The Relationship between Performance Management and Employee

Productivity in Banking Sector

By

Hanen Al Madi & Reham Al Rasheed

Al Yamamah University

Saudi Arabia

Fall 2018
Research Declaration

We hereby solemnly declare on our oath that the work presented in this Research Project has

been carried out by us alone without any form of illicit assistance, cheating, or plagiarism. All

sources used have been fully quoted.

# Name Signature Date

Hanen Khaled Al Madi

Reham Ayad Alrished

TABLE OF CONTENTS

Acknowledgement...................................................................................................... 6
Executive Summary................................................................................................................ 7
Introduction............................................................................................................................. 8
Definitions of Terms ......................................................................................................... 8
Performance Management ........................................................................................ 8
Performance Management Cycle........................................................................................... 10
Adapting from Procurement Executive’s Association 1999 Performance Management
System Goals........................................................................................................... 11
Productivity in General................................................................................................... 11
Importance of Productivity.......................................................................................12
Employee Productivity.................................................................................................... 12
Overview of Saudi Banking Industry......................................................................................14
Research Problem.................................................................................................................. 14
Research Objectives.............................................................................................................. 15
Literature Review.................................................................................................................. 16
Hypothesis Development...................................................................................................... 18
Research Methodology.......................................................................................................... 19
Survey............................................................................................................................ 20
Participants..................................................................................................................... 20
Pilot test......................................................................................................................... 20
Data Collection............................................................................................................... 20
Reliability Test....................................................................................................................... 21
Data Analysis........................................................................................................................ 22
Section 1......................................................................................................................... 22
1.1 Gender of the respondents.................................................................................22
1.2 Position at work.................................................................................................. 23
1.3 Age of Respondents...........................................................................................24
1.4 Education of the respondents............................................................................24
1.5 Work Experience in the Banking Sector..............................................................25
Section 2......................................................................................................................... 27
Number of Employees in the Bank...........................................................................27
Bank’s Existence...................................................................................................... 28
Section 3 ........................................................................................................................ 29
3.1 Use of Key Performance Indicators in Banks.......................................................29
3.2 Types of Performance Management Tools...........................................................30
3.3 Relationship between Performance Management and Employee Productivity....31
Section 4......................................................................................................................... 33
Section 5......................................................................................................................... 36
Correlation Analysis............................................................................................................... 38
Hypothesis Assesment.......................................................................................................... 38
Discussion............................................................................................................................. 38
Conclusion and Implications.................................................................................................. 38
Recommendations ................................................................................................................ 38
Limitations and future research.............................................................................................38
References............................................................................................................................ 39
Appendix............................................................................................................................... 42
Figure 1: Cycle of Performance Management...........................................................................................10

Figure 2: Stages of a Performance Appraisal Plan......................................................................................13

Figure 3: Gender of Respondents...........................................................................................................22

Figure 4: Position at Work....................................................................................................................23

Figure 5: Age of Respondents................................................................................................................24

Figure 6: Education of Respondents.......................................................................................................25

Figure 7: Work Experience...................................................................................................................26

Figure 8: Number of Employees............................................................................................................27

Figure 9: Operational Years of the bank...................................................................................................28

Figure 10: Use of KPIs........................................................................................................................29

Figure 11: Performance Management Tools.............................................................................................30

Table 1:Definition of major terms............................................................................................................7

Acknowledgement
Executive Summary
Introduction

The Saudi Banking Industry has become exceedingly competitive. In order to be able to perform

well in the market, it is important to retain, attract, encourage and develop capable employees. It

has become essential for banks to set an efficient and objective performance management

system. According to Mathias and Jackson (2006), the process of performance management

consists of identifying, quantifying, communicating, evolving and rewarding the employee.

Commercial banks in Saudi Arabia are the most active sector in the economy and they play an

active and dynamic role in the economic development. Therefore, attention given to commercial

banks' activities is highly important knowing that their success would with no doubt represent

the success of the national economy (Ahmed & Khababa, 1999). The efficient performance of

banks can helps them to compete and to achieve higher rate of return relative to cost, and at the

same time to participate in economic development. Inefficient performance of banks, on the

other hand, will lead to hinder economic activities in other sectors such as industry and services

as banks are linked directly to the entire economy.

