Introdcution: Planning, Implementing Effective Performance Management Polices
In order for a company to generate profits and have customers in a competitive environment, it is critical to review the organization’s internal policies. Performance management can be described as the systematic procedure of enhancing organizational performance by improving the effectiveness of individuals and teams working with the organization (Leithy, 2017). It is a tool for obtaining better results from organizations, teams, and individuals by understanding and managing their performance within planned goals, standards, and competency requirements. In other words, performance management is executing an organization’s leadership strategy. It provides a process by which plans are transformed into desired results in organizations. For example, in 2021, Safaricom announced that it would offer a new product for cell phone banking (Kirui, 2019). Thus, the strategic objective was to enter the financial services market in the region. To achieve this, the company applied instruments such as motivation and partnership. Safaricom management chose a method in which employees are made aware of these prospects and learn how to work effectively to achieve the aim. Accordingly, performance management has become a powerful tool contributing to the team’s success.
Performance management is misunderstood as human resources and personnel systems, but it is profoundly different when measured in execution. Performance management encompasses the methodologies, processes, software tools, and techniques that manage organizational performance. Human resource planning only takes care of individual employee job responsibilities and execution (Leithy, 2017). The benefits of performance management extend to greater cross-functional participation in decision-making and calculated risk, providing greater transparency for implementing the organization’s strategy. Performance management involves multiple managerial roles, which shows that managers must be communicators, leaders, and collaborators (Kirui, 2019). All team members need to comprehend their responsibilities and expectations and operate accordingly to accomplish their objectives.
Organizational effectiveness is essential for an organization to function in the markets. The concept of organizational effectiveness traditionally includes assessing the activities of all the main functions: creation, marketing, money, and personnel management on a scale of made costs and the result obtained. Therefore, an effective organization should be adaptive, conducive to achieving the goals, and integrated and consistent with the internal personalities of its members (Leithy, 2017). A high level of adaptability is necessary for survival and development in the context of radical and qualitative changes occurring in culture and society. In a broad sense, adaptation is a process of changing socio-cultural dispositions aimed at fulfilling personal conformity and comfort in interaction with the immediate social and physical environment.
It is essential to mention that the primary indicator of effectiveness is profitability. With this concept, the administration assesses the company’s profitability by evaluating the entire activity process, from the acquisition of resources to sales (De Waal, 2017). Safaricom is interested in earning significant profits and is constantly innovating to compete in the market. For example, Visa and Safaricom, East Africa’s largest telecommunications company and M-Pesa mobile money product operator, have launched a virtual card. The card allows millions of M-Pesa users to make digital payments worldwide, and Visa will expand its reach across Africa (Kirui, 2019). Therefore, the company will establish new services and capabilities to enhance revenues.
It is crucial to note that employees are one of the central factors in achieving organizational productivity. Accordingly, the negative impact of employee non-involvement and consequently low productivity is that they cannot contribute to achieving company goals. Therefore, due to the specific nature of Safaricom’s work, managers regularly make efforts to make employees feel happy at work because happy employees tend to be more engaged (De Waal, 2017). The specific nature of a company that provides mobile communications to the public requires employees to be in contact with customers. There may often be problems with connection or connectivity, which is why it is essential that employees not only mechanically do their work but also be engaged (De Waal, 2017). In this way, it will enable customers to feel cared for and, at the same time, appreciate the high level of service.
Moreover, Safaricom is interested in continuing to operate in the market. This is because the company is the largest provider of telecommunications services in Kenya and is one of the most advantageous businesses in the East and Central African region (Kirui, 2019). In order to achieve these goals, the organization is constantly enhancing its efficiency and introducing mobile money transfers or streaming music. Accordingly, this assists in expanding the client base, which generates demand for the organization’s products and services. Thus, Safaricom is constantly working on organizational efficiency for productive performance.
