Assessing the Impact of Performance Management Systems on Reward Management and Staff Motivation in Malawi: A Case Study of Lilongwe University of Agriculture and Natural Resources (LUANAR)
1Daston Raphael Mpando, 2Ferdinand Chipindi
1,2The University of Zambia, Graduate School of Business, 10101
https://doi.org/10.47191/jefms/v7-i11-31ABSTRACT:
The study assessed the impact of performance management systems (PMS) on reward management and staff motivation at the Lilongwe University of Agriculture and Natural Resources (LUANAR) in Malawi. Its objectives were: to assess the implementation of the PMS at LUANAR, focusing on its alignment with reward management practices and its effect on staff motivation; to examine the efficacy of the current PMS at LUANAR in enhancing reward management practices and staff motivation; and to identify challenges affecting the optimal functioning of the PMS along with devised interventions at LUANAR. The study utilized Performance Management and Equity Theories to assess PMS alignment with reward practices. A mixed-method design was employed, incorporating qualitative and quantitative approaches. The sample included 106 respondents, comprising: academic staff, administrative personnel, and management officials involved with PMS using purposive sampling for specific groups and simple random sampling for statistical representativeness. Data collection involved semi-structured interviews and structured questionnaires. A 100% questionnaire return rate was achieved. Qualitative data were analyzed thematically to identify patterns, while quantitative data were processed using descriptive statistics with SPSS version 20. The analysis showed that 67% of respondents viewed the alignment between PMS and reward management positively, although 27% noted inconsistencies in reward reflection. Motivation levels varied, with 49% experiencing an increase and 33% reporting a decrease, indicating issues with the clarity of performance-reward links. While 80% of respondents reported a high adoption rate, 10% faced barriers such as insufficient training. Performance metrics were positively rated by 60%, but 15% found them unclear. Additionally, concerns included inconsistent professional development opportunities and perceived inequities in rewards and feedback. Besides, the study noted that the ineffectiveness of the current PMS is due to a lack of coherent government policy and insufficient leadership support, leading to non-adherence to performance practices and a decline in service delivery, which negatively affects staff motivation and rewards. In response, the study recommends that LUANAR refine its PMS by ensuring transparent and consistent reward criteria, improving clarity in performance-reward links, and investing in comprehensive training programs. The university should also clarify performance metrics, standardize feedback protocols, and develop equitable professional development opportunities. Enhancing leadership support for the PMS and addressing perceived inequities in reward distribution are crucial for boosting staff engagement and effectiveness. These recommendations aim at addressing identified deficiencies and improve the implementation and impact of the PMS at LUANAR.
KEYWORDS:
Impact, Performance Management Systems, Reward Management, Staff Motivation, LUANAR, Malawi.
REFERENCES:
1) Alam, S. S., & Kaushik, M. (2008). The impact of performance management systems on employee performance: A study of the Indian banking sector. International Journal of Business and Management, 3(11), 1-10. a. https://doi.org/10.5539/ijbm.v3n11p1
2) Aguinis, H. (2013). Performance Management. Upper Saddle River, NJ: Pearson. DOI: 10.4324/9781315102386
3) Alam, S. S., & Kaushik, M. (2008). The impact of performance management systems on employee performance: A study of the Indian banking sector. International Journal of Business and Management, 3(11), 1-10. DOI: 10.5539/ijbm.v3n11p1
4) Abdullah, N., & Ismail, A. Z. (2021). Enhancing employee motivation in Malaysia and the UAE: A comparative study of multinational corporations. International Journal of Human Resource Management, 32(6), 1283-1306. https://doi.org/10.1080/09585192.2020.1788627
5) Adam, A. (2020). Effect of performance management system on employee performance: A case study of UN-Habitat-Somalia programme (Doctoral dissertation, United States International University-Africa).