Definitions of Terms

Performance Management

Performance Management is an evaluation process that is utilized by the organization to measure

and develop employee productivity and efficiency in order to achieve organization’s goals. In
fact, it is continuous process of setting Objectives, Key Performance Indicators (KPIs),

Observing, coaching, and feedback.

Table 1: Definition of major terms

Objectives Attempts organization’s goal and work to achieve them by setting a work

plan.

Key Performance KPIs must be specific, measurable, realistic, and have time limit to

Indicators (KPIs) clarify and simplify organization’s strategy and plan for the current

financial year and to help employee to achieve organization’s goal.

Observing It is a process of observing, tracking, following up with employee to

ensure his commitment, productivity, and achievements on the plan that

prepared for him to develop his knowledge, skills and personality.

Coaching It is a process to guide and improve employee productivity.

Feedback It is a process of attempts Information or comments in regard to develop

 the performance.

Performance Management Cycle

 Define Project’s Propose

Define Project’s Goals and Objectives

Performance Planning Define Employee Responsibilities

Define Employee’s Performance Expectations (Behavior and

Results expectations)

Set a Accomplish due date (deadline)

Performance Monitoring Guide and Asset Employee

Track and Monitor Workflow

Manage Communication Process and Provide Employee with

Feedback

Improve Employee Productivity

Performance Review Financial Reward

Non-Financial Reward

Performance Reward

Figure 1: Cycle of Performance Management

According to Dilanthi Amaratunge Performance Management provides organizations the

opportunity to refine and improve their development activates. Performance Management

programmes provide feedback based on specifics rather than generalizations and are based on

specific objectives derived from the desired outcome of performance measurement results.

Adapting from Procurement Executive’s Association 1999 Performance Management System Goals
Translate organizational vision into clear measurable outcomes that define success, and which

are shared throughout the organization and with customers and stakeholders;

Provide a tool for assessing, managing, and improving the overall health and success system

Continue to shift from prescriptive, audit and compliance -based oversight to an ongoing,

forward looking strategic partnership.

Include measures of quality, cost, speed. Customer, service, and employee alignment, motivation,

and skills to:

The right organizational structure which facilities the effective use of performance measurement

results and

The ability to use performance measurement results to bring about change in the organize.

Productivity in General

According to Bernolak (1997) productivity means “how much and how good we produce from

the resources used” whereas The European Association of National Productivity Centres

(EANPC, 2005) defines productivity as “how efficiently and effectively products and services

are being produced”. Productivity in general can be defined as relation between the production

process and the results; production efficiency will increase as much as you use the available

resources you have.

Importance of Productivity

Productivity is important for three categories as shown below:

 - Individual Productivity; Employee falls under the category of individual and the

importance of this category can be measured with the personal income and lifestyle.

- Organization Productivity; The importance of this organization is to increase profit and

the only way to increase will be by reducing the expensive and build up the competitive

position of the organization in the market.

- Society Productivity; The importance will cover all society member where the production

will be increased and prices will reduced and the result of this will be increasment in the lifestyle

level.

Employee Productivity

According to Robbins & Judge (2011) productivity is the state of achieving institutional goals

and objectives by transforming inputs (human, financial and material resources) into outputs

(services or service delivery tangibles) at the lowest cost. It relates to the conversion of inputs

into outputs efficiently and effectively for the benefit of the society, economy and environment.

These key elements of productivity provide a broader picture of the actual meaning of the

concept. Examples of outputs may include quality Reconstruction and Development Programmes

(RDP) houses being built, houses being electrified or high-quality passes by matric students

being achieved. It becomes high or improved productivity if the desired results are continuously

achieved without additional resources (Reed & Swain, 1997: 321). As alluded to above,

productivity comes about as a result of continuous improvement of performance.

 Training and Development Plan

Relationship with Coworkers

Supervisor Support Plan

Incentives or Reward Plan

Figure 2: Stages of a Performance Appraisal Plan

There are different factors that impact and increase productivity as shown in the figure above.

