First of all, my love and blessing for my husband and parents for their financial and mental supports during this research work. Then, I would appreciate my honorable supervisor for supports through feedbacks and suggestions. I also thank the participants who contributed a lot in the way of collecting data through the survey. Next, I give many thanks to the publishers of different books, websites and journals that I have used as sources in this research work. Finally, I would appreciate the peoples who work in the university library and who helped me a lot in access books and journals from the university library.
This paper aims to conduct an investigation on the contribution of performance management system towards staff performance in the business organizations of developing countries including Dutch-Bangla Bank Ltd, a renowned commercial and private bank of Bangladesh. The study also aims to provide recommendations for businesses (including Dutch-Bangla Bank) of developing countries. The key objectives of this study are: To investigate the contribution of performance management system towards the business organizations of developing countries; b) to investigate how the contribution of staff performance towards the business organizations of developing countries; c) to analyze the effectiveness of performance management on the staff performance of Dutch-Bangla Bank Ltd; and d) to provide recommendation for business (including Dutch-Bangla Bank) of developing countries.
This study used several methodologies. The pragmatic philosophy, abductive research approach and both descriptive and explanatory design were applied in this study. A survey was conducted on 50 staff of Dutch-Bangla Bank, Bangladesh to collect primary data. SPSS and MS Excel were used to analyze and present data. The finding of this study reveals that PMS practiced by Dutch-Bangla Bank significantly influences staff performance in the workplace. The majority of participants (57%) think PMS helps businesses to complete their works and jobs in right and proper ways at the workplace. Then, 54% of participants disclosed that PMS helps to develop the key competencies at the workplace, and 58% of participants revealed that PMS helps the staff to be part of decision making. Additionally, 55% of participants said that PMS inspires its staff to exercise their rights, whereas 53% of participants think PMS is helpful to increase staff performance.
However, 22% of participants suggested the evaluation of PMS effectively at the workplace and 23% participants suggested giving proper training to the staff, 15% of participants recommended maintaining the conflict between the management and the staffs of Dutch Bangla Bank. Furthermore, 12% of participants suggested making the performance management systems automated and the other 16% of participants suggested making PMS adaptable and intuitive. Finally, to improve performance management systems at the workplace Dutch-Bangla Bank can motivate and give reward to the staffs about performance management systems can
Chapter 1: Introduction
1.0 Research Background
Performance management includes a number of business activities and initiatives that ensure show effective and efficient ways of gaining business purposes. Performance management of a business mainly focuses on both staff and organizational performance (Fletcher, 2015). Mullins (2014) said the definition of performance management is a strategic process that is integrated into a business to increase organizational and staff productivity and individual and team capabilities. Bacal (2015) defined it as a process that creates an environment to perform better in the workplace. Torrington et al. (2015) said it is an integrated and strategic method for increasing staff and organizational performance. Bretz and Milkovich (2017) stated that staff performance refers to the assessment of their efficiency within a specific time period. Business success most importantly depends on the staff performance that creates emergency for businesses to focus on this issue. Business performance depends on the business productions, where staffs are motivated and inspired through several incentives and rewards to increase their performance and productivity that, in turn, support to gain organizational goals.
However, Kundula (2016) argued that many businesses face difficulties in managing staff performance in their workplace. Lebas (2015) stated that performance management must be evaluated in a particular setting to increase staff and organizational productivity and performance. In developing countries like Bangladesh, many businesses face difficulties in managing their staff and organizational performance. Chowdhury (2017) stated that the majority of businesses in Bangladesh face challenges in understanding and appreciating performance management. Many organizations still now in Bangladesh are applying old-style, bureaucratic systems, and highly hierarchical structures due to inadequate management and leadership capabilities. Alom et al. (2017) said due to a lack of transparency and technical capacity many organizations in Bangladesh fail to ensure effective staff and organizational performance. In this circumstance, business organizations of third-world countries need to conduct a study on the effectiveness of performance management systems to improve both staff and organizational performance.
