a post implementation review of a performance management system at wateraid in malawi

A Post Implementation Review of the

Performance Management System at

WaterAid in Malawi

BODGERS GWEDEZA

An Independent Study & Investigation (Business Impact

Report)

Completed in partial fulfilment of the requirements of

a

Master of Business Administration (MBA)

University of Derby

The Derby Business SchoolUnited Kingdom

July 2012

MBA Business Impact Study Report, Bodgers Gwedeza, 2012, University of Derby

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Executive Summary This paper is a business impact study report prepared in partial fulfilment of the award of the Master of Business Administration by the University of Derby. The report presents results of a business impact study on the implementation of the performance management system at the Malawi Country Programme of WaterAid.

WaterAid in an International Non Governmental Organisation that supports provision of safe water, sanitation and hygiene education to the world’s poorest people. In 2012, WaterAid was working in over 27 countries in Africa, South Asia and more recently in Central America. In 2010 WaterAid introduced a performance management system in all its offices across the world. There were indications that the system was not working in the Malawi Country Programme. This study was conducted to investigate causes of the poor adoption of the system in Malawi and take remedial action to ensure robust performance management

The study commenced with a literature review to gather information on performance management systems and how they are implemented. The literature review included books, research reports, academic papers and websites of professional human resource management bodies. Information gathered was used to evaluate the WaterAid system in Malawi and for developing a revised system for re-implementation.

Findings of the study showed that the basic system was generally good except for a few design problems that included absence of a clear link to organisational objectives. The major problem was that implementation of the system was done with minimal consultation with its stakeholders, and that orientation of implementers was not through enough to provide the confidence necessary skills and competencies. Another problem was that the MBA Business Impact Study Report, Bodgers Gwedeza, 2012, University of Derby

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system was implemented without due regard to the varying contextsof WaterAid offices globally

The outcome of the study is a redesigned system and an implementation plan that that addresses issues from earlier implementation. The full impact of reimplementation could not be evaluated within the time frame of this study. The plan however includes annual evaluation of the system for continuous improvement


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Sponsor Letter

To whom it may concern

I the undersigned confirm that this project and report undertakenby Bodgers Gwedeza has been shown to have business impact on the organisation.

The outcome of the project has shown impact in:(please tick the appropriate box or boxes)

Improvements in business process / procedures Improvements in customer / client support (internal or external) Improvements in business / working relations (internal or external) Generation of new business Achievement of key business objective (on time and within budget)

N.B. The changes / development / improvement may be at organisational, division or departmental level and can relate to product, service or market provision

Please provide a specific comment to indicate / show how this impact has been achieved:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


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Yours truly,

Name:

Position:


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Acknowledgements

I would like to express my gratitude to my wife Alice for her

support, encouragement and proofreading this document. To our

boys Nathan (the prophet) and David (the king) I say thank you

for enduring my absence at home and suspension of my fatherly

care while I studies and wrote this paper

I am also indebted to WaterAid in Malawi for sponsoring the study

and providing unlimited access to the organisation. To my fellow

members of staff I say thank you all. Your eagerness to support

me was unbelievably beyond my expectation.

The Malawi Institute of Management (MIM) provided great support

to me while I conducted this study, especially my supervisor Mr.

Alex Chanza, who was very understanding, and the Library staff.

Thank you all

Lastly I would like to thank all my relatives and friends too

numerous to mention who encouraged me throughout my studies. The

encouragement kept me going.


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List of Abbreviations / Acronyms

CIPD Chartered Institute of Personnel and Development

CP Country Programme

INGO International Non Governmental Organisation

JD Job Descriptions

JP Job Purpose

KSAC Knowledge, skills, Abilities and other Characteristics

NGO Non Governmental Organisation

PM Performance Management

PMS Performance Management System

SMT Senior Management Team

WAMA WaterAid in Malawi


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Chapter 1: Introduction and Report Rationale1.1 Overview

This study was carried out to develop an action plan for re-

implementing a performance management system at WaterAid in

Malawi, and to make recommendations for evaluation and

reimplementation of the system in other WaterAid country

programme globally.

2.2 Brief Background of WaterAid

WaterAid is an international charity that was formed in the

United Kingdom by a group of individuals working in the Water

industry. It was established by a trust deed on 21 July 1981. In

1984, it was incorporated as a company limited by guarantee and

was registered with the charity commission in the same year.

Since then WaterAid has become one of the most respected

international NGO's dealing solely with water, sanitation and

hygiene issues (WaterAid, 2012). WaterAid now works in over 27

countries through country programmes, employing more than 600

people. WaterAid has a clear vision and mission. It has five year

planning cycles with a strategy that guides its operation.


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1.3 Historic Perspective of the WaterAid Performance Management System (PMS)

Before introduction of the current performance management system,

WaterAid had a global appraisal system that was used in all

country programmes. The main features of the appraisal system

were setting of objectives, preparation of a personal development

plan and an end of year appraisal. The Malawi Country Programme

adopted the global WaterAid appraisal system on establishment in

1999 and made few amendments to it in the years that followed.

The system was in place until 2010 when the performance

management system under review was introduced. The new system is

meant to be a robust system that provides a better link between

organisational and individual objectives.

1.4 An outline of the WaterAid Performance Management System

The WaterAid PMS is a global process with consistent guidelines,

an appraisal form, ratings, and a common timetable for all

WaterAid offices. The system was developed against a background

of existing appraisal processes in various forms. The system was

therefore developed with an aim of harmonising performance

management practice in WaterAid globally. WaterAid adopted the

following CIPD definition of its system by Armstrong M and Baron

A (2009):


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Performance management is a process which contributes to the

effective management of individuals and teams in order to

achieve high levels of organisational performance. As such,

it establishes a shared understanding about what is to be

achieved and an approach to leading and developing people

which will ensure that it is achieved.