Learning, Training and Development Plan: According to Pacitti (1998) “describes a learning

organization as: particular type of organization whose structures and process are aimed at

enhancing learning” Researchers see that will increase employee’s productivity, skills and

knowledge by different ways which are by the annual courses that organization provided in

different fields,

Relationship with Coworkers Plan: Communication and engagement with coworkers can

enhance employees’ productivity.

Supervisor Support Plan: Supervisor support and follow up will increase employees’

productivity.

Incentives or Reward Plan: Monetary or moral benefits that provided for employees in return

of their achievements. This plan will motivate employee and increase their productivity.
Overview of Saudi Banking Industry

The banking industry of Saudi Arabia can be divided into four categories; SAMA( Saudi Arabian

Monetary Agency) , Commercial banks, Islamic banks and Investment banks. SAMA is the

central bank of Saudi Arabia that was built in 1952. It is entrusted with a lot of legal and

regulatory duties. One of its many responsibilities is to promote the financial sector’s growth and

enable a sound environment (SAMA, 2013). There are 12 domestic and 12 foreign commercial

banks like JP Morgan and alike. It is expected by all banks to provide competitive and

exceptional service quality and constantly improve their service.

Over the time, the Saudi banking industry has expanded and added various different services

such as Murabaha, securitization, forward contracts, asset management, portfolio management

etc. All these services require greater efficiency and better performance by the bank.

Research Problem

The Saudi banking sector is highly competitive and for banks to enjoy a competitive

advantage, managers are faced with making decisions that impact on the survival of these

banks on a daily basis. Employee performance management is key to the achievement of

strategic objectives of banks. Lawler (1990) succinctly argues that in order for an organization to

motivate performance, it has to be able to identify and measure the performance that it wants to

motivate and reward. The deficiency of researches on this topic in Saudi’s banking sector and its
performance has motivated this study. Moreover, the relationship between the two variable;

employee productivity and performance management is important to understand the work ethics

and environment of the banking sector.

With the evolving dynamics of the industry and competitive job market, retaining capable

employees is extremely essential. The impact of performance management system on the

employees, therefore, will be studied in this research.

Research Objectives

Researchers in this project will focus only on the relationship between performance management

and employee productivity in banking sector. The objectives of this research are two-tier:

1. To assess the use of performance management systems in the Saudi Bank Sector

2. To evaluate the relationship between performance management systems and employee

productivity
Literature Review

Performance management is a process of identifying, measuring, communicating, developing

and rewarding employee performance (Mathias and Jackson, 2006). There should be a link

between performance management and the overall business strategy. It is essential to

communicate the performance management strategies and performance standards well to the

employees. It is the responsibility of the managers to communicate the system well and lay down

standards that are coherent with the company’s goals and aims. This will help managers is

assessing performance and they can ensure if the goals and aims are being met.

The results of such systems can either be negative or positive depending upon the employee’s

performance. The results will lead to either rewards or nothing at all (McCarthy and Milner,

2013). Financial and non-financial rewards such as promotion, bonuses and pay rise are given on

a positive performance. Whereas a negative performance result receives demotion, warning or

dismissal. “Performance management is a strategic and integrated approach to delivering

sustained success to organizations by improving the performance of the people who work in

them and by developing the capabilities of teams and individual contributors” (Armstrong and

Baron, 1998). Performance management and performance measurement as a business process

and communication around total reward are crucial underpinnings of an effective compensation

system that differentiates and truly rewards performance (Broadbent & Laughlin, 2009). For

performance management to be meaningful specific goals must be set and communicated to

employees. The purpose of performance management is to transform the raw potential of human
resource into performance by removing intermediate barriers as well as motivating and

rejuvenating the human resource (Kandula, 2006).

