The main purpose of this report is to identify and describe the type of behaviors that should be promoted in a matrix organization. This report shows how the performance management system is a very important tool in promoting these behaviors. The report starts with an introduction to the relationship between the success of a matrix structure and the appropriate performance management system followed by the definition of important concepts in this topic. Next, the report provides general recommendations to the leaders of matrix organizations with respect their performance management system. Finally, a case study of a company with this type of structure is analyzed. / text

XXX Pharmacy is an independently-owned retail pharmacy in Johannesburg. Good Pharmacy Practice standards make it mandatory for pharmacists to provide “pharmaceutical care”, a highly patient-centred approach to providing pharmaceutical services. Since XXX Pharmacy has a high patient load, a shortage of dispensary staff and a strategic focus on operational efficiency, the question arose whether pharmacists comply fully with Good Pharmacy Practice standards for the provision of pharmaceutical care. Non-compliance poses operational risks that could undermine the business’s financial performance. The research statement was thus that the current performance management system undermines compliance with Good Pharmacy Practice standards for the provision of pharmaceutical care to patients. A triangulation approach was used. The quantitative research method, in which 200 patients completed a questionnaire, investigated two research objectives: (i) whether the pharmacy complies with Good Pharmacy Practice standards for pharmaceutical care; and (ii) whether there is a relationship between patients’ race or gender and their responses. The qualitative research method involved conducting individual semi-structured interviews with all four dispensary employees to achieve another two research objectives: (i) to determine whether the provision of pharmaceutical care is viewed as a key performance area by pharmacists; and (ii) to investigate what aspects of the implementation of the performance management system are viewed as enabling or undermining the provision of pharmaceutical care.

Mini-research report presented in partial fulfillment of the requirements for the degree of Master of Business Administration at the University of Stellenbosch. / ENGLISH ABSTRACT: This research report is focused on the phenomenon that various Key Performance Indicators (KPIs) used by an organisation as part of their Performance Management systems in support of their strategic objectives will sometimes also drive non-productive behaviour. Thus although the intention might be that the KPI should promote a specific strategic objective, the very same KPI might drive additional behaviour that might not be aligned with the strategic objectives at all or could even be downright destructive. The purpose of this research study is to develop an analysis methodology that can be used to identify those KPIs that drive negative secondary behaviour (the intended positive behaviour being the primary behaviour). The methodology must also assist in identifying preventive measures that can be used to mitigate the risk posed by the negative behaviour. An interesting aspect of this research report is that it cross-references between the business and engineering disciplines by means of adapting techniques used in engineering to assist with a business management problem. The result of this research is a KPI Effectiveness Analysis that has gone through a trail phase where a number of case studies were analysed by means of this tool. The results were conclusive and the analysis tool found to be of great assistance. / AFRIKAANSE OPSOMMING: Hierdie navorsingsverslag fokus op die verskynsel dat Sleutel Prestasie Indikators (SPI's)wat deur ondernemings gebruik word as deel van hul prestasiebestuur-stelsels en wat ten doel het om die strategiese doelwitte van die onderneming te ondersteun, soms ook nie-produktiewe gedrag bevorder. Dus alhoewel dit die intensie met die SPI mag wees om gedrag te bevorder wat die strategiese doelwitte sal ondersteun, dieselfde SPI ook gedrag kan bevorder wat glad nie die strategiese doelwitte ondersteun nie en dalk self destruktief van aard kan wees. Die doel van hierdie navorsingstudie is om 'n analise metodologie te ontwikkel wat gebruik kan word om die SPI's te identifiseer wat negatiewe sekondêre gedrag bevorder (waar die bedoelde gedrag as die primêre gedrag gesien word). Die metodologie moet ook die identifisering van moontlike voorkomende stappe help fasiliteer wat gebruik kan word om die risiko van negatiewe gedrag te vernminder. 'n Interessante aspek van hierdie navorsingsverslag is dat daar 'n kruisverwysing gedoen word tussen die besigheids- en ingenieursdissipline deur tegnieke wat in die ingenieursrigting gebruik word aan te pas ten einde te help met 'n besigheidsbestuursprobleem. Die resultaat van die navorsing is 'n SPI Effektiwiteitsanalise wat tydens 'n toetsfase in 'n paar gevallestudies geanaliseer is deur hierdie metode te gebruik. Die resultate was konkreet en bewys dat die analise metode van groot hulp is.