1.5 Objectives of the system

The stated objectives of the WaterAid PMS were

to provide a consistent approach to managing performance

throughout WaterAid

ensuring that all employees have robust objectives linked to

the WaterAid global strategy

to establish a consistent understanding of what successful

performance looks like

to provide a framework for tackling underperformance and

managing conflict

ensure fairness and transparency

to support good leadership and the delivery of the strategy

to ensure fairness and transparency

to provide means of identifying to performers and ensuring

that talents of individuals are harnessed.


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1.6 The process and timelines

The WaterAid system follows the following timelines:

Objective setting in April and April of each year

One on one follow up meetings throughout the year

Midyear review in October

End of year appraisal in April and May leading to setting of

objectives for the following year.

The process is presented in the following diagram

Figure 1: The WaterAid Performance Management System (Source: WaterAid Performance Guide lines)


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Setting Objectives6 – 8 Objectives

Action PlanActivitiesMeasures

PerformanceImplementationMonitoringCoaching and

ReviewMidyear Appraisal360o feedbackEnd of year

Vision ofSuccess

1.7 Introduction of the PMS in the Malawi Country Programme

Implementation of the new PMS commenced with training of an

implementation team from the WaterAid head office. Later, heads

of human resources from all country programmes were given a one

day orientation to the system at a workshop. This was followed by

two day training sessions for all managers in all country

programmes including Malawi. Country programme heads of Human

Resources then conducted one day training sessions for all

members of staff in their respective countries. Employees then

went on to develop their objectives and personal development

plans in consultation with their line managers. The system

includes performance rating at the yearend appraisal comprising

four performance ratings namely Underperforming, improving,

successful and exceptional performance.

1.8 Adoption of the system in the Malawi CP

Observations in the Malawi Country Programme so far indicate that

the system has not been successfully implemented, as less than

30% of all employees have been able to develop and be guided by

objectives, and formal one to one discussions are rarely being

done. The system is also characterised by ill prepared objectives

and appraisals that are conducted just to tick off the task. One

other indication of poor adoption of the PMS is the absence of

appraisal reports in staff personal files. An examination of

staff files showed that only Four out of 11 and 6 out of 20


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personal files in 2011/2012 and 2010/2011 respectively had

performance appraisal reports. One other apparent problem with

the system is the performance rating. Both line managers and

appraisees have expressed uncertainty on the application of the

ratings with some people seeing gaps in the ratings while others

feel that the ratings overlap.

WaterAid planned to start using the PMS for determining salary

increment awards from April 2012. This clearly call for a system

that is well understood by all employees; Managers for objective

assessment of performance levels and appropriate rewards, and

appraisees for acceptance of results and awards. Incorporating

reward into the appraisal process can also have a negative effect

on appraisees and can undermine the whole process (Dulewicz V,

1989). Introducing performance related pay on the basis of an ill

implemented PMS can be disastrous for an organisation. There is

therefore a need for implementation of the system to be evaluated

to determine WaterAid’s readiness for using the system for

determining salary awards.

There are indications that the system may have either been

designed or implemented poorly leading to poor application by

line managers and dissatisfaction by the line managed.


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1.9 Aim of the study

The business impact study was aimed at re-implementing the

performance management system at WaterAid in Malawi to ensure

that it is properly established and embraced by all employees.

1.10 Study objectives

Specific objectives of the study were

To evaluate the design and implementation of performance

management at WaterAid in Malawi in order to determine reasons

for poor adoption,

To develop an action plan for successful re-implementation of

the performance management system.

To develop recommendations for evaluation of the performance

management systems in WaterAid globally

1.11 Study Report layout

The rest of this report is organised as follows:

Key underpinning models that informed the evaluation of

implementation of the performance system at WaterAid in

Malawi,

The strategy that was used in gathering, analysing and

interpreting data

Data analysis and discussion

Report conclusions and


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Recommendations for evaluation and re-implementation of the

performance management system in those country programmes in

which it is determined that the system was not implemented

properly.

The next chapter covers an examination of models and research

work that were reviewed to inform the study.


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Chapter 2: Key Underpinning Business Models

2.1 Introduction

This chapter presents a summary of the literature review that was

undertaken, and key underpinning business models that informed

the evaluation of the implementation of the PMS at WaterAid in

Malawi, and the design of the re implementation plan.

2.2 Definitions of performance Management

A lot of research has been conducted on performance management

making it one of the most critical and criticised disciplines of

human resource management (Compton R 2005). As such performance

management has been defines in different ways by different

people. As noted by Whitford C and Coetsee W, 2006 there has been

a marked drift from a control approach to PM to a more

participatory and empowering approach. Armstrong (2006) defined

PM as a systematic process for improving organizational

performance by developing the performance of individuals and

teams. Gold on the other hand brings in the element of a

person’s overall capabilities and potential (Bratton E and Gold

J, 2007), suggesting that PM is about managing existing knowledge

and skills as well as developing new ones necessary for meeting

objectives and goals of organisations. All definitions however


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seem to agree that performance management involves planning,

supporting, monitoring, assessing, reviewing, rewarding and

developing performance of both people and organisations (Whitford

C and Coetsee W, 2006). This study will dwell on the latest

definition by Armstrong (2009b), who states that

Performance management is process for establishing a shared

understanding about what is to be achieved and how it is to

be achieved, and an approach to managing and developing

people that improves individual, team and organisational

performance.


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The following major elements of performance management can be

derived from this definition:

Performance management as a process

A shared understanding of what is to be achieved – defining

and linking organisational and individual performance.

How it is to be achieved – values and behaviours

An approach to managing– a system for motivating employees

to utilise their potential (motivation theories, appraisal

process including managing performance throughout the year

and the role of line managers)

And developing people to improve, team and organisational

performance – staff development, continuous system

evaluation and improvement.