Perception of an organization’s fairness and trustworthiness can be shaped through human

resource policies and practices (Wright and Hobfoll, 2004).Within each organization the choices

of strategies and policies offer statements of intent and the nature of their implementation and

delivery provides tangible evidence of the extent to which management’s intentions are genuine

and can be trusted (Tangen, 2004). Porter (2007) highlighted that a set of high performing

human resource practices such as recruitment, training, job design, participation, teamwork,

work life balance and rewards were noted as important aspects in attainment of Job fit and this in

the long term implies that people experience better fit with the job and the organization when

more extensive human resource practices are in place. Storey (2000) says that after

organizational entry, in the training, performance appraisal, recognition and reward stages of the

Human resource cycle, organizations continue to manage fit levels. Training and development

practices are used not only for enhancing skills and knowledge needed to perform well in the job

but also for strengthening the desired values. Performance appraisal is a system that assesses the

quality and quantity of an employees work. Strategic human resource management practices that

best predict high performance are training and development and compensation practices coupled

with motivation. Luthans (2005) noted that the strategic human resource management practices

for competitive advantage are: information sharing, job design, programmes, job analysis

methods, participation programmes, incentive based compensation, benefits, training, grievance,

selection and staffing and performance appraisal.

Performance appraisals are not uncommon to the banking industry. However, what counts as an

appraisal or performance management varies a great deal in sophistication and organization.

Performance management here is a process of employee performance evaluation that is closely

tied to strategic objectives, that provides good feedback to employees and gives them a view of

their longer-term progress within the company, and is potentially married to training and other

development opportunities. When closely aligned with ongoing training and career development,

performance management can be a successful retention tool.

There is an increasing body of information confirming the relationship between performance

appraisals and increases in employee performance and productivity (Rodgers and Hunter, 1991;

Taylor and Pierce, 1999). For example, Aldakhilallah and Parente (2002) propose that, to

enhance employee productivity, managers reshape the performance appraisal process to make it

consistent with a high-quality management organization. Other researchers propose that the

increasing use of the performance appraisal process be arranged by organizational desire to

enhance employee productivity (Nankervis and Compton, 2006). Thus, an effective performance

appraisal should identify poorly performing employees and provide feedback to improve their

productivity, and perhaps allow them to partake in training activities in order to enhance their

performance.

Hypothesis Development

After reviewing extensive literature on the topic, the following hypotheses can be developed that

will be later tested using statistical measures. Where Ho is the null hypothesis and H1 – H4 are

alternative hypotheses.

Ho- Effective performance management systems have a negative impact on employee

productivity.
H1- Effective performance management systems have a positive impact on employee

productivity.

Ho- Saudi Banking Sector does not utilize performance managemet systems to enhance

employee productivity.

H2- Saudi Banking Sector completely utilizes performance managemet systems to enhance

employee productivity.

Research Methodology

As mentioned that there is limited data available on the relationship between performance

management and employee productivity in the banking sector of Saudi Arabia, this research will

serve as the basis of future researches in this domain. Therefore, the most suitable method of

research will be quantitative research based on questionnaire formation and online surveys. A

survey ismade and filled, by the employees and managers working in the banking sector. This

method will ensure direct and accurate results of the close-ended questions asked.

This was a survey research design. A survey design was appropriate for this study because it

allows collection of information for both independent and dependent variables using

questionnaires (Orodho, 2003). This design allowed the researcher to combine quantitative

research approaches.

Survey

The survey questionnaire consists of five sections pertaining to the respondents personal

information, bank information, their awareness about performance appraisal, performance

management system used at work place and the effectiveness of the system. Each section

contains 4-9 questions. The last two sections include statements based on the Likert Scale

ranging from 1-5, where respondents have to select the most appropriate answer for the given

statement. The survey is attached in the appendix section at the end of the research.

Participants

The survey form was shared using various social media platforms such as WhatsApp, Facebook

and Email. A total of 53 respondents filled the survey and 52 of them were considered valid.

Hence, a sample size of 52 is used for this questionnaire. Full confedentiality was maintained for

the respondents and responses were limited to just one response per person.

Pilot test

Before launching the survey form, a pilot test was carried out on a sample size of 10 people. This

was done to evaluate the accuracy and reliability of the survey form created. It also enabled us to

evaluate the time taken to complete the survey and to test the authenticity of the responses. After

the pilot test, a few questions were removed from the questionnaire due to ambuigity and then

the reliability test coefficient of Cronbach’s Alpha was applied. After testing everything, the

survey was finally floated on social media.

Data Collection

All fields on the form were marked required. Hence, respondents were required to answer all

questions. Once the questionnaire was shared on social media platform, the data was gathered

electronically on Google drive and then extracted in an Excel file. The targeted sample size was
100; however we achieved a total of 52 valid responses. The collected data was then ready for

analysis.

