1. business and industrial

“Why Performance Management Programs fail”
A case study at Telesur
By
Monique C. Dongor-Struiken
(Suriname)
“If you cannot measure it, you cannot improve it”
(Hamel and Prahalad, 1998)
This paper was submitted in partial fulfillment of the requirements for the Masters of Business Administration
(MBA) degree at the Maastricht School of Management (MSM), Maastricht the Netherlands, December 15, 2011.
Maastricht School of Management
P.O.Box 1203
6201 BE Maastricht
The Netherlands
Paramaribo, December 2011
FHR. Lim a Po Institute for Social Studies
P.O.Box 12340
Paramaribo
Suriname
Acknowledgements
I want to start this passage by expressing my appreciation to some special persons who made it
possible for me to do this MBA study and finish it successfully.
First I want to say thanks to the CEO of Telesur, Dr. Dirk Currie for giving me the opportunity to
do this MBA study. I’m grateful to have been given the chance to learn so much about the world
of finance. It was a great experience that makes me now understand better, what the subject is
about in companies and also in the world.
Furthermore I must thank my Thesis Supervisor, Dr. Geert Heling who from the start, worked
with me on the thesis in a very pleasant manner.
Equally valuable is Silvio de Bono for tirelessly pulling us through this last milestone.
The dedication of Merdita Elstak is beyond words. She was always there to help and empower
us, although she was not supervising all of us.
And then Hans Lim A Po; the way he committed himself by following our progression and how
he kept coaching and empowering us is priceless.
In this setting I must also say thanks to my study group (Aleem, Rick, Maitrie, Rishma, Lloyd,
Krishna, Arnold, Geeta, David, Cheryl, Darryl and Yvel) since this group was committed in
helping each other until the last exam.
I really appreciate my colleagues at Telesur, who were interested all the time during my study
and who were sympathizing with me and encouraging me constantly.
Last and certainly not least I must thank my family and most important my husband Robert, who
really had a hard time through this period of me studying to get this MBA-degree.
1
Table of Contents
Chapter
Page#
Acknowledgements
Executive Summary
1
4
1.
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
Introduction
Background
Objective of the study
The research questions
Scope of the study
Relevance of the study
Conceptual model
Research method
Expected outcome
Chapter overview
Summary
5
5
6
7
8
8
9
10
10
10
11
2.
2.1
2.2
2.3
2.4
2.4.1
2.5
2.5.1
2.5.1.1
2.5.1.2
2.6
2.6.1
2.7
Literature review
Introduction
Requirements for good employee performance
Why performance management programs fail
The role of managers
Talent management
Managers competencies
Management and Leadership styles
Management styles
Leadership styles
Performance management programs or systems
Issues regarding Performance management systems
Summary
12
12
13
3.
3.1
3.2
3.3
3.4
3.5
Telesur’s performance management system
Introduction
Telesur’s performance interview
Telessur performance appraisal
Telesur’s management evaluation
Summary
16
17
18
20
21
22
22
24
27
29
30
30
30
32
32
33
2
Chapter
Page#
4.
4.1
4.2
4.2.1
4.3
4.4
4.5
4.6
4.7
4.8
4.9
Research design and methodology
Introduction
Research design
Research questions
Research hypotheses
Variables
The Telecommunication Company Suriname, Telesur
Sample size
Data collection method
Reliability
Summary
35
35
35
35
36
37
41
42
43
44
44
5.
5.1
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.3
5.4
Findings
Introduction
The quantitative study
The questionnaires
The frequencies
Transformational leadership
Transactional leadership
Passive avoidant behavior
Outcomes of leadership
The qualitative study
General findings and Summary
45
45
45
45
47
47
52
54
56
58
65
6.
6.1
6.2
6.3
6.4
6.5
6.6
Conclusions and recommendations
Introduction
Conclusions drawn from the quantitative study
Conclusions drawn from the qualitative study
Recommendations
Practical implementation
Limitations of the study
66
66
66
68
68
70
71
7.
Discussion
72
Bibliography
73
Appendix A: Organizational structure of Telesur
Appendix B: Questionnaires
Appendix C: Scoring key
Appendix D: Interview questions and answers
Appendix E: Survey Results
i
ii
iv
vi
xi
3
Executive Summary
This study gives insight in the use of the performance management system of Telesur.
Throughout the thesis the words performance management system and performance management
program are used. In this context, system and program have the same meaning. Literature uses
them both with the same meaning.
The thesis discusses why performance management programs fail. The study is done in Telesur
and elaborates mainly on leadership and leadership style and the way the currently present
performance management system is used. This is seen through the eyes of managers and
employees.
Results of data analyzed show that the system is not delivering the desired outcome. This is due
to several reasons.
The study finds that the way how performance management is executed in Telesur, needs to be
evaluated and carried out in a better way.
The company has a lot of competencies and has very skilled en highly educated employees. If
these employees can be managed better, Telesur will be capable to easily compete with its
competitors and can be sure that it will be viable for many years to come.
The thesis does not discuss the subject reward in depth. However, it is recommended that some
thought is put into the reward policy of Telesur and that it gets evaluated and if necessary it
should get adjusted to the current circumstances.
4
Chapter 1 Introduction:
1.1.
Background
It is the objective of the management of every organization for their organization to be profitable
and successful. This objective can only be achieved when it is clear to the staff of the
organization, what the core of the organization is, where the organization is heading and how it
intends to get there. A vision, mission, the strategy and the objective of the organization must be
formulated and must be communicated trough out the whole company.1 It is also imperative that
staff members also know what their role is in achieving goals of the organization. This is
important for them so they are aware what is expected from them and what their contribution
should be. Their role in performance is important and not to be underestimated.
Objectives should periodically be formulated in consultation to make clear to the organization
and the staff what is expected from them to achieve the goals of the organization.
These objectives must be measured at fixed dates to determine if the staff lives up to the
expectations of the organization. The whole staff, including management must be dedicated to
show and carry out performance driven behavior. Lipe and Salterio, 2000, defined it as goaloriented behavior.2
In order to measure the performance of its staff, organizations need to have a good performance
management program, in order to guide and direct employees in a way that is desirable for both
the organization and the employees.
1
Andre A de Waal. Stimulating performance- driven behavior to obtain better results. International Journal of
productivity and performance management vol. 53 no. 4, 2004 pp. 301-316. Emerald Group publishing Limited.
2
Andre A de Waal. Stimulating performance- driven behavior to obtain better results. International Journal of
productivity and performance management vol. 53 no. 4, 2004 pp. 301-316. Emerald Group publishing Limited.
5
Performance management should be a continuous activity between managers and their
employees to link expectations, for (performance) data gathering, to receive and give ongoing
feedback, for development planning, performance appraisals, and follow up.
3
This should be
done in an effective and efficient way.
As employees differ in their attitudes towards work, it is a challenge for managers to manage
their behavior and their performances.
It means that as a manager one needs to fulfill different roles to manage employees to get the
best out of them.
1.2.
Objective of the study
The objective of the study is to get an answer to the question why performance management
programs seem hard to use by managers and superiors and in particular those within Telesur.
At occasions when meeting HR colleagues from other organizations, this issue is often a topic.
Studies done already by other researchers also indicate that this is a common problem in many
organizations. 4 5This makes it relevant for me to study this phenomenon in order to learn what
the findings of others are who already have done research on the matter and to find out whether
their findings are similar to the results from my research, carried out at Telesur or if they differ.
This research will be done both from managers and employees’ perspectives.
The study will try to determine if managers understand the concept of performance management,
if they see the need to use a performance management system and if they understand the purpose
of performance management and more importantly to determine which factors are the main
barriers for managers in managing the performance of their employees.
3
The university of Texas at Austin-www.utexas.edu/hr/manager December 2010
4
Effectiveness of Performance management System, Dr. Nalini Luckheenarain 3/30/2009, EBSCOhost
5
An Empirical study of performance management systems in quality-oriented organizations, Soltani, J.,Gennard J.
van der meer, R., Williams, T. – University of Strathclyde, Glasgow, UK - EBSCOhost
6
The study should also determine if employees have a role in the fact that their performance is
poorly managed or not managed at all, if they understand the need of performance management
and if they are able and willing to help improve the management of their own performance.
Another factor that will be focused on is the question if it is clear for managers/supervisors how
to use the performance management system of Telesur.
As said before, the answers to these questions should result from my research (case study) to be
carried out in the telecommunication Company, Telesur.
As I am convinced that Telesur is not the only company in Suriname that struggles with the
problem described above, I do hope that my research and the resulting solutions can also be of
use to other organizations in Suriname.
1.3.
The research questions
The questions to be answered are the following:
Main research question:
-
Why do managers within Telesur, have difficulties to manage the performance of their
employees?
Secondary questions:
-
Is the purpose of performance management clear to managers?
-
Which leadership skills are important drivers of performance management?
-
What elements of leadership play a role in performance management?
-
Are managers aware of their HR-management tasks and responsibilities?
-
Are employees aware of the importance of performance management?
-
Do employees understand the concept of performance management?
-
Is the currently used performance management system clear to the managers and is it
easy to use?
-
What are the main factors of performance management?
7
-
What role can the HR-department play to encourage managers to properly manage the
performance of their subordinates?
1.4 Scope of the study
This study intends to look at the matter from managers/superiors and employees’ perspectives. In
the case of the managers/superiors it is important to know what the reasons are that they fail to
properly manage the performance of their employees.
Their leadership skills will be taken into account.
In the case of the employees, research will be done to get answers on their role and their
knowledge and understanding about performance management.
For this study 4 managers and 4 employees will be interviewed and questionnaires will be sent to
56 managers/superiors and to 90 employees throughout the company.
1.5 Relevance of the study
The outcome of this research should give companies insight in what the main reasons are why
performance management programs fail and what can be done to make it easier for managers to
commit themselves to this HR-task which is part of their job responsibilities.
By committing themselves to this task, managers and their employees will have a substantial
contribution to the success of their organizations.
8
1.6 Conceptual Model
Study of literature study will give insight into the matter in general. From there field research
will be done to determine what the reasons are that Telesur’s managers find it hard to
adequately manage the performance of their employees. From the results obtained
recommendations will be made.
Moderating variables
-
Education
Function
Independent variables
Dependent variable
-Leadership
Use of a performance
management program
- Awareness of the need for
performance management
- Training and Development
- Willingness to perform
HR-tasks
9
1.7 Research method
To get data, literature search was done regarding performance management and performance
management systems. Internet research on the above-mentioned was be done by looking for
scholarly articles through for instance Ebscohost, Emerald group publishing and Google scholar.
For gathering field information use was made use of questionnaires and interviews with
managers and employees.
1.8 Expected outcome
The findings of the study were expected to be such that they could give a clear understanding of
what the problems are within Telesur regarding the currently used Performance Management
Program. When it has become clear what the problems or shortcomings are, Telesur can chart a
specific training and coaching path to get managers and superiors to acquire knowledge and
understanding of performance management and what it is meant for.
1.9 Chapter overview
-
Chapter 2 gives an overview of literature used to back up my observations. Several
documents were found in which writers/researchers have written down their findings on
the subject.
-
Chapter 3 relates to the performance management program of Telesur
-
In chapter 4 the Methodology is discussed.
-
Chapter 5 deals with the explanation of the findings and analysis of the results from the
field research.
-
In chapter 6 is about the conclusion and recommendations are stated.
10
1.10 Summary
The success of an organization mainly depends on the performance of its employees.
For the employees to perform adequately, it is important that it is properly communicated to
them what the organization is about, what its goals are and what is expected from them to work
towards the expectations.
Organizations put managers in charge to see to it that their employees perform. In other words,
they need to manage the performance of their employees through a system that is being used by
the organization.
A performance management system is a set of activities that is being performed by managers to
make sure that organizational goals are consistently being met in an effective and efficient
manner.
For managers to be able to do this, they need to play different roles in managing employees since
all employees all differ in their attitudes toward work.
Research is done into this matter at the state owned Telecommunication company “Telesur” to
get answers on the question why managers within Telesur have difficulties to manage the
performance of their employees.
This study is done in order to work toward solutions for this problem. Study of literature showed
that this problem is quite common in many companies, so it may be that the findings,
conclusions and recommendations can be of use to other companies as well.
11
Chapter 2 Literature Review
2.1. Introduction
As it is the purpose of every organization to be successful and to achieve goals and thereby have
a role in the development of society, it is important that organizations are managed well. The
most important resources to be managed properly are the human resources. The skills,
knowledge and experience of employees are very important factors to guarantee success for all
organizations.6
Skills, knowledge and experience of employees need to be managed continuously in order to get
the best out of them.
It is the task of managers to fulfill this job. Managers need to understand that they play a crucial
part in achieving the goals of the organization by managing employees well. If good efforts are
put into this task, the organization can gain from it. The gain will be financial, the employees
will be highly motivated and management will be able to manage and control the organization
easier.
Managers and superiors need to understand that not only operational activities are important to
achieve goals, but the way they involve, motivate, provide feedback to their employees plays a
vital role in reaching targets. Important also is to provide a clear vision and tools like training, to
give the workforce confidence and opportunities to contribute positively in reaching
organizational goals.7
There are several reasons why organizations execute performance management. (Neely, 1998).
