Lotyang Emmanuel Lux

THE IMPACT OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEE
PRODUCTIVITY, A CASE STUDY OF KAABONG DISTRICT LOCAL

GOVERNMENT
BY:
BDS145763/1431DU
LOTYANG EMMANUEL LUX
A RESEARCH REPORT SUBMITED TO THE COLLEGE OF HUMANITIES AND

SOCIAL SCIENCES IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF BACHELORS DEGREE OF DEVELOPMENT
STUDIES OF KAMPALA INTERNATIONAL UNIVERSITY
AUGUST 2017
DECLARATION
I Lotyang Emmanuel Lux hereby declare that this is my original work and has never been
presented to any other educational institution for the award of any degree or certificate.
Signature ~ Date ..~.L! E~L.?
LOTYANG EMMANUEL LUX
(STUDENT)
APPROVAL
This is to certif~i that the research has been under my supervision and is now ready for submission
to the department of development, peace and conflict studies of Kampala international University.
Signature date
Pr. Rwabuhihi Emmanuel Festus
(SUPERVISOR)
111
DEDICATION
I dedicate this research to my parents Mr. Chorimah Augustine Lux and Namunu Lina who have
endeavored to make sure that I study up to this stage. I also dedicate this research to all my family
members and all my friends who were with me for long during my studies.
iv
ACKNOWLEDGEMENTS
In the preface, I thank God who has given me the life and wisdom to reach where I am today. He
has made me all things possible in my life and this is enough to praise his mighty name.
Acknowledgements also goes to my supervisor Pr. Rwabuhihi Emmanuel Festus who has given
me time and guidance throughout this research process up to this time. My God bless you.
I truthfully thank all my friends especially Nyanga Pasquale, Ongom Boniface Ochan, Achia
Francis, Lonyia peter and Lokuriana John whom we discussed different topics from the time we
reported up to the end.
Lastly, I acknowledge the support that was given to me by other classmates especially in making
it possible to complete the course in time.
v
TABLE OF CONTENTS
DECLARATION H
APPROVAL
DEDICATION iv
ACKNOWLEDGEMENTS v
TABLE OF CONTENTS vi
LIST OF TABLES ix
LIST OF FIGURES x
ABSTRACT Xi
LIST OF ACRONYMS AND ABREVATIONS xii
CHAPTER ONE 1
1.1 Background of the study I
1.1 .1 Historical perspective I
1.1.2 Theoretical perspective I
1.1.3 Conceptual perspective I
1.2 Statement of the problem 4
1.3 purpose of the study
1.4 Objective of the study/purpose of the research 5
1.5 Research question 5
1.6 Scope of the study
1.6.1 Geographical scope 5
1.6.2 Time scope 6
1.6.3 Content scope 6
1.7 Significance of the study 6
1.8 Conceptual frame work 7
CHATER TWO 8
LITERATURE REVIEW 8
2.0 Theoretical review 8
1.1 Related literature review 9
2.2.1 Performance management system 9
Rewarding performance 15
The relationship between performance management system and employee productivity 18
vi
CHAPTER THREE .20
RESEARCH METHODOLOGY 20
3.0 Introduction 20
3.1 Research Design 20
3.2 Population of the study 20
3.3 Sample size 21
3.3.1 Determination of sample size and selection 21
3.4 Data collection method 21
3.4. iQuestionnaire 21
3.4.2 Interview method 22
3.4.3 Observation 22
3.4.4 Documentary Reviews 22
3.5 Data quality control 22
3.5.1 Validity of instrument 22
3.5.2 Reliability of instrument 23
3.6 Ethical considerations 23
3.7 Limitations of the study 23
CHAPTER FOUR 25
PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDING 25
4.0 Introduction 25
Demographic characteristics 25
4.1 Gender of respondents 25
4.1.2 Age of respondents 26
4.1.3 Marital status of the respondents 27
4.1.4 Academic qualification of the respondents 28
Level of employee productivity 28
CHAPTER FIVE 40
SUMMARY, CONCLUSIONS, RECOMMENDATIONS AND AREAS FOR
FURTHERRESEARCH 40
5.0 Introduction 40
5.1 Summary 40
5.2.1 The level of employee productivity at Kaabong district local government 40
vii
5.2.2 The nature of performances management syste1~ .41
5.2.3 Relationship between performances management system and employee productivityat Kaabong
district local government 41
5.2 CONCLUSION 42
5.3 RECOMMENDATIONS 42
5.4 SUGGESTION FOR FURTHER STUDIES 43
REFFERENCE
APPENDIX I 46
SELF ADMINISTERED QUESTIONNAIRES 46
APPENDIX II 50
REEARCH TIME FRAME 50
APPENDIX III 51
RESEARCH BUDGET 51
APPENDIX IV: KREJCE & MORGAN (1970) TABLE FOR SAMPLE SIZE DETERMINATION 52
VIII
LIST OF TABLES
Table 1: showing gender respondents 25