2.3 Performance Management Process

Performance management comprises interrelated processes for

ensuring congruence in what an organisation intends to achieve

and for managing and developing people’s abilities to achieve it

(Armstrong, 2009b). It is a holistic process that brings together

many activities that contribute to effective management of

individuals and team (CIPD 2012). Bratton and Gold (2009)

identify it with the transformation process where inputs are

subjected to a transformation process to produce outputs, while

Ouchi (1979) equates it to a means and ends punctuated by the

transformation process as shown in the figure below:


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Figure 2: The transformation Process

The transformation process is made up of several performance

management sub-processes that include:

Goal or objective setting also called performance agreement

by Armstrong (2009b),

Development planning,

Continuous performance feedback, coaching and managing poor

performance,

Interim formal performance appraisals and finally

Annual appraisal leading to setting new goals and

development plans (Bratton and Gold 2009, Armstrong 2004 and

2009, Armstrong and Baron 2004, Paynes 2009).

PM is actually a cycle since the last process (annual appraisal)

leads to the first processes (development of goals) as in figure

1 above.


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Means

KnowledgeSkillsAttributesAttitudes

Transformation Process

Behaviour applied to

Ends

ResultsMeasurementStandards

2.4 Setting Organisational, Team and Individual Objectives

The starting point in performance management is the formulation

of corporate strategic goals (CIPD 2012). Indeed as Angela

Williams from Land Securities stated, there is no point doing

performance management if it does not deliver business objectives

(CIPD 2009)

All this however should be on a background of robust strategic

human resource planning and selection (recruitment) system (Pynes

2009), job purpose statements (Watling 2000), and appropriate job

descriptions (Adolphus 2011)


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Organisational goals are cascaded to teams and eventually

individuals (Armstrong 2009b). Watling (2000) illustrates this

process as follows:

Management Knows the overall objective

This is communicated to team leaders

It is then communicated to the team

The team is invited to contribute to the planning

Individual strengths are identified

The team accomplishes the task

Figure 3: Linking Individual Objectives to Team and organisational Objectives

PM directly links individual goals to team and eventually the

organisations strategic goals (Compton 2005, Whitford and Coetsee

2006, Mone and London 2002). This model lumps a year long process

that starts with agreeing individual objectives into the last

step.

2.5 System Development Planning

Setting of performance goals leads to determination of aptitudes,

attitudes and competencies (Bratton and Gold 2009) requirements

for achieving the goals. Paynes (2009) calls them knowledge,


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skills, abilities and other characteristics (KSAOCs). The

required KSAOCs are compared with those possessed by individuals

and plans are drawn for addressing any gaps through personal

development plans.

Another key element of performance management is its emphasis on

how performance is achieved. This is concerned with how the

individuals utilised the aptitudes, attitudes and competencies.

2.6 Managing performance throughout the year

Performance management is owned and practised by line managers

(Armstrong 2009b, Hutchison and Purcell 2003, CIPD 2012,). One

key element of PM is its continuous nature (Latham et al 2007).

Line managers manage performance of team members through frequent

feedback and coaching.

Regular feedback refers to communication to an employee on the

quality and/or quality of their performance. Appraisees consider

feedback to be the most important element of appraisals. Indeed

one distinguishing feature of performance management from earlier

forms in the continuous nature provided by regular feedback

(Armstrong 2009b).

Coaching is the day to day on the job assistance that one person

gives to another to help them develop their skills or level of

competence (Lee, 2005). It is a non directive way of developing

people (CIPD 2007). According to Hallbom and Warrenton-Smith


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(2005) coaching involves helping individuals utilise their

knowledge and skills to develop their own answers to their

problems by asking them thought provoking questions.

2.7 Characteristics of a good performance management system

Rather than having a one size fits all approach, performance

management practices must be derived from and fit each

organisation’s dynamic situations leading to a wide diversity of

practices, Mohrman and Mohrman (1995). PM systems should be

flexible and adaptable to changing demands, Whitford C and

Coetsee W, 2006. The following basic characteristics should

however be present in a good PMS, Armstrong M (2009b):

Agreement

Measurement

Feedback

Positive reinforcement

Dialogue

2.8 Developing a Performance Management System

In theory, performance management looks simple to implement. In

practice however, developing and implementing performance

management systems is a complicated process. What makes it

complicated is the fact that every organisation is unique, with a

unique combination of individuals, and exists in unique

circumstances (Strebler, Bevan and Robertson, 2001). To be


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successful, development and introduction of PMSs has to take into

account the context in which it is to be implemented. Once this

is done, one can then proceed to design, implement and finally

put the system into operation.

2.9 Possible causes of poor adoption or implementation

Training of both line managers and employees is essential to the

success of any PMS. Line managers should be trained in

development of performance standards and objectives, goal

setting, observation, recall and documentation skills and how to

avoid rating errors if rating is part of the PMS (Payne

2009).Training for line managers on the other hand enables them

to understand the PMS and it informs them of the level of

performance expected on them. Payne concludes that employees who

receive raining tend to be more committed to its goals. Training

is actually fundamental to the success of performance management

systems. Pryor (1989, p737) makes this interesting statement: “a

set of well-designed forms and clear policy statements does not

guarantee effective appraisal discussions, but well-trained,

skilful appraisers can overcome problems of poorly designed

documentation”.

Other causes of poor adoption of performance management include a

belief that PMS are owned by HR, lack of empowerment of line

managers, doubts about reliability and consistency (Whitford C

and Coetsee W, 2006); lack of objectivity in performance measures


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and dependability of performance outcomes on the performance of

other individuals (Paynes J, 2009); poor organisational

philosophies, negative attitudes and lack of skills of those

implementing the systems, lack of acceptance and commitment by

appraisers and appraisees (Compton R, 2005) lack of training of

both appraisees and appraisers (Pryor R 1989, Watling B 2000,

Bratton J and Gold J 2007), among others. Management knowledge

of, and attitudes towards performance management is, however, the

major obstacle (Compton R, 2005).