Reliability Test
Data Analysis

This section contains a detailed discussion of the results of the survey in order to achieve

research objectives and develop hypothesis.

Section 1

The first section of the survey form consisted of 5 questions related to the respondents’ personal

and demographic information.

1.1 Gender of the respondents

The research sought to find out the the gender of the respondents. Figure 3 below shows the

response.

Figure 3: Gender of Respondents

The figure above shows that 57.7% (30) of the respondents were female and 42.3% (22) of them

were male.

1.2 Position at work

The research sought to find out the position at which the respondents serve their banks. This is

extremely relevant as it will determine how informed, the managers as well as the employees are

about the performance appraisal system of the banks.

Figure 4 shows the results.

Figure 4: Position at Work

As can be seen above, 65.4% (34) respondents are employees and 34.6% (18) of them are

managers. This will show that the result will have greater inclination of the employees’ opinion.
 1.3 Age of Respondents

The research sought to find out the age of the respondents. The figure below shows the response.

Figure 5: Age of Respondents

Figure 5 shows that 50% of the respondents belong to the age bracket of 26-35 years old. Only

7.7% (4) of the respondents are above 46 years which is the least. A good percentage (28.8%) of

the respondents belongs to the age group of 36-45 years.

1.4 Education of the respondents

The research sought to find out the education of the respondents. The respondents were given 4

options to choose from: College Graduate, Diploma, Post Graduate or other.

Figure 6 shows the response.

Figure 6: Education of Respondents

Majority of the respondents, amounting to 65.4% (34) were college graduates. 13.5% (7)

belonged to the diploma and post graduate category each.

1.5 Work Experience in the Banking Sector

The research sought to find out the work experience of the respondents in order to assess their

familiarity and understanding about the banking sector. Figure 7 shows the results.

Participants could mark any experience bracket ranging from less than 1 year to more than 5

years of experience in the banking sector. The answer does not necessarily had to be marked

according to the current bank experience.

 Figure 7: Work Experience

The figure above shows that 69.2% (36) of the total respondents had a work experience greater

than 3 years. Only 13.5% (7) of the respondents are relatively new to the banking industry, with

an experience of less than 1 year.

Section 2

This section had only 2 questions and was designed to seek relevant information about the

different banks the respondents work in.

2.1 Number of Employees in the Bank

The research sought to find out the number of employees working in the respondents’ bank. This

question was added in order to understand the importance of having a performance management

system and the relation of it being effective with the number of people it has been designed for.

Figure 8 below shows the result.

Figure 8: Number of Employees

It can be seen from the above figure that 71.2% (37) of the respondents work in banks that have

more than 500 employees. This shows that the majority work in large banks where there is a
need of effective performance management system. Only 5 respondents (9.6%) work in banks

with lesser than a 100 employees.

2.2 Bank’s Existence

The research sought to find out the number of years the banks have been operational in which the

participants work. This question will help in understanding if the banking sector has an

inclination towards the culture of accountability and reward or not. It will showcase how old

banks and those that have been in the sector for a long period time give importance to efficiency

and performance or lag behind.

Figure 9 shows the results.

Figure 9: Operational Years of the bank

The figure above shows that 61.5% of the participants belong to banks that have been operating

for more than 10 years. 19.2% of the respondents belong to banks that have been operating for 5-

10 years and an equal number of respondents belong to comparatively newly formed banks.

Section 3

This section was designed to find out information about the Performance Management System

being used in the banks. It consists of 4 questions related to whether the bank uses KPIs, there is

a relation between productivity and performance management and the type of performance

management tools and rewards used by the banks.

3.1 Use of Key Performance Indicators in Banks

The research sought to find out whether banks in Saudi Arabia use KPI’s to measure

performance. Figure 10 below shows the results,

Figure 10: Use of KPIs

The figure above shows that 69.2% (36) of the respondents work in banks where KPIs are used.

7.7% (4) of the respondents work in banks where KPIs are not used. This may mean that such

banks have a different way of measuring performance of their employees but the probability of

this is very low as KPIs is the best known way of performance measurement. The major concern

however lies in the 23.1% (12) of the participants who are completely unaware of their bank

using KPIs to assess performance.