6) Adisa, T. A., & Afolabi, O. A. (2018). Employee motivation and organizational performance in Sub-Saharan Africa: A case study of Nigeria and South Africa. Journal of Organizational Management Studies, 3(2), 56-73. https://doi.org/10.13140/RG.2.2.34322.64969
7) Aguinis, H., Gottfredson, R., & Joo, H. (2012). Delivering effective performance feedback: The strengths-based approach. Business Horizons, 55(2), 105-111. https://doi.org/10.1016/j.bushor.2011.10.004
8) Aksoy, E., & Bayazit, M. (2014). The relationships between MBO system strength and goal-climate quality and strength. Human Resource Management, 53(4), 505-525. https://doi.org/10.1002/hrm.21603
9) Al Doghan, M., & Albar, S. (2015). A study on influence of motivation factors on employees’ performance in private schools in Saudi Arabia. Journal of Human Resource and Sustainability Studies, 3(4), 179-187. https://doi.org/10.4236/jhrss.2015.34024
10) Al-Haddad, S., Al-Muraikhi, F. A., & Al-Kaabi, F. (2020). Organizational culture and employee motivation in the Middle East: A comparative study of Saudi Arabia and Qatar. Journal of Organizational Behavior, 42(7), 975-992. https://doi.org/10.1002/job.2481
11) Albrecht, S., Bakker, A., Gruman, J., Macey, W., & Saks, A. (2015). Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness, 2(1), 7-35. https://doi.org/10.1108/JOEPP-08-2014-0042
12) Almohtaseb, A. A., Almahameed, M. A., Dua’a, S. T., & Shaheen, H. K. (2017). The impact of performance management system on employee performance. International Review of Management and Business Research, 6(2), 681-691.
13) Anh Vu, T., Plimmer, G., Berman, E., & Ha, P. (2022). Performance management in the Vietnam public sector: The role of institution, traditional culture and leadership. International Journal of Public Administration, 45(1), 49-63. https://doi.org/10.1080/01900692.2021.1903499
14) Armstrong, M., & Taylor, S. (2019). Armstrong's handbook of human resource management practice. Kogan Page Publishers.
15) Audenaert, M., Decramer, A., George, B., Verschuere, B., & Van Waeyenberg, T. (2019). When employee performance management affects individual innovation in public organizations: The role of consistency and LMX. International Journal of Human Resource Management, 30(5), 815-834. https://doi.org/10.1080/09585192.2016.1239220
16) Armstrong, M. (2000). Performance management: Key strategies and practical guidelines. Kogan Page.
17) Armstrong, M. (2006). A handbook of human resource management practice. Kogan Page.
18) Ardyanfitri, & Wahyuningtyas. (2016). The influence of performance management system on employee performance. International Journal of Business and Management Invention, 5(2), 1-8.
19) Badawy, T., Alaadin, M., & Magdy, H. (2016). The impact of performance management systems on employee performance: A study of the Egyptian banking sector. International Journal of Business and Management, 11(4), 1-10. https://doi.org/10.5539/ijbm.v11n4p1
20) Baker, M., & McKenzie, L. (2018). Design for law firm innovation: A case study of the Innovation in Motion Awards in Baker McKenzie. Revista Chilena de Enfermería, 34(2), 123-134. https://doi.org/10.1016/j.rchenf.2018.05.001
21) Berhanu, T. (2023). The role of performance management systems in enhancing employee motivation: Evidence from Ethiopian public universities. International Journal of Educational Management, 37(1), 45-62. https://doi.org/10.1108/IJEM-06-2022-0203
22) Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management. Routledge. https://doi.org/10.4324/9781315695703
23) Brown, C., Green, D., & Smith, R. (2018). The importance of gender in health research. Health Research Policy and Systems, 16(1), 1-10. https://doi.org/10.1186/s12961-018-0315-5
24) Brown, M. (2017). The impact of performance management on employee motivation: A study of the Australian public sector. Public Administration Review, 77(6), 1-10. https://doi.org/10.1111/puar.12775
25) Bauwens, R., Audenaert, M., & Decramer, A. (2019). Fostering societal impact and job satisfaction: The role of performance management and leader-member exchange. Public Management Review, 21(10), 1486-1515. https://doi.org/10.1080/14719037.2018.1559994
26) Batistič, S., & Poell, R. (2022). Do HR systems and relational climates affect knowledge hiding? An experiment and two-source multi-level study. Journal of Business Research, 147, 82-96. https://doi.org/10.1016/j.jbusres.2022.04.016
27) Batistič, S., Kenda, R., Premru, M., & Černe, M. (2022). HR systems and leadership attachment affecting idea generation and implementation: An experiment and two-source multi-level study. European Management Journal, 40(4), 532-545. https://doi.org/10.1016/j.emj.2021.09.005
28) Busingye, J. A. (2018). Performance management systems and employee performance at United Nations Regional Service Center-Entebbe (Doctoral dissertation, Uganda Management Institute).