For performance management systems to succeed, they should be

simple (walker J, 1989). Walker quotes Alan and Rosenberg who

says “the reason that many schemes fail is because they are so

complex that managers are unwilling or unable to implement them”

(Herriot P, 1989).

2.10 Suggested solutions

George J (1986) listed the following elements of an appraisal

system that hold true to performance management system to date:

Whole hearted support from senior managers

Organisationally valid and meeting genuine organisational

needs

Socially acceptable

Administratively convenient


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Fitting the managerial style and overall culture of the

organisation

Supported by extensive training and development targeted at

building skills, knowledge, confidence and understanding.

2.11 Conclusion

In this chapter, the researcher conducted a study of relevant

literature in the form of books, papers and survey reports on

performance management and appraisals. These informed the

researcher on developments in performance management and what

work other people have done in this field. Information gathered

in this chapter will be used in developing a reimplementation

plan for the PMS in WaterAid in Malawi. The next chapter

documents processes undertaken to implement this study.


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Chapter 3: Implementation Strategy

3.1 Introduction

In the previous chapter, the researcher reviewed literature on

performance management. Specifically the researcher looked at the

historic perspective of PM, characteristics of a good PMS and

ways and stages in implementing performance management system.

This chapter now documents processes that the researcher

undertook to evaluate the existing system at WaterAid in Malawi

in order to determine adoption status by WaterAid employees, and

proceeds to develop an implementation plan for dealing with

challenges identified in the implementation of the current

system.

3.2 Research philosophy

Since the aim of the study was to investigate the causes of poor

adoption of the WaterAid performance management system, an

interpretivism strategy was be adopted. This was the case because

the study was about people and the organisation (WaterAid),

making principles, procedures and ethos used when studying

natural sciences inappropriate (Bryman A and Bell E, 2007).


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3.3 Research Approach

A combination of deductive and inductive approaches were used in

this exercise.

The study aimed at obtaining conclusions from observation and

findings that were used to generate generalisations to be applied

in resolving the identified problem. Thus an inductive approach

was predominantly employed, since the study did not start from

the development of a hypothesis. Rather the researcher

investigated the manner in which the WaterAid PMS was implemented

with the aim of understanding causes of its poor adoption by

members of staff and developing a reimplementation plan that

would greatly improve the uptake and establishment of the PMS.

The researcher however used a deductive approach by developing

some theoretical perspectives at the beginning of the study.

These helped to link the study to existing knowledge, provided

initial analytical framework and guided commencement of the study

(Saunders et al 2009). The theoretical perspectives guided the

development of the questionnaires and guiding questions for semi

structured interviews.

3.4 Research Strategy and Design

Only one organisation, WaterAid, was be studied in only one

location, Malawi, making a case study design the most

appropriate. The study involved investigation of causes of poor


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adoption of the PMS, developing a plan of action for improving

adoption, implementing the plan and making arrangements for

assessing the impact of implementing the strategy.

3.5 Sampling

All members of staff in the Malawi programme were involved in the

study since the population was fairly small, comprising 18

members of staff. The sample size was therefore 100%. This was

done to minimise the effect of single extreme cases on subsequent

statistical analysis which is usually more pronounced in smaller

populations (Henry, 1990). 17 out of 18 members of staff (94%)

responded to the questionnaire.

A similar approach was adopted for interviews with line managers

and the PMS implementing team.

For a focus group, however, a purposive sample was chosen. This

enabled the researcher to select individuals that were

particularly informative (Neuman 2005).

3.6 Data Collection

A questionnaire was used to obtain data on staff views on the

design of the PMS, effectiveness of training and the system’s

readiness for use in performance related pay and to collect some

qualitative data, mainly to be used for guidance in collecting

the main qualitative data. The questionnaire was followed by


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semi-structured interviews with individual employees to follow up

on issues identified from the questionnaire answers. This was

done to make the study more ecologically valid (Baker M. 2003).

The semi structured interviews were also used as the main source

of qualitative data that formed the bulk of data available for

analysis. Face to face interviews were recorded to ensure that

all information was captured and to facilitate transcription at a

later date.

The researcher had planned to administer the questionnaire again

and conduct further interviews assessment within the study period

to determine the impact of the study, but this was not done due

to time constraints. This will however still be done as part of

follow up activities of this study.

Line managers were interviewed in their roles as appraisers and

appraisees. There are five managers including the researcher. As

a result four interviews were held.

Apart from staff at WaterAid in Malawi, some information, mainly

on objectives and training of managers, was obtained from the

project implementation team. Semi-structured interview were

conducted with the implementation team based at the WaterAid

Headquarters in the United Kingdom and regional champions from

other WaterAid country programme by phone to get information on

the objectives of the system as envisaged by its framers and how


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training of line managers was conducted. Initial and follow up

information was obtained through emails.

One focus group discussion was held with participants picked from

all departments, comprising staff at all levels from support

staff to senior managers in order to get multiple perspectives of

the WaterAid PMS; how it was implemented, how it is working and

how it can be improved.

Since the researcher is a member of staff of WaterAid in Malawi,

some information was gathered through observation and experience.

As a practitioner-researcher, the researcher had no problems of

negotiating research access and took advantage of prior knowledge

of the organisation thereby saving time for learning the context

of the organisation (Saunders M. et al, 2009)

Much information was also obtained from a review of books,

journals and academic papers by various authors. Armstrong’s

Handbook of performance Management (2009) proved to be a very

valuable source of guidance as it collates a lot of information

from his many years of working on performance management and from

many other authors, and presents it as a resource base for

practitioners. The internet also proved to be a valuable source

of information.