3.2 Types of Performance Management Tools

The research sought to find out the different types of tools being used in the Banks of Saudi

Arabia to evaluate the performance of their employees. Respondents were given 5 options to

choose from:

1) Observing

2) Coaching

3) Feedback

4) Follow Up

5) All of the above

Figure 11 shows the result.

 Figure 11: Performance Management Tools

The above tools were chosen as these are the widely known and used tools of performance

management in the banking sector (Frey & Osterloh, 2001).

Figure 11 shows that banks use all types of performance management tools. However, the most

popular among the given options was chosen to be the tool of observing, followed by feedback,

follow up and lastly coaching. This indicates that banks in Saudi are lacking training and

coaching programs to motivate employees. This conclusion will be further validated using the

proceeding sections and correlation between variables.

3.3 Relationship between Performance Management and Employee Productivity

The research sought to find out respondents’ perception about how effective performance

management is when it coms to improving employee productivity. The results for the question is

presented in the figure below.

 Figure 12: Performance Management and Productivity

Figure 12 above shows whether the respondents believe in a positive relation between

peerformance management and employee productivity. 90.4% of the respondents believe that

performance management has an impact on employee productivity. However, 9.6% of them

disagree. The reason for this can either be a lack of understaning/awareness of performance

management among these 5 respondents or a poor performance management system in the bank

that fails to improve employee productivity.

In conclusion, however, the majority of the respondents conform with the vast number of

researches on the relationship between performance management and productivity.

3.4 Style of Reward

The research sought to find out the most commonly used rewarding style in banks of Saudi

Arabia. This question will help in understanding the inclination of Saudi banks towards monetary

benefits or non-pecuniary benefits. Figure 13 below shows the respmdemts’ response.

Figure 13: Reward Styles
 Section 4

Strongly Agree Neutral Disagree Strongly

Agree Disagree
1 All 3 6% 15 29 11 21 10 19 13 25%

Employees % % %

are well

aware of the

Performance

Management

Measures of

the Bank
2 My bank 4 8% 19 37 12 23 12 23 5 10%

attracts and % % %

retains

employees
3 My goals are 7 13 15 29 17 33 9 17 4 8%

aligned with % % % %

my bank’s

vision and

mission
4 Coaching 7 13 19 37 8 15 9 17 9 17%

and training % % % w%

programs are

regularly
 exercised in

my bank

5 My bank 4 8% 13 25 14 27 13 25 8 15%

recognizes % % %

and rewards

all

employees
6 My bank has 7 13 13 25 16 31 9 17 7 13%

designed a % % % %

performance

appraisal

system for

the

employees
7 Productivity 6 12 13 25 20 38 9 17 4 8%

increases % % % %

with

performance

management

system
8 Employee 4 8% 13 25 20 38 9 17 6 12%

morale % % %

increase with

performance

management
9 Profitability 7 13 21 40 12 23 8 15 4 8%

increases % % % %

with better

performance

management

system

25

20

15
Strongly Agree
Responses Agree
10 Neutral
Disagree
Strongly

0
1 2 3 4 5 6 7 8 9
Statements
 Section 5

Strongly Agre Neutra Disagre Strongly

Agree e l e Disagre

e
1 The system 4 8% 11 21 18 35 13 25 6 12%

identifies % % %

employee

needs
2 The system 1 2% 16 31 14 27 15 29 6 12%

determines % % %

promotion of

staff
3 The system 6 12 15 29 15 29 10 19 6 12%

holds % % % %

employees

accountable
4 The system 7 13 14 27 13 25 12 23 6 12%

identifies % % % %

company

goals
5 The system 4 8% 13 25 20 38 11 21 4 8%

develops % % %

employees’

skills
6 The system 3 6% 15 29 19 37 11 21 4 8%

encourages % % %

employees to

perform better
25

20

15
Strongly Agree
Responses Agree
10 Neutral
Disagree
Strongly Disagree

0
1 2 3 4 5 6
Statements
Correlation Analysis

Hypothesis Assesment

Discussion

Conclusion and Implications

Recommendations

Limitations and future research

References

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Arabia. Journal of Financial Management & Analysis, 12(2), 30.