These are: the changing nature of work, increasing competition, specific improvement initiatives,
national and international quality awards, changing organizational roles, changing external
demands and the development of Information technology.8
6
D.E. Gberevbie, 2011. Putting people first. Development and Learning in Organizations. Vol. 25 no. 1 p.25-27.
Emerald group
7
John W. Boudreau, Wallace Hopp, John O. McClain, L. Joseph Thomas 2002. On the interface between operations
and Human Resources management. Ebscohost Business source Alumni edition
8
Dr. Xianhai Meng , 2010. Performance management models in facility management: a comparative study.
Research paper. Emerald Group publishing Limited.
12
Considering the line of business Telesur is in, which is very fast in development and competitive,
it is very important to have and keep employees who are motivated, innovative, and well trained.
Managers need to understand that the need of the organization and de needs of the employees
should be in balance in order for the company to be successful. It is therefore important to know
why performance management fails and which conditions need to be in place in organizations in
order to manage the performance of employees well.
2.2. Requirements for good employee performance
In order to get employees to perform as desired by management, organizations should determine
what is necessary to keep employees motivated to have an excellent outcome. It is recognized
that the most important requirement has to do with support from the organization given to
employees.
The organization represented by managers and superiors, should know the employees, they
should know what inspires them and what their skills and ambitions are in order to be able to
manage them properly.
John W. Boudreau, Wallace Hopp, John O. McClain, L. Joseph Thomas 2002, have proposed a
framework consisting of 4 factors required by people to do their job well.9
9
John W. Boudreau, Wallace Hopp, John O. McClain, L. Joseph Thomas 2002. On the interface between
Operations and Human Resources management. Ebscohost Business source Alumni edition.
13
These factors are:
1. Capability: the skills, knowledge and abilities necessary to execute an action associated
with the objectives of the organization;
2. Opportunity: when individuals are provided with, or encounter situations in which actions
can be executed with the desired effect;
3. Motivation: the drive to execute those actions, created by a perception that they are
linked to desired outcomes and rewards;
4. Understanding: knowledge of how an individual’s actions affect the system and overall
goal achievement.
Vroom (1964), Maier (1955), Cummings and Schwab (1973), had already done research on the
first 3 factors. Also Peters and O’ Connor (1980), Blumberg and Pringle (1982) contributed by
stating that that situational issues and opportunities contributes to the kind of performance that is
expressed by employees.10
Dr. Nalini Luckheenarain also sees performance as the outcome of ability, times motivation,
times opportunity.11 The extent of ability, motivation and opportunity will determine the level of
performance.
John W. Boudreau, Wallace Hopp, John O. McClain, L. Joseph Thomas 2002, put in the 4th
factor as they state that it is very important for employees to understand what is expected from
them and how their performance contributes to reach the goals of their organization.12
These studies show that organizations need to focus on the factors that are needed to get the best
performance out of their employees and that the organization should put effort in getting to know
what their employees are about.
10
John W. Boudreau, Wallace Hopp, John O. McClain, L. Joseph Thomas 2002. On the interface between
operations and Human Resources management. Ebscohost Business source Alumni edition
dr. Nalini Luckheenarain, 2009. Effectiveness of Performance Management Systems. Ebscohost/ Business
Source Alumni Edition
11
12
John W. Boudreau, Wallace Hopp, John O. McClain, L. Joseph Thomas 2002. On the interface between
operations and Human Resources management. Ebscohost Business source Alumni edition
14
Another factor which is important to acknowledge by management in organizations, is the fact
that although employees undergo the same treatment and training processes, they will not display
the same performance. The trick is to continually empower employees and get them to use their
own talents to manage their performance for the benefit of the company.13
Furthermore employees must know the standards which they should take into account when
performing their tasks.
Gary B. Brumback, an industrial/organizational Psychologist in Florida, USA, proposed a model
with four principles that are important in guiding the behavior of employees. The model consists
of four principles namely:
-Tall performance, or in other words the best possible performance with which is meant that
organizations must set clear, the ideal standards of performance to guarantee the best results.
- Accountability, which means that employees must be held accountable for their performance. If
this is not done, there cannot be a matter of rewarding or disciplining them.
- Responsible empowerment, in the sense that not only employees, but the whole organization is
familiar with tall performance, that employees are hired cautiously, are trained and that their
performances are managed in a responsible manner.
-Performance management, that starts with setting expectations for behaviors and results. Along
the way these expectations need to get evaluated and directed.
Two important factors of performance management are that it should be appraised and that it
should be sanctioned.14 This doesn’t mean that appraised performance should be rewarded or
penalized all the time.
All the four above mentioned principles are in relation to each other.
13
Gary B. Brumback. Team Performance management: An international journal. Volume 9 number 7/8 2003
pp.167-173. Emerald
14
Gary B. Brumback. Team Performance management: An international journal. Volume 9 number 7/8 2003
pp.167-173. Emerald
15
2.3
Why performance management programs fail
The failure of performance management programs has different causes. dr. Nalini
Luckheenarain15, mentions some reasons why the systems don’t seem to work.
The most recognizable are:
1. Not knowing what the outcome of an appraisal is being used for;
2. Superiors that are not trained to manage and appraise performance;
3. Superiors and employees do not understand the purpose of performance management;
4. No feedback is given to the employees;
5. An unclear link with the receiving of rewards;
6. An instrument or system that is difficult to use;
7. The lack of performance standards;
8. Lack of management commitment.
Another notable problem is the fact that employees are being judged on their characters instead
of the manner in which they perform.
Alva F. Kindall and James Gatza16 who also did research on the topic, found this to be one of the
most important reasons for failure. Because of this, communication will be difficult and this will
result in poor performance of employees. Superiors must be aware that appraising and managing
their personnel is to help those (personnel) in their development and to improve their
performance. These are tools for superiors to make managing of their personnel less difficult.17
When they use the performance management system in a proper way, superiors can use the
information to give valuable feedback to their subaltern employees. Otherwise it doesn’t serve a
15
dr. Nalini Luckheenarain, 2009. Effectiveness of Performance Management Systems. Ebscohost/ Business Source
Alumni Edition
16
Alva F. Kindall and James Gatza, 1963. Positive program for performance appraisal. Harvard Business Review
2011 Ebscohost/ Business Source Alumni Edition
17
Patrizia Carengo, Stefano Biazzo, Umit S. Bititci, 3 may 2005. Performance Measurement Systems in SME’s: A
review for a research agenda. International journal of Management Reviews. Volume 7, issue 1, pages 25 – 47.
16
purpose. Managers and superiors should observe their personnel closely to know what they are
capable of.18 Especially in a global market where nowadays there is much competition and where
unexpected occurrences arise, it is a must to do everything possible to keep especially talented
employees who are, without a doubt, important for the organization.19
Study done by Matthew Guthridge, Asmus B. Komm and Emily Lawson20 shows that in some
organizations, management doesn’t see the need to align talent management strategies with
business strategies. They do not understand that by making use of the talent of employees, they
can give their organizations more chances to reach their goals. In order to be able to make use of
the talent of employees, it is important that the organization knows who they are and what their
capabilities are.
The writers have come to the conclusion that mostly senior managers aren’t managing their time
well when it comes to pay attention to the workforce or don’t see the point of managing people
in such a way that they become useful for the organization.
Organizational behavior can have a big impact on how superiors handle performance
management of their employees. If the organization doesn’t have a system or doesn’t demand
proper performance management, superiors will not feel obliged to do so. The consequence is
that the organization may miss market opportunities and can run into problems because it will
not be able to encourage employees to give their utmost to the organization.
18
Andre A de Waal. Stimulating performance- driven behavior to obtain better results. International Journal of
productivity and performance management vol. 53 no. 4, 2004 pp. 301-316. Emerald Group publishing Limited.
19
Cindy McCauley and Micheal Wakefield. The journal for quality & Participation. Winter 2006.
20
Matthew Guthridge, Asmus B. Komm, Emily Lawson, 2006. The people problem in talent management.
McKinsey Quaterly issue 2, p. 6-8. Ebscohost
17
2.4. The role of Managers
The main role of Managers is to delegate, in other words to get things done through other people.
They make the decisions, allocate resources, and direct the activities of others to attain goals.21
It is therefore very important for them to manage employees and their performances well.
Managers must understand that the company should not only try to meet the needs of the
customers but that they as managers must also pay enough attention to their other responsibilities
regarding their employees.22 Line-managers often consider the managing of employees and their
performance as a responsibility of the Human Resources Department. However, managing
people is perhaps one of the most important parts of the job of managers.
They must assess their employees’ performances regularly and conduct performance reviews.
These should not be the only moments when the behaviors and performances of employee’s must
be taken into account. In between reviews, managers should communicate performance issues,
good or bad with employees and if necessary take action to improve their performances through
guiding, training and coaching. By doing this they can avoid bigger problems which could
present themselves later.23
It is therefore important to keep records on the performance of employees to be able to follow
their improvements.
21
Stephen P. Robbins and Timothy A Judge, 2009. Book: Organizational Behavior. Pearson international Edition
22
Patrizia Garengo, Stefano Biazzo, Umit S. Bititci, 3 may 2005. Performance Measurement Systems in SME’s: A
review for a research agenda. International journal of Management Reviews. Volume 7, issue 1, pages 25 – 47.
23
Robert Gilmore, 9/11/2006. Article: Ignoring problem employees can lead to legal action later. Source: crain’s
Cleveland Business,vol. 27 issue 37. P. 23. Regional Business News. Ebscohost
18
2.4.1 Talent Management
As stated earlier in the paragraph another important thing that managers need to observe is the
talent of the different employees. Not always it is easy to note the talent of employees, but it can
be brought to the surface by paying enough attention to their movements.
Once the talents are recognized, they surely can be used to have a positive effect on processes
and their outcomes. If employees have the opportunity to present their ideas, implement them or
make modifications and understand how their inputs improve the overall throughput and output,
then positive results will be noted. It is a task of the manager to make such possible. 24 In other
words, the talents of employees must also be managed.
In previous studies of Bartholdi and Eisenstein 1996, Buzacott 2002, and Hunter et al. 1990 it is
stated that managers must know that not all of their employees have the same skills and talents,
so it is not to be expected that their performance will have the same output. This is a reason that
they should be assigned different sets of tasks and managed accordingly.
It is every manager’s and superior’s responsibility to notice the talents of their employees and
manage and develop those further.
Talent management is a task that can best be done by line managers and superiors as it includes
workforce planning as it is the manager who knows best what talent is required to perform a
certain job, to perform talent gap analyses to get to find out what is missing and what must be
done to fill the gap (training and development of employees or hiring new employees), retention
of talented employees, succession planning, talent reviews and evaluation of employees.25
24
John W. Boudreau, Wallace Hopp, John O. McClain, L. Joseph Thomas 2002. On the interface between
Operations and Human Resources management. Ebscohost. Business source Alumni edition.
25
Cindy McCauley and Micheal Wakefield. The journal for quality & Participation. Winter 2006.
19
2.5 Managers Competencies
Two of the most important competencies for managers are Leadership skills and communication
skills. Study has shown that managers who possess these skills are also successful in their jobs
and careers. These interpersonal skills are extremely important to get and keep high performing
employees.26
It seems that to get and keep employees motivated, support and the work environment play a
crucial role. Therefore managers must have good people oriented skills.
Furthermore, managers must be able to plan, organize, lead and control.27
These skills are important because managers are expected to fulfill the following roles:
-
Interpersonal roles, in which they must be able to hire, train, motivate and discipline
their employees.
-
Informational roles in which they must be the channel between top management and the
employees. Both top management and employees must regularly be informed about the
developments in the organization. Especially employees must be informed where the
organization is heading too and what is expected from them.
-
Decision-making roles in which they must be able to take decisions about their
department and employees
26
Stephen P. Robbins and Timothy A Judge, 2009. Book: Organizational Behavior. Ch. 1 Pp 38-44. Pearson
international Edition
27
Stephen P. Robbins and Timothy A Judge, 2009. Book: Organizational Behavior. Ch. 1 Pp 38-44. Pearson
international Edition
20
Three other important management skills are28:
1. Technical skills, the ability to apply specialized knowledge and expertise
2. Human skills, the ability to work with people, individually and in teams, to understand
them and motivate them. Good listening skills are a requirement. Also the ability to
handle conflicts is a must.
3. Conceptual skills, the mental ability to analyze and diagnose complex situations.
Managers and superiors must be as committed and supportive to their (HR) responsibilities
regarding their employees, as they are to the technology in and of the business. This means that
they have to gain more in-depth knowledge in the various roles they need to fulfill when
managing people.
They should be aware of their management capabilities and if needed, develop them and ask for
support, adopt a talent mindset, work side by side with the HR Department, learn to value
feedback received from all levels, create goals and evaluate performance and most importantly,
make leadership development a priority. 29
By doing so, managers and superiors can built closer relationships with their employees, which
will be a big help at giving relieve to the HR-department.
2.5.1 Management and Leadership styles
Taking into account that markets are globalizing which results in diversity of workforces,
leadership plays a very important role in the ability to cope with these developments.
