The implementation of a performance management system : a case study of a selected logistics company at City Deep in Johannesburg, South Africa

Abstract

A selected logistics company, at City Deep in Johannesburg, rolled out a balanced scorecard as a strategic performance management system (PMS) to remedy service delivery challenges since 1997. The institutionalisation of this system has become an essential aspect of its people management strategy in relation to the overall strategic objectives of the company. Numerous problems marred its implementation, with some employees citing inconsistencies in the ratings awarded, ineffective communication and favouritism, and this consequently affected service delivery performance. The primary aim of the study was to evaluate the implementation of a PMS at the selected logistics company. Its sub-objectives guided the study. These include determining the factors influencing the participation of managers and employees in a PMS; evaluating the relationship between knowledge practices in a PMS and excellent service delivery and seeking remedies to the implementation challenges thereof. The quantitative research methodology was utilised in this study. A standardised close-ended questionnaire on a seven-point Likert Scale was employed for data collection from study participants. Microsoft Excel was used to analyse the data collected. Inferential (z) statistic testing, factor analysis, and Cronbach's Alpha test were performed using the Statistical Package for the Social Sciences (SPSS) and the statistical tools available in Microsoft Excel. Research findings revealed that the company's vision and mission statement were not adequately shared with subordinates concerning the company's balanced scorecard as a PMS. Additionally, performance feedback was found to be biased and ineffective, thereby severely affecting the implementation of the PMS. In conclusion, senior management must institutionalise continuous professional development workshops to effectively disseminate the organisation's vision and mission statements to its employees. Managers are urged to conduct regular performance evaluation sessions and provide objective written performance feedback to subordinates timeously.