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3.7 Data Analysis

The objective of data collection was to gather information that

would be used to answers to the research questions. Only

qualitative data was collected and analysed. Qualitative data

collected through questionnaires was however quantified as a

means of verifying deductive assumption developed at the start of

the study. This was done to ensure that a reasonable amount of

data was analysed within the short time available for this study

since relying on face to face interviews alone would have taken a

long time. Data from questionnaires was used for determining

participants’ opinions on the design of the PMS, effectiveness of

training on the system and the use ratings. Microsoft Excel

spreadsheets were used to analyse and summarise this data.

Qualitative data collected through semi structured interviews and

a focus group discussion was analysed using template analysis

devised by King (2004), cited by Saunders et al (2009). According

to King, the template is a list of categories that represent

themes for the collected data. This method was chosen because of

its flexibility. Using it the researcher was able to determine

data categories before commencement of data collection and add

more codes as data was collected and even during data analysis.

Data collection and analysis comprised the first phase of the

study whose objective was to find causes of the apparent failure


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of the WaterAid PMS in the Malawi Country Programme. This phase

produced factors that led to poor adoption of the system.

3.8 Development of Implementation Action Plan

The second phase involved development of strategies for

correcting the situation to ensure that the PMS is properly

applied and functions well at the Malawi CP. Conclusion from the

data analysis were used to identify problem areas in the pre

intervention PMS. Information gathered from the extensive

literature review carried out by the researcher throughout the

study period was the main source of the building blocks for the

corrective strategies. Participants also provided valuable

contributions on remedies that can work. Incorporation of ideas

from the participants who are also the subject of the PMS is

expected to enhance acceptability of the remedies.

3.9 Research Limitations

The main limitation of the study was time. The study involved

investigating the adoption status of the PMS, analysis of results

and isolation of main causes of poor adoption and development of

remedial steps for reimplementation of the system. The researcher

could not proceed to oversee implementation and impact evaluation

of the developed remedies. Evaluation is planned for April 2013.


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3.10 Conclusion

This chapter has outlined methods that were used in gathering

data and analysing it to gather evidence of the adoption status

of the WaterAid PMS, and how the researcher went about to develop

remedies for identified flaws. The next chapter presents the

analysed data and actions taken and the impact the actions are

having on the functioning of the PMS.


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Chapter 4: Data Analysis and Discussion4.1 Introduction

This chapter presents findings from questionnaire responses and

interviews with members of staff in the Malawi country programme

of WaterAid. Problems with the PMS are isolated from the findings

and the researcher proceeds to diagnose causes of those problems.

The researcher then presents a strategy remedying identified

problems and results of implementation of the initial stages of

the implementation plan.

4.2 Findings

4.2.1 Knowledge of the WaterAid PMS and its importance

Results of from the questionnaire, interviews and the focus group

discussion show that participants know the WaterAid management

system well. Participants were able to list most of the features

of the system during individual interviews, and major features

were actually mentioned by the focus group.

I addition to showing knowledge of the features of the PMS,

participants were able cite benefits performance management.

Benefits Below are some of the quotes from the members of staff

on the importance of the PMS:

“it improves accountability “


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“Setting objectives gives guidance. We are not working

blindly.. ”

“It helps us to know where one is doing well and areas where

improvement is required”

“It helps us to work with WaterAid values in mind”

“it provides an opportunity for dialogue between the manager

and team members”

There is a general consensus that the organisation and employees

have derived a number of benefits from the system. Only 6% of the

respondents agreed that the system was a waste of time

4.2.2 Employee views on the design of the system

WaterAid staff is generally satisfied with the design of their

PMS. Everyone strongly agreed or agreed with statements that the

PMS a) can lead to improvement in performance of individuals, b)

helped them set useful objectives for their day to day work and

c) enabled their line managers to make valuable contributions to

their objectives. The picture was slightly different when it came

to linking individual and organisational objectives as 6% felt

there was no link while 13% were neutral. 38% felt that the

system should be revised compared to 31% who felt that there is

no need for revision. This could be an indication that some

elements of the system may not be working to the expectation of

employees.


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4.2.3 Employee views on rating

Results from the questionnaire returned mixed views on the rating

being used and its appropriateness in the CP. For example, 50%

felt that the rating system in appropriate for the CP while only

31% felt that it leads to fair salary increments. The full

results from the questionnaire on rating are as follows:

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree

I feel my line manager understands the rating system in the PMS

31% 44% 13% 6% 6%

The rating system is appropriate for our situation

0% 50% 25% 19% 6%

The rating system can be used to make objective decisions onperformance standards

6% 69% 6% 13% 6%

I feel the rating system is appropriate for determining salary increments

0% 44% 25% 19% 13%

WaterAid in Malawi is ready touse the system for salary increments from April 2012

19% 25% 44% 6% 6%

Use of the PMS for salary determination will be fair

6% 25% 56% 6% 6%

Figure 4: Questionnaire Responses on Performance Rating

Dissatisfaction with rating was however more pronounced during

interviews where all interviewed indicated reservations with it.


30

This was corroborated by the focus group discussion in which

there was a consensus that the rating system needs to be revised.

4.2.4 Views on effectiveness of training

Training also received mixed reactions with a more positive

tendency. More than 60% of responses showed that managers were

applying the system properly, and 69% indicated that they were

properly oriented. All employees who joined after introduction of

the system and went through at least one annual appraisal

indicated that their line managers applied the system well. This

could be as a result of growing confidence in the use of the

system on the part of the line managers.

4.2.5 Objective setting

All employees who were consulted developed objectives and these

were reviewed by their line managers in their presence. However

some did not complete the process as 88% indicated that they

signed their objectives and 81% indicated that their line

managers also signed. Failure to sign objectives by some is an

indication of low commitment to the administrative part of the

PMS. This was confirmed by the presence of signed appraisal forms

in only 30% of staff files.