For that reason a broad management- and leadership style is needed to be able to cover all the
different aspects that are needed to guide people.
28
R. L. Katz. “Skills of an Effective Administrator”. Harvard Business Review, September-October 1974, pp. 90-102
29
Cindy McCauley and Micheal Wakefield. The journal for quality & Participation. Winter 2006.
21
2.5.1.1 Management style
Apart from the skills that managers and superiors must possess to be able to guide and supervise
employees, their management style plays an essential role in successfully leading people. The
combination of result-oriented steering and coaching gives very good results.30 The good results
are the outcomes of performance that are expected and beyond. The management style that
includes this combination should be promoted and stimulated throughout the whole organization.
Commitment of the organization to the style is crucial.
2.5.1.2 Leadership styles
In addition to the management styles, the leadership styles should also be taken into account.
There are several leadership styles that can be used in organizations. However, it is important
that in an organization, managers and superiors do not apply different styles of leadership. This
can cause confusion. Just like the management style, the leadership style should be promoted,
stimulated and implemented in the organization.
Two leadership styles which for some time now, gets very much attentions from researchers are
transactional leadership and transformational leadership.
Transactional leadership
Transactional leadership is about managers/superiors who are formulating goals and targets for
and in consultation with their employees. While doing so, the capabilities of the employees are
taken into account. It is also then when the compensation is agreed upon in case the employees
finish their tasks successfully. This is the constructive form of transactional leadership.31
30
Andre A de Waal. Stimulating performance- driven behavior to obtain better results. International Journal of
productivity and performance management vol. 53 no. 4, 2004 pp. 301-316. Emerald Group publishing Limited.
31
Bruce J. Avolio and Bernard M. Bass. Multifactor Leadership questionnaire; third edition Manual and Sample set.
Mind Garden, inc. www.midngarden.com
22
It occurs that leaders perform this kind of leadership in different manners. Apart from the
constructive form, Leaders can be constructive, corrective, passive or active.
When they are corrective, they focus on setting standards. Managers are passive when they
simply wait to take action not until problems occur before they take action and the active leaders
closely monitor problems.
Transformational leadership
Transformational leadership is focused on boosting employees’ performance. Managers and
superiors who perform this style of leadership are inspirational, intellectually stimulating,
challenging, visionary, development oriented.32
It is a very popular model of leadership that is very useful in achieving good relationships with
employees, increasing motivation and performance and commitment among employees.
It is a type of leadership that respects emotions, values, ethics, long term goals, satisfaction of
individual needs, and treating people with dignity and respect. 33
If one wants to turn leadership over into organizational success, it is a fact that each and every
employee must get attention and must be heard. Every employee in an organization can
contribute to success of that organization. That is the reason why they were recruited in the first
place. They need to feel and experience that they add value to the organization. Bass and
Steidlmeier (1999) just elaborated on that. They’ve stated that transformational leadership is
about aligning the interests of the leader with those of the employees. Every good element must
be taken into account and when and where possible, used. Kanungo (2001) went a bit further in
his explanation and stated that transformational leaders have the ability to transform the self
32
Bruce J. Avolio and Bernard M. Bass. Multifactor Leadership questionnaire; third edition Manual and Sample set.
Mind Garden, inc. www.midngarden.com
33
Gary W. Ivey and Theresa J.B. Kline. Transformational and active transactional leadership in the Canadian
military. Leadership and development journal vol. 31 No. 3 2010. Pp 246-262.
23
interest of employees into collective values and interdependent goals in order to make the
organization better.34
2.6 Performance management programs or systems
As stated before, for organizations to be able to manage their staff well, a performance
management system must be in place. Performance management is about empowerment,
performance evaluation, goal setting, development planning, performance planning,
coaching and feedback, rewarding and disciplining. These are all elements that should be
part of a good performance management program. They are linked with each other.
A performance management system must fit in with an organization so all the tools must
be taken into account and they must be fit to meet de needs of the organization.
That’s why management of organizations must be careful how they arrive at a program
for their company. They can adopt a system or they can develop one of their own. When
adopting a system, some factors must be taken into account in order for the system to be
successful.
It sometimes happens that organizations try to make use of a system from another
organization in the hope that it will contribute to better performance outcome.35 This
often this leads to disappointment as organizations differ in structure, culture, goals, and
policies and procedures regarding the relation of performance management and
rewarding.
34
Jeanine Parolini, Kathleen Patterson and Bruce Winston. Distinguishing between transformational and servant
leadership
35
Giovanni Azzone and Tommaso Palermo 2011. Adopting performance appraisal and reward systems; a
qualitative analysis of public sector organizational change. Emerald. Journal of Organizational change management
vol. 24 no. 1, 2011 pp. 90-111.
24
O’Donnel (1998); Newberry and Pallot (2004); Adcroft and Willis (2005); van Helden
(2005); Flurry and Schedler (2006), studied this and came to the conclusion that effective
adoption of appraisal and reward systems are hard to achieve.
Not only do they often fail, but they also cause confusion.36
No matter how organizations did arrive at their performance management system, it is a
fact that any system should be in place. It is important for employees to clearly know
what is expected from them and what they can expect from the organization regarding
their performance, good or bad. Some writers (Kessler and Purcell, 1992; Campbell et al.,
1998; Fay and Thompson, 2001; Beer and Cannon, 2004; Latham et al., 2005) who are
also named by Giovanni Azzone and Tommaso Palermo, assume that by using
performance appraisal and reward systems employees’ motivation and performance can
get better by establishing a clear link between efforts and rewards by setting smart
individual targets.
They also wrote that Henderson, 1989, stated that rewards can be linked to two main
performance dimensions: 1. the extent to which planned objectives are achieved and
2. How results are achieved in terms of output, quality, competencies and professional
development.
Another aspect that must be taken into account when acting on performance management
is the fact that sometimes due to unexpected occurrences, employees are not able to
perform as planned and expected. Giovanni Azzone and Tommaso Palermo write that
according to Campbell et al, 1998; Beer and Cannon, 2004; Latham et al., 2005,
problems arise when things happen that influences the performance of individuals beyond
their control. This must be taken into consideration.
36
Giovanni Azzone and Tommaso Palermo 2011. Adopting performance appraisal and reward systems; a
qualitative analysis of public sector organizational change. Emerald. Journal of Organizational change management
vol. 24 no. 1, 2011 pp. 90-111.
25
Another problem is the fact that managers in the organizations that adopt the systems
often do not have the technical knowledge and competences to use the new systems.
If there is also a lack of consolidated measurements systems, standardized outputs and
measurable targets, which will make the situation worse.37
The case of the central government of Italy illustrates the above-mentioned with respect
to adopting performance management systems.
Six case studies done in Italy on the central government showed that different methods
were tried to measure performance management. These were: the 360° appraisal,
numerical evaluation and a descriptive evaluation. All were adopted from the private
sector but didn’t have success in the central government’s organization.38
Regardless of the manner in which companies have arrived at their performance
management program, it is important that all the elements are evaluated regularly. Since
they are linked with each other they all need attention from management.
An example that management tends to pay little attention to the evaluation of the earlier
mentioned elements are the findings of Michael Armstrong, Duncan Brown and Peter
Reilly, who in the UK, did research on “Increasing the effectiveness of reward
management”. One of the findings of their research is that managers in the UK show ill
will when it comes to evaluating rewards whereas the evaluation of training got more
attention. 39
The different elements of a performance management program are related to each other
and it is the whole package that will have its impact on the performance of employees.
37
Giovanni Azzone and Tommaso Palermo 2011. Adopting performance appraisal and reward systems; a
qualitative analysis of public sector organizational change. Emerald. Journal of Organizational change management
vol. 24 no. 1, 2011 pp. 90-111.
38
Giovanni Azzone and Tommaso Palermo 2011. Adopting performance appraisal and reward systems; a
qualitative analysis of public sector organizational change. Emerald. Journal of Organizational change management
vol. 24 no. 1, 2011 pp. 90-111.
39
Micheal Armstrong, Duncan Brown and Peter Reilly. Increasing the effectiveness of reward management: an
evidence –based approach. Emerald. Journal. Employee relations vol.33 No. 2, 2011 pp. 106-120.
26
2.6.1. Issues regarding Performance management systems
Some Performance Management Models that were presented in the 1990’s, which are considered
to be universal models that could be used in different organizations and operating environments
are: 40
1. The Performance measurement questionnaire (Dixon et al., 1990)
2. The performance measurement model in service business (Brignal et al., 1991)
3. The balanced scorecard (Kaplan and Norton, 1992)
4. The integrated dynamic performance measurement system (Ghalayini et al., 1997)
Out of these four, the balanced scorecard is the model on which the most research is done and
which is very much known.
Literature addressing performance management, indicates some of the most important issues
regarding performance measures and measurement systems.
Some of these are:41
1. It should be implemented as means of articulating strategy and monitoring organizations
results (Grady, 1991)
2. It should be based on organizational objectives, critical success factors and customer
needs and monitoring both financial and non-financial aspects (Manoochehri, 1999)
3. It must accordingly change dynamically with the strategy (Bhimani, 1993)
4. It must meet the needs of specific situations in relevant manufacturing operations and
should be long-term oriented, as well as simple to understand and implement (Santori and
Anderson, 1987)
5. Financial and non-financial measures must be aligned, and used within a strategic
framework (McNair and Mosconi, 1987; Drucker, 1990)
40
Carlos F. Gomes and Mahmoud M Yasin, 2011. A systematic benchmarking perspective on performance
management of global small to medium-sized organizations: an implementation based approach. Research paper.
Emerald group Publishing Limited.
41
Carlos F. Gomes and Mahmoud M Yasin, 2011. A systematic benchmarking perspective on performance
management of global small to medium-sized organizations: an implementation based approach. Research paper.
Emerald group Publishing Limited.
27
6. It must stimulate the continuous improvement processes (Kaplan and Norton, 1992;
Kaplan and Norton,1993; Flapper et al., 1996; Neely at al., 1997; Medori and Steeple,
2000)
7. It must be easy to understand and use (Kaplan and Norton 1996; Ghalayini et al.,1997)
8. It Must be clearly defined and have a very explicit purpose (Flapper et al., 1996; Neely et
al., 1997)
9. It should allow a fast and rigorous response to changes in the organizational environment
(bititci et al., 1997; Medori and Steeple, 2000).
Although the importance of performance measurement as a tool of performance management is
stated, it cannot be used as the only tool to improve performance of employees.42 Managers tend
to think that performance measurement is enough to get employees to perform on a higher level.
In these cases it is necessary to for organizations to map out a plan to make a shift from
performance measurement to performance management. Performance management is in fact
much more than measuring employees’ performance. It is about constantly concentrating on their
behavior in order to achieve high performance. To be able to do this, more tools are available to
use.
42
Arie Halachmi. Performance measurement is only one way of managing performance. International journal of
productivity and Performance management vol. 54 no 7, 2005 pp. 502-516
28
2.7 Summary
There are several reasons why performance management should be applied in organizations.
This has to do with the fact that developments in the nature of work, competition, organizational
roles, external demands and the needs of employees, run very fast.
Companies should have instruments in place for keeping the pace and for meeting their goals.
They need to set the requirements for good employee performance and if performance is not
going well they should take a look at their performance management system. There are common
reasons why it doesn’t seem to work.
Managers must understand that they have a crucial role in handling the performance
management system. Often they have the opinion that such is the task o the Human Resources
Division. Managers must know that for some time already the biggest set of HR tasks lies in their
own portfolio.
To be able to manage employees in a proper way, managers need to have an adequate set of
competencies and skills.
Another issue that is important for a performance management system to be used successfully in
an organization is the system itself. There are several systems that are known but a performance
management system must fit in the organization. It is not a tool that can easily be adopted from
another organization. Organizations differ in structure, culture, size and industry and that should
be taken into account.
The system must be clear and easy to use for management and employees.
29
Chapter 3 Telesur’s Performance management system43
3.1 Introduction
The Performance management system of the Telecommunication Company Suriname, Telesur, is
developed by the company and is evaluated. It consists of 3 dimensions. These are:
1. the Performance interview;
2. the Performance appraisal;
3. the Management evaluation
The system is meant to provide information about the performance of employees, to talk about
performance expectations, targets, work related behavior, training needs, work conditions and
environment, the role of the superior in achieving goals and to inform the organization about
how employees are experiencing their superior in his/her management role.
The purpose of Telesur’s performance management system is:
-
to encourage excellent performance in order for the organization to be profitable;
-
to provide a base for rewarding employees for excellent performance;
-
to determine further career development possibilities.
3.2 Telesur’s performance interview
The performance interview is a regularly held conversation between a superior and his/her
employees. The topics during that conversation are the job, the work atmosphere, the job
performance and the working-conditions.
The purpose of this converstaion is to improve the quality of work by setting targets and making
appointments to work on possible work related problems.
43
Telesur. Appraisal, why and how, 2009
30
The interview has three phases:
1. The preparation of the interview
2. The interview
3. The interview report
The interview can be initiated by the superior or by the employee. Within Telesur it is a rule that
at least once a year such an interview is being held with every employee.
