Project Proposal – Khalifah Al-Shamsi-160022365 (1)

Project Proposal

The Impact of Performance Management on

Employees Satisfaction in Private Saudi Companies

Student Name: Khalifah Taresh Al-Shamsi

Student ID# 160022365

First Term 2019

SEU – MBA

Table of Contents

TOC o “1-3” h z u Introduction PAGEREF _Toc20155226 h 3Abstract PAGEREF _Toc20155227 h 3Statement of the Problem PAGEREF _Toc20155228 h 4Purpose of the Study PAGEREF _Toc20155229 h 4Research Questions/Hypothesis PAGEREF _Toc20155230 h 5Literature Review PAGEREF _Toc20155231 h 5Methodology PAGEREF _Toc20155232 h 6Sampling PAGEREF _Toc20155233 h 7Instrumentation PAGEREF _Toc20155234 h 7Data Collection and Analysis Procedures PAGEREF _Toc20155235 h 7Discussion PAGEREF _Toc20155236 h 8References PAGEREF _Toc20155237 h 9

IntroductionThe employees are seen as the most critical resources in the organization. Besides, they play a major role in the success and productivity of any organization. Hence, managing the performance of the employees is essential to enhance the productivity and profitability of the organizations. This research addresses one of the most critical topics in the field of Human Resources Management (HRM), which is performance management. The research is mainly trying to find the impact of performance management on the employees’ satisfaction in private Saudi companies. Moreover, I am going to highlight the implementation of the performance management process in Saudi Aramco and analyze its effectiveness.

Performance management is not only performance appraisal and rewards the employees at the end of the year. However, it is defined as “Performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.” (Aguinis, 2013). It helps the organizations to achieve the desired goals with high quality.

AbstractThis research will investigate the impact of implementing effective performance management on employee’s satisfaction. Furthermore, it will identify the success factors for enhancing organizational performance. It argues that the performance management are contributing to increasing the level of employee’s productivity and satisfaction. I am going to review previous studies and research related to performance management. Also, I will examine five questions.

According to Armstrong, performance management is defined as “a systematic process to improve the performance of a company by developing the individual’s and team’s performance (Kelly, 2012). Hence, this study discusses both team and individual team’s performance, and how it could help to achieve organizational performance. I am going to analyze the effectiveness of using performance management in private Saudi companies. Moreover, I am going to highlight the experiences of Saudi Aramco in this field and the processes they utilized.

Statement of the ProblemMost companies nowadays rely on their employees to achieve the desired results. Moreover, satisfying the employees should be one of the most strategic goals for the companies. According to the resource-based view, the employees are the assets and resources of the organization (Kelly, 2012). Performance management is a critical factor for the success or failure of companies.

There are some employees, who work in private companies became demotivated because of the unclear process of evaluating and monitoring their performance. Besides, there is no specific procedures and policies to be used by companies to evaluate their employees. Hence, their productivity will be decreased and might lose a competitive advantage. Therefore, this is the reason, why I chose this research topic.

Purpose of the StudyThe purpose of this study is to explore the relationship between implementing a performance management and its impact on the level of employee’s satisfaction. This area of research will help the executives and managers to align the performance of individuals and teams with Human Resource’s systems and missions of the organizations.

Research Questions/HypothesisIn this study, the following questions will be analyzed and answered.

Research Questions

Q1: To what extent does the performance management affect employee satisfaction?

Q2: What is a performance management?

Q3: Does the performance management help to increase the productivity of employees?

Q4: Does the performance management help to increase the profitability of the organization?

Q5: Which success factors contribute to increasing the level of employee’s satisfaction?

The hypothesis of this study:

H1: There is a strong relationship between implementing an effective performance management and employee satisfaction.

H2: There is no relationship between an effective performance management and employee satisfaction.

Literature ReviewPerformance Management System (PMS) plays an important role in increasing the organization’s performance. Therefore, companies must have a competitive advantage among other competitors, to align performance management system with the strategic plan, mission, and vision. There are many benefits to implementing (PMS). For instance, to develop current skills of employees, rewarding the top performers, attracting talent workforce from outside the company, increasing the satisfaction and motivation. Another key thing to remember, the relationship between supervisor and employees would be strong because of good implementation of PMS.