29) Chidwala, M. (2018). The impact of performance management systems on employee motivation in the public sector. Journal of Public Administration, 53(1), 1-15.
30) Cafferata, R., & Pulido, C. (2021). Employee motivation practices in Argentina and Colombia: A comparative study of leading companies. Journal of Business and Management, 7(2), 75-88. https://doi.org/10.28945/4853
31) Chen, L., & Wang, Y. (2018). Performance feedback frequency and employee motivation in IT organizations: A longitudinal study. Journal of Information Technology, 30(3), 120-137.
32) Davis, K. (2019). The role of performance management in enhancing employee engagement: A study of the healthcare sector. International Journal of Health Care Quality Assurance, 32(5), 1-10. https://doi.org/10.1108/IJHCQA-06-2018-0138
33) Deogaonkar, A., Zaveri, B., & Vichoray, C. (2020). Employee performance motivation and performance management system-exploring the pertinence. International Journal of Management, 11(3), 8-15. a. https://doi.org/10.34218/IJM.11.3.2020.002
34) El-Said, O. A., El-Faramawy, N., & El-Henawy, A. (2019). Enhancing employee motivation in Egypt and Morocco: A comparative study of telecommunications companies. Journal of Business Studies Quarterly, 10(2), 45-62. https://doi.org/10.26710/jbsq.v10i2.829
35) Erdem, S., Kücükaltan, E., & Mohammed, B. (2017). The impact of performance management behaviors on employee performance. Journal of Economic Sciences, 18(2).
36) Garcia, M., & Hernandez, A. (2022). A comparative study of performance appraisal methods and employee motivation in manufacturing companies. Manufacturing Journal, 18(1), 30-45.
37) Gerrish, E. (2016). The impact of performance management on performance in public organizations: A meta-analysis. Public Administration Review, 76(1), 48-66. https://doi.org/10.1111/puar.12433
38) Gruman, J. A., & Saks, A. M. (2011). Performance management and employee engagement. Human Resource Management Review, 21(2), 123-136. https://doi.org/10.1016/j.hrmr.2010.09.004
39) Green, A., et al. (2021). The impact of performance management systems on employee performance in the UK public sector. Public Administration Review, 81(2), 1-10.
40) Johnson, L., & Williams, T. (2017). Gender and decision-making: Implications for health interventions. International Journal of Public Health, 62(1), 23-30. https://doi.org/10.1007/s00038-016-0840-1
41) Jones, G. R., et al. (2020). The impact of performance management systems on employee performance in the UK public sector. Public Management Review, 22(5), 1-20. https://doi.org/10.1080/14719037.2019.1625357
42) Kahn, P. H., Jr., Lev, E. M., Perrins, S. P., Weiss, T., Ehrlich, T., Feinberg, D. S., et al. (2018). Human-nature interaction patterns: Constituents of a nature language for environmental sustainability. Journal of Biourbanism, 2, 41-57. a. https://doi.org/10.3389/fclim.2024.1338259
43) Kang, S., & Lee, J. (2021). The effects of performance management systems on employee engagement: A case study of South Korean companies. Journal of Business Research, 128, 116-123. https://doi.org/10.1016/j.jbusres.2021.01.012
44) Kanyoma, A., & Abuya, A. (2018). The impact of performance management systems on employee motivation in the Zambian public sector. International Journal of Public Administration, 41(1), 1-10. a. https://doi.org/10.1080/01900692.2017.1360564
45) Khan, A., Khan, M. A., & Khan, M. A. (2019). The impact of performance management systems on employee motivation: A study of public sector organizations in Pakistan. Journal of Public Administration and Governance, 9(1), 1-15. https://doi.org/10.5296/jpag.v9i1.14376
46) Kooij, D., Jansen, P. G., Dikkers, J. S., & de Lange, A. H. (2019). The influence of age on the relationship between work engagement and job performance. Journal of Managerial Psychology, 34(5), 328-340. https://doi.org/10.1108/JMP-05-2018-0248
47) Kaur,R., & Singla, D. (2019). Interdependence of performance management system and employee engagement.PIMT, 96.
