| Abstract: | Performance management system is part of human resource management which is a continuous process
for improving organizational performance by developing the performance with the strategic goals of
the organization. Performance management helps to empowering, motivating and rewarding employees
to do their best. This study aimed to assess the employee performance management system (EPMS) in
Nyala Insurance share company and identify its practices and challenges. To undertake the study
descriptive method is used to carryout the research and both primary and secondary data is used to
analyze the data. To achieve the goal of this study,185 employees of the organization were participated.
However, responses were received from 183 employees that gave a response rate of 98.92%. The findings
revealed several major conclusions. Firstly, employees demonstrated a limited understanding of the
purpose of EPMS, leading to a lack of motivation to participate. The link between EPMS objectives and
organizational goals was perceived as weak, indicating a need for better alignment. However, employees
showed familiarity with the company's mission and vision, and the strategic objectives were well defined.
Concerns were raised regarding biased evaluations and unfair appraisal during performance reviews.
Supervisors lacked frequent coaching for performance improvement. The study emphasized the
importance of linking rewards to performance for enhancing employee motivation and reached to the
following conclusions. In conclusion, the study tells that employees have a limited understanding of the
purpose of the performance management system, hindering their motivation to participate. There is a
weak link between system objectives and organizational goals, highlighting the need for better alignment.
Performance measurement standards are generally deployed, but concerns exist regarding biased
evaluations and unfair appraisals. Supervisors lack frequent coaching, and the connection between
rewards and performance needs strengthening. Challenges include a lack of alignment with the corporate
mission, limited supervisor commitment, and insufficient monitoring of objectives. |