2. Bernolak, I. (1997). Effective measurement and successful elements of company

productivity: The basis of competitiveness and world prosperity. International Journal of

Production Economics, 52(1-2), 203-213.

3. http://www.sama.gov.sa/en-US/EconomicReports/AnnualReport/Fifty%20Second

%20Annual%20Report.pdf

4. Lawler III, E. E. (1990). Strategic pay: Aligning organizational strategies and pay

systems. Jossey-Bass.

5. Mathias, S. A., Butler, A. P., Jackson, B. M., & Wheater, H. S. (2006). Transient

simulations of flow and transport in the Chalk unsaturated zone. Journal of

Hydrology, 330(1-2), 10-28.

6. McCarthy, G., & Milner, J. (2013). Managerial coaching: challenges, opportunities and

training. Journal of Management Development, 32(7), 768-779.

7. Armstrong, M., & Baron, A. (1998). Performance management: The new realities. State

Mutual Book & Periodical Service.

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model. Management Accounting Research, 20(4), 283-295.

9. Kandula, S. R. (2006). Performance management: Strategies, interventions, drivers. PHI

Learning Pvt. Ltd..

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performance: An examination of conservation of resources (COR) theory and job

burnout. Journal of business and management, 9(4), 389.

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12. Porter, K., Kennedy, R., & Bachman, R. (2007). Creating fragility functions for

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13. Storey, A. (2002). Performance management in schools: could the balanced scorecard

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organizational productivity. Journal of Applied Psychology, 76(2), 322.

18. Nankervis, A. R., & Compton, R. L. (2006). Performance management: Theory in

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Appendix

The Relationship Between Performance Management and Employee Productivity in Banking

Sector

Survey Form

This questionnaire is designed to understand theThe Relationship between Performance

Management and Employee Productivity in Banking Sector. Your help will be beneficial and

highly appreciated in this regard. The questionnaire consists of 5 sections and 4-9 questions

each. It should not take more than 15-20 minutes to complete it. Thank you.

SECTION 1

Gender

Female

Male

Position

Manager

Employee

Age

25 years or less
26-35 years

36-45 years

45 years or above

Education

College graduate

Diploma

Graduate

Post-Graduate

Other

Indicate your work experience in the banking sector

Below 2 years

2-6 years

7-10 years

Above 10 years

SECTION 2

Indicate the number of employees in your bank

Less than 100

100-500

More than 500

How long has been your bank operating for?

Less than 5 years

5- 10 years

More than 10 years

What is the nature of your bank?

Private

Government

Semi-Government

Section 3

Does your bank use Key Performance Indicators (KPIs)?

Yes

No

What type of performance management tools you use in your organization?

Observing

Coaching

Feedback

Follow Up

Does Performance Management Affect Employee Productivity?

Yes

No

Which reward style is used in your organization?

Financial Reward

Non-Financial Reward

Section 4

For this section, rate each statement on the scale of 1-5; where, 1=Strongly Disagree, 2=

Disagree, 3=Neutral, 4=Agree and 5=Strongly Agree

Strongl Agree Neutral Disagre Strongly

y Agree e
Disagre
 1 2 3 e

4 5

1 My bank communicates

performance management

measures well to the employees

2 My bank attracts and retains

employees

3 My goals are aligned with my

bank’s vision and mission

4 Coaching and training programs

are regularly exercised in my bank

5 My bank recognizes and rewards

all employees

6 My bank has desugned a

performance appraisal system for

the employees

7 Productivity increases with

performance management system

8 Employee morale increase with

 performance management

9 Profitability increases with better

performance management system

Section 5(Effectiveness of the performance management system)

For this section, rate each statement on the scale of 1-5; where, 1=Strongly Disagree, 2=

Disagree, 3=Neutral, 4=Agree and 5=Strongly Agree

Strongl Agree Neutral Disagree Strongly

y Agree
Disagree

1
2 3 4 5

1 The system identifies employee

needs

2 The system determines promotion

of staff

3 The system holds employees

accountable
4 The system identifies company

goals

5 The system develops employees’

skilss

6 The system encourages employees

to perform better