Table 2: showing the age of respondents 26
Table 3: showing academic qualifications of the respondents 28
Table 4: showing responses of the unit/department that provide finance 29
Table 5: showing whether the money was enough to run department activities 29
Table 6: showing the competence of their representatives in handling grievances 32
Table 7: showing the ways in which their representatives assume their offices 32
Table 8: showing whether respondents get full training to join unit or department 33
Table 9: showing whether there is coordination between departments/units 34
Table 10: showing whether they ever get problems at their work place 34
Table 11: showing whether the department has tried to resolve its disputes with their employers.
35
Table 12: showing the ways in which their employers treat them 36
Table 13: showing the ways of their welfare in terms of salary, protective gears, medication and
allowances 36
Table 14: showing whether there is human resource unit in the district service 37
Table 15; showing how the relationship is between department and management 38
Table 16: showing whether there was a need for the department to intervene in the employees
fight
ix
LIST OF FIGURES
Figure 1: a graph showing the marital status of the respondents 27

Figure 2: Graph showing whether the funds contributed are well managed 30
Figure 3: showing whether there are workers representatives at national level 31
x
ABSTRACT
There is need to realize the potential of Performance Management System how it impacts on the
district’s employees and organizational role players in order to achieve organizational
performance. This study will be addressing issues of Performance Management System in the
district of Kaabong with its impact on its employees in order to achieve its objective in the town
board.
The district of Kaabong values driving Performance Management System (PMS). The district of
Kaabong believe that they are the heart and soul of our organization in terms of the values. The
district fundamental notions of ideal behavior, the set of beliefs upon which decisions are made
and actions taken. This included in the Performance Management document since they are guiding
the district of Kaabong in the way we implement the process of Performance Management System
(PMS).
This study will provide an overview of the broad field of Performance Management System and
specifically focuses on the employee’s perspective and impact of Performance Management
System in the district of Kaabong (DOK). The study objectives are to review role of Human
Resource HR regarding the PMS in the District, to also analyze challenges found in the District
and make possible recommendations after in order to review the role of HR department regarding
the performance management system and their effects on staff motivation and performance, to
analyze challenges that influence PMS and staff motivation in the District of Kaabong with its
internal factors. By doing so the study will make recommendations and provide possible solutions
to address District of Kaabong performance management and motivation challenges and further
more to make sure the critical point about employee performance management is that handing out
job descriptions, carrying out staff appraisals and employee PMS is key with managers that can
use and understand the system effectively.
The performance management process is designed to provide administrative simplicity, maintain
mutual respect between managers and employees, and add value to managers’ and employee’s day
to day communication about performance and development issues. In order to achieve this
objective, a literature review and interviews will be conducted, which will serve as a foundation
on which the research will be based on. The qualitative research methodology will be chosen for
this research study as it allows for interpretation rather than numbers assigned to their respective
categories.
In this study we will be addressing the complexities of Performance Management System for
Kaabong district local government (KDLG). The district has a vision of becoming a country’s
best-class district; the PMS is designed to assist the District of Kaabong in achieving its objectives
as set out in the Integrated Development Plans (IDP) thus working towards the achievement of a
vision of becoming a country’s better district in the northern region. The research aims will be
wanting to answer questions around such as, what is the role of HR department regarding PMS,
what are the challenges that influence PMS and staff motivation and what recommendations can
be made to address KDLG its PMS motivation challenges because the PMS main aims is to do the
process of driving and managing employee’s performance to ensure their contribution to the goals
in the organization so that we can develop an understanding of link between the District’s
performance and individual’s performance in order we can do the understanding of the planning
process in the district.
xi
LIST OF ACRONYMS AND ABREVATIONS
KDLG Kaabong District Local Government
PMS Performance Management System
IDPs Integrated Development Plans
HRM Human Resource Management
xli
CHAPTER ONE
1.0 Introduction.
Introduction this chapter looks at the background of the study, statement of the problem,
Objectives, purpose of the study, significance of the study, and the scope.
1.1 Background of the study.
1.1.1 Historical perspective

The current business environment is very competitive characterized by man at forces such as
globalization and stiff competition. In such a competing environment, employee productivity is
central. According to the bureau of labor statistics, Americans spend 8.8 hours a day in the
workplace. That is even more than the 7.7 hours we spend on sleeping. The fact is we now spend
more time with our co-workers than we do with our family. Because we spend so much time with
our co-workers, they have the opportunity to affect our mood on a daily basis. A motivated
employee creates a positive environment in the workplace. While an unmotivated employee is
destructive and demoralizing.
What is a boss supposed to do when you encounter an unproductive employee? Change their
attitude immediately! Here are just some of the many ways you can motivate an employee to be a
productive member of your team. Employee productivity depends on performance management
system.
1.1.2 Theoretical perspective

This work will be based in expectancy theory of victor vroom and research will strictly apply the
statements of this theory in order to realize its motivation in relations avail.
1.1.3 Conceptual perspective