During interviews however, most participants decried lack of

clarity of both CP and team (programme) objectives. Except for

numbers of beneficiaries, other CP and team objectives were set


31

as indicators. Participants bemoaned the difficulty this created

in making organisational and team objectives clear to everyone

thereby making it even harder for establishing linkage with

individual objectives.

4.2.6 Apparent causes of poor adoption of the WaterAid PMS

Participants were asked to indicate three factors that might have

led to poor adoption of the PMS, and make any remarks. Their

comments were coded and grouped into the following categories:

Low prioritisation of performance management by all

Poor communication, orientation or training

Lack of ownership by line managers

Reservations with the rating system

Others

The relative weight of each category is presented in the figure

below:


32

Prioritisation Trainning Rating Ownership Other0%

5%

10%

15%

20%

25%

30%

35%

40%

Relative Weight Causes of Poor Adoption of the PMS

Figure 5: Causes of Poor System Adoption

These findings were confirmed during interviews with individuals.

The interview however generated more issues. These were grouped

into the following categories presented in order of occurrence:

Lack of clarity in team and CP goals

Absence of accountability in the system

Absence of regular one on one review meetings

Ineffective performance related pay system

Lack of commitment to personal development

4.2.7 Findings from interviews with line managers

All line managers indicated that they rarely hold one on one

discussions with their team members and that they do not have a


33

clear picture of their annual team objectives. All however

indicated that they are happy with the design of the system in

WaterAid and are happy to apply it, but in practice, they do

something else. They also said the rating system was not

appropriate for determining performance levels and worse still

for awarding salary increments.

When asked why what they consider being a good system seems not

to be working they cited the following reasons:

Heavy workloads and too many demands for ad hoc information

that disrupt CP plans

Lack of commitment from their own line managers, and

apparently their line managers’ line manager

Lack of work organisation skills in the managers themselves

Absence of a high performance culture

Inappropriate rating system

4.3 Discussion of findings and conclusion

Sources of problems with the WaterAid PMS can be categorised into

design and implementation

4.3.1 The rating system

All participants including line managers expressed disapproval of

the system’s rating. There is a clear indication that the rating

system is having a demotivating effect on staff and contributes

to line manager’s indifference in applying the system. The


34

programme manager indicated that a four point rating system was

chosen to avoid the central tendency rating error but in

practice, there is a tendency towards the “successful” rating.

Line managers reported finding it difficult to determine clear

demarcation between the various ratings. They also indicated that

they did not want to deny salary increment to members of staff

just because they failed to meet one or two objectives as the

system suggests and therefore awarded a successful rating where

it was not warranted. This problem

4.3.2 Compatibility of the system with the salary determination policies in WaterAid

WaterAid’s policy to use INGO comparators to determine salary

levels conflicts with linking pay to performance. High levels of

performance would push a CPs salary level beyond the policy point

leading to sanctions on salary increments and therefore failure

to link salaries to performance.

4.3.3 Link with organisational objectives

The PMS guidelines do not give clear guidance on linking

individual objectives with organisational and team objectives.

While simple cascading of objectives is discouraged by many

writers on PM, there is need for emphasising and providing clear

guidance for this linkage. The 2009 CIPD research concluded that

PM would not be of any use if it does not link individual goals


35

to organisational goals and help individuals to understand the

role they play in meeting organisational goals.

4.3.4 Link between objectives and job purposes and job descriptions

The PMS guidelines do not include linking one’s objectives to job

purposes and job descriptions. This has resulted in a complete

disregard of these starting from the objective setting stage

through to the annual appraisal.

4.3.5 Absence of accountability subsystem

Line managers’ accountability in the application of the PMS is

conspicuously absent. While the system advocates for

‘grandparent’ sign off of performance ratings, failure by a line

manager to use the system is not considered as poor performance.

4.3.6 Low stakeholder involvement

The PMS was developed at the WaterAid head office in the UK with

little consultation if any with country programmes. This led to

implementation of the system without consideration of local CP

contextual factors. According to Armstrong (2009) these include

organisational culture, employee relations climate, composition

of the workforce, organisational structure, size, technology and

the external environment.


36

4.3.7 Absence of link with a high performance culture

PM effectiveness is to a larger extent dependent on the

development or existence of a high performance culture that is

achieved through high performance work systems (Huselid and

Becker, 2007). Implementation of the PMS in WAMA seems to have

disregarded the need for developing high performance work systems

to go along with the PMS. The result of this was a fall back into

business as usual soon after introduction of the system but

expect things to change for the better somehow.

4.3.8 Poor orientation of line managers

The quality of individual objectives and low prioritisation of

the PMS by line managers indicate some deficiencies in the

orientation of line managers. If line managers clearly understood

benefits of the system, they would have prioritised it over most

activities.

4.4 The revised WaterAid PMS

4.4.1 Introduction

The WaterAid PMS will be directly linked to the annual planning

and budgeting process that starts in November of each year. The

rationale of doing this is to ensure that the PMS leads to the

achievement of annual CP targets that are developed through the

MBP process. Since MPBs are submitted to the head office at the

end of January, the PM process shall start immediately after


37

submission of the MPBs and end with annual performance reviews

that shall be done at the time of preparation of the annual CP

reports that documents CP performance for each year. In this way

teams and individuals will be able to establish a link between CP

performance and their teams and individual performance.

4.4.2 Objective

The main objective of the WaterAid PMS to create an environment

in which individuals utilise and further develop their Knowledge,

skills and competencies to achieve WaterAid and their personal

goals.

