Article section

Article title
Contributor
Abstract
About article
DOI
Citation style
Copyright
Open access
References
Research Article

An Assessment of Performance Management and Employee Engagement in the Banking Sector: A Case of Absa Bank Zambia in Lusaka

Authors

  • Bertha Kunda Graduate School of Business, University of Zambia, Lusaka, Zambia

    bkberthak350@gmail.com

  • Ferdinand Chipindi Department of Educational Administration, University of Zambia, Lusaka, Zambia

Abstract

Performance management is crucial in aligning employee efforts to organizational goals and accelerating engagement and development in the financial sector. The study aimed to assess the impact of performance management on employee engagement in the banking sector in Zambia. It identifies a research gap regarding the effectiveness of performance management strategies in enhancing employee engagement in the banking sector in Zambia. The study employed a mixed-method approach and utilized a descriptive and correlational design, combining 100 structured questionnaires and 10 interviews, out of 100 questionnaires 88 were successfully received, Secondary data was obtained from bank reports and academic sources. Data was analyzed using descriptive statistics and statistical inferences using SPSS V.23. Thematic analysis was used to identify key themes that connect performance management practices to employee engagement. The results revealed that the annual performance reviews were widely used as an appraisal tool in evaluating employees' performance. The study also established that there is a relationship between performance management and employee engagement r= 0.569 P < 0.05, indicating a moderate to strong positive correlation between the variables. However, it was revealed that employees were not satisfied with the performance management review approach. Challenges were identified, including infrequent feedback, a lack of clear communication, a biased reward system, and no proper engagement during the process. The study concluded that addressing such challenges requires a holistic approach to performance management systems. The study recommended the adoption of a more dynamic performance management system approach, improve communication and feedback systems and revamp a fair and unbiased recognition and reward system.

Keywords:

Counter-Appraisal Employee Engagement Employee Turnover Feedback System Performance Appraisal Tools Performance Management Performance Management Approach

Article information

Journal

Journal of Economics, Business, and Commerce

Volume (Issue)

2(1), (2025)

Pages

96-104

Published

23-04-2025

How to Cite

Kunda, B., & Chipindi, F. (2025). An Assessment of Performance Management and Employee Engagement in the Banking Sector: A Case of Absa Bank Zambia in Lusaka. Journal of Economics, Business, and Commerce, 2(1), 96-104. https://doi.org/10.69739/jebc.v2i1.422

References

Aguinis, H., Gottfredson, R. K., & Joo, H. (2012). Using performance management to win the talent war. Business Horizons, 55(6), 609-616. https://doi.org/10.1016/j.bushor.2012.05.007

Armstrong, & Murlis, M. H. (2007). Reward Management A hand book of Renumeration strategy Practice (5th edition). London UK: Kogan page.

Armstrong, M., & Taylor, S. (2020). Armstrong's handbook of human resource management practice: A guide to the theory and practice of people management. London: Kogan Page Publishers.

Balain, S., & Sparrow, P. (2009). Engaged to Perform: A new perspective on employee engagement. Lancaster: University Management School, Lancaster.

Baron, A., & Armstrong, M. (2004). Out of the box’. People Management, 23, 38-41.

Bedarkar, M. & Pandita, D. (2014). A study on the drivers of employee engagement impacting employee performance. Procedia - Social and Behavioral Sciences, 133, 106-115.

Bevan, S., Barber, L., & Robinson, D. (1997). Keeping the Best: A Practical Guide to Retaining Key Employees. Grantham Book Services, Isaac Newton Way, Alma Park Industrial Estate, Grantham NG31 9SD, England, United Kingdom.

Bussin, M. (2013). Performance Management Handbook for emerging markets (1st edition). Randburg: Knowres Publishing.

Pink, D. H. (2011). Drive: The surprising truth about what motivates us. Penguin.

DeNisi, A. (2002). Performance Appraisal and Performance Management:A multilevel analysis. In In K.J. Klein & S. Kozlowski (Eds), Multilevel theory, research and methods in organizations (pp. pp. 121-156.). San Francisco:: Jossey-Bass.

Deros, B. M., Khamis, N. K., Rahman, M. N. A., & Ismail, A. R. (2009). A survey on benchmarking understanding and knowledge among Malaysian Automotive Components Manufacturing SMEs. European Journal of Scientific Research, 33(3), 385-397.

Dusterhoff, C., Cunningham, J. B., & MacGregor, J. N. (2014). The effects of performance rating, leader–member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of business ethics, 119, 265-273. https://doi.org/10.1007/s10551-013-1634-1

Emmott, M. (2006). Hear me now: People Management (pp. 38 -40).

Fletcher, C. (2001). Performance appraisal and management: The developing research agenda. Journal of Occupational and organizational Psychology 74(4), 473-487.