1.1 Organization background
This study based on a business case called Dutch-Bangla Bank. It is a local, private but renowned commercial bank in Bangladesh. This bank is technologically advanced and provides innovative and affordable banking products and services. Thus, this bank has been leading the commercial banking sector of Bangladesh. In terms of social works, the Dutch-Bangla bank is the largest private donor. It has a stronger commitment to social responsibility. It also tries to bring excellence through service innovation and product innovation. This bank believes that people do not only live by bread and butter. That is why only gaining profits and revenue are not the focus of this bank; rather it focuses on several social activities such as initiatives for musicians and athletics, for clean and pollution-free environments, for health and hygiene issues, for science and education, and for morality and ethics in lives worth living. Additionally, this bank always focuses on customer changing needs and expectations. However, the bank is facing challenges in its performance management along with its organizational performance and staff performance (Dutch-Bangla Bank, 2019).
1.2 Research rationale
Armstrong and Baron (2016) stated that a performance management system costs several processes and components that are effectively and efficiently applied by an organization to meet its business purpose and performance including staff performance. The key goal of performance management is to establish the efficient and effective performance of staff at the workplace (Cook, 2015). Edmonstone (2016) highlighted that the process of performance management identifies the necessary qualities of the staff as well as the necessary actions for the betterment of the organization. Buckley and Wiese (2014) noted that every business firm needs to evaluate the performance of the staff and to determine staff limitations and strengths in the workplace and to provide them adequate guidelines, suggestions, mentoring and coaching by which they can ensure and improve their performance.
This is obviously true that people in a business are the great and most valuable assets but the outcome of these assets and resources totally depends on how they are being utilized and managed in the workplace (Jabeen, 2015). For this reason, business firms take several methods and strategies to boost up staff performance. The HRM department of a business can take several motivational techniques to motivate the staffs that contribute a lot in the way improving staff motivation, satisfaction and performance. The HRM department of a business organization should use monetary and non-monetary methods of motivation to ensure staff performance. The profitability and liquidity as well as the brand image of the business firm depend on effective performance management (Parry, 2016). Therefore; the importance and necessity of performance management can’t be ignored.
According to Jabeen (2015), the developing countries’ business firms are facing several barriers and challenges to manage the performance of the staff. Luthans and Stajkovic (2018) revealed in their study; the performance management functions increase the pressure on the staff that increases the staffs’ dissatisfaction. Mone and London (2016) stated that the staffs have to deliver their functions within the due time for ensuring their better performance that impacts negatively on the mind set up of the staff. In Bangladesh, business firms are using the old hierarchical and bureaucratic leadership and management styles. In addition, businesses in third-world countries like Bangladesh do not have adequate management skills and systems due to technological limitations as well as lack of transparency. For this reason; the topic of the assignment is a very significant issue for the present situation of a developing country like Bangladesh.
1.3 Problem statement
Some of the companies have maintained their performance management system and faced several problems regarding their performance management system (Singh et al., 2016). Most of the studies suggested that performance management systems practiced by third world countries’ businesses should be updated on a regular basis on the basis of requirements (Cook and Crossman, 2014; Singh et al., 2016). The previous studies found that a performance management system has several barriers and challenges to establish in the business working environment. Fletcher (2015) revealed that motivational techniques can create a good relationship between staff and employers that contributes a lot in the way of staff performance improvement in the workplace of third world countries’ businesses. In this research paper; the key highlighting factor is to identify the present situation of the staffs’ performance, impact, challenges, problems and the method of boosting up the performance of the staffs of developing country like Bangladesh.
1.4 Aims and objectives of the study
This study aims to investigate the contribution of performance management systems practiced by the businesses of third world countries towards staff and organizational performance. This study focuses on a particular case, where the case business is Dutch-Bangla Bank that is a reputed commercial, local and private bank in Bangladesh. Then, the study aims to give guidance for third world countries’ organizations (including Dutch-Bangla Bank)………