48) Khamzina, K., & Tulepbayeva, A. (2020). Employee motivation practices in Central Asia: A case study of Kazakhstan and Uzbekistan. Journal of Management and Sustainability, 10(3), 145-160. https://doi.org/10.5539/jms.v10n3p145
49) Kijewska, A., & Olejnik-Smołka, M. (2018). Employee motivation strategies in Poland and Romania: A comparative analysis. European Journal of Business and Management, 10(33), 84-95. https://doi.org/10.7176/EJBM/10-33-10
50) Lawler, E. E. (2003). Rewarding excellence: Pay strategies for the new economy. Berrett-Koehler.
51) Le, T. T., & Nguyen, T. T. (2020). Participative management and its impact on employee motivation in Vietnam. Journal of Asian Business Management, 5(1), 20-35. https://doi.org/10.13140/RG.2.2.15194.85443
52) Lee, S., & Kim, H. (2021). Performance appraisal criteria and intrinsic motivation in healthcare: A quantitative study. Journal of Healthcare Management, 25(4), 78-93.
53) Mason, M. A., Wolfinger, N. H., & Goulden, M. (2020). Do babies matter? Gender and family in the ivory tower. University of California Press. https://doi.org/10.1525/9780520961654
54) Mone, E. M., & London, M. (2018). Employee engagement through effective performance management: A practical guide for managers. Routledge. https://doi.org/10.4324/9781315102386
55) Mangipudi, M. R., Prasad, K., & Vaidya, R. (2019). Employee performance as function of performance management system: An empirical study information technology enabled services companies around Hyderabad. European Journal of Business and Management Research, 4(4). https://doi.org/10.24018/ejbmr.2019.4.4.87
56) Miller, J., Bouckenooghe, D., & De Witte, H. (2018). Performance management and employee well-being: A within-person analysis examining the involvement of appraisal experiences and HR practices. Human Resource Management Journal, 28(1), 100-116. https://doi.org/10.1111/1748-8583.12182
57) Miller, R., & Thompson, L. (2019). Goal-setting in performance appraisals and employee motivation: A field
58) Ngondo, L., Bester, G., & Mthembu, T. (2011). The role of performance management in enhancing employee performance in the South African public sector. African Journal of Business Management, 5(20), 8257-8265. a. https://doi.org/10.5897/AJBM10.1183
59) Oduro, A., & Ayentimi, D. (2017). The role of performance management systems in employee motivation: Evidence from Ghana. International Journal of Public Administration, 40(3), 239-249. https://doi.org/10.1080/01900692.2016.1160774
60) Ojo, A. (2019). The influence of performance management systems on employee performance in Nigerian banks. International Journal of Business and Management, 14(5), 1-10. https://doi.org/10.5539/ijbm.v14n5p1
61) Osisioma, B. C., & Audu, M. (2022). The impact of performance management systems on employee motivation in the Nigerian banking sector. International Journal of Business and Management, 17(2), 1-11. a. https://doi.org/10.5539/ijbm.v17n2p1
62) Santi, R., & Rahim, M. (2021). The impact of performance management systems on employee performance in the Indonesian banking sector. International Journal of Business and Management, 16(3), 1-12. a. https://doi.org/10.5539/ijbm.v16n3p1
63) Shanock, L. R., & Wen, X. (2018). The role of performance management systems in employee engagement: A study of the hospitality industry. International Journal of Hospitality Management, 75, 1-10. a. https://doi.org/10.1016/j.ijhm.2018.03.002
64) Smith, J. (2018). The role of performance management in employee engagement: A study of the UK retail sector. International Journal of Retail & Distribution Management, 46(5), 1-10. https://doi.org/10.1108/IJRDM-08-2017-0168
65) Stone, R. J. (2013). Managing human resources. John Wiley & Sons Australia.
66) Wright, P. M., & Boswell, W. R. (2002). Desegregating HRM: A review and synthesis of micro and macro human resource management research. Journal of Management, 28(3), 247-276. https://doi.org/10.1177/014920630202800302