Gallup. (2013). State of global workplace.

Gravina, N., & Sier, B. (2011). Square pegs and round holes:Rumination on the relationship between performance Appraisal and Performance Mangement. Journal of Organization Behaviour Management 31(4) , 277-287. https://doi.org/10.1080/01608061.2011.619418

Grobler, P. A., Warnich, S., Carrell, M. R., & Elbert, N. F. (2011). Human Resource Management in South Africa (4th Edition). Hampshire UK: Cengage Learning.

Gruman, A. J., & Saks, A. M. (2011). Performance management and employee engagement. Human Resource Management Review, 21(2) 123-136.

Guest, D. (2009). Employment Contracts Psychological Contracts, and Employee Well-Being. Oxford: Oxford University Press.

Guest. D. (2009). Review of Employee Engagement, notes for a discussion (unpublished), prepared specifically for the MacLeod and Clarke 2009 review of employee engagement.

Gupta, V., & Kumar, S. (2013). The impact of Performance Appraisal justice on emloyee engagement: a study of india professions. Employee Relations , 35(1), 61-78.

Heathfield, S. (2007). Performance appraisals don't work-what does?. The journal for Quality and Participation, 30(1), 6-9.

Heinrich, C. (2002). Outcomes based performance management in the public sector. Public Administration Review, 62, 712-726.

Hewitt Associate. (1994). Performance management programs. Havard: Havard school of business.

Jonston, H., & Kaplan, R. S. (1987). The rise and fall of Management Accounting. Strategic Finance, 67(8), 22.

Lipman, V. (2013). Why are so many employees Disengaged?

Macleod, D., & Clark, N. (2009). Engaging success. Engage for success, 3.

MacLeod, D., & Clarke, N. (2009). Engaging for Success: Enhancing performance through employee engagement. Department for Business Innovation and Skills, London.

Macload, D., & Clark, N. (2009). Engaging for success: Enhancing performance through employee engagement.

Mathieu, P. (2017). Zambia Financial Sector Assessment Program Financial System Stability Assessment. Washington DC: International Monetary Fund.

Maylett, T. (2009). 360-degree feedback revisited: The transition from development to appraisal. Compensation & Benefits Review, 41(5), 52-59. https://doi.org/10.1177/0886368709337922

Mone, E., Eisinger, C., Guggenheim, K., Price, B., & Stine, C. (2011). Performance management at the wheel: Driving employee engagement in organizations. Journal of Business and Psychology, 26, 205-212. https://doi.org/10.1007/s10869-011-9222-9

Moyo, T. P., & Phiri, M. (2023). The Evolution of Banking in Zambia: Regulatory and Structural Changes. Journal of Financial Regulation and Compliance, 31, 145-167.

Mwenda, K. K. (2004). Unified financial services supervision in Zambia: The legal and institutional frameworks. Zambia Law Journal, 36, 67-109.

Paton, J. (2015). Employee Engament and Business Performance. British Chamber of Commerce in Zambia.

Perkins, M., Grey, A., & Remmers, H. (2014). What do we really mean by “Balanced Scorecard”?. International Journal of Productivity and Performance Management, 63(2), 148-169. https://doi.org/10.1108/IJPPM-11-2012-0127

Potgieter, P. E. (2006). An investigation of the performance management programme used by Transwerk. NMMU Masters in Business Administration (Unpublished NMMU).

Pulakos, E. D. (2004). Performance management: A roadmap for developing, implementing and evaluating performance management systems (pp. 1-42). Alexandria, VA: SHRM foundation.

Reilly, P., & Brown, D. (2008). Employee engagement: future focus or fashionable fad for reward management? World at Work Journal, 17(4), 37–49.

Smither, J., & London, M. (2009). Performance management: Putting research into action. San francisco, CA: John Wiley & Sons.

Truss, C., Soane, E., Edwards, C., Wisdom, K., Croll, A., & Burnett, J. (2007). Working life: Employee attitudes and engagement 2006. Kingston Business School: Chartered Inst. of Personnel and Development.

Vasset, F., Marnburg, E., & Furunes, T. (2010). Employees’ perceptions of justice in performance appraisals. Nursing Management, 17(2).

Whitener, E. M., Brodt, S. E., Korsgaard, M. A., & Werner, J. M. (1998). Managers as initiators of trust: An exchange relationship framework for understanding managerial trustworthy behavior. Academy of management review, 23(3), 513-530. https://doi.org/10.5465/amr.1998.926624

Williams, L. S., Yilmaz, E. Y., & Lopez-Yunez, A. M. (2000). Retrospective assessment of initial stroke severity with the NIH Stroke Scale. Stroke, 31(4), 858-862. https://doi.org/10.1161/01.STR.31.4.858

Downloads

Views

21

Downloads

8