Arguments for Utilising Appropriate Performance Management Techniques
Performance management techniques are the means by which an employer assists in maintaining and promoting effective worker performance. They can range from choosing employee management principles to adopting technical means of tracking performance and adopting formal policies. Methods of performance management are also the means by which an employer assists in preventing unlawful acts (Helmold & Samara, 2019). Performance management often begins with employees having formal job descriptions. The absence of a definition of roles and responsibilities often leads to poor performance, reduced staffing, missing roles, or general confusion. The presence of a formal job description also allows for a more seamless evaluation of employees because expectations and responsibilities are clearly defined from the beginning. In this way, Safaricom offers different services and signposts employees in various departments about their responsibilities (Ndugu & Koori, 2020). Therefore, the company has a division of responsibilities, and workers have a clear understanding of their own areas of competency.
Then the employer has to ensure that staff members are aware of how to perform their jobs and have the resources to support them in achieving their duties better. Employers usually use mentoring and training programs to accomplish these tasks (Helmold & Samara, 2019). There are different techniques for supervision; for example, companies specifically assign senior employees to junior employees with a requirement to meet frequently, while other companies encourage more casual mentoring cases. Safaricom implements a technique that promotes on-the-job training programs for employees. The company offers training resources for its workers with little formal instruction (Ndugu & Koori, 2020). This allows for continuous improvement in customer service and improves the organization’s rating.
The organization also uses a variety of compensation models to maintain and encourage maximum performance. Pay raises, bonuses, and special benefits are shared when employees set specific performance goals or exceed management expectations. It is also significant to mention that effective and transparent management always works in a mutual way (Helmold & Samara, 2019). This means that not only does the manager have the right to demand that the professional perform the job duties. However, the professional also has the right to request that the supervisor provide clarification, support, and direct assistance within their area of responsibility.
In order to enhance the effectiveness of personnel, it is not enough to practically set them a task and periodically analyze the reports. It is essential that the specialist can always address any question to their manager and be assured of honest and transparent feedback (Helmold & Samara, 2019). Effective management of progressive enterprise supposes feedback is closely connected to two notions of corporate culture and called “the method of 360 degrees” (Helmold & Samara, 2019). The essence of this method is that not only the top manager evaluates the work of a specialist but also colleagues, specialists from other departments, and even clients. Accordingly, it enables the company to obtain unbiased and comprehensive employee data (Ndugu & Koori, 2020). This contributes to the fact that management can identify problems and suggest eliminating or rewarding employees for their hard work.
Finally, KPI techniques and metrics are a way to measure company results, team-wide interactions, and the success of individual projects. However, KPIs are mainly a way to discuss results and make the right decisions. A well-designed system of performance indicators (KPIs) becomes an essential tool to build a comprehensive picture of current performance levels, to know where the business is and what more needs to be accomplished (Helmold & Samara, 2019). It is important to note that Safaricom uses the KPI method to evaluate each employee personally, and based on that, management evaluates the organization’s overall performance.
It is critical to remark that performance management techniques may be essential when people’s fundamental techniques lag behind what they hope for or the expected outcome. The company may use a method based on personal development plans in such a case (Helmold & Samara, 2019). Personal development reports are often used to determine what training an employee needs, and a plan is created to achieve those goals. For example, specific training courses can be offered. In this way, staff can understand the direction in which to develop and what specifically needs to be done (Helmold & Samara, 2019). People understand their role in the overall success, and specific steps serve as an incentive for individual work in the future. Consequently, performance management tools, special techniques, or development are integral to building a high-performance team. Each business, including Safaricom, needs high performance at every level of the organization.
Knowledge and Critical Evaluation of the Role of Communication
The ability to communicate with subordinates to establish proper communication are soft skills essential for every manager and supervisor. Managers are obliged to communicate with employees and should find the appropriate time for such dialogue and the proper words to enhance the employee’s performance (Bucata & Rizescu, 2017). However, managers and subordinates have different views of the company. In general, managers view only the goal and mission of the company, and they focus on accomplishing results. Employees are less interested in global purpose; they have a plan and try to execute it (Bucata & Rizescu, 2017). Managers should combine visions and provide staff with information about how their actions help achieve the company’s mission and global objectives. Thus, according to Herzberg’s Two-Factor Theory of Motivation, two factors are important (Bucata & Rizescu, 2017). Job content is a success, recognition, career advancement, interest in work, opportunities for professional growth, and responsibility. Accordingly, if the second factor is missing, it is impossible to succeed at work. Therefore, it is necessary to discuss with employees who can not perform specific objectives of the problematic issues and once again explain to them the overall concept of the company.
