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SA Journal of Human Resource Management
ISSN: (Online) 2071-078X, (Print) 1683-7584
Page 1 of 19 Original Research
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Authors:
Michelle Govender1
Mark H.R. Bussin2
Aliaons:
1Wits Business School,
University of the
Witwatersrand, Parktown,
South Africa
2Gordon Instute of Business
Science, University of
Pretoria, Illovo, South Africa
Corresponding author:
Mark Bussin,
drbussin@mweb.co.za
Dates:
Received: 06 May. 2019
Accepted: 27 Feb. 2020
Published: 08 June 2020
How to cite this arcle:
Govender, M., & Bussin,
M.H.R. (2020). Performance
management and employee
engagement: A South African
perspecve. SA Journal
of Human Resource
Management/SA Tydskrif vir
Menslikehulpbronbestuur,
18(0), a1215. hps://doi.
org/10.4102/sajhrm.
v18i0.1215
Copyright:
© 2020. The Authors.
Licensee: AOSIS. This work
is licensed under the
Creave Commons
Aribuon License.
Introducon
Top performing companies are those that are successfully able to translate business and talent
strategies into reality faster and more efficiently than their competitors. Hattingh, De Waal and
Parsons (2018) acknowledged that there was a shift in the global economy since the financial and
economic crisis of 2008. Hill (2013) recognised that cross-border trade and investment barriers are
declining and doing business in foreign countries is becoming easier as administrative and
regulatory barriers are reduced, allowing both small and big organisations from developed to
developing economies to expand internationally. Globalisation, Big Data, the Internet of Things
and advances in technology ensure that organisations only have one major differentiation – their
employees.
Van der Walt (2018) concluded that sustaining high performance to create a competitive advantage
in an increasingly turbulent economic environment is crucial. Performance management is an
essential tool used for the effective management of organisations. It is used to assess achievement
of agreed key performance indicators, develop talent, build competencies and enhance skills of
Orientation: To remain competitive South African organisations must improve their
operational efficiency by lowering manufacturing and service costs, and the key is the
performance of its employees.
Research purpose: The purpose of the study was twofold: firstly, to establish if there is a
relationship between performance management and employee engagement; and secondly
to ascertain if performance management can be rebooted through increased employee
engagement.
Motivation for the study: Organisations that measure and manage performance generally
outperform those that do not. Organisations need to understand what drives employee
engagement and performance to outperform their competitors.
Research approach, design and method: A qualitative approach was employed that included
a review of research articles and interviews with employees from various functions across all
levels within operations of a fast-moving consumer goods organisation based in Gauteng.
A sample size of 20 employees was used.
Main findings: The results suggest that a relationship exists between performance management
and employee engagement and that an increase in employee engagement would result in
improved performance of employees and subsequently the organisation. The study revealed
that whilst engagement and communication occur across all levels within the organisation,
there is still a significant gap. The messages and expectations are not simple enough to be
understood. Employees are not empowered to have a voice which causes them to be
demotivated. Supportive management, which is fundamental to the success of performance
management, is lacking.
Practical/managerial implications: The insight from this study may be used to change the
way organisations engage with employees and manage performance to ensure it is a beneficial
exercise that adds value to all stakeholders.
Contribution/value-add: This study will contribute towards organisations understanding the
relationship between performance management and employee engagement and how to
leverage this towards improving operational efficiency and organisational effectiveness.
Keyword: performance management; operational efficiency; organisational effectiveness;
employee engagement; South Africa.
Performance management and employee engagement:
A South African perspecve
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employees, thus ensuring continued success. Aguinis (2013,
p. 2) defines performance management ‘as a continuous
process of identifying, measuring and developing the
performance of individuals and teams and aligning
performance with the strategic goals of the organisation’.
According to Melnyk, Bititci, Platts, Tobias and Andersen
(2013), there are studies, however, that show that performance
management can adversely impact performance when a
misalignment exists between what the organisations want to
achieve and what is being measured. The reality is that the
key competitive advantage of organisations today is the
performance of their employees.
As suggested by Gruman and Saks (2011), employee
engagement has been cited as having considerable popularity
over the last couple of years and plugged as the key to an
organisation’s success. It seems that leaders are fast making
the connection between engaged employees and business
success. ‘There is an increasing awareness that employee
engagement is pivotal in commercial and business
performance’ (Robertson-Smith & Markwick, 2009, p. 2). No
longer are engaged employees a nice to have; they are a must
to have if an organisation wants to outperform its competitors.
Robinson, Perryman and Hayday (2004) define employee
engagement as:
[A] positive attitude held by the employee towards the
organisation and its value. An engaged employee is aware
of business context and works with colleagues to improve
performance within the job for the benefit of the organisation.
The organisation must work to develop and nurture engagement,
which requires a two-way relationship between employer and
employee. (p. 8)
The biggest challenge that leaders in organisations face is
how to build a culture of employee engagement and leverage
this as a driver of performance. How to make employee
engagement work to positively change behaviour and
improve operational performance is a concern. Bedarkar and
Pandita (2014) state that employees want to be engaged in
and contribute to the larger organisation.
Research purpose
Managing performance must be a continuous process to be
effective; it must be a part of the way a company does
business. For most organisations in South Africa, it is a bi-
annual tick box exercise that leaves managers and employees
unchanged either way. De Leeuw and Van Den Berg (2011)
stated that organisations that measure and manage
performance outperform those that do not do these.
Strauss and Du Toit (2010) argued that South Africa
lacks competitiveness. How then does South Africa compete
and survive in the global arena?
Hoole and Bonnema (2015) stated that a gap exists
between the realisation of employee engagement and ideal
engagement levels. The supposition is that the level at which
an organisation performs will be in part determined by the
level of engagement its leaders have with their employees.
Hoole and Bonnema (2015) further suggested that in the
current economic situation, a workforce that is engaged may
provide the competitive edge required for organisations to
succeed, and that whilst low levels of engagement may
negatively impact the bottom line, high levels add value. An
employee who feels valued and sees himself or herself as an
integral part of the organisation is the one that is more likely
to contribute towards the success of that organisation.
According to Schaufeli, Salanova, Gonzalez-Roma and
Bakker (2002), engaged employees see themselves capable of
dealing with demanding jobs and are connected to their
work activities. The connection made between employer and
employee is what will give an organisation a competitive
advantage over another. The value people contribute cannot
be imitated or duplicated by competitors. Levels of
engagement differ, organisational cultures differ, employees
differ in the way they adapt to change, leadership styles are
not the same from one organisation to another – all these
factors must be considered to make both performance
management and employee engagement work. ‘A “one size
fits all” approach to enabling engagement is ineffective,
because levels of engagement and its drivers vary according
to the organisation, employee group, the individual and the
job itself’ (Robertson-Smith & Markwick, 2009, p. 46).
Although extensive literature exits on both performance and
employee engagement, there is paucity of literature on the
relationship between the two within the South African
context. The purpose of this study was to contribute to
existing knowledge regarding the relationship between
performance and employee engagement. The insights gained
from the study are to contribute to existing literature and help
South African organisations understand their employees’
views on managing performance and employee engagement,
leveraging this knowledge to change the way they engage,
and manage their employees to improve performance and
grow the business.
Objecves
To address the paucity of literature that exists on the
relationship between performance and employee engagement
within the South African context and to understand whether
increased employee engagement can improve performance,
the following objectives will be explored, namely, to:
1. understand how to effectively engage employees to
ensure increased performance
2. ascertain how to leverage employee engagement to
reboot performance management.
Literature review
Performance management
What is performance management?
Aguinis (2013, p. 2) states that ‘performance management is a
continuous process of identifying, measuring, and developing
the performance of individuals and teams and aligning
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performance with the strategic goals of the organization’. It is
relevant to note that Aguinis highlights two critical points for
organisations; the first point is that it is a ‘continuous process’,
which means ongoing. Organisations conduct bi-annual
performance appraisals on their employees confusing it
with performance management. This highlights a lack of
understanding by managers and human resource business
partners. Performance appraisal sessions are usually a tick
box exercise for managers, an administrative hurdle imposed
by human resources (Smither & London, 2009). The second
point is ‘aligning performance with the strategic goals’;
business needs change and these changes must translate into
changes in employee objectives. If performance appraisals
are conducted twice a year, then how are organisations
ensuring this alignment?
Performance management is not the same as performance
appraisal (Smither & London, 2009). Aguinis (2013) and
Smither and London (2009) are aligned when they conclude
that performance management is not the same as performance
appraisals. Aguinis (2013) describes evaluations that are
done once or twice a year without constant coaching and
feedback to employees as performance appraisal, where
objectives of the employee’s contributions are not clearly
set out. Aguinis (2013) and DeNisi and Pritchard (2006)
state that performance appraisal forms part of performance
management. They also concur that performance
management can be defined as various activities that occur
throughout the year and are not a shaped or defined set of
events. These activities focus on motivating employees to
improve their performance.
The importance of performance management
According to Aguinis (2013), there are several reasons for
managing performance that are beneficial to organisations,
managers and employees alike; however, for the purposes of
this research study, we shall limit the review to those that are
most relevant to the study and which were highlighted in
participants’ responses. They include the following:
1. Employees are encouraged and motivated when they are
recognised for good work; it boosts their morale and
makes them want to do better.
2. Employees want to be recognised and feel valued; this
satisfies a basic human need and motivates them.
3. Managers get to know their employees, which builds
better relationships, opens the channels for an honest
two-way communication and allows for the manager to
understand how to effectively manage the employees for
sustained performance.