It is the responsibility of both the superior and the employee to initiate the interview.
When preparing the interview they set a date and both parties come up with items for the agenda.
It is the task of the employee to draw up the agenda and to send it to the superior.
At the day of the interview they decide together the order in which the item will be addressed.
On each item they come to an agreement.
The employee has the task to record the interview and to make a report.
When finished, he provides the superior with a copy of the report.
After this meeting both parties have the obligation to adhere to the agreements made and to
remind each other to stick to them.
If this is done accordingly, it provides a good basis for the performance appraisal since employee
and superior take the time to manage performance together. If one of them doesn’t stick to the
agreements made during the interview, it is the task of the other to remind him/her and see to it
that agreements are observed.
This is a good tool to manage the performance of employees throughout the year and to set a
basis for the performance appraisal.
31
3.3 Telesur’s performance appraisal44
The performance appraisal is an activity that takes place once a year within the company. There
is a tool developed to carry out the appraisals. It is reviewed regularly to find out if it is still
suitable.
Superiors have the opportunity to pass judgment on the behavior, performance and results of
employees when appraising them. However, the employees don’t have a say in the judgement of
their superior.
The superior makes an appointment with every employee, one at a time to discuss the appraisal.
Both the superior and the employee have to sign the assessment report at the end.
If the performance interview is carried out well, the appraisal should not be a difficult activity to
perform.
It is the moment when superiors have the opportunity to appraise their emloyees’ performance of
the past period. In the end the superiors and employees again set targets and make agreements
for the coming period.
It is possible that the employee does not agree with the outcome of the appraisal. If that is the
case he/she has the possibility to appeal the Personnel Division.
3.4 Telesur’s management evaluation45 46
As the company is aware of the changes in the telecom market, it is important that the goals that
are set are really attained.
Mangers play a key role in achieving the goals of the organization. It is their duty to manage,
motivate and assist their personnel in performing theit tasks to make it possible to reach the goals
of the organization.
44
Telesur. Appraisal, why and how, 2009
45
Telesur. Bottom-up evaluation. Manual, 2007
46
Telesur. Management evaluation, 2009
32
By performing the management evaluation, Telesur gets a clear understanding of how its
employees experience teamwork and management.
The information that is gathered will be used to give feedback and to work on improvement of
the manner in which the personnel are being managed.
The procedure:
The management evaluation works from the bottom-up; personnel have the opportunity to
evaluate their superior on how they experience their management style. This is done by using a
questionnaire.
Personnel from supervisory level and up are evaluated by their personnel. Personnel give scores
but need to explain why they give a certain score to their superior.
The evaluation is anonymous for personnel to feel safe and so encourage them to participate.
It is their chance and opportunity to contribute to the improvement of the quality of leadership in
the organization.
Personnel can download the forms from Telesur’s Intranet and when they’re filled out they are
placed in boxes which are placed at all location of Telesur.
As far as the issue “working together”is concerned, managers and directors will evaluate each
other horizontally. At their level, the evaluation is not anonymous.
The follow up
After the evaluation forms are processed, the superiors get the results on their evaluation.
The results are also sent to the person who will appraise the superior.
If necessary, a path for improvement will be developed for the superior whose evaluation and
appraisal is unsatisfactory.
33
3.5.
Summary
Telesur developed its own performance management system years ago. The system is evaluated
regularly but big changes are not being made.
The system consists of three dimensions which are used through the year. The aim is to get
managers and employees to work together towards excellent performance. Through the year they
have the opportunity to give each other feedback on their performance and managers have the
opportunity to reward excellent performance of their employees.
It is the task of HR-management to provide managers and employees continuously with
information about the system.
34
Chapter 4 Research design and Methodology
4.1 Introduction
This chapter elaborates on the main research question, the sub questions, the hypotheses and the
variables.
It gives insight in how data collection is done to get the information that is needed to answer the
research questions.
After ending the literature review, field research was set out to perform a quantitative and a
qualitative study. The Quantitative study was done by using questionnaires and the qualitative
study was done by interviewing managers and superiors and employees.
4.2 Research Design
The study that I did on the subject is a causal study where research was done to understand why
it is that performance management programs fail.
4.2.1 Research questions:
Research was narrowed down to the case of Telesur were superiors/managers seem to have
difficulties to manage the performance of their employees in a proper way.
The main research question of this study is therefore as follows: “Why do managers within
Telesur have difficulties to manage the performance of their employees?”
As the success of the company depends on the performance of its employees it is important that
attention is paid to their performance.
Out of the main research questions other questions arose which also needed to be answered in
order to get a clear picture of what leads to the problem.
35
The questions that I also needed to be answered are the following:
1. Is the purpose of performance management clear to managers?
2. Which leadership skills are important drivers of performance management?
3. What elements of leadership play a role in performance management?
4. Are managers aware of their HR-management tasks and responsibilies?
5. Are employees aware of the importance of performance management?
6. Do employees understand the concept of performance management?
7. Is the current performance management system easy/clear to use?
8. Is the system within reach of superiors to use when needed?
9. Does the Performance Management System meet the expectations of the organization,
the managers and employees?
10. Should Telesur adjust or replace the current appraisal system?
11. What role can the HR-department play to encourage managers to properly manage the
performance of their personnel?
Parts of these questions are answered by literature and the other part is answered by the research
done.
4.3 Research Hypotheses
The purpose of the study was to get to know the reasons why the Performance management
system of Telesur doesn’t work in the sense that the organization doesn’t get proper information
about the performance of its employees. This makes it difficult for the organization to know
whether employees need more attention in the form of coaching and training or if they should be
rewarded or disciplined.
Referring to the main research question, two hypotheses were formulated.
The first one is to examine whether there is a relationship between the failure of the performance
management program and the awareness of performance management by managers.
36
The second hypothesis is to examine whether there is a relationship between good leadership
skills and the use of the performance management program.
The Hypotheses are the following:
Hₒ: There is no relationship between the failure of a performance management program and
the awareness for the need of performance management by managers of Telesur.
H₁: There is a relationship between the failure of a performance management program and the
need for performance management by managers of Telesur.
Hₒ: There is no relationship between good leadership skills and the use of the performance
management program within Telesur.
H₁: There is a relationship between good leadership skills and the use of the performance
management program within Telesur.
4.4 Variables
The independent variables
The independent variables that exert influence on the use of the performance management
program are Leadership, awareness of the need for a performance management program and
Training and Development.
To measure the variables or make them operational, tested and validated questionnaires were
used.
The questionnaires (the Multifactor Leadership Questionnaire) that were used to do research are
developed by Bernard Bass and Bruce Avolio and published by Mind Garden Inc.
There are two types of questionnaires: the self rating form, which supervisors use to rate
themselves, and the rater form which personnel use rate their leaders. Both questionnaires were
used. By doing so it was possible to compare the findings of those who rated themselves with
those who were rated by their personnel.
37
Mind Garden also provided me with the same questionnaires in the Dutch language, which was
convenient for they only needed to be tested in order to ensure that the questions were clear to
the respondents.
The rating scale of the questionnaires is the 5 point Likert scale.
The questionnaires come with a scoring key that classifies 4 forms of leadership which have
more parts regarding leadership styles and which are explained thoroughly.
These are:
1. Transformational leadership which consists of the following parts:
A. Idealized influence: idealized attributes and idealized behaviors
B. Inspirational motivation
C. Intellectual stimulation
D. Individual consideration
Transformational leadership is a Leadership style that is used by leaders to bring
awareness to subaltern employees to experience opportunities and challenges of their
environment and what they can gain from that. Those exercising this form of leadership
stimulate the development of subaltern employees and the organization and also stimulate
innovation. They push performance beyond expectations and insist on trying to perform
on higher levels of potential, moral and ethical standards.
Idealized influence is about admiring, respecting and trusting the leader. Subaltern
employees want to be identified with them. These leaders put their employees’ needs
over their own; they are consistent in dealing with ethics, principles and values.
Leaders that show inspirational motivation give meaning to the work of their
employees.
This stimulates optimism and enthusiasm and urges them to imagine a positive successful
future for themselves.
38
Leaders that perform intellectual stimulation, encourage their subaltern employees
to be
innovative and creative by looking at existing problems and situation in a new manner.
They welcome ideas and creative solutions constantly.
By individual consideration is meant that leaders attend to every employee’s
development individually, by acting as a mentor and coach. They create a supportive
climate for growth and pay attention to needs and desires of individuals.
2. Transactional leadership which consists of:
A. Contingent Reward
B. Management by exception (active)
Transactional leadership is about leaders behaving in a constructive way, labeled as
contingent reward and in a corrective way, labeled as management by exception.
Contingent reward leadership explains what is expected of employees and
celebrates successful achievements.
Leaders who perform management by exception set clear goals and standards but
also what can be expected when standards are not met. Mistakes and errors are watched
closely and corrective action is taken as soon as possible.
3. Passive avoidant behavior which consist of:
A. Management by exception (passive)
B. Laissez – Faire
39
This form of leadership is about leaders not acting on problems when they occur. These
leaders don’t give clear guidance when it comes to agreements, expectations and goals
and standards. This style has a negative effect on performance outcome.
4. Outcomes of leadership which consist of:
A. Extra effort
B. Effectiveness
C. Satisfaction with the Leadership
Outcomes of leadership have to do with success of the performance of employees. It’s
about how they experience their leaders to be motivating and how they perceive their
leaders in interacting with all the different levels in the organization and how they look at
the way their leaders uses methods to work together.
Chapter 5 will elaborate on the style that came up in Telesur.
The answers to the questions linked to these Leadership models are the results of the two main
variables leadership and training and development.
The variable, awareness of the use of a performance management system is answered trough the
qualitative study that is done.
The moderating variables
The moderate variables which also affect the use of the performance management system are the
educational level of the superiors/managers and the level on which they operate in the
organization.
As far as the educational level is concerned, research was only done among the superiors and
managers who at least are educated on a college or university education.
The employees involved in the research were all at least educated on the level of secondary
education.
This was done to build in guarantee that all the respondents understood the study and the
questionnaires.
40
These two variables were the ones chosen as moderate variables, instead of age and gender
because, when it comes to superiors and managers within Telesur, the persons in the target
group are all almost in the age category between 50 and 60 years and as far as gender is
concerned, there are not many women in the organization who hold positions as superiors.
In case these variables were chosen, that would not have given a clear picture of the fact whether
age and gender plays a role when it comes to the use of the performance management program.
For measuring these variables the Multifactor Leadership questionnaire was also used.
The dependent variable
The dependent variable in this study is the use of the performance management program.
In my perception the use of the performance management program depends on the leadership
skills of superiors/managers, the awareness in the organization about the need for the program,
training and development of superiors/managers and employees, their educational level, and the
organizational level on which they perform.
4.5 The Telecommunication Company Suriname Telesur
The study is done at Telesur, the state owned telecommunication company in Suriname. The core
business of Telesur is to provide communication services to the society.
Since 2007, Telesur has to cope with competition in the local market due to liberalization of the
local market.
Other factors that are affecting the company are:
-
The fast developing technology
-
Changing work patterns
-
New forms of cooperation
-
The need for constant education
Currently the company has 820 employees. Among them 66 are in a managers or superiors
position.
41
4.6 Sample Size
Telesur has 66 managers and superiors who have the task to manage their employees in such a
way that their performance leads to excellent outcomes such as high profit, low costs and
satisfied customers.
Out of these 66 managers, 60 were approached to participate. Out of them, 4 were interviewed
and the remaining 56 were asked to fill out the questionnaire.
From the 56 questionnaires 44 were turned in.
The managers that were chosen to cooperate were selected based on their educational level and
their function in the company.
They were also selected throughout the company to get information from all the departments of
the company.
Furthermore, 90 subaltern employees were asked to fill in a questionnaire and 4 were actually
interviewed.
From the 90 questionnaires 71 were turned in.
The employees who were selected also were also selected throughout the company and their
selection was merely based on their educational level.
In both cases the selection was made to guarantee that the respondents were representative for
the study.
42
4.7 Data collection method
1. Literature and documentation analysis:
At first, to collect data on the subject, literature research was done to bring structure into
the research. Literature study was done by collecting journals and scholarly articles from
scholarly websites on the internet and from study books. These journals, articles and
books were read and analyzed to make sure that they could contribute to the study.
Other documents that were used are policy documents that Telesur has of its Performance
Management system.
2. Questionnaires:
56 managers and superiors and 90 subaltern employees received questionnaires to fill out.
3. Interviews:
There are also secondary questions derived from the main research question. These
questions were not covered by the questionnaires.
In order to get answers to these questions, a qualitative study was also done by
interviewing 4 persons in a manager or superiors’ position and 4 employees.
The managers and employees were picked at random throughout the company to be sure
to get information about all departments of the company.
Telesur currently has 4 main departments namely the General Department, Commercial
affairs, Operational affairs and Financial-Economic affairs.
The questions of the interview were composed in advance, to guarantee that all targeted
managers and employees would have to answer the same questions.
The answers were converted into variables to find out how often the different
interviewees responded to the same variable.
These interviews were done in 4 days. Each interview took approximately one and a half
hour.