Performance management (PM) performance management is ‘the process that units goal setting,
performance appraisal and development into a single common system (Dessler 2008, p.289).
performance management system (PMS) has been defined as an integrated set of planning and
review procedures which cascade down through the organizations to provide a link between each
individual and the overall strategy of the organization (smith & Goddard 2002, p.248).
Employee productivity
Definition of employee under various Acts
Employee Exchanges (Compulsory Notification of Vacancies) Act, 1959 2B Any person who is
employed in an establishment to do any work for remuneration.
(a) Employee’s Provident Fund and Miscellaneous Provisions Act, 1952 2F Any person who
is employed for wages in any kind of work, manual or otherwise, in or in connection with
the work of an establishment, and who gets his wages directly or indirectly from the
employer, and includes any person (i) employed by or through a contractor in or in
connection with the work of the establishment; (ii) engaged as an apprentice, not being an
apprentice engaged under the apprentices Act, 1961, or under the standing orders of the
establishment.
(b) Employee Provident Fund Scheme, 1952, 2F Excluded (i) an employee who have been a
member of the fund, withdrew the full amount of his accumulations in the fund under clause
(a) or (c) of subparagraph (1) 69; (ii) an employee whose pay at the time he is otherwise
entitled to become a member of the Fund, exceeds five thousand rupees per month;
Explanation. “Pay” include basic wages with dearness allowance, retaining allowance
(If any) and cash value of food concessions admissible thereon (iii) (iv) an apprentice;
Explanation. An apprentice means a person who, according to the certified standing orders
applicable to the factory or establishment, is an apprentice, or who is declared to be an
apprentice by the authority specified in this behalf by the appropriate government.
(c) Employee State Insurance (General Provident Fund) Rules, 1950 2(e) “Employee means a
person appointed to or borne on the cadre of the staff of the cooperation, other than persons
on deputation”.
(d) Employee State Insurance Act, 1948 2(10) Exempted Employee: An employee who is not
,
liable under this Act to pay the employee’s contribution, 2(9) Employee Any person
employed for wages in or in connection with the work of a factory or establishment to
which this Act applies and (i) who is directly employed by the principle employer on any
work of, or incidental or preliminary to or connected with the work of, the factory or
2
establishment, whether such work is done by the employee in the factory or establishment
or elsewhere; or (ii) who is employed by or through an immediate employer on the premises
of the factory or establishment or under the supervision of the principle employer or his
agent on work which is ordinarily part of the work of the factory or establishment or which
is preliminary to the work carried on in or incidental to the purpose of the factory or
establishment; or (iii) whose services are temporarily lent or let on hire to the principle
employer by the person with whom the person whose services are so lent or let on hire has
entered into a contract of service; and includes any person employed for wages on any
work connected with the administration of the factory or establishment or any part,
department or branch thereof or with the purchase of raw materials for, or the distribution
or sale of the products of, the factory or establishment or any person engaged as an
apprentice, not being an apprentice engaged under the Apprentices Act,
1961(52 of 1961), or under the standing orders of the establishment; but does not include
(i) any member of the Indian naval, military or air forces; or (ii) any person so employed
whose wages (excluding remuneration for overtime work) exceed such wages as may be
prescribed by the central government a month: provided that an employee whose wages
(excluding remuneration for overtime work) exceed such wages as may be prescribed by
the central government a month at any time after and not before the beginning of the
contribution period, shall continue to be an employee until the end of the period.
(e) Minimum Wages Act, 1948. 21 Any person who is employed for hire or reward to do any
work, skilled or unskilled, manual or clerical, in a scheduled employment in respect of
which minimum rates of wages have been fixed; and includes an outworker to whom any
articles or materials are given out by another person to be made up, cleaned, washed,
altered, ornamented, finished, repaired, adopted or otherwise processed for sale for the
purposes of trade or business of that other person where the process is to be carried out
either in the home of the outworker or in some other premises not being premises under
the control and management of that other person; and also includes an employee declared
to be an employee by the appropriate government; but does not include any member of the
armed forces of the union.
(f) Payment of Bonus Act, 1965. 2(13) Any person (other than an apprentice) employed on a
salary or wage not exceeding three thousand and five hundred rupees per mensem in any
3
industry to do any skilled or unskilled manual, supervisory, managerial, administrative,
technical or clerical work of hire or reward, whether the terms of employment be express
of implied.
(g) Payment of Gratuity Act, 1972. 2E Any person (other than an apprentice) employed on
wages, in any establishment, factory, mine, oilfield, plantation, port, rail way company or
shop, to do any skilled, semiskilled, or unskilled, manual, supervisory, technical, or clerical
work, whether the terms of such employment are express or implied, and whether or not
such a person is employed in a managerial or administrative capacity, but does not include
any such person who holds a post under the central government or a state government and
is governed by any other Act or by any rules providing for payment of gratuity.
(h) The sales Promotion Employees (conditions of service) Act, 1976 2D sales promotion
Employees any person by whatever name called (including an apprentice) employed or
engaged in any establishment for hire or reward to do any work relating to promotion of
sales or business, or both, but does not include any such person (i) who is being employed
or engaged in a supervisory capacity, draws wages exceeding sixteen hundred rupees per
mensem; or (ii) who is employed or engaged mainly in a managerial or administrative
capacity explanation.
For the purposes of this clause, the wages per mensem of a person shall be deemed to be
the amount equal to thirty times his total wages (whether or not including, or comprising
only of~ commission) in respect to the continuous period of his service falling within the
period of twelve months immediately preceding the date with reference to which the
calculation is to be made, divided by the number of days comprising that period of service
27.
(i) Working Journalists and Other Newspaper Employees (conditions of service) and
Miscellaneous Provisions Act, 1955 2(c) News Paper Employee “newspaperemployee
“means any working journalist, and includes any other person employed to do any work
in, or in relation to, any newspaper establishment.
1.2 Statement of the problem