4. Employees get a greater understanding of their roles in
achieving organisational objectives and their managers’
expectations, including the behaviours they must display.
5. Employees are encouraged and motivated by constructive
feedback; they are encouraged by their managers’ interest
in them and gain valuable insights into their strengths
and want to know how they are performing to work
on their areas of development and improve future
performance. Employees become more competent.
6. Organisational goals are given clarity, and this helps
employees understand the relevance of their role in
supporting the achievement of the team and business
objectives.
7. Timely and meaningful feedback occurs which allows for
employees to be supported in correcting performance to
achieve individual and business objectives.
8. Employees are given a voice; they can share their ideas
for improvement and raise concerns for timely resolution,
which improves organisational performance.
The consequence of a poorly implemented and managed
performance management process
A poorly implemented performance management system
can have a significant negative impact on business results.
Aguinis (2013) explains that if the performance management
system lacks credibility and is seen as unfair, then employees
would either leave the organisation or become silent.
Feedback that is not constructive leads to employees feeling
demotivated, and employees who are not motivated are not
productive. Employees who do not trust in the ability of their
manager to effectively manage performance will find the
employee and manager relationships being destroyed. When
performance management is not effectively implemented, it
becomes a tick box exercise that adds no value to the
employee who is left discouraged and unchanged; the
manager has wasted his, the employee’s and the organisation’s
time because there will be no improvement all round. A
performance management process that is not consistently
applied across the organisation will have ratings and
standards that may vary, be unfair and, as a result, employees
will be unclear of how the ratings were generated. Bias leads
to unhappy and discouraged employees who do not trust the
performance management process.
Employee engagement
What is employee engagement?
Employee engagement is the level of commitment and
involvement an employee has with the organisation.
Schaufeli (2013) states that in business engagement is a blend
of job satisfaction, being committed to the organisation and
extra-role behaviour in that an employee is willing to go
beyond what is in his or her job description. An employee
that is engaged will go the extra mile without being coaxed,
believes in the values and vision of the organisation and
wants to contribute to its success. Engaged employees are
part of the solution and step up to the plate to deliver business
results. Kahn (1990, p. 694) introduced the concept of
employee engagement as ‘the harnessing of organization
members’ selves to their work roles; in engagement, people
employ and express themselves physically, cognitively, and
emotionally during role performances’.
According to Lockwood (2007), there are different levels
of engagement which organisations must be cognisant
of, which could either positively or negatively impact
organisational performance. The first level of engagement
includes the ‘engaged employee’ who is passionate about his
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or her job, feels connected to the organisation and drives
superior performance. The second level of engagement is the
‘not engaged employee’ who is there to earn a living; he or
she has no interest or passion for his or her work. The last
level of engagement describes the ‘actively disengaged
employee’ who is unhappy and shows it, undermining the
achievements of engaged employees. As a leader, being able
to recognise the level of engagement an employee has is
important in managing the employee.
Employee engagement is regarded as cognitive, emotional or
behavioural (Khan, 1990). What an employee believes about
the workplace culture, its managers and the organisation
is referred to as cognitive engagement. How employees
feel about the organisation, management and fellow co-
workers is referred to as emotional engagement. The value
the employee adds in terms of discretionary effort and
energy put into his or her work is the behavioural factor
(Lockwood, 2007).
The benets of employee engagement
Robertson-Smith and Markwick (2009) maintained that
engaged employees perform 20% better than their co-workers
because they immerse themselves fully in their work.
Talented, engaged people who are aligned to the business
strategy and feel connected to the organisation are more
likely to stay with the organisation, thus reducing employee
turnover and ensuring business continuity. Employees who
are engaged positively influence their fellow workers, thus
improving not only individual performance but also
team performance. This has a roller-coaster effect on the
organisation. High-performing teams hold themselves
accountable for performance, which delivers business results.
A similar view was shared by Lockwood (2007), who affirmed
that business success is determined by the levels of
engagement within an organisation. An increase in the levels
of employee engagement helps in the retention of talent,
increases stakeholder value, improves loyalty of customers
and subsequently improves organisational performance.
Drivers of employee engagement
According to Robertson-Smith and Markwick (2009), a ‘one-
size-fits-all approach’ will not deliver the desired benefits of
employee engagement because the levels of engagement and
drivers of engagement are not the same. They identified
several key drivers of employee engagement, which include
the following:
Nature of work: the kind of work an employee has or is
expected to do greatly influence how engaged he or she is.
Employees want work that is exciting, uses their skills and
capabilities, and challenges them. They want to know that
the work they do adds value and is important to them and
others.
Work that has purpose and meaning: employees want to feel as
if they are making a difference; they want to feel proud of
their organisation, what it does and their own work.
Opportunities for development and improvement: employees
want to develop their skills and growth in their careers.
Managers and organisations must encourage employee
development through regular feedback discussions. Engaged
employees feel empowered and when they are confident in
their ability and their job, they perform at their best.
Reward and recognition: employees want to be recognised;
they want to feel appreciated and valued. Relationships that
are effective: maintaining good and productive relationships
with peers and managers is important. It must be a trusted
relationship where there is mutual respect and open dialogue.
Managers can show trust in employees by allowing greater
autonomy. The organisation must support a culture of trust.
Two-way communication: employees must be consulted in
decision-making and allowed to have a voice.
Inspiring leadership: managers must adopt a collaborative
approach; they must act with integrity and inspire employees.
The drivers identified above by Robertson-Smith and
Markwick (2009) as being key to performance management
are supported by a study conducted in 2006 in Singapore by
the Gallup Group, which concluded that the key employee
expectations that form the basis of engagement include
employees wanting to know what is expected from them and
the necessary tools to perform their jobs. They wanted to use
their skills and talents and they wanted recognition. It was
important that they feel valued. Feedback on how they are
performing was important; they want opportunities to learn
and they want to have good relationships with their co-
workers (Gopal, 2006).
Interpretaon of the management theory
constructs common to performance and
employee engagement
While all the themes will be discussed, the focus will be on
the constructs that emerged as the three major themes of the
study, which are engagement and communication, employee
empowerment and authentic leadership.
Engagement and communicaon
Hoole and Bonnema (2015) argued that engaged employees
can enhance the competitiveness of organisations in the
current economic landscape and that while high levels of
engagement add value, low levels of engagement can have a
damaging effect on the bottom line. Robertson-Smith and
Markwick (2009) pointed out that various studies have
demonstrated a correlation between high employee
engagement levels and productivity of employees, teams and
organisations. They argued that engaged employees show
commitment, advocate on behalf of the organisation,
show dedication, use discretionary effort and utilise their
skills and abilities to support the achievement of the
organisation’s goals. They feel a connection with the
organisation and invest themselves into their roles and into
the organisation. When organisations encourage a culture of
enabling employees, they benefit not only financially but also
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have the advantage of employees who are willing to go the
extra mile and do whatever it takes for the organisation to
succeed (Baumruk, 2006).
Lockwood (2007) argued that continuous communication
is a key management tool that gives credibility to the
organisation’s leadership and ensures organisational success.
The same argument was made by Lowry (2016) who stated
that critical to business success was the communication of
clear, consistent messages to employees. It was further
explained that the reasons organisations fail are because
leaders assume that important information will be filtered
down to the lower levels. According to Lockwood (2007),
consistent, clear and honest communication encourages,
energises and keeps employees productive. A lack of clear or
poor communication can lead to distrust, high turnover,
frustration and doubt. It is important for organisations to
have a strategic communication plan that encompasses what
will be communicated and the methods of communication.
Delivery methods must be adapted to the audience. Effective
communication is a two-way process. According to Morrison
(2014), employees who engage in an upward voice are willing
to provide the organisation with valuable information, raise
concerns or give input, and when they are demotivated and
stop having a voice, they may be depriving the organisation
of useful information. It is therefore important that employees
are given an opportunity to have a voice without fear of
intimidation or victimisation.
Aguinis (2013) states that timely and meaningful feedback
allows for employees to be supported in correcting
performance to achieve individual and business objectives.
Performance discussions and feedback must take place
regularly; it must not happen annually or bi-annually. The
performance appraisal process is not the same as the
performance management process. Organisations, human
resource managers and management need to be trained
to understand the difference between these constructs.
Performance management is a continuous process of two-
way discussions and feedback. The absence of regular
discussions and feedback results in employees feeling
blindsided and disengaged when the annual or bi-annual
appraisals happen. Often objectives are not met because
throughout the year there was no feedback on performance
or support to achieve objectives. This negatively impacts
employee performance and organisational performance. A
regular two-way communication allows for a culture of
transparency and openness, where any form of confusion or
doubt can be quickly and amicably resolved, creating an
environment of trust. Employees who trust are loyal and will
go the extra mile to achieve business results.
Regular and constant communication between employees
and management allows for issues or problems to be
identified early and resolved quickly. A continuous process
of evaluation and mentoring will ensure that employees are
skilled and developed to improve their own opportunities
for career growth and to ensure business success. When
constructive and honest feedback is given to employees, it
encourages them to leverage their strengths and work on
their areas of development to maximise performance.
Employee empowerment
Lockwood (2007) argued that:
[W]hen employees have the power to make decisions related to
their performance, can access information about company costs
and revenues, and have the necessary knowledge, training
and development to do their jobs – and are rewarded for their
efforts – they are more productive. (p. 3)
According to Anitha (2014), employees are more interested
and engaged when they know that their contribution adds
value and brings a positive difference to the organisation.