It is significant that in large companies, the formal form of communication enables communication between staff and management. At Safaricom, management selects a quiet form of communication that allows them to explain to employees in plain language what is occurring in the organization. In addition, if there are problems related to the inefficiency of specific workers, their role should be explained in accordance with the link to the fact that it is critical to fulfilling the plans (Bucata & Rizescu, 2017). The company focuses a lot of weight on cases where employees do not perform as expected. Although, managers always attempt to put themselves in the employee’s shoes and think about how they visualize the situation on their behalf. This approach will help bring subordinates closer to each other and enhance their involvement with the firm.
It should be emphasized that the strengths of this method are the individual approach to each employee and, as a consequence, quick results. The disadvantages relate to the fact that managers devote a lot of time to explaining general information, which leads to the fact that this form of communication is not sufficient (Bucata & Rizescu, 2017). The company loses managers’ working time, which is not used effectively. It is also a weakness that workers lose a sense of subordination and have no fear of being fired or punished (Bucata & Rizescu, 2017). However, the obvious benefit of this form of communication is an individualized approach to helping workers achieve productive work.
It is significant to mention that for people, not being attentive to their work is equivalent to devaluing their labor, primarily if workers perform tasks productively. Thus, according to the theory of motivation, the attention displayed contributes to performance (Mihai, 2017). Hence, it is critical to provide immediate response instead of quarterly or year-end feedback. This will help demonstrate to the employees that the management appreciates their efforts. Employees become frustrated if this does not happen because the link between behavior and consequences is disrupted (Mihai, 2017). When people do not get a timely response to their actions, they begin to doubt themselves.
Moreover, in order to encourage employees to work productively in the future, it is required that the manager use the method of direct motivation. Implementation is possible only with an individual approach to the personal priorities of each employee. For example, it is one-time assistance for a successfully completed financial operation, receiving bonuses from high profits, percentages of income, and others (Rukunga & Nzulwa, 2018). This will support the desire of employees to work through and will be the return of managers’ formal response to the success of the staff.
At Safaricom, managers emphasize the contribution of efficient workers to the company. They use a formal form of communication and promptly respond to them about their performance evaluation (Rukunga & Nzulwa, 2018). A bonus system lets workers know that the company values them and rewards their performance. The strengths of this communication are that they make top-level compensation decisions and save time talking to each individual employee. The advantages of this approach are that workers positively appreciate management’s attention, and managers save work time. The weaknesses, though, are that sometimes employees want individual and public distinction (Rukunga & Nzulwa, 2018). As a consequence, when they do not receive it, it causes a decrease in their productivity.
Critical Evaluation of The Effectiveness of Performance Management
In the current fast-changing business environment, people management in companies that sell services and focus on presenting high-quality service is becoming central. These days, to survive and succeed, such companies need to apply increasingly radical and profound methods of people management (McDavid, 2018). In today’s environment, human resources remain one of the few areas that offer a long-term competitive advantage to service firms. It is significant to emphasize that a Kenyan company provides a constant exchange of experience between employees in different departments to ensure performance (Gachigo et al, 2019). Managers ensure that all employees have equal opportunities and that there is a stable organizational climate. At Safaricom, managers support employees in all phases of their work to provide quality services to customers.
It is essential to emphasize that good management is communication with staff and customers. Effective communication is a prerequisite for successful performance management. Safaricom managers communicate with employees in order to monitor their performance and assist them in case of inefficiencies. Management also expects subordinates to meet realistic goals, which boosts corporate morale. Safaricom also uses personnel management practices that enable strategic plans. That is, managers, familiarize staff with new assignments and explain their responsibilities in detail (Gachigo et al, 2019). In this way, it provides employees with a clear understanding of their goals and enables them to receive timely assistance from their management.