Although there is considerable interest in the role of performance management systems (PMS) to enhance innovation and performance, there is limited literature regarding successful implementation in organisations. Most research has focused on the technicalities of performance management implementations, while neglecting the human reactions that influence the outcomes of such systems. This research therefore aimed to examine employees’ perceptions of performance management systems in various organisations and how performance management systems, or the lack thereof, specifically influence performance in the Namibian organisational context. A multiple case study methodology was adopted for the research, where open-ended questionnaires and semi-structured interviews were used to collect data from various organisations. Data was primarily analysed by means of qualitative content analysis which was supported by the pattern matching technique. The research findings supported goal setting theory which predicts that performance benefits can be realised by implementing specific challenging goals because they have a motivational effect on employees compared to vague and easy goals. Findings also supported theory which suggests employee participation in goal setting and providing feedback led to higher performance compared to when goals are assigned and no feedback is given. The findings supported predicted positive relationships between rewards and performance. However, findings also suggested that performance management systems, or lack thereof, are unfair because rewards are distributed unjustly, which has a negative effect on performance. Nevertheless, it was suggested that employees are more motivated to perform by intrinsic factors, including achieving challenging goals, than extrinsic factors. These findings not only supported goal setting theory, they supported McGregor’s (1960) theory Y which argued that employees are ambitious and motivated by more than money, yet surprisingly also supported his theory X as it was revealed that some employees would only work harder if rewards, or performance bonuses, are given. Although the research aimed to test goal setting theory, findings also supported Vroom’s (1964) valence-instrumentality-expectancy theory, Maslow’s (1943) and McClelland’s (1975) need theories, which all argue that performance is enhanced by other sources of motivation. The findings supported contradictory theories, yet discovered interdependency among the theories, which created a cyclical notion. This means, Vroom’s (1964) theory argues that an employee can be motivated to perform better when there is a belief that the better performance will lead to good performance appraisal and in the realisation of personal goal in the form of some reward. It, however, implies that goal setting theory has no impact on employees’ performance. Yet, according to the qualitative findings, some employees will only increase performance if their performance is monitored and appraised. Therefore organisations are required to have performance management systems in place, in turn, supporting goal setting theory. The research attempted to generate meaningful insight that would be beneficial to organisations, in and outside Namibia, that are considering implementing or improving their performance management systems by incorporating what employees perceive to be fundamentally important. Communication, management support, performance feedback, education and training, goal setting and employee participation are amongst the factors perceived as essential to effective performance management systems implementation. As literature (Bernardin & Beatty, 1984; Fox & Spector, 2002) has affirmed, these findings stress that the effectiveness of performance management systems depends on employees’ attitudes and perceptions of the systems.

The mandate of the Department of Social Development (DSD) is to provide welfare services. These services are targeted at every citizen in South Africa and most importantly the vulnerable and poor people of South Africa. In order to ensure that it fulfills its mandate, the Department of Social Development (DSD) has put in place a Performance Management System which seeks to ensure that the deliverables are achieved effectively and efficiently. It is often argued that services for the poor are sometimes poor services, yet government devotes ample resources to improve these services. Thus the implementation of Performance Management System is strategically geared at improving service delivery in government departments. The Department of Social Development (DSD) is one of those departments that have implemented the Performance Management System but the results reveal that it has not achieved the expected outcomes, There is heightened job dissatisfaction, poor performance and low morale. The study sought to investigate the perceived impact of the performance management system on service delivery. The primary aim of the study was to investigate the contributions of the performance management system of the Department of Social Development (DSD) in enhancing the delivery of social services. The study employed a qualitative approach and it was exploratory in nature. The study population consisted of social workers and managers. In addition, there were key informants drawn from the Human Resource section. A total of 15 participants and 2 key informants were selected using purposive sampling. Semi-structured interview schedules were used to collect data. There were separate interview schedules for social workers as well as the managers. Face to face interviews were conducted with all the participants. The collected data was analysed using thematic content analysis. Ethical considerations were adhered to, as the researcher observed and adhered to conducting the investigation without bringing harm to participants and allowing the participants free will to choose to participate in the study. The major findings revealed that there is no common understanding of what performance management is. The study revealed that the performance management system utilised in the DSD had a negative impact on service delivery. All the participants identified the performance management system as a management tool. Various challenges that undermine the effectiveness of the performance management system were identified. These challenges include the role of supervision was identified as being suppressed as proper supervision did not take place and political interference was also identified as a challenge that undermined the effectiveness of system. The work output of social workers was affected by these various challenges.

XXX Pharmacy is an independently-owned retail pharmacy in Johannesburg. Good Pharmacy Practice standards make it mandatory for pharmacists to provide “pharmaceutical care”, a highly patient-centred approach to providing pharmaceutical services. Since XXX Pharmacy has a high patient load, a shortage of dispensary staff and a strategic focus on operational efficiency, the question arose whether pharmacists comply fully with Good Pharmacy Practice standards for the provision of pharmaceutical care. Non-compliance poses operational risks that could undermine the business’s financial performance. The research statement was thus that the current performance management system undermines compliance with Good Pharmacy Practice standards for the provision of pharmaceutical care to patients. A triangulation approach was used. The quantitative research method, in which 200 patients completed a questionnaire, investigated two research objectives: (i) whether the pharmacy complies with Good Pharmacy Practice standards for pharmaceutical care; and (ii) whether there is a relationship between patients’ race or gender and their responses. The qualitative research method involved conducting individual semi-structured interviews with all four dispensary employees to achieve another two research objectives: (i) to determine whether the provision of pharmaceutical care is viewed as a key performance area by pharmacists; and (ii) to investigate what aspects of the implementation of the performance management system are viewed as enabling or undermining the provision of pharmaceutical care.