Menon (2001) argued that allowing employees to make
work-related decisions to enhance performance is not new
in management literature and that empowering employees
would allow them the ability to significantly affect
organisational outcomes. Empowerment is the result of
increased participation of employees. All these authors are
aligned in their view that empowered employees enhance
organisational performance.
Menon (2001) further states that by providing a vision for the
future, leaders energise and empower their employees to act
by participating in transforming the organisation. Menon
argues that the true benefit of empowerment will only be
realised if employees experience empowerment; he alludes
to the fact that most organisations profess to empower
employees by asking leaders to get them involved in the
decision-making process, but in the hierarchy of the
organisation, it is about control. According to Menon (2001),
empowerment initiatives fail because of the inability of
leaders who cannot delegate effectively, their need for power
and their insecurity with their own jobs.
Aguinis (2013) states that employees are encouraged and
motivated when they are recognised for good work, and it
boosts their morale. Employees who are motivated get
involved and take initiative. Intrinsic motivation which is
fuelled by feelings is perceived as more important to
employees than monetary rewards. Employees want as
recognition for good work and developed competencies the
freedom to make decisions and to feel empowered. When
employees are given a voice and are allowed to share their
ideas for improvement and raise concerns for timely
resolution, it improves organisational performance. A key
contributor to organisational success in today’s ever-
changing and increasingly competitive business arena is
employee engagement. Schaufeli et al. (2002, p. 74) define
engagement as ‘a positive, fulfilling, work-related state of
mind that is characterised by vigor, dedication and absortion’.
Engaged employees are productive employees; they want to
be empowered, they demand support from their leaders and
they want to deliver business results through improved
performance. By giving employees a voice, and allowing
them to share ideas, make suggestions and raise concerns, it
makes them feel included. Increasing the opportunities given
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to employees to contribute or participate in the direction of
the company will encourage and motivate them to know that
their inputs are valued. Employees who feel valued are
productive employees.
Authenc leadership
George, Sims, Mclean and Mayer (2007) argued that:
[A]uthentic leaders demonstrate a passion for their purpose,
practise their values consistently, and lead with their hearts as
well as their heads. They establish long-term meaningful
relationships and have the self-discipline to get results. They
know who they are. (p. 129)
From this definition it can be concluded that a leader’s role
is to create an environment that encourages employee
participation and provide supportive management to
employees that motivates them to use discretionary effort,
and be a role model – an individual who leads by example
consistently applies ethical values and is someone who forms
trust relationships.
The success and effectiveness of performance management
lies in the quality of the leader and his or her commitment to
engage with, provide support to, challenge, coach, give
constructive feedback and include his or her employees in
activities of the business (Gruman & Saks, 2011). Sanger
(2008) argued that effective performance management
requires a change in culture and skilled leaders who are
willing and committed to provide considerable managerial
investment. The point is further illustrated in the work by
Smither and London (2009) where it is cited that:
The second big gap is tied to the skills of performance ‘managers’.
Short of training them as psychologists, many struggle with the
challenges of setting proper goals with their people, providing
timely and meaningful feedback in a constructive fashion, and
coaching people to bring out the best in them. (p. 81)
Aguinis, Gottfredson and Joo (2012) suggest that often
managers do more harm than good when giving performance
feedback because they are not comfortable with it and
therefor a constructive feedback approach should be used
rather than one that relies on employees’ shortcomings.
Gruman and Saks (2011) argued that leaders motivate and
encourage employees to try new things by showing support,
giving employees stretch roles and allowing employees to
participate in discussions and get involved in decision-
making without fearing negative consequences.
Authentic leaders inspire and motivate employees to
outperform. Performance management must be fair,
transparent, objective and used as a tool for improvement
and not punishment. The role of supportive management
and authentic leaders is critical to the performance
management process. If employees lack confidence in their
leaders to effectively manage performance, they will become
disengaged and demotivated. Leaders need to undergo
training on how to manage performance and to increase their
emotional intelligence. Managers who are trained and
equipped to be supportive of employees and show interest in
their development form better relationships with employees.
Leaders need to reinforce and keep landing the message with
employees that their role within the organisation is key to its
success and that their contribution is valued. An employee’s
interest and engagement are increased when his or her work
is regarded as meaningful (Anitha, 2014).
Development and improvement
Development and improvement is another key construct that
must be considered when engaging employees. Anitha (2014)
suggested that employees gain confidence when they are
trained and developed, which allows them to engage
significantly in their jobs. When individuals and teams are
engaged, there is a higher level of productivity and so
organisations must be quick to leverage this and explore
opportunities to develop these individuals and teams into
stretch roles. Organisations must ensure that the competencies
and development of these employees are understood and acted
upon – this will ensure that these individuals remain motivated
and encouraged to grow with the business and to grow the
business. According to Lockwood (2007), as organisations
compete globally, attracting and retaining the right talent will
be increasingly more important. Employees wanting greater
work–life balance means that organisations must understand
employee needs and how to meet them, yet still develop and
leverage talent at all levels of the organisation. Another key
consideration is that because of the poor education system,
employees starting their careers might not have the right level
of skills needed and organisations would need to partner with
schools and universities to acquire the required skills.
Building capability for the future will be positively related to
increased performance. Aguinis (2013) states that employees
are encouraged and motivated by constructive feedback; they
are encouraged by their manager’s interest in them and gain
valuable insights into their strengths. They want to know how
they are performing to work on their areas of development and
improve future performance. It is important for organisations
to have effective training programmes in place to increase the
skills and competencies of employees. Employees want to be
developed; they want to improve their own performance to
better support in the achievement of organisational objectives.
Organisations need to recognise the changes in work–life
balance and develop and retain talent. Employees must have
the right skills and competencies and display the right
behaviours aligned with the values of the organisation.
Performance discussions must include the ‘how’ in terms of
achieving objectives. For sustained performance it is important
to have employees act with integrity. If organisations measure
behaviour, then there is a greater chance of having authentic
leaders at all levels of the organisation, which would increase
performance and allow for sustained performance.
Performance management soundness and roles
Employees’ perception of the performance management
system is poor and often perceived as the ‘big stick’ (Bourne,
Neely, Platts, & Mills, 2002). Employees are not part of the
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performance management system – goal setting, objectives
are decided by senior management or global teams and
cascaded to employees and therefore there is no buy-in of the
process from the onset. In order to be accepted, goals should
be understood and meaningful. De Leeuw and Van Den Berg
(2011) suggested that a lack of motivation and resistance to
change may be the result of not involving personnel in
performance management systems. There is a lack of
employee participation during the performance management
reviews, with discussions often being led by the manager.
Performance feedback sessions are often not conducted on a
regular basis and the performance management reviews do
not include development discussions.
Workplace culture
Lockwood (2007) argued that to effectively engage
employees, organisations must first understand the nature of
their workplace culture; is it too results focused that
employees are left behind, or does it provide employees with
a sense of purpose, connecting leaders and employees in
their shared beliefs and enabling employees to contribute in
the direction of the organisation?
According to (Lockwood (2007):
Research shows that organizations that provide a workplace
culture with the psychological conditions of meaningfulness (job
enrichment, work-role fit), safety (supportive manager and co-
workers) and availability (resources available) are more likely to
have engaged employees. (p. 5)
An organisation that can provide meaningful work,
supportive management and adequate resources is more
likely to have engaged employees. Organisations must create
an environment of trust that could encourage mutual respect
and build good relationships. When the culture of the
organisation is one of support, engagement, development
and continuous improvement, it allows for employees to
want to be a part of the organisation; they are proud of it,
they will defend it and they want to be part of its success.
They use discretionary effort to ensure that the organisation
succeeds. The organisation must ensure that there is an
effective engagement policy in place to ensure employee
engagement levels are measured and improved continuously
for sustained performance.
Rewards, recognion and appreciaon
Saks and Rotman (2006) concluded that employees will
positively involve and engage themselves more in their roles
should they perceive that the rewards will be greater, and
should they be given recognition that their work is meaningful
and adds value. Rewards and recognition are key in employee
engagement because people want to feel respected and have
a sense of accomplishment. Employees want to be recognised
for their achievements and when they are given this
recognition, it boosts their self-esteem and gives them a sense
of worth or having contributed towards the success of
something. This is supported by Maslow’s (1943) theory of
motivation and hierarchy of needs that alludes to the fact that
when the basic needs of physiology, safety and love are
satisfied, the need for esteem and self-actualisation emerges.
Maslow (1943) says this about esteem needs:
All people in our society (with a few pathological exceptions)
have a need or desire for a stable, firmly based, (usually) high
evaluation of themselves, for self-respect, or self-esteem, and for
the esteem of others. By firmly based self-esteem, we mean that
which is soundly based upon real capacity, achievement and
respect from others. These needs may be classified into two
subsidiary sets. These are, first, the desire for strength, for
achievement, for adequacy, for confidence in the face of the
world, and for independence and freedom. Secondly, we have
what we may call the desire for reputation or prestige (defining
it as respect or esteem from other people), recognition, attention,
importance or appreciation. (p. 381)
Rewards and recognition that are in line with achievements
will be positively related to increased performance. For the
participants in this study, they wanted to be rewarded with
being given the opportunity to participate in the activities of
the organisation.
Summary
The outcome of the literature review confirmed the findings
of the research study and highlighted poor practices in both
performance management and employee engagement.