Employee productivity is central to the success of every organization. However, despite the
performance management system that has been put in place by the local government, the employee
productivity has continued not to meet the public expectations. For example the public has
4
continued to complain about the poor service delivery of the local government. This forms the
basis for this study.
1.3 purpose of the study

The study was intended to investigate on performance management system and employee
productivity.
1.4 Objective of the study/purpose of the research

1. To examine the level of employee productivity at Kaabong district local government.
2. To examine the nature of performance management system at Kaabong district local
government.
3. To determine the relationship between performance management system and employee
productivity at Kaabong district local government.
1.5 Research question

1. What is the level of employee productivity at Kaabong district local government?
2. What is the nature of performance management system at Kaabong district local
government?
3. What is the relationship between performance management system and employee
productivity at Kaabong district local government?
1.6 Scope of the study
1.6.1 Geographical scope.

This study was conducted in Kaabong districtin which Kaabong district comprises of 19 sub
counties where not less than 10 sub county local government boards were interviewed which
includes: Kaabong town council, Loyoro, Karenga, Kathile, Kalapata, Kawalakol, Lobalangit,
Sidok, Kaabong east, Kaabong west, Lolelia, and finally Lodiko sub county.
And Kaabong district has total number of employees of about 976 out of the total number, those
confirmed are 773 and those not confirmed are 228.
5
1.6.2 Time scope.
The research took three months when data was still being collected from the field and has to be
covering all the sampled local government departments in sub counties selected in the district .and
all the departments of local government of Kaabong district at large were taken into consideration
of the research.
1.6.3 Content scope.

The research was conducted in Kaabong district and this research took the information about the
impacts of performance management system on employee productivity in Kaabongdistrict local
government.
1.7 Significance of the study.

The findings of this will be of significant important to all the stake holders in Kaabong district,
Karamoja region for their efforts to meet the needs of the public and improve them as they try to
correct more employee productivity in Kaabong district, the researcher will be able to get first
hand information on employee productivity and performance management systems in Kaabong
district. The research will be of great help to other students in institutes of open and distance
learning who wish to enhance the same later.
6
1.8 Conceptual frame work
PERFORMANCE MANAGEMENT EMPLOYMENT PRODUCTIVITY

SYSTEM
Planning
~ Level of employment e Managements and rewarding
productivity e Monitoring and evaluation
~ Nature of performance
system
> Relationship between
performance system and
employee productivity
GOVERNMENT POLICY
V Service delivery
V Employment mode
V Enrolment
7
CRATER TWO
LITERATURE REVIEW
2.0 Theoretical review

Expectancy theory suggests that motivation is based on how much we want something and how
likely we think we are to get it the formal frame work of the expectancy theory was developed by
victor vroom this framework states basically that motivation plus effort leads to performance,
which then leads to outcomes.
According to this theory, three conditions must be met for individuals to exhibits motivated
behavior:
o Effort-to-performance expectancy must be great than zero;
o Performance-to-outcome expectancy must also be great than zero; and
o The sum of the valances for all relevant outcomes must be great than zero.
Effort-to-performance expectancy is the individual perceptions of the probability that efforts will
to high performance, this expectancy ranges from zero to one, with one being a strong believe that
effort will to lead high performance.
Performance-to-outcome expectancy is the individual perspective that performances will lead to

specific individual outcomes, this expectancy ranges from zero to one, and a high performance-to
outcomes expectancy would be one or closed to it.
Outcomes are consequences of behavior. An individual may experience a variety of outcomes in

an organization setting, each outcome has an associated valance, which is an index of how much
an individual desires a particular outcome. An outcome that an individual wants has positive
valance, an outcome that an individual does not want has a negative valance. When an individual
is in deferent to the outcome and valance is zero.
8
1.1 Related literature review
2.2.1 Performance management system

