Effectiveness of Staff Performance Management in the Motor Industry in Kenya: A Case Study of General Motors (East Africa) Limited

Abstract

Purpose: This study was designed to investigate the effectiveness of staff performance management in the motor industry in Kenya, focusing on General Motors (EA) Ltd. The objectives of the study were: to assess the extent to which staff performance management has influenced employees’ productivity in General Motors (EA) Ltd; to analyze the challenges faced by General Motors (EA) Ltd in implementing staff performance management practices; and to make recommendations for measures that will facilitate effective implementation of staff performance management practices in General Motors (EA) Ltd. Methods: To undertake the study, a descriptive research design was used. This is a scientific study done to describe a phenomena or an object in this case study the phenomena is declining employees’ performance. The method was preferred as it permits gathering of data from the respondents in natural settings. A case study of General Motors (EA) Ltd was adopted for this study. All departments and functions of GM (EA) Ltd was considered in the study in order to provide a reasonable level of breadth without sacrificing the depth and richness of the data. Semi-structured questionnaires with both closed and open-ended questions were administered. The study utilized a combination of both quantitative and qualitative techniques in the collection of data. The study covered all the six departments of GM(EA) Ltd with respondents being drawn from the Headquarters. All cadres of staff were involved in the study. All the twenty seven questionnaires sent out were returned completed, 100% response rate. The data was analyzed by employing descriptive statistics such as percentages, frequencies and tables. Computation of frequencies in tables, charts and bar graphs was used in data presentation. In addition, the researcher used standard deviations and mean scores to present information pertaining to the study objectives. Results: Findings of the study revealed that the Null Hypothesis of the study tested positive: Staff performance management practices in General Motors (EA) Ltd has a positive influence on employees’ productivity. Performance management practices within the organization had a positive influence and facilitated success of the following management activities: Organizational strategy formulation; Management of strategy implementation process; Communication with internal stakeholders; Communication with external stakeholders; Evaluation and reward behavior; Benchmarking of performance of different organizations, plants, departments, teams and individuals; Managerial decision-making processes; and Encouragement of improvement and learning. The findings further point to the fact that the way to have good employees is to choose good employees. Look for people who are passionate and committed. Clear verbal and written communication is the key to a healthy working environment.

Keywords: Effectiveness, Staff performance management, Motor Industry