The major contributors to poor performance are lack of
communication and engagement, employee empowerment
and authentic leadership.
Research methodology and design
Introducon
Although extensive literature exists for both performance
management and employee engagement, this research study
was aimed at gaining insights into employees’ perceptions of
performance management and employee engagement within
a South African context and whether they perceived a
relationship existed between the two.
Design
The research study employed a cross-sectional research
design methodology that was exploratory in nature and
was conducted with a qualitative focus. It was based on
literature review of employee engagement and performance
management, and considered interview data collected from
20 South African employees.
Parcipants
Participants comprised 20 employees in various functions
within operations of a fast-moving consumer goods
multinational company based in Johannesburg, Gauteng
province, South Africa. Permission was sought and received
from the organisation to conduct the research study and
allow willing participants to participate in the research. It
was made clear that there were no incentives. The organisation
and participants were made aware that the results were for
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academic purposes and may be published in an academic
journal. It was further explained that all information would
be kept strictly confidential, with all transcripts and
recordings destroyed after final submission. The company
and participants would remain anonymous. All participants
took part voluntarily and were afforded the opportunity to
decline or terminate participation throughout the interview
process. The criterion for participation was that participants
had at least 1 year of working experience, was part of the
performance management process, understood English and
completed grade 12.
Populaon and sampling method
The organisation with a workforce of approximately 450
employees at the time of the study, comprising 356 permanent
employees and 94 contract workers, had been operating in
South Africa for 37 years. Non-probability convenience
sampling is a sampling method where not all the participants
or units within the target population have an equal chance of
being used in the study and members in the target population
are used because they meet practical criteria (Etikan, Musa, &
Alkassim, 2016). As the study was exploratory in nature and
sought to investigate the views of employees across all levels
of operations within the organisation, non-probability
convenience sampling was used. This was because of ease of
access to employees and time constraints as employees were
given permission to utilise company hours to participate in
the study. The sample selection consisted of 20 employees
across various functions and levels within operations of the
organisation, all of whom formed part of the performance
management process and were involved in employee
engagement activities. The majority of participants (60%)
were males. In terms of ethnicity, 55% were blacks, 30% were
Indians, 10% were whites and 5% were mixed-race people.
All the participants were assigned codes (A1 to A20) to
protect their anonymity. The levels within the organisation
were categorised into shop floor personnel, office personnel,
first-line management, site leadership and directorate (see
Table 1).
Research instrument
According to Foddy (1993), open-ended questions allow
participants to express themselves freely and say what they
are thinking without being influenced by the researcher.
The exploratory nature of the research study allowed
the researcher to use an open-ended discussion guide to
conduct semi-structured interviews with the participants.
This enabled the researcher to ask the same open-ended
questions to all participants while still allowing participants
to expand and elaborate on their responses. It also allowed
the researcher to probe for further understanding and
clarity, yet remain on track to investigate the objectives of
the study. The challenge of such an instrument is that it is
time-consuming – both in the time taken to conduct each
individual interview and in transcribing and coding of
the data.
Data collecon
The data collection process included the researcher doing an
online review of accredited South African and international
journal articles applicable to the study to understand what
the findings and views of academics about performance
management and employee engagement were. Based on this
knowledge, the researcher compiled an interview discussion
guide to aid in gathering the relevant insights from
participants on performance management and employee
engagement. A semi-structured interview process was
applied, which allowed for open-ended questions and a
discussion to evolve, which allowed participants’ views and
thoughts to come through with ease. Interviews occurred
during business hours at the organisation’s premises at times
that were suitable to the participants and did not negatively
impact operations. Participants were encouraged to give
honest unbiased feedback. Interviews took place on a one-to-
one basis in the researcher’s office which is secluded, thus
maintaining confidentiality. Each interview was lasted
approximately between 45 and 60 min, with participants
being asked to elaborate and give examples to ensure that the
interviewer understood and correctly noted the points being
made. After the interviews had been concluded and if the
researcher required further clarity on any of the responses
from the participants, then this was done through either
telephonic or face-to-face interview depending on the
availability of the participants.
Data analysis
Shortly after each interview was conducted, the researcher
went through the recordings and notes to establish that she
understood participant responses; if clarity was required,
TABLE 1: Parcipant demographics.
Parcipant code Male/ Female Years with
organisaon
Level within organisaon
Group 1: Shop oor personnel
A2 Male > 2 – < 5 Shop oor personnel
A3 Male > 1 – < 2 Shop oor personnel
A4 Male > 2 – < 5 Shop oor personnel
A6 Female > 1 – < 2 Shop oor personnel
A8 Female > 5 – < 10 Shop oor personnel
A10 Male > 10 Shop oor personnel
A18 Female > 5 – < 10 Shop oor personnel
A19 Male > 5 – < 10 Shop oor personnel
A20 Male > 10 Shop oor personnel
Group 2: Oce personnel
A13 Female > 1 – < 2 Oce personnel
A16 Female > 10 Oce personnel
Group 3: First-line management
A9 Female > 1 – < 2 First line management
A11 Female > 1 – < 2 First line management
A14 Male > 5 – < 10 First line management
A15 Male > 2 – < 5 First line management
Group 4: Director and site leadership
A1 Male > 5 – < 10 Site leadership
A5 Male > 1 – < 2 Site leadership
A7 Male > 2 – < 5 Site leadership
A12 Female > 5 – < 10 Site leadership
A17 Male > 5 – < 10 Director
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then this was sought at the earliest convenience of the
participant. In total, 20 interviews were conducted, after
which data saturation was reached, with no new codes and
themes emerging further; the researcher did an initial read-
through of the data to familiarise herself with it. Then
participant responses were transcribed into a Microsoft
Excel worksheet per question to facilitate analysis of the
data. An important step in analysing and organising
qualitative data is being able to ‘see’ and assign codes or
tags to express or infer information gathered during the
study. Codes can be assigned to phrases, words or whole
paragraphs (Basit, 2003). Responses for each question were
then reviewed and analysed for key words and phrases for
which codes were assigned. The codes and phrases that
were identified and highlighted were then collated into one
data set relevant to each question. The data set was then
analysed for similarities, differences and repeat themes
and organised into first-order theme clusters, organising
themes and emerging themes for which each theme was
named. This report highlights the themes for performance
management and employee engagement which emerged
from the responses.
Themac analysis
Accordings to Braun and Clarke (2006), thematic analysis has
increased in popularity as a method of analysing qualitative
data because of its accessibility and theoretic flexibility, as it
can be used within different frameworks to answer various
types of research questions. Thematic analysis is a search
for patterns and themes within a data set that explores
commonalities of experiences, ideas, thoughts, views and
perceptions, thus addressing the research questions being
investigated. The process involves familiarising oneself with
the data, coding and theme development. Feredday and
Muir-Cochrane (2006) defined thematic analysis as patterns
that are recognised in the data from which themes develop
and become categories for analysis.
Different question types require different versions of thematic
analysis which is informed by different theoretical
frameworks. Braun and Clarke (2006) stated thatthematic
analysis can be approached in various ways, which include
coding and themes that are directed by data content, coding
and themes that are directed by current concepts and theories,
coding and themes that mirror the obvious data content,
coding and themes that support or underpin the data,
reporting of an assumed reality within the data content and
focus on how a certain reality is created by the data.
A theme is characterised by patterns that highlights a point
or idea of importance within the data and in relation to the
research question; however, a theme that occurs more
frequently is not necessarily more critical. A theme is
important if it highlights something that is significant to the
research question (Braun & Clarke, 2006). Within the data set,
themes denote specific patterns of meaning which is either
directly observable – manifest content or references – latent
content. It is important to distinguish whether themes are
drawn from theoretical ideas – deductive, which allows for
replication, refuting or extensions of current studies – or
from the raw data – inductive, drawing from the naturally
occurring themes within the data itself and remaining open
to emerging concepts (Joffe 2012). Inductive analysis is like
grounded theory with the analysis being data driven. Braun
and Clarke (2006) stated that in inductive analysis the coding
of data happens without trying to fit it into either the
researcher’s preconceived notions or a pre-existing
framework and is data driven. The deductive theory-driven
approach involves analysis of data that is limited to
preconceived framework.
Conducng themac analysis
Braun and Clarke (2006) stated that it is important that as a
first step the researcher is familiar with the data and any
interview recordings must be written out so that it can be
read. A read-through of the entire data set is required to
make notes on initial thoughts and ideas after which initial
codes can be generated; this can be done manually or through
the use of a software program. After the initial coding is
done, codes, sentences and phrases that are similar can be
grouped together as first-order theme clusters. The same is
then applied with the first-order theme clusters, similar codes
become organising themes and the process is repeated until
a theme emerges. At this stage a review of the themes is
necessary to establish if all the data fit accordingly. Define
and name themes so that they fit in with all the data and
finally compile the report.
Validity and reliability
According to Creswell and Miller (2000), the concept of
validity in qualitative research is not easy but researchers
undertaking qualitative research must show that the study
is credible, using a validity procedure. Creswell and
Miller define validity as how credibly and accurately the
participants view and ideals regarding the phenomena
have been accounted for. There are several validity
procedures, but for the purpose of this study, the thick, rich
description to show credibility was used. The purpose of
which was to give the readers a sense that they could have
been in the interview and to allow the readers to ‘see’ the
emotion coming through the words. Ponterotto (2006)
defines thick description as:
[T]he researcher’s task of both describing and interpreting
observed social action (or behaviour) within its context. Thick
description accurately describes observed social actions and
assigns purpose and intentionality to these actions, by way of the
researcher’s understanding and clear description of the context
under which the social actions took place. Thick description
captures the thoughts and feelings of participants as well as the
relationships among them. Thick meaning of findings leads
readers to a sense of verisimilitude, wherein they can cognitively
and emotively ‘place’ themselves within the research context.