In addition, Safaricom’s managers attempt to adhere to the concept of creating and maintaining an organizational climate. Safaricom executives try to comply with a concept that contributes to creating and maintaining an organizational climate (Gachigo et al, 2019). In this way, sharing experiences among employees and the support of managers ensures quality customer service. Interestingly, managers not only provide tasks to employees but also explain strategic plans for a better understanding of the company’s overall mission (Gachigo et al, 2019). Accordingly, at Safaricom, workers understand exactly how some of their performance will affect the total outcome. This provides a way for them to accomplish their own goal effectively.
Safaricom managers use KPIs as a metric for achieving success in certain activities or in achieving specific employee goals. KPIs are thus a quantifiable indicator of actual results obtained. The organization uses a type of “lagging” KPI because the system is focused on the past, reflecting performance after the period (Gachigo et al, 2019). For example, turnover statistics indicate the current situation but do not demonstrate how to change it. Equally, the decline in employee performance can be tracked and categorized into weak and strong employees.
Although the measures that the company has chosen to help weak employees, specifically the inclusion of productivity improvement plans, do not produce results immediately. This is because the problem should first be identified in the employees, and then an exchange between the successful and ineffective workers should be arranged. It is significant to highlight that Safaricom does not have a fixed number of top employees, and therefore sharing experiences takes place without fear that it will affect their ranking in the company (Gachigo et al, 2019). The organization also provides training for staff to enhance their competencies. This improves efficiency, but Safaricom needs a quick response to such challenges. This is because the company offers services and requires that clients are satisfied with the service.
The company’s method enables it to evaluate each employee’s effectiveness and assist or reward them. Although for a quick response to the needs of staff, it is better to apply “anticipatory” KPIs (McDavid, 2018). This type is focused on the future; the system offers the opportunity to manage the situation within the reporting period in order to deserve the specified outcomes immediately after the end of the period. For instance, this method increases the level of involvement of employees, thus increasing the necessary efforts to achieve the best results (McDavid, 2018). At the same time, the lack of a fixed number of the most effective employees allows for an exchange of experience between people.
In this case, workers with the best performance indicators explain how they achieved them and provide advice. In addition, the fact that the company organizes training allows it to enhance the level of customer service constantly. The KPI will enable managers to divide the cooperation into successful ones, for whom they are offered experience, and weak ones, for whom training is organized (McDavid, 2018). This is the proper solution because this is the only way to manage human resources effectively. Eventually, such a technique is crucial to achieving the company’s success.
Conclusion
Hence, personnel performance management is a set of measures that monitor the performance of specialists in the field. The analysis of these characteristics provides an objective assessment of the work of employees, clearly indicating which business processes do not reach a rational level. Personnel efficiency is determined by how exactly the employees of the organization perform their job duties and how much time they spend on their tasks. Personnel management as a systematic approach is designed to discover and address these problems continuously. Safaricom managers actively work to ensure that employees are productive. They explain to workers the company’s entire global purpose and specific objectives for each employee. At the same time, managers use ways to communicate effectively in order to monitor the delivery of customer service constantly. If the administration, with the assistance of the KPI, identifies specific problems in the workers, they offer solutions. For example, exchanges between the best and most difficult employees or refresher courses. This enables workers to feel supported by management and to perform their jobs better.
Moreover, the company has an incentive system for the best employees, and their number is not limited. In this way, it provides constant motivation for the workforce, enhancing their work efficiency. In general, the company’s management system considers employees’ individual needs, which ensures quality customer service. Although changing the KPI system has the potential to increase workforce productivity and produce higher profits for Safaricom. This is because responding quickly to problems is the foundation for the successful functioning of an organization. Hence, the way Safaricom manages its workforce in the African market enables it to move forward with its strategic plans. As a result, the organization is one of Kenya’s largest communications service providers. That is why the main factor for reaching such a outcome is successful management.
References
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