43
4.8 Reliability
After having received the filled out questionnaires, the answers were imported and
processed in SPSS, the Statistical Package for Social Sciences.
After analyzing the data, the Cronbach’s alpha reliability coefficient was calculated, for all
variables separately, which gave an outcome of .95.
4.9 Summary
The chapter describes the way in which research is done to get to answer the research question
and the secondary questions.
Besides literature research, a quantitative study was done where 56 managers and superiors and
90 employees received questionnaires.
From the respondents among the managers and superiors 44 questionnaires were received. This
means that 80% of the questionnaires were turned in. From the participating employees, 71
questionnaires were received, which equals 79% of the questionnaires.
The questionnaires that were used to do research use the 5 point Likert scale.
A qualitative study was also done among the 2 groups of respondents where 4 employees and 4
managers and superiors were interviewed to gather more data on the matter. These two studies
make it possible to accept or reject the hypotheses.
After the quantitative data was processed in SPSS, the Cronbach’s alpha was measured for every
variable and the outcome is .95, which is an indication that the research done is very reliable.
44
Chapter 5 Findings
5.1 Introduction
In this chapter the outcome of the research is discussed.
Research is done in Telesur where throughout the company on one side, employees in the
managers and superiors function received questionnaires and were interviewed, and on the other
side also subaltern employees filled out questionnaires and were interviewed.
The results of both groups of respondents will be compared to indicate how the 2 groups of
respondents experience leadership in the company and if that has anything to do with the way
performance management is performed in the company.
The outcome of the quantitative part of the study and that of the qualitative part of the study will
be presented separately.
5.2. The quantitative study
5.2.1 The questionnaires
The questionnaires measured the following variables:
-
From Transformational leadership the following:
Idealized influence: idealized attributes and idealized behaviors
Inspirational motivation
Intellectual stimulation
Individual consideration
-
From Transactional leadership:
Contingent Reward
Management by exception (active)
-
Regarding Passive avoidant behavior:
45
Management by exception (passive)
Laissez – Faire
-
Outcomes of leadership:
Extra effort
Effectiveness
Satisfaction with the Leadership
The respondents made use of the 5 point Likert rating scale which the questionnaires provide.
The possible answers which could be given were as follows:
-
1: not at all
-
2: once in a while
-
3: Sometimes
-
4: Fairly often
-
5: Frequently if not always
I must note here that use was made of the Dutch version of the questionnaire that ranked the
answers from 1 to 5, whereas the English version of the questionnaire ranks the answers from
0 to 4. This has no consequences as 0 in the English version has the same value as 1 in the Dutch
version and so on.
46
5.2.2 The Frequencies
The data of the questionnaires was processed in SPSS which gave the following information
about the perceptions of managers and subaltern employees or regarding transformational
leadership, transactional leadership, passive/avoidant behavior of managers and outcomes of
leadership.
5.2.3 Transformational leadership:
Idealized Attributes Mean
Group
S
M
Mean
3.75
3.13
Mode
4
3
Std.
Deviation
Minimum
.615
.970
2
1
Maximum
5
5
This table explains that regarding the mean in the group of the managers when it comes to
idealized attributes the average answer leans towards answer 4. The mode of 4 indicates that
answer 4 was the answer given more often.
In the group of the subaltern employees, the mean leans more toward answer 3 which according
to the mode was given more often.
Regarding the Standard deviation, the score of the managers is .615 and that of the subaltern
employees is .970 which indicates that the opinions of the managers regarding idealized
attributes are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 2 and answer 5, whereas in
the group of the subaltern employees, the answers lay between answer 1 and 5.
About the outcome of the Idealized Attributes, can be said that the managers/superiors say that
when it comes to making others proud to be able to work with them, put the general interest
before theirs, built respect for themselves and display power and confidence, they act on the
before mentioned, fairly often.
The subaltern employees find that this is only manifested sometimes.
47
Idealized behaviors mean
Group
S
M
Mean
4.41
3.46
Mode
4
4
.583
1.157
Minimum
3
1
Maximum
5
5
Std. Deviation
This table explains that regarding the mean in the group of the managers when it comes to
idealized attributes the average answer leans towards answer 4. The mode of 4 indicates that
answer 4 was the answer given more often.
In the group of the subaltern employees the mean leans more toward answer 3 while answer 4
was given more often regarding to the outcome of the mode.
The Standard deviation shows the score of the managers is .583 and that of the subaltern
employees is 1.157 which indicates that the opinions of the managers regarding idealized
behavior are more consistent than those of the subaltern employees. Their opinions are scattered.
In the group of the managers, the answers given lie between answer 3 and answer 5, whereas in
the group of the subaltern employees, the answers lie between answer 1 and answer 5.
This means that with regard to Idealized Behaviors, both the managers/supervisor and the
subaltern employees find that managers/superiors, fairly often address important values and
beliefs, morality and ethics and the importance of having a collective sense of mission.
48
Inspirational motivation
Group
S
M
Mean
4.27
3.59
Mode
4
4
Std.
Deviation
Minimum
.624
1.116
3
1
Maximum
5
5
This table shows that regarding the mean in the group of the managers, when it comes to
inspirational motivation, the average answer leans towards answer 4. The mode of 4 indicates
that answer 4 was the answer given more often.
In the group of the subaltern employees the mean also leans toward answer 4 which according to
the mode, was given more often.
Regarding the Standard deviation, the score of the managers is .624 and that of the subaltern
employees is 1.116 which indicates that the opinions of the managers regarding idealized
attributes are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 3 and answer 5, whereas in
the group of the subaltern employees, the answers lay between answer 1 and 5.
When it comes to inspirational motivation, both the Managers/superiors and the Subaltern
employees agree that fairly often the managers/superiors are and talk optimistic and enthusiastic
about the future.
49
Intellectual stimulation
Group
S
M
Mean
4.27
3.39
Mode
4
4
Std.
Deviation
Minimum
.624
1.035
3
1
Maximum
5
5
This table shows that regarding the mean in the group of the managers, when it comes to
inspirational motivation, the average answer leans towards answer 4. The mode of 4 indicates
that answer 4 was the answer given more often.
In the group of the subaltern employees the mean leans toward answer 3 whereas the mode
shows that answer 4 was given more often.
Regarding the Standard deviation, the score of the managers is .624 and that of the subaltern
employees is 1.035 which is an indication that the opinions of the managers regarding
intellectual stimulation are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 3 and answer 5, whereas in
the group of the subaltern employees, the answers lay between answer 1 and 5.
Both group of respondents agree that managers/superiors fairly often stimulate employees to
think out of the box. This happens fairly often.
50
Individual consideration
Group
S
M
Mean
3.95
2.99
Mode
4
3
Std.
Deviation
Minimum
.714
.964
3
1
Maximum
5
5
Regarding to this table the mean in the group of the managers, when it comes to individual
consideration, the average answer leans towards answer 4. The mode of 4 indicates that answer 4
was the answer given the most.
In the group of the subaltern employees the mean also leans toward answer 3 which is consistent
with the mode that shows that answer 3 was given more often.
Regarding the Standard deviation, the score of the managers is .714 and that of the subaltern
employees is .964 which indicates that the opinions of the managers regarding individual
consideration are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 3 and answer 5, whereas in
the group of the subaltern employees, the answers lay between answer 1 and 5.
When it comes to individual consideration, the groups have other believes.
The managers/superiors find that they fairly often spent time to teach, coach and pay individual
attention to their employees.
The subaltern employees state that this doesn’t happen quite enough. It happens sometimes.
51
5.2.4 Transactional Leadership
Contingent Reward
Group
S
M
Mean
Mode
3.84
3.06
4
3
Std.
Deviation
Minimum
.713
1.081
2
1
Maximum
5
5
Regarding to this table, the mean in the group of the managers, when it comes to individual
consideration, the average answer leans towards answer 4. The mode of 4 indicates that answer 4
was the answer given the most.
In the group of the subaltern employees the mean leans toward answer 3 which is consistent with
the mode that shows that answer 3 was given more often.
Regarding the Standard deviation, the score of the managers is .713 and that of the subaltern
employees is 1.081 which indicates that the opinions of the managers regarding individual
consideration are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 2 and answer 5, whereas in
the group of the subaltern employees, the answers lay between answer 1 and 5.
About the contingent reward, the managers/superiors think that they fairly often give attention to
their employees, communicate about responsibilities, rewards to be expected when the job is
well done and show appreciation to employees.
The employees on the other hand mentioned that this only happens sometimes.
52
Management by exception
Group
S
M
Mean
3.52
3.62
Mode
4
4
Std.
Deviation
Minimum
.731
.868
2
1
Maximum
5
5
The table shows that the mean in the group of the managers, when it comes to management by
exception, the average answer leans towards answer 4. The mode of 4 indicates that answer 4
was the answer given the most.
In the group of the subaltern employees the mean also leans toward answer 4 which is consistent
with the mode that shows that answer 4 was given more often.
Regarding the Standard deviation, the score of the managers is .731 and that of the subaltern
employees is .868 which indicates that the opinions of the managers regarding individual
consideration are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 2 and answer 5, whereas in
the group of the subaltern employees, the answers lie between answer 1 and answer 5.
Both groups agree that fairly often managers/superiors spent a lot of attention to irregularities
and mistakes.
53
5.2.5 Passive/ Avoidant Behavior
Management by exception
Group
S
M
Mean
4.18
3.72
Mode
4
4
Std.
Deviation
Minimum
.691
.848
3
2
Maximum
5
5
The table shows that the mean in the group of the managers, when it comes to management by
exception, the average answer leans towards answer 4. The mode of 4 indicates that answer 4
was the answer given the most.
In the group of the subaltern employees the mean also leans toward answer 4 which is consistent
with the mode that shows that answer 4 was given more often.
Regarding the Standard deviation, the score of the managers is .691 and that of the subaltern
employees is .848 which indicates that the opinions of the managers regarding individual
consideration are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 3 and answer 5, whereas in
the group of the subaltern employees, the answers lie between answer 2 and answer 5.
Both the managers/superiors and the subaltern employees agree that managers and superiors are
fairly passive when it comes to being proactive. When it comes to problems in the work place
they wait too long before taking action.
54
Laissez Faire
Group
S
M
Mean
4.68
4.00
Mode
5
5
Std.
Deviation
Minimum
.471
1.108
4
1
Maximum
5
5
The table shows that the mean in the group of the managers, when it comes to management by
exception, the average answer leans towards answer 5. The mode of 5 indicates that answer 5was
the answer given the most.
In the group of the subaltern employees the mean is answer 4 whereas the mode shows that
answer 5 was given more often.
Regarding the Standard deviation, the score of the managers is .471 and that of the subaltern
employees is 1.108 which indicates that the opinions of the managers regarding individual
consideration are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 4 and answer 5, whereas in
the group of the subaltern employees, the answers lie between answer 1 and answer 5.
Regarding Laissez faire both groups are clear and share the same opinion. Managers and
superiors delay to respond to urgent matters. They avoid making decisions. Both groups agree
that this happens frequently.
55
5.2.6 Outcomes of Leadership
Extra effort
Group
S
M
Mean
3.95
3.10
Mode
4
3
Std.
Deviation
Minimum
.526
1.255
3
1
Maximum
5
5
The table shows that the mean in the group of the managers, when it comes to extra effort, the
average answer leans towards answer 4. The mode of 4 indicates that answer 4 was the answer
given the most.
In the group of the subaltern employees the mean leans to answer 3 which is consistent with the
mode that shows that answer 3 was given more often.
Regarding the Standard deviation, the score of the managers is .526 and that of the subaltern
employees is 1.155 which indicates that the opinions of the managers regarding individual
consideration are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 3 and answer 5, whereas in
the group of the subaltern employees, the answers lie between answer 1 and answer 5.
Managers and Superiors stated that fairly often they are able to get their employees to perform
beyond expectation. The employees on the other hand feel that this doesn’t happen all the time.
It is in their believe that this happens sometimes.
56
Effectiveness
Group
S
M
Mean
4.16
3.56
Mode
4
4
Std.
Deviation
Minimum
.526
1.016
3
1
Maximum
5
5
The table shows that the mean in the group of the managers, when it comes to extra effort, the
average answer leans towards answer 4. The mode of 4 indicates that answer 4 was the answer
given the most.
In the group of the subaltern employees the mean leans to answer 4 which is consistent with the
mode that shows that answer 4 was given more often.
Regarding the Standard deviation, the score of the managers is .526 and that of the subaltern
employees is 1.016 which indicates that the opinions of the managers regarding individual
consideration are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 3 and answer 5, whereas in
the group of the subaltern employees, the answers lie between answer 1 and answer 5.
The managers/superiors and the subaltern employees agree that fairly often the
managers/superiors are able to meet their job-related needs and present them to higher authority.
57
Satisfaction with the
leadership
Group
S
M
Mean
Mode
4.43
3.58
4
4
Std.
Deviation
Minimum
.501
1.203
4
1
Maximum
5
5
The table shows that the mean in the group of the managers, when it comes to satisfaction with
the leadership, the average answer leans towards answer 4. The mode of 4 indicates that answer
4 was the answer given the most.
In the group of the subaltern employees the mean leans to answer 4, which outcome is consistent
with the mode that shows that answer 4 was given more often.