(p. 543)
According to Cypress (2017), reliability in qualitative research
is about ensuring that the findings are congruent with the
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reality and the researcher does not manipulate the
phenomenon of interest. Whilst the research study was
conducted ethically, and the results reported as accurately as
possible, it must be noted that the researcher was the source
of data collection.
Ethical consideraon
Ethical clearance was obtained the Ethics Committee: Wits
Business School (clearance number: WBS/BA1254736/252).
Results and ndings
Introducon
Participant responses were reviewed, interpreted and
analysed for commonalities, differences and repeat ideas.
The results were categorised into first-order theme clusters,
organising themes and emerging themes. The research
study revealed seven common themes for performance
management and employee engagement. The common
themes have further been categorised into major themes
based on their relevance to the study, significance in
terms of participant responses and the number of times
it had emerged per research question. Major themes
that emerged included engagement and communication,
employee empowerment and authentic leadership. Several
other themes that emerged included development and
improvement, performance management soundness
and roles, workplace culture and reward, recognition and
appreciation.
Findings: Performance management
Are employees sased with the way they are
performance managed?
The purpose of research question 1 was to explore the level of
satisfaction employees felt with which they were performance
managed and to determine what worked and what could be
improved.
Of the total participants, 45% were dissatisfied with the way
they were performance managed, citing no discussions
taking place, key performance indicators not being aligned
with their roles and lack of regular interaction and feedback
from direct line managers. The 30% of participants that were
satisfied with the way they were performance managed said
that their objectives were aligned with the business objectives
and they understood them. The remaining 25% of participants
who were somewhat satisfied mentioned that there is room
for improvement in terms of interaction between management
and lower levels; they cited a need for increased training
to enhance skills and knowledge and more regular mini-
assessments during the year.
Group 1: Shop floor personnel. About 55% of group 1
participants were not satisfied with the way they were
performance managed. Participants perceived a gap in the
focus placed on the development of employees and the lack
of managerial interaction.
Group 2: Office personnel. While both participants,
participant A13 and A16, in group 2 were satisfied with the
way they were performance managed, it was suggested that
increased discussions throughout the year would improve
the overall performance management process.
Group 3: First-line management. All four participants in
group 3 were dissatisfied with the way in which they were
performance managed. Participants were despondent
because of their managers’ inability to effectively manage
performance and the lack of commitment by managers to
engage and have meaningful discussions with employees.
There was a perception that the performance management
process lacked credibility and that measures focused on
results only and did not consider behaviours.
Group 4: Site leadership and directorate. All participants in
group 4 were satisfied with the way they were performance
managed and agreed that it worked; however, they also all
agreed that improvement was required as the performance
management process was not always consistently applied.
Changes in organisational objectives did not always translate
to changes in objectives, which resulted in lack of strategic
focus. While most of group 4 participants mentioned
improvements in the performance management system itself,
one participant was frustrated with his manager’s lack of
ability to justify how he rated his performance and thus
perceived the performance management process as lacking
objectivity.
Participants from groups 2 and 3 shared the same view that
regular discussions must happen to improve performance.
A leader’s role is to provide supportive management to
employees that could motivate them to participate and use
discretionary effort.
The responses from groups 3 and 4 reinforced Gruman
and Saks’ (2011) theory that the quality of the leader plays
a pivotal role in the success or failure of managing
performance. The commonality in responses of participants
across all four groups reiterated the importance of a
sound and authentic leadership in managing performance
effectively.
How do you want to be performance managed?
The purpose of this question was to understand which
constructs of managing performance were important
to participants to drive continuous improvement in
performance.
Participants were all aligned on how they wanted to be
performance managed; they wanted to be empowered to
take decisions and come up with new ideas. It was important
for them to feel included and be part of the organisation’s
success through coaching and mentoring. The need for
regular discussions and feedback was also highlighted as
significantly important.
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Group 1: Shop floor personnel. Most of the participants
in this group shared similar views regarding how they
wanted to be performance managed. Peer reviews, better
communication between employees and management, and
employee empowerment through coaching, mentoring and
recognition were important.
Group 2: Office personnel. Participants in group 2 shared
the same sentiment around being recognised for good work
and wanted as recognition the freedom to make decisions
and to feel empowered. Lockwood (2007) argued that
productive employees are those who are empowered to
make decisions, have access to information, are equipped
with the right capabilities and have their efforts recognised
and rewarded.
Group 3: First-line management. Participants in this group
all shared similar views with each other and group 1 on
how they wanted to be performance managed. It was
important that the performance management process was
credible, was used as a tool for improvement and
not punishment, and boundaries within which they
operated extended. Aguinis (2013) states that performance
management is an ongoing continuous process that includes
agreeing on set targets as aligned to the organisation’s
objectives that will deliver business results, reviewing
performance and including a two-way feedback and
coaching that ensures the employee’s contribution towards
the organisation’s success is clear.
Group 4: Site leadership and director. Participants in group 4
wanted to be able to give input when decisions affected
them and for the business to consider more than just the
achievement of objectives, and also the values lived by the
employee and the behaviours displayed.
It was important for participants across all the groups that
performance is managed on clearly set objectives aligned to
their roles.
What is the common reason for the level of performance
in South African companies?
Strauss and Du Toit (2010) argued that South Africa lacks
competitiveness. The purpose of the question was to
understand the underlying cause of South African companies
lacking competitiveness.
Participants responded that the common reasons for the level
of performance in South African companies is the high
skills shortage, lack of authentic leadership, lack of
employee empowerment, ineffective engagement and poor
communication.
Group 1: Shop floor personnel. Participants in group 1 shared
similar views regarding the reasons for the current
performance levels in South African companies, which were
more relational: poor leadership, lack of interaction and
communication between management and employees, and
employees being afraid to voice their concerns. Lack of
training and skills development was also mentioned as a
reason for poor performance.
Group 2: Office personnel. Participants in group 2 shared
different views on the reason for the current levels of
performance within South African organisations. Managers’
partiality and lack of employee empowerment were cited as
reasons.
Group 3: First-line management. Participants in group 3 shared
the same view that managers’ partiality was an issue when it
came to managing performance and developing employees.
They were aligned in their view that employee’s ambitions and
development were not a priority for the organisation.
Group 4: Site leadership and director. All participants in
group 4 believed the level of performance in South African
organisations was poor, including theirs, citing lack of
performance standards, a skills shortage and employee
retention as causes for concern. Tables 2 to 4 show a summary
of the findings for questions 1 to 3 relating to Performance
Management.
TABLE 2: Summary of ndings for queson 1 – Performance management. Are employees sased with the way they are performance managed?
Emerging theme Findings Key quotes
Development and
improvement
Employees are frustrated with the absence of
discussions pertaining to career development.
‘More training must be done for employees to enhance their skills and knowledge in terms of
eciency’. (Parcipant A10)
Performance management
soundness and roles
Performance management confused with
performance appraisals.
Performance management lacks credibility.
Poor strategic focus.
‘I do not agree on how the rang is determined and I queson the ability of the line manager to
jusfy it. As much as the performance management is to be objecve, it lacks in this regard’.
(Parcipant A5)
‘There might be changes in company strategy and objecves, but your objecves remain
unchanged’. (Parcipant A12)
‘My performance was evaluated by managers who do not interact with me, subjecvely. There
was no discussion on why I was given the rang I achieved. I was told what rang to give to my
subordinate without juscaon’. (Parcipant A9)
Engagement and
communicaon
Lack of mely and meaningful feedback. ‘Perhaps more regular mini-assessments during the year’. (Parcipant A13)
‘Employees need to be told how they are performing regularly to correct poor performance
instead of believing that they are performing at an acceptable level’. (Parcipant A14)
Authenc leadership Unsupporve management.
Key quotes:
‘The interacve aspect between management and employees to set out goals and achieve them
is lacking. Management prefers an autocrac approach to an inclusive one. More commanders
rather than do this way leaders’. (Parcipant A8)
‘The performance management process lacks personal interacon between manager and
employee, so I am not sased with the process. What would work for me, would be to sit down
with my line manager and discuss my career development and my manager’s expectaons
regarding my current posion. For me to perform well there must be good, open communicaon
between my manager and I. I think managers should take me to know their employees as that
would really help in terms of performance management’. (Parcipant A6)
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Findings: Employee engagement
What do you regard as ‘employee engagement’?
The purpose of this question was to gauge which constructs
of employee engagement were of relevance and importance
to the participants.
Employees want to know that they are adding value and
contributing to the organisation’s success, having a voice
motivates them to get more involved and give more of
themselves. Greater positive engagement and involvement
will result in better performance.
Group 1: Shop floor level. Participants in group 1 shared
similar understanding with each other regarding employee
engagement, which involved more employee connection
and emotion. Their understanding of employee engagement
included employees living the values of the organisation and
being empowered to have a voice.
Group 2: Office personnel. Participants in group 2 differed in
their understanding of employee engagement from each
other yet were aligned to group 1 with regard to employees
being empowered and allowed to contribute to the
organisation’s success.
Group 3: First-line management. For participants in group 3,
employee engagement was about communication, employee
connection and emotion to drive performance.