4.4.3 Role Profiles and Job descriptions

Role profiles and job descriptions for every position will be

part of five year country strategies. The PMS will however

present an opportunity for revising both just after finalising

MPBs

4.4.4 Objective Setting

CP objectives will be set by the senior Management Team (SMT)

soon after finalisation of the annual MBP, which is usually by

mid February. Managers will then proceed to hold meetings with

their team members to develop objectives for their teams,

followed by development of individual objectives. Managers will

discuss agree individual performance and development objectives


38

with each member of their teams, and this process needs to be

finalised by the beginning of the new financial year on 1 April.

SMT objectives shall include an objective on the implementation

of the PMS in their teams. This will ensure that PMS is

prioritised and periodically reviewed. Existing documentation

will be used to record objectives.

4.4.5 Performance review, feedback and support

Line managers will review performance of, provide feedback to and

support their team members through coaching, mentoring, training

and other means as they implement activities. This will be on an

ongoing basis, but formal one to one review meetings will be held

with each individual at least once a month.

4.4.6 Mid Year Reviews

These will continue to be held during the month of October, but

not later. Existing guidance will be used for these.

4.4.7 End of Year Performance Reviews

Preparations for these will be done concurrently with the

development of individual objectives. Current guidance on

preparation and conduct of annual reviews is still relevant

4.4.8 Training of line managers and individuals

All members of staff will be trained again with the objective of

correcting short falls in previous trainings and introduce new


39

features from this study. The training will take place before the

end of September 2012. For new members of staff, PMS training

will be part of induction. A PMS module has already been

incorporated in the induction booklet.

4.4.9 Evaluations

To ensure that the PMS continues to be relevant and effective it

will be evaluated at the end of the process each year and as part

of country strategy reviews and development. Annual evaluation

will be through questionnaires that have been developed and will

be administered by HR department.

The new PMS cycle is presented in the figure below


40

Figure 6: The revised WaterAid Performance Management Cycle

4.5 Business Impact

The process outlined above addresses the weaknesses identified in

the current implementation of the PMS in the Malawi CP. The new

approach has been communicated to all members of staff in a

meeting in which they were able to contribute their ideas. The


41

Agree individual objectives

and personal

development plan

End of year appraisal

Midyear review

SMT meets to agree SMART CP

objectives and HR

requirements at the

end of the MPB process

Agree SMART team

objectives including skills and competency requirement

s

Annual Evaluation

MPB Process

meeting was also used to present the findings of the study, and

it generated apparent enthusiasm in challenging the status quo.

The study has been done at a very opportune time for the next

financial year’s performance whose cycle as recommended in this

report starts with the MBP process next November.

It is expected that implementation of approach and the tools

developed in this study will be used to develop processes for

reviewing implementation of the PMS in all other WaterAid CPs

4.6 Conclusion

In this chapter, the researcher has presented results of a review

of the WaterAid PMS in Malawi, and a revised version to be

implemented to remedy the defects of the first implementation.

Evaluation of the impact of this study has not been done due to

time constraints. The evaluation process of the old system and

communication of the results and the revised implementation plan

has however generated a lot of enthusiasm and buy in to move

ahead with better approaches.


42

Chapter 5: Report ConclusionsThis study was carried out to re-implement the performance

management system at WaterAid in Malawi to ensure that it is

properly established and embraced by all employees. To do this

the researcher reviewed various pieces of literature to find out

what other have done in the field of performance management. This

led to the development of tools for evaluating the system at

WaterAid.

The evaluation was done through a questionnaire that was

administered to all members of staff at WAMA, followed by semi

structured interviews that were extended to the implementation

team. This exercise confirmed that implementation of the WaterAid

PMS was not fully successful. While WaterAid staff acknowledged

the importance of PM and its various processes, they had failed

to fully embrace it. Reasons for this included the following:

Negative views on the rating system used in the PMS

Inadequate training of line managers leading to lack of

ownership and absence of the necessary skills for

implementing the system

Low stakeholder involvement prior to and during

implementation

Absence of a high performance culture leading to low

prioritisation of the PMS by all staff MBA Business Impact Study Report, Bodgers Gwedeza, 2012, University of Derby

43

Failure to link team and individual objectives to

organisational goals resulting in poor work organisation due

to emerging work demands from the need to meet

organisational goals

To resolve these problems the researcher revised the system and

developed a re-implementation work plan for implementing the

revised system. Main features of the revised system include

A direct link of the PMS to the planning and budgeting

process from which CP annual objectives are derived. This is

expected to lead to establishment of a high performance

culture and high prioritisation of the PMS as it now lies at

the centre of the organisation’s core business.

Revised timing of the various processes to deal with the

problem of delayed feedback and implementation of

development plans

Annual evaluation of the system to ensure that it is

constantly being improved and that it remains relevant to

changing organisational situations and context

A communication and training plan to make sure that all

stakeholders are knowledgeable about the system and are

empowered to play their part

Mandatory inclusion of a performance management objective in

the objectives of all line managers. This will ensure that


44

line managers prioritise PM throughout the year as failure

to do so would negatively affect their own performance.

Concerns arising from the rating method applied in the system

have been noted and a revising system is recommended. A

recommendation has also been made to review WaterAid remuneration

policies to make sure that they are compatible with a high

performance culture. One of the elements to be considered for

revision is the use of salary survey information and comparators

that seems to be generating dissatisfaction and apparently de-

motivating staff.


45

Chapter 6: Report Recommendations

This study has brought to light problems experienced in the

Malawi Country programme as it implemented the WaterAid

Performance Management System. Most problems are being resolved

as the system in this study report is implemented. However, some

actions cannot be implemented by the Country Programme, but

require the intervention of international HR at the WaterAid

head office. Recommendations are therefore being put forward for

international HR to take action on the following:

6.1 The rating System

Being a global system, the rating system in the WaterAid PMS

could not be changed by the country programme. Line managers and

employees however recommended that wording of the ratings should

be improved to remove overlaps. The following definitions are

recommended:

• EXCEPTIONAL PERFORMANCE – Met all objectives to an

exceptional level and have gone beyond what is expected of

their role. Actions exemplify WaterAid values (No change)

• SUCCESSFUL –Met all objectives and expectations for their

role. They consistently demonstrate WaterAid values in the

way they work.