Performance Management Process (PMP) is seen as a partnership between supervisors and their employees and it is not once-year activity. Yet, it consists of many steps to be conducted and implemented during the year, to have an effective evaluation of employees and increase the overall organization’s performance. PMP is designed to accomplish several goals, such as: improve the performance of employees and company, providing a forum for career planning and enabling supervisors and employees to plan and review performance (Guide to The Performance Management Process, 2016). The performance management system should be aligned with other HR systems in the organization (Elaine, 2004).

MethodologyIn many research studies, the researchers should select a methodology to collect and analyze the data. In general, there are two main methods for collecting the data, which are quantitative and qualitative. The quantitative method is useful when the objective of the study to measure the variables and verifying the theories or hypotheses. On another hand, the qualitative method is mainly used when trying to understand the meaning, beliefs, ideas, and experiences (Choosing qualitative or quantitative research methodologies, n.d.). The example of a quantitative method is the questionnaire and the example of the qualitative method interviews. Therefore, I decided to use both methods in this research to understand the problem in depths, and to analyze the different variables of the effectiveness of using the performance management systems.

SamplingTo meet the objective of this study, there are two types of samples which will be used. The first type is the interview; I am planning to prepare questions for the interviewees in some of the Saudi companies. This information will help to investigate the current situation of implementing the performance management systems in their companies. The second type is conducting an online survey, and the main target is to collect data related to the scope of this study from employees who work in private companies in Saudi Arabia.

InstrumentationTwo main instruments will be used in this study.

Interview

It will be face-to-face discussion with employees from different positions in Saudi companies. I am going to set questions that will be appropriate to meet the objectives of this research.

Survey

I am going to develop a survey using an online tool. Then, I will send it to various employees who work in Saudi companies to be used to validate and analyze the hypothesis and questions of this research.

Data Collection and Analysis ProceduresThe definition of data collection is “the process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer queries, stated research questions, test hypotheses, and evaluate outcomes” (Anastasia, 2017).

In general, there are two tools, which will be used in this study:

Quantitative data:

The survey will be distributed among Saudi employees to collect the data related to performance management systems and to analyze these data by using Analyze-it tool, which will be embedded in Microsoft Excel software.

Qualitative data:

The interview is considered as a qualitative data collection method. I am going to prepare questions that will be targeted to understand the issues related to the performance management system and employee’s satisfaction.

DiscussionPerformance management is considered as one of the most critical topics in the field of Human Resources. It might affect the productivity of the employees if it is not managed very well. Some companies mistakenly do the performance appraisals annually, and there is no feedback for the employees. However, it is important to explore the benefits of implementing performance management processes continuously. The following benefits might be gained (Puckett, 2019):

Enhanced data quality.

Increase the engagement of the employees.

Receive more input from employees.

References BIBLIOGRAPHY Aguinis, H. (2013). Performance Management. Pearson Education, Inc.

Anastasia. (2017). Overview of Qualitative And Quantitative Data Collection Methods. Retrieved 9 23, 2019, from cleverism: https://www.cleverism.com/qualitative-and-quantitative-data-collection-methods/

Choosing qualitative or quantitative research methodologies. (n.d.). Retrieved 9 23, 2019, from macmillanihe: https://www.macmillanihe.com/studentstudyskills/page/choosing-appropriate-research-methodologies/

Elaine, P. D. (2004). Performance Management: A roadmap for developing, implementing and evaluating performance management systems. SHRM Foundation. Retrieved 4 15, 2017, from https://www.pdri.com/images/uploads/Performance_Management.pdf

Guide to The Performance Management Process. (2016). Dhahran, Saudi Arabia: Saudi Aramco. Retrieved 4 13, 2017, from https://hronline.aramco.com.sa/pmp/Documents/2016%20PMP/PMP%20Guide%20-%202016.pdf

Kelly, D. (2012). The effectiness of performance management in the retail industry in Ireland.

Puckett, J. (2019). The Importance of Performance Management. Retrieved from technologyadvice.com: https://technologyadvice.com/blog/human-resources/importance-of-performance-management/