Regarding the Standard deviation, the score of the managers is .501 and that of the subaltern
employees is 1.203 which indicates that the opinions of the managers regarding individual
consideration are more consistent than those of the subaltern employees.
In the group of the managers, the answers given lie between answer 4 and answer 5, whereas in
the group of the subaltern employees, the answers lie between answer 1 and answer 5.
When it comes to satisfaction with the leadership, both groups seem fairly satisfied.
58
5.3 The qualitative study
For the qualitative part of the study interviews were done with 4 managers/superiors and 4
employees. This was done throughout the company.
The data gathered from the interviews was coded.
To be able to do this, theme words were selected. Some of these theme words were thought of
before research was done and others came up while analyzing the data.
The qualitative study shows the following:
Managers/superiors are not entirely convinced that they are good in leading their personnel.
They admitted that they can do better and that there is room for improvement.
On the other hand, according to them, regarding the Performance management system that they
use to give guidance to their employees, none of the interviewed managers/superiors said that
they encounter difficulties.
On the contrary, the subaltern employees are not satisfied with the way their managers use the
system.
In their opinion the organization must take action to deal with this issue to let their superiors take
responsibility for their subaltern employees’ development.
Both managers and subaltern employees don’t have a good understanding of what performance
management is about. The managers don’t really see it as their responsibility and as part of their
job. They are willing to appraise their employees but when it comes to execute the whole
package of the system, it grows above their head.
They don’t have much knowledge about other systems or programs that are used elsewhere.
All of the interviewees see the need for the use of the system. They are not unwilling to use it but
they miss the skills to use it properly and also they shift some of the responsibility to the HRdepartment to deal with their personnel.
They all have an opinion about making modifications to the system and give information about
the system to their employees, but they don’t see it as their jobs to do that.
59
The subaltern employees have the opinion that their managers should pay more attention to their
functioning and their performance.
Because of the fact that they feel that their managers don’t show enough interest in them, they
want the HR department to interfere.
They also don’t see it as their responsibility to take action and control. They want though that
they can have influence on their performance management by being able to elaborate with their
managers about it.
Another point that both the managers and the subaltern employees make is that the system must
be adjusted to the different business units of the organization. The system is not applicable to all
the units which make it difficult to use. They find it too general.
The research done in Telesur made it clear that the performance management system that is used
in the organization is failing.
This is due to a number of reasons:
These are: Regarding the managers:
1. There is not enough commitment from the managers to spend enough attention to the
performance and behavior of their employees; this due to busyness with the everyday
technical issues. In their concept the employees can wait. The employees are not satisfied
with this demeanor and get less motivated.
2. The managers are not equipped with enough knowledge about leadership and leadership
skills to properly manage their personnel. Though, they are willing to learn. They see the
need for a performance management system although they cannot put into words why
such a system is important.
3. They are not ready to perform HR-tasks on their employees. They would want to, but
they need to be trained in the policies and labor legislation. They find that it is HR’s job
to educate the employees about the system.
4. They need a more concrete system that is conforming to their division and the line of
work that is done there.
60
Regarding the employees:
1. The employees are of opinion that they should be able to communicate freely with their
managers but some of them don’t experience that.
2. Some of the employees don’t know the existence of the performance management
system.
3. They would also see that the system would be adapted to their activities and would want
the HR-department to inform them about the system and their role.
The findings show that there are relationships between leadership and the use of the performance
management program, between awareness of the need for performance management and the use
of the performance management system and training and development for managers and
superiors and the use of the system.
The theme words are the following:
A. From the interviews with the managers/superiors:
The coding
Interviews with managers
Predetermined variables
Question What is in your opinion the concept of PM
1 Job of HR
I don't know
Attention & feedback
Improve performance
Training & Development
Guiding
Tool
Question What is your opinion regarding the need of
a PMP and must the performance of
employees be managed?
2 PMP must be in Organizations
Not left to the mercy of superiors
Follow performance of employees
Intervention by other (HR) devision
Poor performance
Result oriented
1
2 3
4
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
61
Question Do you encounter barriers in managing the
performance of your employees?
If yes, can you name some?
3 Easy
Improvement
Dificult
Negative control
Miscommunication
Challenge by employees
Question Are you willing to Perform HR-tasks on
your employees?
4 No, HR task
Yes
HR tasks
HR division for HR tasks
Give information and advice
Manage employees better
Rewards
Question Is the currently used PMP within Telesur
easy for you to understand and use?
If not, what are the difficulties that you
come across?
5 Easy to use/simple
Targets of division
Targets of company
KPI's for employees
Not suitable
HR must modify
Question Are you familiar with other PMP's?
If yes, can you name some?
6 Not familiar with other PMP
Should in your opinion the PMP that is
Question being
used within Telesur be modified or
replaced?
7 Modify or replace PMP
No
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
62
Do you need assistance of the HRQuestion Department
to make proper use of the PMP?
8 Assistance of HR to use PMP
No assistance of HR to use PMP
More information
Employees need information
I
I
I
I
I
I
I
I
B. From the interviews with the employees
Intervieuws with employees
Predetermined Variables
Question What is in your opinion Performance management?
1 Management leads resources of company to gain profit
Help employees with their performance
Management shows direction
Strictly manage employees
Pay attention to needs of employees
Implement Changes
Manage the company sharp and critical
Question Do you find a Performance management Program
2 necessary?
Is it important that your performance is managed by
your superior?
Important to have PMP
Not important to have PMP
Know what happens in the company
Both superior and employee are responsible
Superior doesn't want employees to do PM
Development of employees
Correct mistakes
Increase commitment
Can talk with superior about my PM
Cannot talk with my superior about my PM
1
2
3 4
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
63
Question Is the currently used PMP in Telesur easy for you to
3 understand?
If not, what are the difficulties that you come across?
Easy to use/simple
Difficult
More concrete
Don't know the PMP
Does not work
Hooks and eyes
Question Should the PMP be modified or replaced?
4 Modify/replace PMP
More concrete
Don't know
More space for employees to play a role
Compare to other program
Question Do you need more information of the HR-department
5 to properly make use of the PMP
More information of the PMP from HR
Don't need information
Already informed
Superiors must make use of PMP
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
64
5.4 General Findings and Summary
Observing the outcomes of the quantitative and the qualitative study, it can be stated that the
believes of the managers/superiors don’t differ. Neither does those of and those of the
subordinates.
Both studies show about the same outcomes for the specific groups.
The study proved that overall, the managers/superiors rated themselves higher than the
employees did. This makes it clear that when it comes to leadership the managers/superiors find
themselves doing a good job whereas the opinion of the subordinates is that the managers and
superiors can do a better job when it comes to leadership.
On the other hand, the qualitative study shows clearly that both the managers/superiors and the
subordinates, don’t really understand what the performance management program is about.
The managers/superiors are of opinion that the HR-division should do more to let the employees
understand the system better. Not all of them are willing to perform HR-duties. They don’t see it
as part of their jobs yet.
The employees also don’t think that they have a responsibility when it comes to leadership and
performance management. They are convinced that their manager/superior must do better, so that
they can perform better. They are not aware that they can exert influence on their
manager/superior to come to better performance so in addition, the company can perform better.
So when it comes to the performance management program of Telesur, both the
managers/supervisors and the employees have poor knowledge of the system or of any other
system that is used in the world.
65
Chapter 6 Conclusions and recommendations
6.1 Introduction
In this chapter the conclusions and recommendations are in discussion.
Starting point is the main research question.
Through 12 leadership dimensions that came out of the quantitative study and the findings of the
qualitative data, answers can be given regarding why in Telesur the performance management
system doesn’t come to its full advantage.
6.2 Conclusions drawn from the quantitative study
Referring to the findings in chapter 5, I can state the following:
1. The mean perception of the managers/superiors for all 12 dimensions of leadership is
higher than that of the subaltern employees. To put to test if this is based on coincidence
the Mann-Whitney key was used.
(2-tailed)
According to the table it is clear that the chance that the differences in perception are based on
coincidence are smaller than 0.005, thus are significant, except for Transactional Management by
Exception Active which is 0.605.
This means that there is a significant difference in the perception of managers/superiors and that
of subaltern employees when it comes to leadership within Telesur.
66
2. Another point to be made is whether it is to be expected if a manager/superior always
finds that there is a high dimension of a certain type of leadership in the organization.
The Chi-quadrant key was used to measure if there is a statistic significant relation
between the two variables. The result of the Chi-quadrant key is a Chi-quadrant value
which indicates if the association in a cross table is or is not, statistically significant.
To point out the strength of the relation the Chi-quadrant is converted to a Cramer’V
association measure.
Hereunder is a table which shows the outcomes.
Dimension
Approx.
Sig.
Cramers'
V-Value
Correlation
Transformational Idelized (Influence) attributes (A)
.001
.397
Weak
Transformational Idelized (Influence) Behaviors (B)
.000
.439
Weak
Transformational Inspirational Motivation (IM)
.011
.336
Weak
Transformational Intellectual Stimulation (IS)
.000
.443
Weak
Transformational Individual consideration (IC)
.000
.486
Weak
Transactional Contingent Reward (CR)
.001
.399
Weak
Transactional Management by Exception (Active) ( MBEA)
.278*
.210
Passive Avoidant Management by Exception (Passive) (MBEP)
.025
.285
Weak
Passive Avoidant Laissez- Faire (LF)
.004
.365
Weak
Outcomes of Leadership Extra Effort (EE)
.000
.481
Weak
Outcomes of Leadership Effectiveness (EFF)
.001
.408
Weak
Outcomes of Leadership Satisfaction (SAT)
.000
.427
Weak
*no relation
Except for Transactional management by exception, there is a weak relationship between the
function level in the organization and the dimensions of leadership.
The managers/superiors find more often that the leadership dimensions are present in the
organization whereas the subaltern employees find that attention should be given to leadership
issues.
67
6.3. Conclusions drawn from the qualitative study
When it comes to the performance management program of Telesur, the managers/superiors and
also their subordinates don’t pay enough attention to the program.
Managers/superiors are in a way willing to appraise their personnel but they are not able or ready
to do more than that. They do not show too much interest in using the system properly. They are
not looking for other manners to manage their personnel. They use parts of the tools handed to
them.
On the other hand the subordinates are not entirely satisfied with the way how they are being
treated by their managers/superiors. About the performance management system they lack
knowledge but they don’t take action to look for information in the company. It is their opinion
that their managers/supervisors are responsible for their performance and the way that it is
managed.
6.4. Recommendations
As it is clear that the Performance Management System of Telesur fails, and that the main
reasons are: lack of knowledge, skills and effort, I can make the following recommendations:
That all managers and superiors, including top management, gets trained in the following:
-
Leadership skills and the different forms of leadership
-
Labor legislation
-
The HR-tools
-
The HR-policies of Telesur
It is important that Top-management participates as they are responsible for setting the culture in
the company and to guide the organization to success.
68
The organization must think of a way to enforce managers and superiors to properly
manage their personnel. By knowing their personnel and what they are capable of, managers can
contribute to the success of the organization47. Not only the knowledge, skills and behavior of
subaltern employees play a role but also their talents can put to use. Managers must put effort
into getting to know their employees
According to the findings of the quantitative and the qualitative study, there is not a given style
or policy in the company how to manage subaltern employees. Because different managers and
superiors manage their subaltern employees differently, employees get confused and dissatisfied.
This has negative impact on their performance. The style and policies must be consistent.
The existing performance management system needs to be revised. It needs to be adapted
to the different kind of businesses that are under the umbrella of Telesur. In this extend, the
reward policy also needs to be looked into as it is possible that it should also be adapted to the
different lines of work.
Another recommendation is that employees must be made aware of their role in their own
performance management. In principle this task lies with their manager. As it is clear that the
managers are not equipped, the HR-department can help and guide them through the process. HR
must not take it upon them entirely to do this job for HR is not an expert in the technical aspects
of the activities of the whole organization. HRM and operations operate in two different fields.
Still they are inextricable when it is in the interest of Telesur.48
Given the fact that both the managers and the employees seem to find the system that is
currently used, easy, it is recommended that the managers of all division study the system and
give indications about changes, additions and adaptations. They and their personnel know like no
other what the content of their work scope is, what the requirements and competences are to do
the jobs in their division.
47
st
Cindy McCauley and Micheal Wakefield. Talent management in the 21 Century: Help your company find,
develop and keep its strongest workers. The Journal for quality and participation/winter 2006. www.asq.org
48
John Boudreau, Wallace Hopp, John O. McClain and L. Joseph Thomas. On the interface between operations and
Human Resource management. September 22, 2002. http://www.ilr.cornell.edu/cahrs
69
The HR-department can facilitate the efforts of the managers by supporting them and by doing
literature and field research in organizations which operate in the same sector. Their Performance
Management system can be studied and if possible parts of the systems can be implemented in
the organization of Telesur. It is not necessary to invent another system.49
Nevertheless Telesur must be careful not to implement systems or part of systems without
preparing the company and without being sure that the system fits in the organization.50
The Company must work on a Performance management culture.51 Top management needs to
commit to the system in order to make it successful.
