Employees’ experiences of change management in the implementation of a performance management system

Abstract

Orientation: Success in the implementation of a performance management system in an organisation is underpinned by the way a strategic change initiative is effectively managed across all organisational levels.Research purpose: This study explored how employees experienced change management in the implementation of a performance management system.Motivation for the study: Research on the impact of change management on employees in the implementation of performance management systems in organisations is limited, particularly in the South African context, which served as motivation for this study.Research approach, design and method: A qualitative study was employed using semi-structured interviews to collect data from nine participants, selected through purposive sampling. Data were analysed by thematic analysis.Main findings: The study confirmed that the implementation of organisational change affects both employees (cognitively, emotionally and somatically) and leaders (leadership style as defence against change anxiety). Therefore, the preparation, participation and empowerment of and communication with employees, over the entire change process value chain, are crucial for effective implementation of a performance management system.Practical/managerial implications: The study highlights factors that leadership teams and change managers need to consider when introducing change initiatives.Contribution/value-add: This study adds to the knowledge base about the impact of the management of change during the implementation of a performance management system. It thereby highlights the importance of working with participants’ lived, authentic change experiences towards ensuring that change management serves as an anchor and container during system implementation.

Employee’s psychological experiences with bank’s pay for performance system in South Africa

“…Employees, especially in a fast-paced, results-driven environment like banks where the P4P is being implemented, always link their performance to pay and if the promised rewards are not provided that might lead to feelings of betrayal and confusion (Adam, 1963;Deutsch, 2019;King, 2020;Khuzwayo, 2017). In line with existing studies (Govender & Bussin, 2020;Mosoge & Pilane, 2014;Nxumalo et al, 2018), when employees cannot link their promised rewards to their performance, they feel confused and betrayed and their performance might deteriorate (Govender & Bussin, 2020;Mabasa & Flotman, 2022;Nxumalo et al, 2018;Ochurub et al, 2012). In line with the equity and expectancy theories, employees compare themselves with others and when they feel robbed of their hard-earned rewards, confusion and frustrations as well as self-doubt take over leading to a spiralling cycle of poor work results.…”

“…(3) there is an inadequate evaluation interview process and (4) the system (line managers) apply subjective and biased performance-based pay increases (Cabanas et al, 2020;Chen et al, 2023;Deci & Ryan, 1985;Kim et al, 2022;Mulvaney, 2017). Most importantly, the system gives line managers the freedom to decide on employee's salary increment and progression, their training and development needs and the placement of employees correctly; as a consequence, line managers have a chance to punish those they dislike and reward those they like (Govender & Bussin, 2020;Mabasa & Flotman, 2022;Nxumalo et al, 2018). It is the aim of the current study to explore the current challenges and then psychological experiences of employees with the P4P at the bank's Polokwane branch in Limpopo.…”