Group 4: Site leadership and director. Participants in this group
all shared different ideas with each other about employee
engagement. Some participants alluded this to management
TABLE 3: Summary of ndings for queson 2 – Performance management. How do you want to be performance managed?
Emerging theme Findings Key quotes
Engagement and
communicaon
Lack of mely and meaningful feedback ‘The process should be inclusive of my input, my manager to empower me – coach and mentor me
and share regular feedback on my progress. I also want to be recognised for going the extra mile as
this will keep me movated’. (Parcipant A8)
‘Performance for me is about having the right atude, passion and a conducive environment. All
these start with good communicaon between management and employees. Management must
create an environment where there is open dialogue and no inmidaon’. (Parcipant A6)
Workplace culture Culture of fear and inmidaon.
Employees are not given a voice.
‘More opportunity to give my input and just to be heard’. (Parcipant A1)
‘A culture free of fear where employees can be free to express opinions and suggesons to the
manager without feeling side-lined’. (Parcipant A6)
Rewards, recognion
and appreciaon
Lack of appropriate recognion. ‘I would like acknowledgement for good work. I would also want more freedom to make decisions
relang to the work I do as recognion of the competencies displayed’. (Parcipant A16)
Employee
empowerment
Limited boundaries that cause endless frustraon. ‘Clear smart objecves must be agreed on between myself and my manager at the beginning of the
year with adequate resources in place. I want to be given exibility in the “how” I deliver on those
set objecves if it is in line with the company’s values and principles. I do not appreciate to be micro-
managed but believe in regular feedback sessions with my manager to discuss the challenges I am
facing and support I need from him. I also appreciate recognion where I have performed well to
help boost my morale’. (Parcipant A11)
TABLE 4: Summary of ndings for queson 3 – Performance management. What is the common reason for the level of performance in South African companies?
Emerging theme Findings Key quotes
Development and
improvement
Employees are frustrated with the absence of
discussions pertaining to career development.
Inability of organisaon to retain employees with the
right talent and competencies.
Employees do not have the right level of experience.
‘Severe skills shortage, given the history and background together with the current economic
climate, many people were not given the opportunity to gather the right level of experience.
I also believe that employees require more training, guidance and coaching across all levels.
Sustained performance requires a fair and objecve performance process that is consistently
applied. This will lead to beer retenon and growth for employees and organisaons alike’.
(Parcipant A5)
‘There’s a shortage of skills so when the correct skills have been idened, measures must be taken
to retain these skills. We don’t train and develop employees for sustained performance. Employees
are also disengaged due to not having a sense of purpose and ownership within their companies’.
(Parcipant A7)
Engagement and
communicaon
Communicaon and engagement characterised by a
crisis.
Misalignment between what is communicated and
what is expected.
Messages to shop oor not simple and get distorted.
‘Lack of movaon, employees are afraid of the consequences when things go wrong. Managers
are secreve, we hear things from other employees. Not enough training is given to shop oor
workers. Employees cannot share their opinions or issues because of vicmisaon, we must wait
for feedback aer asking several mes before we are told anything’. ( Parcipant A4)
‘The people element is lacking. Managers only talk to employees when things go wrong or if targets
are not met. Managers say one thing and expect something else. They say they want safety and
quality to come rst but if we highlight issues, they ignore them and say produce. People lack
movaon, some are scared. People are not skilled enough; all this aects the level of
performance’. (Parcipant A8)
Employee
empowerment
Employees are not given a voice.
Tight employee boundaries.
‘Organisaons do not support employees who want to apply their knowledge and experience but
force them to adapt to the past ways of working even if it is not value adding, which leads to
employees being demovated’. (Parcipant A11)
‘Employees not feeling empowered and lacking purpose as the reasons for low performance,
including lack of incenves to perform well’. (Parcipant A16)
Authenc leadership Leaders lack emoonal intelligence.
Managers’ parality.
‘High level of oce polics that causes employees not to care and managers who show favourism
needs to be addressed in local companies before performance improves’. (Parcipant A13)
‘Managers give instrucons rather than talking to people and giving guidance. People are scared
to make mistakes because they fear being red. Management must increase training and
coaching on the shop oor. They are never on the shop oor. People are not treated equally’.
(Parcipant A20)
Workplace culture ‘Us and them’ mentality.
Culture of fear and inmidaon.
Employees lack the right atude across all levels.
‘There is an “us and them” mentality at most organisaons. Communicaon is not always free
owing, and messages are not always clear, especially downstream. Messages are not simple
enough to be understood by the shop oor and oen get distorted. Employees are not given room
to voice their expectaons and aspiraons which causes a lack of movaon. There is not much
interacon between employees and management when it comes to individual ambions. It is
always about the organisaon’s needs and requirements and less about individual development’.
(Parcipant A15)
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taking the lead, while the rest of the participants said it was the
employees who took the lead and made the effort.
What can management do to increase and improve
employee engagement?
The purpose of this question was to understand the current
underlying issues that organisations are facing in terms of
employee engagement and get the participants’ views on
how it can be improved upon.
Participants highlighted that to improve employee
engagement, discussions and feedback must be regular and
not a once- or twice-a-year exercise. Engagement and
communication need to improve, and employees must be
given a voice. Development of employees must be a key
focus and employees need to be rewarded, appreciated and
recognised for their contribution to the organisation’s
success. Leaders need to be more approachable, supportive
and willing to create an environment of trust and respect.
Group 1: Shop floor personnel. Participants in this group
shared common views on how to improve employee
engagement, with the focus being on improving
communication and developing employees through training.
A key construct was the lack of leadership, which was further
supported by group 3 in their responses.
Group 2: Office personnel. Participants in this group shared
similar ideas on giving employees a platform to have a voice.
Group 3: First-line management. Participants in this group
all shared the same view that leadership was lacking; and
from their emotion it was clear that this was a serious issue
that was negatively impacting performance.
Group 4: Site leadership and director. All the participants
in this group had different ideas on how to increase and
improve employee engagement levels; for some participants,
the focus was on empowering employees through
involvement and development, and for others it was more
about addressing issues and concerns that impact employee
engagement.
Does a relaonship exist between employee engagement
and performance management?
The purpose of this question was to understand if
participants perceived a relationship existed between
employee engagement and performance management.
All participants in all four groups agreed that there was a
relationship between employee engagement and performance
management.
Group 1: Shop floor personnel. Participants in this group
made it clear that increased communication regarding
performance was a priority; they wanted to have meaningful
discussions. They also wanted to have a voice.
Group 2: Office personnel. Participants in this group alluded
to the fact that employees need empowerment to achieve
increased performance.
Group 3: First line management. Group 3 participants spoke
of behavioural factors and alluded to cognitive engagement
as the factor to increase performance.
Group 4: Site leadership and director. Participants were
aligned in their view that increased engagement will
encourage employees to take initiative and go the extra mile.
Discussion on the research ndings
The research findings will be discussed in relation to the
research objectives and questions based on the literature
review of specific constructs within performance management
and employee engagement. The use of the qualitative
research method was to gain insights into the experiences of
employees with regard to performance management and
employee engagement. It was important to understand how
the participants perceived performance management, what
they thought was key to ensuring greater employee
engagement and if they perceived a link between the two.
Tables 5 to 7 show the summary findings to question 1 to 3 as
it relates to employee engagement.
TABLE 5: Summary of ndings for queson 1 – Employee engagement. What do you regard as ‘employee engagement’?
Emerging theme Findings Key quotes
Engagement and
communicaon
Management openly engages with employees
through a two-way eecve communicaon.
Organisaon interacng with employees.
‘It’s about geng down onto the shop oor and interacng with the employees and understanding
what challenges they are facing but also appreciang the work that they are doing’. (Parcipant A1)
‘Employee engagement is where the employee feels part of the business. The morale is high at all
levels. There is a sense of trust and communicaon is ltered to all levels. Employees make
improvements without being told’. (Parcipant A7)
‘Consultaon of employees that aect their workplace condions and workplace relaons’.
(Parcipant A17)
Workplace culture Employees live the organisaon’s values, and they are
proud of their organisaon.
Employees show dedicaon, care and enthusiasm.
‘Employee engagement is a concept in which the employee understands and lives the values of the
organisaon. The employee has the drive to see the organisaon thriving and therefore does what it
takes to meet and exceed the expectaon of the targets set for him. It is also important for the
employee to have his voice heard and be part of the decision-making so that he feels included and
that his input maers’. (Parcipant A6)
Employee
empowerment
Employees have a voice.
Employees take accountability and are results
focused.
Employees use discreonary eort and nd soluons.
Employees’ boundaries within which they operate are
extended.
‘It is also important for the employee to have his [or her] voice heard and be part of the decision-
making so that he [or she] feels included and that his [or her] input maers’. (Parcipant A6)
‘Opportunity for employees to parcipate and contribute to the direcon an organisaon takes’.
(Parcipant A16)
‘Employee engagement is the connecon and feelings employees have towards their organisaon
and the eort they are willing to put in to ensure its success. Employees that are engaged are happy
to come to work, they want to deliver results, they are accountable, enthusiasc, dedicated and they
use discreonary eort. They believe in their company and will defend it because they are proud of
it. They nd soluons and get involved’. (Parcipant A9)
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Objecve 1: Understand how to eecvely
engage employees to ensure increased
performance
South African employees perceive the following as key
constructs to improve performance
Engagement and communication: It was important for
employees to have clear discussions regarding objectives to
deliver against expectations, and it was also of equal
importance to have regular discussions and feedback about
their performance. A major gap identified in the research
study was the lack of regular and honest performance
discussions, including timely and meaningful feedback.
