Many companies have performance management systems that incorporate financial and non-financial measurements. All organisations have financial and non-financial measures. However, many use their non-financial measures for local improvements at their front-line and customer-facing operations. Performance management is a shared process between managers and the individuals and teams they manage. It is based on the agreement of objectives, knowledge, skill and competence requirements and work and development plans. The Balanced Scorecard includes financial measures that reflect the results of actions already taken, complementing the financial measures with operational measures on customer satisfaction, internal processes, and the organisations innovative and improvement activities. The Balanced Scorecard combines both quantitative and qualitative measures, acknowledge the expectations of different stakeholders and relate an assessment of performance to choice of strategy. The objective of this study was to assess current performance management that is applied within the manufacturing division at Continental Tyre South Africa. To achieve this objective, a comprehensive literature study was performed on performance management and The Balanced Scorecard. A questionnaire was designed based on the guidelines in the literature study in order to establish the extent to which Continental Tyre South Africa manages performance. The researcher used the random sampling method of selection and distributed the questionnaire to 120 potential respondents via electronic mail and physically. Seventy seven completed questionnaires were returned and these were processed and analysed using Microsoft Office Excel 2003, iii running on the Windows XP suite of computer packages. The opinions of the various respondents were compared with the guidelines provided in the literature survey in order to identify shortcomings of performance management and the achievement of individual and departmental objectives within the manufacturing division at Continental Tyre South Africa. The following main recommendations were made: Continental Tyre South Africa should continue with the sharing of its strategic objectives with management and staff, and must ensure that these objectives are also shared all the way down to the shop floor; It is imperative that management and staff mutually agree on performance objectives for the individuals; Senior management must measure management and staff on how well they performance manage their direct reports and develop people where performance short-comings exist; It is imperative that management and staff undergo performance management training; Management must ensure that there current performance management system incorporates a method to distinguish between top and poor performers; and, It is advisable that senior management consider a mechanism that rewards top performers.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8556 |
| Date | January 2007 |
| Creators | Dowling, Jurgen |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xiii, 113 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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