In many organizations they have different modes of performance management. Each model has its
importance as a system for managing organizational performance, managing employee
productivity, and for integrating the management of organizational and employee performance.
Performance management involves many multiple levels of analysis, and is clearly linked to the
topics studied in strategic HRM as well as performance appraisal. Different terms refer to
performance management initiatives in organizations, for example, performance-based budgeting,
pay-for-performance planning, programming and budgeting, and management by objectives
(Heinrich, 2002). A performance management system, according to Rudman (2003), is
increasingly seen as a means of integrating human resource activities with the business objectives
of the organization, where management and HR activities are working together to influence
individual and collective behavior to support the organization’s strategy. Besides, he also stressed
that the performance management system must fit with the organizations culture. Performance
management system is a kind of completed and integrated cycle for performance management.
The emphasis of performance management system is on continuously improving organizational
performance, and this is achieved through improved individual employee productivity
(Macky&Johnson, 2000) similarly from the suggestion of Lawler (2003),
The objectives often include motivating performance, helping individuals develop their skills,
building performance culture, determining who should be promoted, eliminating individuals who
are poor performers, and helping implement business strategies. The main purpose of the
performance management system is to ensure that: performance management system is regarded
as a communicating process that helps managers provide a motivating climate to assist their
employees in developing and achieving high standards of performance. Its focus is no management
processes and. behaviors and is not considered to be an annual form filling in exercise. Ultimately,
the performance management system is designed to facilitate the district of Kaabong in achieving
its objectives as set out in the integrated development plans thus working towards the achievement
of a vision of becoming the best in northern region of the country.
In order to achieve this vision of becoming the best in the region and ensure that it is understood
throughout the organization of performance management system has been developed. The overall
9
purpose is to ensure that every employee of Kaabong district has an understanding of how he/she
can contribute towards the achievement of a vision of becoming the best among the districts in the
northern region.
Level of employee productivity
Employee productivity that does not meet expectations is addressed developing a performance
management system is essential for an organization. Developing a performance management
system, according to Schneider, Beatty and Baird (1987), is classified into a development,
planning, managing, reviewing and rewarding phase. In 2000, Macky and Johnson suggested that,
a typical performance management system would include: the organization communicating its
mission/strategies to its employees, the setting of individual performance targets to meet the
employees individual team and ultimately the organizations mission/strategies, the regular
appraisal of these individuals against the agreed set targets, use of the results for identification of
development and/or for administrative decisions, and the continual review of the performance
management system to ensure it continues to contribute to the organizational performance, ideally
through consultation with employees. Fletcher (1996) suggested that the main building blocks of
a performance management system approach include: development of organizations mission and
objectives; enhancing communication within the organization to so that employees are not only
aware of the objectives and the business plan, but can contribute to their formulation; clarifying
individual responsibilities and accountabilities; defining and measuring individual performance;
implementing appropriate reward strategies, and developing staff to improve performance, and
their carrier progression further in the future.
Nature of performance management system

According to schineier, Beatty and Baird (1987), a performance management system is classified
into a development, planning, managing, reviewing and rewarding phase performance
management system phases.
10
Phase one Phase two
Developing and planning Managing and reviewing performance

performance
\~ Assess against objectives
Outlining development plans
/ Feedback
Setting the objectives /
/ Coaching
Getting committed /
____________________________________/ flriri m~ntc
Phase three
Rewarding performance
Link to pay
Results performance
From above figure and according to schineier, Beatty, and Baird ( 1987), the performance
management system consists of three phases: developing and planning performance is the phase
which includes outlining development plans, setting objectives and getting commitment activities;
managing and reviewing performance is the phase 2 which includes assessing against objectives,
seeking feedback, coaching and document reviews activities; rewarding performance is the last
phase which has personal development, results of performance and link to pay activities. In the
last chapter, I introduced the performance management system definition from Fletcher. He
mentioned that performance management system approach should include developing
organizations mission and objectives, enhancing communication within organization, clarifying
individual responsibilities and accountabilities, then defining and measuring individual
performance and rewarding performance, and finally improving staff performance and developing
carrier progression in the future. There is an apparent difference of definition between schineier
and Fletcher, it is the communication. Fletcher pointed that enhancing communication within the
11
organization so that employees are aware of the objectives and the business plan, and employees
can continue communication in the production process for exchanging information, discussing
problems and seeking feedbacks. Thus I would combine the definition of performance
management system from Macky, Johnson, Fletcher and schineier. Clear and detailed employee
productivity objectives play a crucial role in helping companies to perform in accordance with
their business plan and achieve their phase 1, phase 2, phase 3 developing & planning performance,
outlining development plans, setting objectives, getting commitment managing & reviewing, asses
against objectives, feedback, coaching, document reviews, rewarding performance, personal
development, link to pay result performance strategic goals. Then, the managing performance
activities like seeking feedback and coaching, also evaluation and rewarding are included in the
theories of both authors. In addition to this, according to Fletcher (1996), I would analyze the
continuous communication activity in the managing performance phase as well. The reason as to
why I concluded communication activity in the performance system is that, communication
between managers and employees and communication within employees could make employees
to understand the objectives and make managers supervise the progress of daily work. Next, the
details and contents in each phase would be introduced and discussed adequately.
Phase 1 developing and planning performance