Participants explained that regular discussions and timely
feedback would help them address gaps within their own
performance to achieve key performance indicators, which
would positively impact the organisation’s performance.
This finding was supported by Aguinis (2013), who asserted
that timely and meaningful feedback allows for employees to
be supported in correcting performance to achieve individual
and business objectives.
Authentic leadership: The data collected from the research
study revealed a gap in leadership, with participants
highlighting managers’ partiality, an autocratic leadership
style and managers lacking emotional intelligence as key
inhibiters to performance management. This provided
enough evidence to support the theory that the lack of quality
leaders negatively impacts performance management. The
success and effectiveness of performance management lies in
the quality of the leader and his or her commitment to engage
with, provide support to, challenge, coach, give constructive
feedback and include his or her employees in activities of the
business (Gruman & Saks, 2011).
Employee empowerment: Empowerment is the result of
increased participation of employees. Research data provided
enough evidence that suggested that participants operated
within tight boundaries across all levels within the
organisation and were not included in decisions that affected
them. There was also a perception that if they shared their
ideas and views, then they will be victimised. Menon (2001)
argued that allowing employees to make work-related
TABLE 7: Summary of ndings for queson 3 – Employee engagement. Does a relaonship exist between employee engagement and performance management?
Emerging theme Findings Key quotes
Employee empowerment Employees are given a voice.
Empowered employees are producve.
‘Yes, there is a link. Employees that feel valued in their organisaon perform very well. The only
way an employee can feel valued is if there is [a] high level of engagement between them and the
employer’. (Parcipant A11)
‘Yes. An employee who feels empowered through parcipaon is more movated and therefore
would put in greater eort to achieve or exceed targets’. (Parcipant A16)
Engagement and
communicaon
Construcve and honest feedback encourages
improvement in performance.
Meaningful discussions allow for sharing of
thoughts and ideas.
Regular communicaon allows for quicker
resoluon of issues.
Confusion is cleared up through communicaon.
‘There is a link between employee engagement and performance management, because
constant communicaon from management allows me to understand expectaons and
deliver on them. Regular discussions on performance help me to improve provided that
the comments are construcve and honest. This open communicaon allows for support
to be provided by my manager and for feedback to be given and received by us both’
(Parcipant A3).
‘Yes there is. The more employee engagement occurs, the more feedback is provided to the
employee and all concerns can be addressed meously, the engagement sessions can also clear up
confusion, most importantly it shows the employee that you interested in his/her performance and
want to help him grow’. (Parcipant A14)
‘Yes. It is not possible to eecvely manage performance if you are not regularly engaging with
employees. Regular discussions and feedback would result in the employee feeling valued which
would movate him to perform beer. Engaged employees who feel valued are more producve’.
(Parcipant A15)
TABLE 6: Summary of ndings for queson 2 – Employee engagement. What can management do to increase and improve employee engagement?
Emerging theme Findings Key quotes
Development and
improvement
Introduce eecve training programmes. ‘Talented employee should be idened and encouraged to excel more, whereas employees lacking
experience or competence should be guided and trained to beer their skills and increase
performance.’ (Parcipant A8)
Rewards, recognion and
appreciaon
Recognise achievements and talents. ‘Managers need to give employees recognion. Management should be role models for employees.
There needs to be one-on-one communicaon to understand employee issues. Feedback is important
on issues that are raised. All issues or concerns will not always have the desired outcome, but
employees appreciate the fact that their concerns were acknowledged and invesgated. Training and
development in their roles. Personal growth is a key factor’. (Parcipant A7)
Authenc leadership Lack of supporve management. ‘Management can show fairness in the workplace and not be subjecve when managing performance.
Show appreciaon for achievements met. Management should learn email equee and not send
emails that are rude as this inmidates people and results in people not engaging. Management must
walk the talk. They should not say one thing and do another. Management should be transparent;
currently there is no trust between management and employees and there is an “us” versus “them”
mentality in the organisaon. If there is no trust, employee engagement will be poor. Management
should be visible and accessible to employees without them feeling afraid. Genuine relaonships
between employees and their supervisors and management inspire trust and commitment’.
(Parcipant A9)
Engagement and
communicaon
Greater engagement required. ‘Create working environments that are conducive for two-way communicaon. Management cannot
expect to engage employees if they are not willing to listen to what the employees have to say.
Management should not wait unl there is a crisis before they engage employees it should be a
regular thing. It must be built into the culture of an organisaon that communicaon and employee
engagement is a norm rather than an occasional event that characterises a crisis’.
Employee empowerment Enable employees to have a voice. ‘I think the introducon of an employee forum for raising concerns or for inving sta input would be
benecial’. (Parcipant A16)
Workplace culture Create a culture of trust.
Create a conducive working environment.
Communicaon and employee engagement
must be built into the culture of the
organisaon.
‘Creang an environment of open dialogue and less blame will be a good start. It is important that
employees can talk to her manager about what makes them demovated. Team-building exercises
and one-on-one sessions between the employee and management can improve employee
engagement. Most employees view senior leaders as people who want to punish them when things
go wrong, so the culture needs to change’. (Parcipant A6)
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decisions to enhance performance is not new in management
literature and that empowering employees would allow
them the ability to significantly affect organisational
outcomes.
Performance management soundness and roles: Employee’s
perception of the performance management system is poor
and often perceived as the ‘big stick’ (Bourne et al., 2002).
Repeat findings within the research data showed that
participants across all levels within the organisation
perceived that the performance management process lacked
credibility, performance appraisals were confused with
performance management and there was poor strategic
focus, with changes in organisational objectives not
translating into changes in individual objectives. There was
also a perception that inconsistencies existed in the way
employees were performance managed – often the process
being used to punish rather than to improve performance.
This caused frustration and distrust, which was evident from
the emotions expressed by the participants.
Development and improvement: Research study data
revealed that the absence of discussions pertaining to career
development, lack of training and inability of the organisation
to retain employees with the right talent and competencies
caused frustration amongst the lower levels. Anitha (2014)
suggested that employees gain confidence when they are
trained and developed, which allows them to engage
significantly in their jobs. There was a perception that training
only occurred if it benefited the organisation. According
to Lockwood (2007), as organisations compete globally,
attracting and retaining the right talent will be increasingly
more important. The theories alluded to by Anitha (2014)
and Lockwood (2007) asserted the importance of developing
employees to enable them to perform better in their roles and
retaining those employees for sustained performance.
Workplace culture: Participants perceived a workplace
culture of fear and intimidation where employees were not
given a voice. According to Lockwood (2007):
Research shows that organisations that provide a workplace
culture with the psychological conditions of meaningfulness (job
enrichment, work-role fit), safety (supportive manager and co-
workers) and availability (resources available) are more likely to
have engaged employees. (p. 5)
The research data supported this theory of Lockwood (2007)
who argued that engaged employees are those who find
themselves in a safe environment where they can share ideas
and make decisions without fear.
Rewards, recognition and appreciation: It was important to
note that participants within the study wanted as part of
recognition for good work and displayed capabilities to be
rewarded with greater decision-making opportunities. Saks
and Rotman (2006) concluded that employees will positively
involve and engage themselves more in their roles should
they perceive that the rewards will be greater, and should
they be given recognition that their work is meaningful and
adds value. Appropriate rewards and recognition are key
in performance management because people want to feel
respected and have a sense of accomplishment.
South African employees perceive the following
as key constructs of employee engagement that
will posively impact performance management
Engagement and communicaon
Hoole and Bonnema (2015) correctly argued that engaged
employees have the ability to enhance the competitiveness of
organisations in the current economic landscape and that
while high levels of engagement add value, low levels of
engagement can have a damaging effect on the bottom line.
Robertson-Smith and Markwick (2009) pointed out that
various studies have demonstrated a correlation between
high employee engagement levels and productivity of
employees, teams and organisations. They argued that
engaged employees show commitment, advocate on behalf
of the organisation, show dedication, use discretionary effort
and utilise their skills and abilities to support in the
achievement of the organisation’s goals. The research data
showed significant evidence that employees want to be kept
informed; they want to know what transpires within the
organisation and they want to be actively involved in the
decisions that affect them. The research data revealed a clear
gap in the way communication occurs, often characterised by
a crisis and not simple enough to be understood at all levels
of the organisation. Participants asserted the need for
management to openly engage employees, for two-way
effective communication to take place and for the organisation
to interact with employees. It was important for participants
that communication and engagement is effective to help
them understand how their involvement and delivering
against objectives contributed to the success of the
organisation.
Employee empowerment
Participants within the research study asserted the need to be
given a voice and for the boundaries within which they
operate to be extended. It was important to them that they
were given the opportunity to share ideas, be part of the
decision-making process and allowed a platform to express
their views which they believed would positively impact
performance. This was supported by Lockwood (2007), who
correctly argued that:
[W]hen employees have the power to make decisions related to
their performance, can access information about company costs
and revenues, and have the necessary knowledge, training and
development to do their jobs – and are rewarded for their
efforts – they are more productive. (p. 3)
Authenc leadership
George et al. (2007) argued that:
[A]uthentic leaders demonstrate a passion for their purpose,
practise their values consistently, and lead with their hearts
as well as their heads. They establish long-term meaningful
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relationships and have the self-discipline to get results. They
know who they are. (p. 129)
It was important for participants within the research study
that managers lead by example and connect with them.