6.5 Practical implementation
It is advisable that the Performance Management system is used, as it is a management tool that
can make Telesur be more successful in making profit through the positive and excellent
performance of its employees. The activities of the employees will therefore be linked to the
strategy and objectives of the company52. Telesur needs this in the highly competitive
environment in which it operates. Literature shows that by using a Performance Management
System, organizations improve their results. 53
49
Arie Halachmi. Performance measurement is only one way of managing performance. International Journal of
productivity and Performance management Vol. 54 No 7. 2005. Pp 502-516.
50
André A. de Waal and Harold Counet. Lessons Learned from performance management systems
implementations. International Journal of Productivity and Performance management Vol.58 No.4 2009 pp. 367390. Emerald Group Publishing limited.
51
André A. de Waal and Harold Counet. Lessons Learned from performance management systems
implementations. International Journal of Productivity and Performance management Vol.58 No.4 2009 pp. 367390. Emerald Group Publishing limited.
52
Changiz Valmohammadi and Azadeh Servati. Performance management system implementation using Balanced
Scorecard and statistical methods. Research paper. International Journal of productivity and Performance
Management. Volume 60, number 5, 2011. Pp 493-511. Emerald Group Publishing Limited.
53
André A. de Waal and Harold Counet. Lessons Learned from performance management systems
implementations. International Journal of Productivity and Performance management Vol.58 No.4 2009 pp. 367390. Emerald Group Publishing limited.
70
Performance management can be an excellent tool to use to help guarantee that the company
reaches it desired goals.
6.6 Limitations of the study
This study is about Performance management. While doing literature study, reward systems were
mentioned by several authors. The questionnaires that I used to do my research also have
questions regarding rewards.
As reward was not my main interest I didn’t got to deep in the topic.
It is in fact part of performance management but I limited my attention to leadership, leadership
styles and the use of a performance management system.
I want to recommend to do further study on how managers and superiors use the reward policy
as a tool to encourage their personnel to perform in such a way that expected outcomes are
achieved and that employees are motivated and able to perform beyond expectation. It would
also be an idea to evaluate the currently used reward policy and if necessary, adjust it to the
circumstances taking into account, the work environment and the development of technology.
71
Chapter 7 Discussion
A part from the recommendations and the limitations of the study I want to shed some light on
findings that were brought to my attention when doing field survey. These findings are not really
relevant for this study but I decide to mention them because addressing them can help improve
the working atmosphere in the organization which can lead to better overall performance of the
whole organization.
These findings have to do with questions and remarks that employees asked and made.
When approaching colleagues to fill out questionnaires, some were hesitant. They wanted to
participate but feared that their manager or superior would get to know what they filled out.
Promises had to be made that that would not happen.
At least 6 subordinates wanted assurance that their manager/superior would not know that they
spoke their mind about their leadership style.
At least 2 others employees took the opportunity to complain about the way they are treated with
regards to their performance. According to them there is no way that they can have a decent
work related conversation with their manager/superior.
Another complaint is that managers/superiors don’t show interest in the personal life of
employees. They don’t pay attention to for instance birthdays and child birth. They only care
about getting the job done.
Furthermore there are complaints about not getting promoted. According to some employees,
years go by without them getting rewards and incentives.
While doing the interviews, one employee asked to be interviewed in a secure place to not let the
manager and colleagues now about it.
72
I want to recommend that attention is paid to the above mentioned concerns of employees.
Study should be done to enquire what causes these negative feelings people have in the
organization towards their managers/superiors and also each other.
Research on these matters should be done by an independent consultant to make sure that the
respondents feel safe when cooperating to this research.
I believe that when it is known why personnel feel this way and that there is something that can
be done about it, more personnel members will be happy and it is my believe that this will have a
great positive impact on the overall performance and work climate in Telesur.
73
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Appendix A
Organizational structure of Telesur
80
Appendix B
Questionnaires
For use by Monique Dongor-Struiken only. Received from Mind Garden, Inc. on August 21, 2011
MLQ Multifactor Leadership Questionnaire
Leader Form (5x-Short)
My Name: _____________________Date: ______________
Organization ID #: __________________Leader ID #: __________________________________
This questionnaire is to describe your leadership style as you perceive it. Please answer all items on this answer sheet. If an item is irrelevant, or
if you are unsure or do not know the answer, leave the answer blank.
Forty-five descriptive statements are listed on the following pages. Judge how frequently each statement fits you.
The word “others” may mean your peers, clients, direct reports, supervisors, and/or all of these individuals.
Use the following rating scale:
Not at all Once in a while Sometimes Fairly often Frequently,if not always
0
1
2
3
4
1. I provide others with assistance in exchange for their efforts ......................................................... 0 1 2 3 4
2. I re-examine critical assumptions to question whether they are appropriate ................................... 0 1 2 3 4
3. I fail to interfere until problems become serious ............................................................................. 0 1 2 3 4
4. I focus attention on irregularities, mistakes, exceptions, and deviations from standards................ 0 1 2 3 4
5. I avoid getting involved when important issues arise ..................................................................... 0 1 2 3 4
6. I talk about my most important values and beliefs ......................................................................... 0 1 2 3 4
7. I am absent when needed ................................................................................................................ 0 1 2 3 4
8. I seek differing perspectives when solving problems ..................................................................... 0 1 2 3 4
9. I talk optimistically about the future .............................................................................................
01234
10. I instill pride in others for being associated with me ..................................................................... 0 1 2 3 4
11. I discuss in specific terms who is responsible for achieving performance targets ........................ 0 1 2 3 4
12. I wait for things to go wrong before taking action ......................................................................... 0 1 2 3 4
13. I talk enthusiastically about what needs to be accomplished ......................................................... 0 1 2 3 4
14. I specify the importance of having a strong sense of purpose ...................................................... 0 1 2 3 4
15. I spend time teaching and coaching .............................................................................................. 0 1 2 3 4
16. I make clear what one can expect to receive when performance goals are achieved ....................... 0 1 2 3 4
17. I show that I am a firm believer in “If it ain’t broke, don’t fix it.” ................................................. 0 1 2 3 4
18. I go beyond self-interest for the good of the group ......................................................................... 0 1 2 3 4
19. I treat others as individuals rather than just as a member of a group.............................................. 0 1 2 3 4
20. I demonstrate that problems must become chronic before I take action .......................................... 0 1 2 3 4
21. I act in ways that build others’ respect for me ............................................................................... 0 1 2 3 4
22. I concentrate my full attention on dealing with mistakes, complaints, and failures ........................ 0 1 2 3 4
23. I consider the moral and ethical consequences of decisions ........................................................... 0 1 2 3 4
24. I keep track of all mistakes ........................................................................................................... 0 1 2 3 4
25. I display a sense of power and confidence ..................................................................................... 0 1 2 3 4
26. I articulate a compelling vision of the future ................................................................................. 0 1 2 3 4
27. I direct my attention toward failures to meet standards .................................................................. 0 1 2 3 4
28. I avoid making decisions .............................................................................................................. 0 1 2 3 4
29. I consider an individual as having different needs, abilities, and aspirations from others ............... 0 1 2 3 4
30. I get others to look at problems from many different angles .......................................................... 0 1 2 3 4
31. I help others to develop their strengths .......................................................................................... 0 1 2 3 4
32. I suggest new ways of looking at how to complete assignments ..................................................... 0 1 2 3 4
33. I delay responding to urgent questions .......................................................................................... 0 1 2 3 4
34. I emphasize the importance of having a collective sense of mission .............................................. 0 1 2 3 4
35. I express satisfaction when others meet expectations ..................................................................... 0 1 2 3 4
36. I express confidence that goals will be achieved ............................................................................ 0 1 2 3 4
37. I am effective in meeting others’ job-related needs ........................................................................ 0 1 2 3 4
38. I use methods of leadership that are satisfying .............................................................................. 0 1 2 3 4
39. I get others to do more than they expected to do ............................................................................ 0 1 2 3 4
40. I am effective in representing others to higher authority ................................................................ 0 1 2 3 4
41. I work with others in a satisfactory way ........................................................................................ 0 1 2 3 4
42. I heighten others’ desire to succeed ............................................................................................... 0 1 2 3 4
43. I am effective in meeting organizational requirements .................................................................. 0 1 2 3 4
44. I increase others’ willingness to try harder .................................................................................... 0 1 2 3 4
45. I lead a group that is effective ....................................................................................................... 0 1 2 3 4
81
MLQ Multifactor Leadership Questionnaire
Rater Form (5x-Short)
Name of Leader: _____________________________Date: ______________
Organization ID #: _____________________________ Leader ID #: ___________________________
This questionnaire is to describe the leadership style of the above-mentioned individual as you perceive it. Pleaseanswer all items on this
answer sheet. If an item is irrelevant, or if you are unsure or do not know the answer, leave the answer blank. Please answer this
questionnaire anonymously.
IMPORTANT (necessary for processing): Which best describes you?
___ I am at a higher organizational level than the person I am rating.
___ The person I am rating is at my organizational level.
___ I am at a lower organizational level than the person I am rating.
___ I do not wish my organizational level to be known.
Forty-five descriptive statements are listed on the following pages. Judge how frequently each statement fits the person you are describing. Use
the following rating scale:
Not at all
Once in a while
Sometimes
Fairly often
Frequently, if not always
0
1
2
3
4
THE PERSON I AM RATING. . .
1. Provides me with assistance in exchange for my efforts................................................................. 0 1 2 3 4
2. Re-examines critical assumptions to question whether they are appropriate ..................................0 1 2 3 4
3. Fails to interfere until problems become serious ............................................................................ 0 1 2 3 4
4. Focuses attention on irregularities, mistakes, exceptions, and deviations from standards ..............0 1 2 3 4
5. Avoids getting involved when important issues arise .................................................................... 0 1 2 3 4
6. Talks about their most important values and beliefs ...................................................................... 0 1 2 3 4
7. Is absent when needed .................................................................................................................. 0 1 2 3 4
8. Seeks differing perspectives when solving problems...................................................................... 0 1 2 3 4
9. Talks optimistically about the future ............................................................................................. 0 1 2 3 4
10. Instills pride in me for being associated with him/her ................................................................... 0 1 2 3 4
11. Discusses in specific terms who is responsible for achieving performance targets ........................ 0 1 2 3 4
12. Waits for things to go wrong before taking action ......................................................................... 0 1 2 3 4
13. Talks enthusiastically about what needs to be accomplished .......................................................... 0 1 2 3 4
14. Specifies the importance of having a strong sense of purpose ........................................................0 1 2 3 4
15. Spends time teaching and coaching .............................................................................................. 0 1 2 3 4
16. Makes clear what one can expect to receive when performance goals are achieved .....................0 1 2 3 4
17. Shows that he/she is a firm believer in “If it ain’t broke, don’t fix it.” ........................................... 0 1 2 3 4
18. Goes beyond self-interest for the good of the group .......................................................................0 1 2 3 4
19. Treats me as an individual rather than just as a member of a group............................................... 0 1 2 3 4
20. Demonstrates that problems must become chronic before taking action ........................................0 1 2 3 4
21. Acts in ways that builds my respect ............................................................................................... 0 1 2 3 4
22. Concentrates his/her full attention on dealing with mistakes, complaints, and failures ..................0 1 2 3 4
23. Considers the moral and ethical consequences of decisions ........................................................... 0 1 2 3 4
24. Keeps track of all mistakes ........................................................................................................... 0 1 2 3 4
25. Displays a sense of power and confidence ..................................................................................... 0 1 2 3 4
26. Articulates a compelling vision of the future ................................................................................. 0 1 2 3 4
27. Directs my attention toward failures to meet standards .................................................................. 0 1 2 3 4
28. Avoids making decisions .............................................................................................................. 0 1 2 3 4
29. Considers me as having different needs, abilities, and aspirations from others .............................. 0 1 2 3 4
30. Gets me to look at problems from many different angles ............................................................... 0 1 2 3 4
31. Helps me to develop my strengths ................................................................................................. 0 1 2 3 4
32. Suggests new ways of looking at how to complete assignments ..................................................... 0 1 2 3 4
33. Delays responding to urgent questions .......................................................................................... 0 1 2 3 4
34. Emphasizes the importance of having a collective sense of mission............................................... 0 1 2 3 4
35. Expresses satisfaction when I meet expectations ........................................................................... 0 1 2 3 4
36. Expresses confidence that goals will be achieved .......................................................................... 0 1 2 3 4
37. Is effective in meeting my job-related needs .................................................................................. 0 1 2 3 4
38. Uses methods of leadership that are satisfying............................................................................... 0 1 2 3 4
39. Gets me to do more than I expected to do ...................................................................................... 0 1 2 3 4
40. Is effective in representing me to higher authority ......................................................................... 0 1 2 3 4
41. Works with me in a satisfactory way ............................................................................................. 0 1 2 3 4
42. Heightens my desire to succeed ..................................................................................................... 0 1 2 3 4
43. Is effective in meeting organizational requirements ...................................................................... 0 1 2 3 4
44. Increases my willingness to try harder .......................................................................................... 0 1 2 3 4
45. Leads a group that is effective ....................................................................................................... 0 1 2 3 4
82
Appendix C
Scoring Key
MLQ Multifactor Leadership Questionnaire
Scoring Key (5x) Short
My Name: ______________________________________________________________ Date: ______________
Organization ID #: _____________________________ Leader ID #: __________________________________
Scoring: The MLQ scale scores are average scores for the items on the scale. The score can be derived by summing the items and dividing by the
number of items that make up the scale. All of the leadership style scales have four items, Extra Effort has three items, Effectiveness has four
items, and Satisfaction has two items.