Planning is the first stage in the performance management system process cycle and offers the
foundation for an effective process, planning is a continuous process in performance management
and should be executed with great care (schineier et al, 1987). Planning helps to encourage
commitment and understanding by linking the employees work with the organizations goals and
objectives (schineier et al, 1987). It usually includes identifying key value drivers of stakeholders,
for example, shareholders, customers and employees of the organization. Similarly, according to
Armstrong and baron (2004), objectives and goals describe something to be accomplished by
individuals, departments and organizations over a period of time. They can be expressed as targets
to meet, for instance, sales, and tasks to be completed before the deadline. Armstrong and baron
(2004) further state that objectives need to be defined and agreed on. The objectives relate to the
overall purpose of the job and define performance areas all the aspects of the job that contribute to
achieving its overall purpose. Targets then are set for each performance area. Rogers and Hunter
(1991) stated that goal setting is the fundamental aspect for an organization. They further indicated
that productivity gains will correlate with the extent of top management support for and
12
employee’s participation in the process of setting the objectives, It is a motivational process which
also gives the individual the feeling of being involved and creates a sense of ownership for
employees. At the same time, part of the planning phase includes the agreement on the formal
development plan for the employees. Actually this plan should be based on requisite skills,
behaviors and knowledge and key competencies that will be required to achieve the objectives and
targets set. The development plan can also include long term development initiative which are
usually based on potential and good performances (Nyembezi, 2009)
In this planning phase, the supervisors and subordinates are involved in ajoint participative process
and set organizational goals, as well as specific goals for an individual. Objectives, on the other
hand, also create the environment in which an individual will be measured according to his or her
own performance and output, with set standards for evaluation (Nyembezi, 2009).
Phase 2 managing and reviewing performance

Managing performance is the second element of the performance management system cycle. This
step distinguishes performance management as a process from performance appraisal as an activity
(schineier et al, 1987). According to schineier et al (1987), every employee is responsible for
managing his or her own work performance. This involves: (1) maintaining a positive approach to
work, (2) updating and revising initial objectives, performance standards and job competency areas
as conditions change, (3) requesting feedback from a supervisor, (4) providing feedback to a
supervisor, (5) suggesting carrier development experiences, and (6) employees and supervisors
working together, managing the performance management process.
According to the view of Fletcher, in the second stage, enhancing communication within an
organization is important for employees to be aware of objectives and contribute to the future
development. Armstrong and Baron (2004) pointed that at its best, performance management is a
tool to ensure that managers manage effectively. Therefore, performance Management system
should ensure the manager of employees or teams know and understand what is expected of them,
and have the skills and ability to deliver on these expectations and be supported by the
organizations to develop the capacity to meet these expectations are given feedback on their
performance; and have the opportunity to discuss and contribute to individual and team aims and
objectives. Moreover, according to Armstrong and Baron (2004), performance management
system is also about ensuring that managers themselves are aware of the impact of their own
13
behavior on the people they manage, and are encourage to identify and exhibit their positive
behaviors. The actual performance is compared to the desired performance, so the outcome is
evaluated and a development plan is set according to the weakness with reference to the strategy.
This outcome also provides a feedback mechanism to employees. In order to improve the feedback
and update and discuss initial objectives, the organization should also focus on communication
within employees and between employees and managers. It is important for managers to develop
a fully integrated strategy which enables the different forms of communication to contribute to the
success of the firm’s mission or common goal (Marion, 1998). Moreover, continuous
communication or exchanging information between an organizations strategic managers and its
internal stakeholders should be designed to promote commitment to the organization and aware of
its changing environment and understanding of its evolving aims (Welch Jackson, 2007). In the
second phase, it includes the performance reviews which can be regarded as learning events.
Individuals could be encouraged to think about how and in which ways they want to develop.
Research by Ashford and Cummings (1983) demonstrate that feedback has strong positive effects
on the performance of both individuals and groups, especially through role clarification, improved
self-efficiency, the establishment of behavior reward contingencies and increased elf-regulatory
control process, (Ashford&Cummings, 1983). Similarly, according to Armstrong and Baron
(2004), the actual performance could also be compared to the desired performance, therefore the
outcome is evaluated and a development plan isset based on the weakness. This comparative
approach also provides a feedback mechanism to employees. Figure 2.2 shows the structure of
performance comparing according to the view of Ashford and Cummings (1983).
Performance Comparing.
Source: Ashford, S.J and Cummings, L.L. (1983), “feedback as an individual resource:
Personnel strategies of creating information”, organizational behavior and human performance,