They believed that a leader who provides supportive
management will motivate the use of discretionary effort and
will encourage employees to go the extra mile.
Rewards, recognion and appreciaon
Aguinis (2013) argued that employees are encouraged and
motivated when they are recognised for good work, and that
it boosts their morale. Employees who are motivated get
involved and take initiative. Intrinsic motivation which is
fuelled by feelings is perceived as more important to
employees than monetary rewards. This theory is supported
by the participants’ need for their achievements and talents
to be recognised.
Objecve 2: Ascertain how to leverage
employee engagement to reboot performance
management
The purpose of this study was to understand the relationship
between performance management and employee
engagement within the South African context and to explore
if increased employee engagement will positively impact
performance management. There is substantial evidence
from the research study data to support that a relationship
exists between performance management and employee
engagement and that an increase in the level of employee
engagement will positively impact performance management.
The study data were further supported by the management
theories identified and the key common constructs to both
employee engagement and performance management. The
following major constructs will be discussed to understand
how to leverage employee engagement to reboot performance
management.
Engagement and communicaon
Lockwood (2007) argued that continuous communication
is a key management tool that gives credibility to the
organisation’s leadership and ensures organisational success.
This theme encapsulates the participants’ need for increased
employee engagement, personal interaction and two-way
open communication. Although communication takes
place, there is evidently a gap in terms of what is being
communicated and what the expectations are.
Aguinis (2013) stated that through regular and continuous
communication departmental and organisational goals can
be made clear so that the employee could understand the
connection between what he or she does and the organisation’s
success. Participants explained that the communication
messages were not always clear or easily understood at the
lower levels of the organisation. It was explained that often
the messages get distorted or do not filter down to shop floor
level. Changes within organisational goals and objectives are
not always communicated timely and the participants felt
that this hindered them from fully supporting the changes,
which resulted in unachieved key performance indicators.
Aguinis (2013) argued that managers who get to know their
employees foster better relationships, open the channels for
an honest two-way communication and allow for them to
understand how to effectively manage the employees for
sustained performance. Participants explained that the
interaction between direct line manager and employees was
lacking and that an increase in interaction would allow for
the manager to get to know his or her employees better. This
increased interaction would also facilitate and encourage
open, honest discussions regarding capability building and
would ensure that a gap in performance is corrected quickly.
It was clear that participants understood the need and
importance of regular discussions to give and receive
feedback on key performance indicators, to share challenges
currently being experienced and to request for support to
achieve individual and organisational goals and improve
performance.
Aguinis (2013) argued that when employees are given a
voice, they are allowed to share their ideas for improvement
and raise concerns for timely resolution, which
improves organisational performance. Participants wanted
management to consult them on issues that affected them,
and they wanted to be actively involved in the direction of
the organisation. They wanted to be listened to and given a
platform to voice their concerns without fear of reprimand or
intimidation or a forum to share their ideas.
Employee empowerment
Menon (2001) argued that allowing employees to make
work-related decisions to enhance performance is not new in
management literature and that empowering employees
would allow them the ability to significantly affect
organisational outcomes. Empowerment is the result of
increased participation of employees. This theme highlights
the need for employees to be empowered to take ownership
of their areas of responsibility so that managers will be able
to assume a more leadership role. Participants expressed
their eagerness to contribute to the success of the organisation,
bring new ideas and improve the current ways of working.
They were of the view that organisations must empower
employees by allowing them the freedom to make decisions
with regard to their areas of work if it was aligned to the
values of the organisation and to express themselves freely.
Participants were adamant that they do not want to be micro-
managed. Several participants argued that they were hired
for their skills and knowledge and should be given an
opportunity to use them. They wanted the organisation to
understand that every employee brings something new and
different to the table and this should be encouraged and
nurtured to take the organisation forward.
Employees are more interested and engaged when they
know that their contribution adds value and makes a positive
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difference to the organisation (Anitha, 2014). Participants
want to feel valued and feel like they are a bigger part of
the organisation. It was mentioned that a higher level of
engagement would make employees feel happy and valued,
which would result in them performing to the maximum. It
was clear that participants wanted to get involved in the core
activities of the organisation but wanted management to
trust that they will do their best and give off their best always.
Authenc leadership
George et al. (2007) argued that:
[A]c for their purpose, practise their values consistently, and
lead with their hearts as well as their heads. They establish long-
term meaningful relationships and have the self-discipline to get
results. They know who they are. (p. 129)
This theme points out the importance of sound and authentic
leadership for performance management to be effective. The
responses from the participants reinforced Gruman and
Saks’s (2011) theory that the quality of the leader plays a
pivotal role in the success or failure of performance
management. The lack of knowledge and skills of managers
to effectively performance manage employees, the lack of
commitment to engage and having meaningful discussions
with employees, and managers’ partiality were three re-
occurring reasons why participants at the lower level of the
organisation placed so little value on the performance
management process.
Sanger (2008) argued that effective performance management
requires a change in culture and skilled leaders who are
willing and committed to provide considerable managerial
investment. The study revealed that participants perceived
their managers as being disengaged and managing from afar
and with fear, giving instructions rather than leading by
example. Several participants also alluded to the fact that
employees were often afraid to raise concerns or give input
for fear of being reprimanded or sidelined. This kind of
management is unsupportive and hinders employees from
achieving their full potential.
Gruman and Saks (2011) argued that leaders motivate and
encourage employees to try new things by showing support,
giving employees stretch roles and allowing employees to
participate in discussions and get involved in decision-
making without fear of negative consequences. A re-
occurring view shared by many of the participants was that
managers led by fear and intimidation, which resulted in
employees being afraid to make mistakes or to speak up
because they might be victimised or lose their jobs. Employees
not only feared management, they resent them and lack
confidence in their abilities to manage effectively. Employees
are disengaged and lack motivation because of this.
Another concern shared by participants was managers’
partiality and it was explained that if an employee wanted to
be developed or to progress in his or her career, then he or
she must ensure that he or she has the right stakeholder
backing or the right network because ‘selective nurturing’
occurred within the organisation. Favouritism and
‘friendships’ often got mixed up as strong performance. This
has caused lack of confidence in the performance management
system and employees to become despondent. Managers
lack emotional intelligence and want to ensure that the
hierarchical system remains firmly in place; they will
not allow communication or interaction between their
subordinates and executive or global leaders and this causes
tension amongst the lower levels.
Implicaons and recommendaons
Based on the findings of this research study, the following
recommendations have been made.
Organisaons
Organisations must understand and acknowledge employee
development and career aspirations to implement effective
training and development solutions to satisfy employee
needs.
The study identified that employees perceive a skills gap,
and this requires that organisations partner with schools and
universities to improve and attain the skills they need.
The true benefit of empowerment will only be realised if
employees experience empowerment.
The study revealed that communication is not simple and
therefore engagement and communication strategies cannot
be ‘cascaded’ or ‘rolled out’; they must be adapted to the
location of the organisation and be cognisant of the target
audience.
The levels of engagement determine the extent of individual,
team and organisational success. Engagement strategies
must not be a ‘one-cap-fits-all’ approach.
Supportive management and the quality of the leader are
critical if organisations want to have a competitive advantage.
It is important that organisations hire the right leaders and
equip leaders with the necessary skills and capabilities
to lead.
A workplace culture that is built on a foundation of
inclusiveness, mutual trust and respect is required if the
organisation wants to gain competitive advantage.
Leaders
Leaders must understand their true self to lead effectively,
understanding the impact of their actions and behaviours
when managing employee performance. Improving their
levels of emotional intelligence to ensure a balanced work
environment is challenging and at the same time rewarding.
Leaders need to understand the relationship between
employee engagement and performance management and
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create an environment where employees have a role model,
are given direction and are allowed a voice.
Limitaons of the study
There are limitations of the study that must be recognised.
This research was performed on a small sample size in one
province in South Africa. This makes it difficult to generalise
the findings to the larger South African population as the
culture, values and strategic objectives are not the same
across organisations. Whilst interviews were conducted
across all levels of the organisations, a cross-sectional
snapshot view of the current situation was taken. It did not
consider what had transpired before whether the organisation
was in a crisis or transition process, which could have
influenced employee responses or what will happen after the
snapshot has been taken.
Conclusion
The study results showed that a relationship exists between
performance management and employee engagement and
an increase in the level of employee engagement would
result in an increase in performance. Employees were not
satisfied with the way in which they were performance
managed and a greater level of employee engagement is
required. Employees are the greatest assets of any
organisation and employers need to ensure that they create
an environment of inclusiveness, engagement and trust to
improve performance. People want to feel valued and want
to know they add value to the organisation; therefore,
managing performance should not be a tick box bi-annual
exercise but a continuous process of learning, feedback,
action and engagement that is embedded in the company
culture. It is imperative that organisations operating within
South Africa actively seek initiatives that will meet employee
expectations in terms of managing performance and
employee engagement.
Acknowledgements
Compeng interests
The authors declare that they have no financial or personal
relationship(s) which may have inappropriately influenced
them in writing this article.
Authors’ contribuons
M.G. conducted the research and M.H.R.B. supervised the
research and co-wrote the article.
Funding Informaon
This research received no specific grant from any funding
agency in the public, commercial or not-for-profit sectors.
Data availability statement
Data sharing is not applicable to this article as no new data
were created or analysed in this study.
Disclaimer
The views expressed in this article are the author’s own and
not an official position of the institution.
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