assess the relationship between Performance Management System and Organizational performance at Standard Chartered Bank Kenya Limited. This study adopted a case study design, which is most appropriate in the investigation of relationship between performance management systems and organizational performance at Standard Chartered Bank Kenya Limited. A sample of 15 heads of departments at Standard Chartered Bank Kenya Limited was selected using simple random sampling. The respondents were subjected to the study through an interview guide. The researcher used both primary and secondary data. Secondary data was collected by use of desk search techniques from bank's publications, journals, and annual reports. The study found that Standard Chartered Bank Kenya Limited has adopted performance management system and sets high-performance goals and coaches' staff to improve performance. The bank always considers job analysis and job descriptions, customized performance appraisal forms and conducts valuable performance appraisals training. Profitability was ranked to have increased to a very great extent with the performance management system, followed by productivity. It can be concluded that the performance management system that has been set in place serves to improve the organizational performance. The findings recommend that organizations should adopt the performance management systems, as they will gain a competitive edge over their competitors. A performance management system will help the organization hire talented people, place them in the right position, align their individual performance with the organization's vision and strategic objectives, develop their abilities, and reward performance commensurate with contributions to the organization's success. Further research could be undertaken to compare changes in the use of performance management systems in specific decision-making contexts pertaining to different groups of stakeholders, to such as pricing and contract negotiation, reporting to funding bodies and disclosure of information to groups of professional staff as well as adopting a more holistic approach.