The Relationship Between Performance Management and Employee Performance at The National Medical Stores of Uganda

Abstract

The study was an investigation into the relationship between performance management and employee performance at the National Medical stores of Uganda at Entebbe. The study specifically sought to examine the contribution of four performance management dimensions: performance planning, performance review, performance support and performance rewards on employee performance at NMS. The study was motivated by the lack of empirical evidence on the effect of the previously introduced performance management system on employee performance at NMS. A case study design was used. Both questionnaires and interviews were used to collect data from management and non management staff respectively, who constituted a sample of 79 persons chosen by stratified random sampling out of a population of 108 NMS staff. A response rate of 78% to questionnaires was achieved. Data analysis established that of all four dimensions of performance management, only performance review statistically explained 45% of the variance in employee performance. Triangulation of data from interviews and the questionnaires indicated that both performance planning and performance rewards increase employee performance at NMS. There was no evidence to justify a relationship between performance support and employee performance. It was established that a poorly implemented performance management system was negatively affecting employee performance at NMS. It was the recommendation of this research, therefore, that NMS BOD and Management revamp the performance planning, review, support and reward systems in order to put in place a comprehensive performance management system that will improve employee performance at NMS.