46

• BARELY EFFECTIVE PERFORMANCE – Met most of the established

objectives and expectations for their role, but areas for

definite improvement exist. They may not always work in a

way that is consistent with the values of WaterAid.

• UNDERPERFORMANCE – This is for individuals who are failing

to meet their objectives and/or the required expectations of

their role. They may act in a way that is contrary to the

values.

There should be no stringent conditions for awarding the

underperforming rating but that the annual performance review

should clearly show that the individual did not meet most

objectives.

6.2 Performance Related pay

Every employee should be entitled to a cost of leaving

adjustment, but there should be variations in what increment is

granted to individuals falling in the middle two performance

levels. Exceptional performance should be rewarded with a lump

sum bonus; whereas the other two performance levels should be

rewarded with permanent salary adjustments that reflect the

developmental nature of PMS.


47

6.3 Remuneration Policy

WaterAid should consider changing its remuneration policy of

being between the 50th and 75th quartiles of its comparators, but

allow high performance to push the limits. This should however be

evidenced by high performance of the country programme or

department.

6.4 Evaluation of the PMS globally

Implementation of the PMS should be evaluated in all country

programmes and remedial action should be taken where necessary.

Best practice in other programmes should be shared globally


48

Chapter 7: Personal Learning

Conducting this business impact study has been a highlight of my

MBA studies as it has helped me to study research study methods,

practice conducting business research, apply knowledge gained in

the study of other modules to real a real situation.

The module on Change Challenge and Strategic Leadership (CCL)

provided a very good foundation for my study. Starting with

change management, the study involved evaluation of the

implementation of a change intervention in WaterAid. My earlier

studies in this area enabled me to look at the implementation of

the PMS from a change management perspective. I was able to draw

on my knowledge in this area in diagnosing some of the problems

that were faced by the Malawi Country Programme as they

implemented the PMS. For example, I learnt that people resist

change when they do not understand its implications and if the

feel that they are giving more than they are gaining (Kotter

2007). I used this perspective my evaluation of the WaterAid PMS

and made sure that communication is given prominence when

implementing the revised system.

The other lesson from the CCL module was about organisation

culture. I drew upon my lessons on culture to understand that

implementation of performance management systems has to take into


49

account the existing organisational culture if it is to be

implemented successfully. Introducing a performance management

system may result in or require changing the existing

organisational culture.

Performance management is about performance of organisations and

individuals. Individual objectives are therefore supposed to be

linked to if not be derived from organisational objectives.

Organisational objectives are derived from the vision and mission

statements of entities that are a product of the strategic

management process. My understanding of the various processes and

choices in coming up with organisational strategies helped me to

determine areas of linkages between performance management and

organisational strategies.

Operations management studies in the Sustainable Customer Value

module proved to be very valuable in both the organisation and

execution of my study and in understanding and evaluating

performance management processes. Of vital importance was the

input – output model and its variations. This model helped me in

my planning of the study as I was able to determine and organise

all resources that I needed to carry out the study, and I also

worked out what my deliverables would be right at the start of

the study. As I worked through the study, I had mu outputs

(deliverables) in mind and that guided my actions. Scheduling of

my work also benefited from lessons from operations management.


50

The Creating Sustainable Customer value module also exposed me to

marketing concepts and practices that are applicable in many

circumstances. For instance my approach to the study was helped

by the realisation that research participants in my study had to

be treated as customers in one way and suppliers in another. They

had to be treated as customers because that study was done for

their organisation and whatever findings and recommendations came

out was meant to benefit them. I therefore concentrated on

creating value and helping them see value for themselves in what

I was doing. I valued communication of progress to them as it

gave them a sense of progress not only in my studies but also in

the expectation of what I had communicated as their benefit

personally and as an organisation from the study. The

participants were also treated as suppliers because they were the

source of data for evaluating the system, and ideas for improving

it.

The greatest personal learning that I have derived from the study

has been in the field of strategic human resource management.

Initially, as a member of ACCA, I was supposed to study a human

resource module. This was however withdrawn in the middle of our

studies. The module was however on top of my personal development

objectives, and the removal of HR from the list modules to be

studies was a disappointment. The business impact study module

however presented me with an opportunity to still cover strategic


51

human resource management through personal study, and obtain an

in depth exposure to performance management.

In order to obtained enough background information for my study,

I had to read books on human resource management generally, and

other specialised human resource books on areas like strategic

human resource management, recruitment and selection, performance

appraisals, balanced score cards and organisational performance,

and finally and to a larger extent performance management.

My in depth studies of performance management has equipped me

with a great deal of knowledge that will come in handy when

called upon to design, evaluate, review or implement performance

management systems. The study exposed me to many papers on this

topic, and to go through many research studies on various

elements of performance management and appraisals. The study has

equipped me with sufficient knowledge to lead or participate in

consultancies on performance management. The resources in the

form of books, research and study papers and other resources

available on the internet that I have been exposed to would be

useful if called upon to review or develop a performance

management system for an organisation.

Draw on lessons from the three modules (CCL, SCV and Research

Methods)


52

Highlight opportunity to study and apply research methods and

managing a project

Highlight my desire to gain more knowledge in HR leading to the

choice of the study area, and the literature that I have been

exposed to as I researched. Include an intention to study HR and

specifically performance management systems further.

Share learning from the study

Suggest areas where my learning could be applied – International

HR, consultancies (mainly in implementation and evaluation or

reviews of performance management systems)

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a post implementation review of a performance management system at wateraid in malawi

Documents