Not at all
0
Once in a while
Sometimes
1
2
Fairly often
Frequently,if not always
3
4
Idealized Influence (Attributed) total/4 =
Management-by-Exception (Active) total/4 =
Idealized Influence (Behavior) total/4 =
Management-by-Exception (Passive) total/4 =
Inspirational Motivation total/4 =
Laissez-faire Leadership total/4 =
Intellectual Stimulation total/4 =
Extra Effort total/3 =
Individualized Consideration total/4 =
Effectiveness total/4 =
Contingent Reward total/4 =
Satisfaction total/2 =
1. Contingent Reward ........................................................... 0 1 2 3 4
2. Intellectual Stimulation ......................................................................... 0 1 2 3 4
3. Management-by-Exception (Passive) ........... 0 1 2 3 4
4. Management-by-Exception (Active) ....................... 0 1 2 3 4
5. Laissez-faire ....................................... 0 1 2 3 4
6. Idealized Influence (Behavior) .................................................................................. 0 1 2 3 4
7. Laissez-faire ....................................... 0 1 2 3 4
8. Intellectual Stimulation ......................................................................... 0 1 2 3 4
9. Inspirational Motivation .................................................................................. 0 1 2 3 4
10. Idealized Influence (Attributed) .......................................................................................... 0 1 2 3 4
11. Contingent Reward ........................................................... 0 1 2 3 4
12. Management-by-Exception (Passive) ........... 0 1 2 3 4
13. Inspirational Motivation .................................................................................. 0 1 2 3 4
14. Idealized Influence (Behavior) .................................................................................. 0 1 2 3 4
15. Individualized Consideration ...................................................... 0 1 2 3 4
16. Contingent Reward ........................................................... 0 1 2 3 4
83
17. Management-by-Exception (Passive) ........... 0 1 2 3 4
18. Idealized Influence (Attributed) .......................................................................................... 0 1 2 3 4
19. Individualized Consideration ...................................................... 0 1 2 3 4
20. Management-by-Exception (Passive) ........... 0 1 2 3 4
21. Idealized Influence (Attributed) .......................................................................................... 0 1 2 3 4
22. Management-by-Exception (Active) ....................... 0 1 2 3 4
23. Idealized Influence (Behavior) .................................................................................. 0 1 2 3 4
24. Management-by-Exception (Active) ....................... 0 1 2 3 4
25. Idealized Influence (Attributed) .......................................................................................... 0 1 2 3 4
26. Inspirational Motivation .................................................................................. 0 1 2 3 4
27. Management-by-Exception (Active) ....................... 0 1 2 3 4
28. Laissez-faire ....................................... 0 1 2 3 4
29. Individualized Consideration ...................................................... 0 1 2 3 4
30. Intellectual Stimulation ......................................................................... 0 1 2 3 4
31. Individualized Consideration ...................................................... 0 1 2 3 4
32. Intellectual Stimulation ......................................................................... 0 1 2 3 4
33. Laissez-faire ....................................... 0 1 2 3 4
34. Idealized Influence (Behavior) .................................................................................. 0 1 2 3 4
35. Contingent Reward ............................................................................... 0 1 2 3 4
36. Inspirational Motivation .................................................................................. 0 1 2 3 4
37. Effectiveness................... 0 1 2 3 4
38. Satisfaction........... 0 1 2 3 4
39. Extra Effort .............................. 0 1 2 3 4
40. Effectiveness................... 0 1 2 3 4
41. Satisfaction........... 0 1 2 3 4
42. Extra Effort .............................. 0 1 2 3 4
43. Effectiveness................... 0 1 2 3 4
44. Extra Effort .............................. 0 1 2 3 4
45. Effectiveness................... 0 1 2 3 4
Appendix D
Interview questions and answers
84
Interviews with managers/superiors
The questions and answers:
Intervieuw questions for managers
regarding the performance management system used in Telesur
1. What is in your opinion the concept of performance management?
a. Performance management is the job that HR does; to support employees.
b. Performance management is giving attention to employees, guide their activities, and
provide training and development; this must be done by superiors.
c. I don’t know exactly; I’m seeing to it that employees do their work in an orderly
manner.
d. Performance management is a tool to increase the performance level.
2. What is your opinion regarding the need of a performance management program and
must the performance of employees be managed?
a. A performance management system is a must. It is important that the performance of
employees is being followed and that there is a division in the company that intervenes
when performance is not what it is suppose to be.
b. Yes, absolutely; it is important to have a performance management system; there must be
a moment when employees get to know what their superior thinks of their performance.
Otherwise employees would be at the mercy of their employees.
c. It is important to have a performance management system because otherwise targets will
not be reached.
d. It is surely necessary to make use of a performance management program because the
organization can act result oriented. The performance of personnel can be managed
better.
3. Do you encounter barriers in managing the performance of your employees? If yes can
you name some?
a. No it goes fairly well but I know that there is room for improvement.
b. No, it goes well. It is not difficult
85
c. No really; the only problem that I have with my personnel is miscommunication
regarding the timetable.
d. Yes, I encounter barriers as my employees see performance management as constant
negative control on the way they do their jobs.
4. Are you willing to perform HRM-tasks on your employees?
a. I would rather not; its better that another division does it but I would like to provide
information and give advice.
b. Yes, I would. It would give me more opportunities to manage my employees. Especially
the rewarding part I would like to execute without others (Own boss, HR, CEO)
intervening.
c. No, please no! I would rather someone else in the organization does it. I could give
information but I don’t want to be the one who has to decide about HR tasks regarding
my employees.
d. Yes, I am because in my opinion a HR department should be facilitating instead of
executing.
5. Is the currently used performance management program within Telesur easy for you to
understand and use? If not what are the difficulties that you come across?
a. It is easy to use; it gives room to fill in my own issues that I have with an employee. For
me it is important that I can put down the Targets of my division in relation to the targets
that my employees have to reach.
b. It is not so bad; it’s easy, the simpler, the better. I can handle this one.
c. The current performance management system is not suitable for the kind of operations I
work in. It’s journalism and media and for this type of work the performance
management system must be more specific. HR should look into that.
d. Yes, it is easy to understand and use.
6. Are you familiar with other performance management programs? If yes, can you name
some?
a. No, only the one that is used in Telesur.
b. No, only the one from Telesur.
c. No, only the one that we use.
d. No.
7. Should in your opinion the performance management system that is used within Telesur
be modified or replaced?
86
a. Well, it would be a good thing if in the current system there could be a section to record
KPI’s for the employees.
b. It can be modified by making it more concrete.
c. It’s not a bad system but it can be modified
d. No, it doesn’t need to be modified. It would be a good thing though, to provide more
information about the system.
8. Do you need assistance of the HRM-department to make proper use of the performance
management program?
a. No not assistance as well as to give more information about the system.
b. Yes, I need HR to give more information about the system.
c. The information and assistance is enough for me but I notice that the employees do not
understand the system and procedures so it would be good for P&O to have meetings
with groups of employees to educate them in order for them to understand the system
better.
d. Yes, to prevent misunderstandings.
Interviews with employees
The questions and answers:
87
Intervieuw questions for employees regarding the performance management system used
in Telesur
1. What is in your opinion the concept of performance management?
a. My understanding of performance management is the way how management
leads/manages the resources of the company to make profit.
b. To help employees in their performance and to help improve their performance.
c. To strictly manage employees and by paying attention to employees and their needs; this
doesn’t happen.
d. To be sharp and critical in managing the company and to implement change that is
needed.
2. Do you find a performance management program necessary?
Is it important that your performance is being managed by your superior?
a. A performance management system is a must. It is my belief that performance
management is a two way street. My superior must have a role but I must be able to talk
about my work related issues with my superior. I experience it this way with my superior.
b. A performance management system is important for development of employees. In my
opinion a performance management system is the responsibility of both the superior and
the employee. In practice it doesn’t work that way. You cannot talk about these kinds of
things with the superiors.
c. A performance management system is very important; employees should be able to talk
freely with their superiors about their management performance. Superiors should give
opportunities to make this possible but they are not open for this type of conversation.
The way the system is now it doesn’t have value.
d. Absolutely important to have this system; Employees should have a say in their own
performance management; it would be a good thing if they could speak openly about it
with their superiors. It would correct them both in wrong doing and it would increase
commitment to the division and the company.
3. Is the currently used performance management program in Telesur easy for you to
understand? If not what are the difficulties that you come across?
a. Yes. It is clear. I don’t have a problem with it but I wonder if the use of this system leads
to something.
88
b. I’m not familiar with the system. I’m 5 years with the company and I have never noticed
such a program. I have never been appraised.
c. The system is easy but it doesn’t work. When targets are not met it must be explained.
This information should get enough attention.
d. The system has a lot of hooks and eyes. It must be sharper and more detailed.
4. Should the performance management program be modified or replaced?
a.
b.
c.
d.
It must be modified and more concrete so that we recognize our self.
I don’t know since I don’t know it.
It must be modified. More space for employees to have a role in the program.
Yes it can be modified. I’ve compared it with a Dutch program. I will look it up.
5. Do you need more information of the HR-department to properly make use of the
performance management program?
a. Yes HR can give more clarification; they had meeting sessions but I need more
information.
b. The program is clear but HR could really help me with information/knowledge about
performance interview.
c. Yes I need help from the HR department regarding the Performance management
program of Telesur. I do not know anything about it.
d. No, I’m good but HR must see to it that superiors make use of the program. HR must not
accept the fact that the program is not used or is not used in the way that it should be
used.
Appendix E
Survey Results
Crosstables
Transformational Idealized Attributes Mean
Total
89
Group
Managers
Subordinates
Total
Group
Managers
Subordinates
Total
Group
Managers
Subordinates
Total
Group
Managers
Subordinates
Total
Group
Managers
sometimes
12
Fairly
often
28
Frequently
if not
always
3
44
15
28
20
5
71
16
40
48
8
115
Transformational Idealized Behaviors Mean
Frequently
Once in
Fairly
if not
Not at all
a while
sometimes
often
always
0
0
2
22
20
Total
44
Not al all
0
Once in
a while
1
3
3
4
13
13
28
13
71
4
13
15
50
33
115
Transformational Inspirational Motivation Mean
Frequently
Once in
Fairly
if not
Not at all
a while
Sometimes
often
always
0
0
4
24
16
Total
44
4
10
10
34
13
71
4
10
14
58
29
115
Transformational Intellectual Stimulation Mean
Frequently
Once in
Fairly
if not
Not at all
a while
Sometimes
often
always
0
0
4
24
16
Total
44
3
11
21
27
9
71
3
11
25
51
25
115
Transformational Individual Consideration Mean
Frequently
Once in
Fairly
if not
Not at all
a while
Sometimes
often
always
0
0
12
22
10
Total
44
90
Subordinates
Total
2
23
24
18
4
71
2
23
36
40
14
115
Frequently
if not
always
7
Total
44
Transactional Contingent Reward Mean
Group
Managers
Subordinates
Total
Group
managers
Subordinates
Total
Group
managers
Subordinates
Total
Not at all
0
Once in
a While
1
Sometimes
12
Fairly
often
24
7
12
28
18
6
71
7
13
40
42
13
115
Transactional Management by Exception Active Mean
Frequently
Once in
Fairly
if not
Not at all
a while
Sometimes
often
always
0
4
15
23
2
Total
44
1
4
27
28
11
71
1
8
42
51
13
115
Passive Avoidant Management by Exception
Pasive Mean
Frequently
Once in
Fairly
if not
a while
Sometimes
often
always
0
7
22
15
Total
44
7
17
36
11
71
7
24
58
26
115
Passive Avoidant Laissez Faire Mean
Group
managers
Subordinates
Not at all
0
Once in
a while
0
2
7
Sometimes
0
Fairly
often
14
Frequently
if not
always
30
Total
44
10
22
30
71
91
Total
Group
2
Managers
Subordinates
Total
Group
Managers
Subordinates
Total
Group
Managers
Subordinates
Total
7
10
36
60
115
Outcomes of Leadership Extra Effort Mean
Frequently
Once in
Fairly
if not
Not at all
a while
Sometimes
often
always
0
0
7
32
5
Total
44
12
7
23
20
9
71
12
7
30
52
14
115
Outcomes of Leadership Effectiveness Mean
Frequently
Not at
Once in
Fairly
if not
always
a while
Sometimes
often
always
0
0
3
31
10
Total
44
3
6
22
27
12
70
3
6
25
58
22
114
Outcomes of Leadership Satisfaction Mean
Frequently
Once in
Fairly
if not
Not at all
a while
Sometimes
often
always
0
0
0
25
19
Total
44
7
6
12
31
15
71
7
6
12
56
34
115
92
93