Thesis (MPA) --University of Limpopo, 2012 / While performance management is a widely used system in many countries, in South Africa the Public Service Regulations (2001) is a base for a Performance Management and Development System in the public service. The Public Service Regulation (2001) gives effect to performance management systems for purposes of managing performance of individual employees, framework for performance assessment, the outcome and communication of assessment results, and managing unsatisfactory performance, as well as providing a framework on incentives for good performance. Each province is therefore, required to adapt the Performance Management System to its environment to ensure the implementation of the provisions of the Public Service Regulation, (2001). However, as cited by Letsoalo (2010), the introduction of a system of managing performance was received with different reactions, both positive and negative, by the vast majority of employees in the public sector. As a result, this study investigated the attitudes of individual employees towards performance management and development system. The main aim of this research is to present the conclusion drawn from the study, as well as make recommendations emanating from the analysis of information gathered in literature review and through questionnaires completed by departmental staff in the Department of Culture, Sports and Recreation. In identifying different reactions by civil servants to Performance Management and Development System, the study placed an effort in probing different perceptions on Performance Management and Development System amongst employees in the Department of Culture, Sports and Recreation in Mpumalanga Province. There are varying perceptions demonstrated by respondents regarding questions posed to them on the Performance Management and Development System as implemented in the Department of Culture, Sports and Recreation in Mpumalanga Province. There is a perception that the Performance Management and Development System is a penalizing tool used by supervisors on their subordinates and that official’s performance is not duly acknowledged as is supposed to. There is persisting conflict between supervisors and their subordinates resulting from supervisors rating their subordinates without their input, submission of performance results is for compliance It is held in this that the Department of Culture, Sports and Recreation must ensure that effective communication of the system to the rest of the employees of the provincial government is maintained so as to allow employees to understand the system and what is expected of them, the development of the implementation capacity internally through the Performance Management and Development System Champions will in any regard, and as such limit inconsistencies during application of performance management and development system which impacts negatively on the overall performance of the organization.