Vol. 32, pp. 370-98. Additionally, in this phase, coaching and training is an important tool in
learning and developing. Coaching is developing a person skill and knowledge so that employee’s
job performance improves, and helps them to achievement of organizational objectives. Managers
should and identify and implement training and other actions necessary to improve individual
performance (Bevan and Thompson 1991).
14
According to Armstrong (2004), performance management is the strategic and integrated approach
to delivering sustains success to the organizations by improving the performance of the people
who work in them and by developing the capabilities of teams and individual contributors.
Similarly, black, SE & Lynch, LM (1996), suggest that the training courses that are offered by
organization must be designed through considering the present and future needs of the employees
and facilitate the learning of these skills. A good training or coaching course should improve the
quantity and the quality of organizations output; increases the chance of organizational success;
decrease the organizational costs and expenses. Moreover, coaching is increasingly being
recognized as a significant responsibility of managers and can play an important role in an
employees working life. In 2006, Cunneenstressed that coaching comes naturally, and could take
place during the review meetings or should be carried out throughout the year. Also, in this phase,
training may be needed to improve their skills.
Rewarding performance
According to Schineier, Beatty and Baird (1987), the rewarding performance phase include three
activities: personnel, linking to pay and identifying the desired performance feedback mechanism
measurement development
-vision
-mission, strategy, value driver’s actual performance results or performance. In Rahdert (1960s)
view, the function of personnel development is that the growth of people can be accelerated over
and above that which would take place naturally and normally, and then maximize the employee’s
contribution to personal and group goals. Personnel development has some development
principles. First one is personal involvement. All personnel development is basically self-
development. Opportunity for development is valuable only if the individual capitalizes on it
him/herself. In fact, the organization can and should offer encouragement and help, but
development activities seem to be successful only to the degree that individuals become personally
involved in them. Second one mutual objective. The premise of any development activity in
organization, there should be a clear understanding and acceptance of mutual objectives by both
the individual and the organization. If the objectives are understood and accepted, the effort
expended will be far more likely to succeed. The company should offer universal opportunity to
every employee instead of single out a few of its people and make opportunities available only to
15
them. In fact, it is difficult to make long-term predictions concerning the ambitions, drive, and
growth potential of individual. The third principle is individual planning. Development is
individual and should be tailored to fit the individual and the situation; attempts to squeeze every
one into the same model may even prove a waste of effort. Moreover, development should be
designed to improve performance on the current job firstly, and then prepare the employee for
promotion. Employees who get promoted are those who are currently doing outstanding work and
thus have been able to demonstrate their capacity to assume greater responsibilities. Next principle
is continuity. If a man who abandoned his effort to keep updating skills or information, he will
become antiquated. Especially nowadays, the new knowledge and skills are constantly being
introduced. Rahdert (1960) also point out that the benefits of personnel development. For
employees, if the individual skills or knowledge increases he may create more value and as a result
he may receive a sense of satisfaction in the achievement of personal goal and attainment of
professional recognition. On the other hand, for organization, personal development is able to
achieve competitive advantages because of a better qualified and more highly motivated team, and
id able to utilize advance technology because of the effectively trained employees. Furthermore,
training activities should ideally be based on performance gaps that are identified during the
performance review phase (Take, 2002). By linking training to identified performance gaps,
training will be focused, specific and relevant. (Teke 2002) also point out relevant training and
development interventions and regular performance feedback are important factors in skills
retention. Therefore, the training, development strategy and the performance management system
process should be aligned tightly with the overall retention strategy of the organization.
Development programs are reflecting the needs of succession plans and seeking to foster
leadership skills. In addition, there is a growing interest in pay-for-performance plans focused on
small groups or teams. Small group pay plans provide monetary rewards based on the measured
performance of the group or team.
Evaluation and checking feedback are both important activities in this period. In most organization,
they will not have only one corporate scorecard for the company as a whole, but will also have
separate scorecard for each division/employee that fits the overall scorecard (Huang & Hu, 2007).
The first process is translating the vision which helps managers build a consensus around the
organization vision and strategy. For employee to act on the words in vision and strategy
statements, those statement must be expressed as an integrated set of objectives and measures,
16
agreed upon by all senior executives that describe the long-term drivers of success. From financial
perspective, organization should form some kind profit measure for organization and employee
productivity. Financial performance measures might include stakeholder value such as economic
value added, profitability and growth such as sales volume growth and cost reduction and liquidity
and solvency such as inventory turnover and ratio of debt to assets. Then, organizations and
employees also need to fulfill customers command and needs. The customer perspective measure
includes client satisfaction, client profitability or time, price and quality (Kaplan Norton, 1996).
The measures needed in the internal business process perspective can be summarized in the
company’s value chain. For instance, the organization could create new products and services to
penetrate new markets and customer segments, also to achieve operational excellence through
improving internal process and asset utilization (Kaplan Norton, 2000). The last perspective is
learning and growth; managers will define the employee capabilities and skills, technology and
corporate climate needed to support the strategy. According Kaplan Norton (1996), organization
should pay attention to assess the effectiveness of their research and development process. Then,
employee retention, work force productivity, the number of suggestions made by the employees
and the number of suggestions implemented could be treated as the performance measures. A
balanced scorecard to evaluate performance, financial perspective ‘funding and the financial
health’ customer perspective ‘service delivery and relationship with clients’ Learning and Growth
‘sustainable ability to change and improve’ vision & strategy in this phase, pay-for-performance
could be used together as a tool to assess the performance. Moreover, in the organization,
employees are most likely to perceive that pay differences and made fairly went they are provided
with information regarding the appraisal process and employees are allowed to discuss the
appraisal results. According to the view of Locke (2004), the pay- for — performance principle
involve providing monetary rewards through carefully designed compensation system that base
pay on measured performance within the control participants.
According to Delery and Doty (1996): (802), employee productivity appraisal is defined as “the
process of identifying, evaluating and developing the work performance of the employee in the
organization so that organizational goals and objectives are effectively achieved while at the same
time benefiting employees in terms of recognition, receiving feedbacks, and offering career
guidance”. Appraisals can be based on results or behavior based appraisals focus on the behaviors
17
of individuals necessary to perform the job effectively, whereas result oriented appraisals focus
merely on the consequences of those behaviors (Delery and Doty 1996).
Therefore, the procedural justice concerns are central to ensuring that employees perceive the
process of performance appraisal and the linkage of appraisal to pay to be fair (Greenberg, 1996).
In most situations, properly designed pay- for-performance systems will lead to better results. Pay
for performance systems make major contribution to performance through two main mechanisms.
First, they positively influence the motivation to perform. Second, they impact the attraction and
retention pattern of organizations, thereby, affecting the ability of individuals available to perform.
Pay-for-performance system can deliver monetary rewards at the individual, small group, and
stock or divisional or organizational level. All of this impact of different levels can positively
impact performance.
The relationship between performance management system and employee productivity.

