HOW CAN A PERFORMANCE MANAGEMENT SYSTEM HELP A SINKING ORGANISATION?

Agang construction is a small construction organisation formed after 1994 as a Black Economic Empowerment initiative introduced when the democratic government took over in South Africa. The management of this organisation is made up of four young men, who decided to register a business venture after being unemployed for many years. This organisation won a tender to renovate all the reconstruction and development program (RDP) houses that where built between 1994 and 2010 in Modimolle. The tender was advertised due to a rise in the complaints by house owners complaining about several structural problems ranging from leaking roofs to deep cracks on the walls of their houses. First priority was give to houses located alongside Lepelle river, as they are at serious risk of collapsing. Just a few days before the construction work was about to start, employees embarked on a strike. This frustrated management, as they never experience any industrial action prior to this. Unfortunately, they had to face the strikers to receive a memorandum of demands.

The following were issues that they were demanding their management to look into:

1 Daily targets that are set way too high

2 Unfair compensation and promotions

3 No distinction is made between good and poor performers

4 Broad organisational structure

5 Lack of corporate citizenship

6 No clear job descriptions for individual employees

7 Unequal workloads

8 Sexual harassment of female employees

9 Leave days do not comply with the Basic Conditions of Employment Act

10 No job security due to the 4th industrial revolution that the world is facing

The management of this organisations regards you as an expert in human resource issues and came to see you for advice.

QUESTION 2

Find a relationship between the following elements of a business environment and the purposes of a performance management system:

2.1.1 Technological environment and developmental purpose

2.1.2 External political/legal environment and administrative purpose

2.1.3 Organisational culture and organisational maintenance purpose

2.1.4 Organisational processes and informational purpose

2.1.5 Economic environment and administrative purpose.

2.2 Provide and describe the factors that influence the determinants of performance and explain how each one influences employee performance. Provide practical examples of how they affect individual performance in your discussion.