Corporate governance (CG) has recently received much attention because of the wave of financial scandals in the early 2000s and the more recent global financial crisis. CG reforms, including laws, codes and listing rules have been established to protect shareholders’ rights and restore investors’ confidence in the capital market. These reforms have largely contributed to the evolution of internal and external governance mechanisms that are aimed at mitigating agency conflicts between managers and shareholders. However, overemphasis has been placed on the monitoring and control dimensions of governance, which may hinder entrepreneurial activities, obscure business prosperity and contribute to a narrow perspective on CG. It has been argued that there is a need to broaden CG beyond compliance (conformance) to a set of rules and laws, to include the performance aspects of governance that focus on strategy and value creation. In other words, governance should not only focus on monitoring managerial performance to ensure accountability to shareholders, but also on mechanisms that motivate management to optimise shareholders’ wealth. Enterprise governance (EG) framework has been introduced to keep the balance between the conformance and performance dimensions of governance. However, few studies address the possible tension between conformance and performance. Moreover, there is no agreement among these studies on the relationship between conformance and performance in the governance context. Arguably, Value-based Management (VBM) is an appropriate approach to address the issue of EG. VBM adopts value creation as an overall objective, develops a strategy that contributes to value creation and integrates it into decision-making. In this way, VBM can act as an effective mechanism for motivating management to maximise shareholder wealth, which works in parallel with other CG mechanisms, to mitigate agency conflicts resulting from the separation between ownership and management. This study aims to develop a contingency framework of EG through operationalising the conformance using CG and performance using corporate entrepreneurship (CE). This framework examines the inter-relationships between VBM, compliance with the Combined Code on Corporate Governance (CCCG), CE and the ultimate effect on organisational performance. More specifically, the study empirically examines the effect of compliance with the CCCG on CE, and whether VBM can achieve a balance between compliance with the CCCG and CE, should a conflict exist. The study also examines whether a fit between contingency variables (company size, agency conflicts, uncertainty, strategy and decentralisation), VBM, compliance with the CCCG codes and CE is associated with organisational performance. To achieve the aim of this study a cross-sectional survey, based on a questionnaire, is conducted to identify the level of VBM implementation, contextual and organisational factors in the large and medium quoted companies in the UK. The questionnaire targets the Chief Financial Officers (CFOs) in these companies as key informants. In addition, a content analysis of the annual reports of the sampled companies is undertaken to measure the level of compliance with the CCCG. Financial data (e.g. organisational performance) have been obtained from the DataStream, Fame and Thomson One Banker databases. Partial Least Squares Structural Equation Modelling (PLS-SEM) is adopted for data analysis and hypotheses testing. The results suggest that VBM implementation is positively associated with agency conflicts, low cost strategies and decentralisation. Compliance with the CCCG is positively associated with agency conflicts and company size. CE is positively associated with company size, uncertainty and differentiation strategies. In addition, the fit between compliance with the CCCG and contingency factors significantly predicts the marketbased performance. The fit between CE and the contingency factors significantly predict the perceived performance. However, the results regarding the effect of VBM on organisational performance are mixed. While VBM has no significant direct effect on the market-based performance, VBM has indirect positive effect on the market-based performance acting through compliance with the CCCG as an intervening variable. VBM is significantly associated with compliance with the CCCG but not with CE. No evidence is found for negative association between compliance with the CCCG and CE. The results support a large number of the proposed relationships between the contingency factors, VBM, compliance with the CCCG and CE. The results also suggest that using both compliance with the CCCG and CE as intervening variables in the relationship between VBM and organisational performance contributes to explaining the mixed results in the VBM literature. In terms of the EG framework, VBM does not keep a balance between conformance and performance. VBM emphasises the compliance with the CCCG (conformance) at the expense of CE (performance). The results did not provide significant evidence of a conflict between compliance with the CCCG and CE, the area which lacks empirical evidence. This study contributes to the literature at different levels. At the theoretical level, this study develops a theoretical model that links a performance management system (PMS), i.e. VBM, to CG practices and CE. This model attempts to bridge the gap between different disciplines, including management accounting, CG and entrepreneurship. Furthermore, combining both the contingency theory and the agency theory lenses contributes to the development of a comprehensive model of EG. At the methodological level, unlike previous studies, this study measures VBM practices on a continuum, rather than categories. Multiple data collection methods are used, and a powerful statistical technique (PLS-SEM) is adopted for data analysis. At the empirical level, the study is conducted in the UK. Though it is different from the US in many aspects, very few studies have been conducted in this context in many research areas such as VBM, CG and CE.

Thesis (M.Dev.) --University of Limpopo, 2006

This qualitative study identified the formal and informal performance management (PM) practices in use in Australian public universities for academic staff Levels A, B and C. It asked the following research questions. • What PM practices are currently in use in these universities? • What are the similarities in approach and what issues does PM raise? • How do academic staff who take part in these practices (as either staff or management) experience them? • What cultural and contextual factors (if any) contribute to this experience? • What are the perceived effects of these practices on the performance of individuals, teams and the organisation? • Which system elements do academic staff and academic managers perceive to be most effective in academic cultures and why? The context of substantive change within Australian universities was outlined and literature pertaining to the field of PM in general, and in educational organisations in particular, was explored. The existence, structure, purposes and other factual details of formal PM systems were identified, although the study focused on the opinions, perceptions and attitudes of the respondents. Findings suggested that current PM practice in Australian public universities did little to meet the needs of any of the key stakeholders and remained fundamentally unsatisfying to all concerned. Furthermore, the failure to clearly articulate the purposes and to consider the implementation and ongoing costs of a formal PM system typically resulted in widespread cynicism and a ritual dance of compliance that demonstrated palpably low engagement with systems. Formal PM systems helped to clarify objectives and workload allocation for some staff, but were found to be poorly linked to organisational planning processes, poor at differentiating levels of performance, not valued by academic staff as a vehicle for meaningful feedback, failing to follow through on development outcomes and thus did little to build team, individual or organisational capability. Study recommendations suggested that developmental models of PM were more appropriate and acceptable in academia and that considerable work would be required to incorporate evaluative links such as performance-related pay successfully. More rigorous evaluation, consultation processes regarding user preferences, piloting of PM systems prior to full implementation, and dedicated resources for the PM function and its outcomes (such as staff development), would be required as a part of a comprehensive change management strategy to overcome historical resistance. A thorough capability analysis of the people management skills for Heads of School and above was seen as a priority, given that feedback skill and the management of under-performance were consistently identified as problematic. The costs of under-performance warranted this expenditure. A national evaluation study of PM practice in higher education was recommended to assess the real outcomes, costs and benefits and determine whether continued investment in PM systems was actually merited. Alternative models and approaches such as modular PM systems for the different stages of an academic career, promotion portfolios, reflective practice or peer learning groups were suggested as potentially more successful in enhancing the accountability and performance of academic staff than mandated hierarchical PM.