Developing and planning mission and individual objectives. The first stage of performance
management system is developing and planning. In this stage, business needs to set up mission
and objectives, and then clarify the individual responsibility and duty. A mission is an
organizations character, identity, and reason for existence. It can be divided into four integrating
parts: purpose, strategy, behavior standards and values. Purpose addresses why an organization is
in being, strategy considers the nature of the business; behavior standards are the norms and rules
of ‘the way we do things around here’; values are the beliefs and moral principles that lie behind
the behavior standards, beliefs that have normally been formulated within the organization by a
founding dynasty or a dominant management team (Campbell and Yeung, 1991). In order to
maximize performance, organizations focus on the efforts of the organization on explicit,
challenging unrealistic aims and objectives. A clear mission answer the question: what business
should the company be in, and it should be the guide line for employees and manager’s behavior
and performance. Campbell and Yeung (1991a) refer to as creating a sense of mission-that is,
employee’s personal commitment to the organization’s mission. There are two simple views on
the purpose of the mission statement: one is that, it is primarily for external public relations and
the other is that it is to motivate staffs within the company (Kleme, Sanderson and Luff man,
1991). A simple explanation of motivation is the capability to change behavior. Motivation is also
a drive that holds one to act because human behavior is directed towards some goal. Grant (2008)
18
established a study where motivation enforced the employee outcomes such as persistence
productivity and performance. Besides, motivated employees are found to be more self-driven and
more autonomy oriented that those who are less motivated (e.g. Ryan and Deci; 2000; Thomas,
2002, as sited in Grant 2008), which suggest that they will take more responsibility when offered
developmental opportunities. On the other hand, motivated employees are also more engaged and
involved with their jobs (e.g. Guay et al, 2000; Vasteenkiste et al., 2007); they may be more
involved in the work of their colleagues, when compared with employees with low motivation.
The organization still sets individual performances management targets which are related both to
operating-unit and wider organizational objectives (Bevan and Thompson, 1991). According to
Costello (1994), performance management supports a company’s or organization overall business
goals by linking the work of each individual employee or manager to the overall of the work unit.
Individual targets or responsibilities could be the mechanism to enable the performance of
individuals within the organization to be aligned with the mission statement and the way of
adjusting performances requirements to meet new challenges which may arise.
In the first stage, the most important thing of developing and planning performances is setting
mission and objectives. Mission and objectives could motivate employees to act by the directions;
therefore, motivated employees are more engaged and involved with their jobs. Moreover,
motivated employees are found to be more self-driven and more autonomy-oriented.
19
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter consists of the following like: research design, population of the study, sample size,
sampling methods, data collection methods, reliability and validity, ethical conduct, limitations of
the study.
3.1 Research Design

The study used qualitative and quantitative design and this enhances the researcher to obtain a
better understanding of the implications of performances management system on the employee’s
productivity in Kaabong district, the methods chosen allowed collection of comprehensive
intensive data and provide an in-depth study on why strategies and measures in place had not
produced the desired results.
3.2 Population of the study

The study took coverage of employees of about 100 in different department of local government
from Kaabong district which had various departments in the district level and sub-counties
involving employees at the top and lower operational levels.
20
3.3 Sample size
3.3.1 Determination of sample size and selection
A sample size of 50 respondents was determined using statistical tables of Krejcie and Morgan
(1970), as cited by Amin (2005), and included various categories as specified in Table below:
Table showing research respondents by category and sample
No. Category of respondents (N) (S) Sampling technique
1 Top officers 12 3 Simple random sampling

2 Head of departments 13 6 Stratified sampling
3 Human resource support 10 5 Simple sampling
personnel
4 Employees at operational 65 36 Purposive sampling
level
TOTAL 100 50
Key: N Population Size, S Recommended Sample Population (Krejcie & Morgan, 1970).
— —
3.4 Data collection method
The researcher designed questionnaires which were sent out to the respondents for completion,
observation techniques and interviews were also used. The questionnaires were in line with the
topic and the objectives of the study.
3.4.lQuestionnaire
The primary data was collected using the questionnaire and interviews which were filled by the
relevant parties to obtain ideas. These were designed in both open and closed ended forms of
questionnaires. This method ensured a high proportion of response and higher return rate.
The scale of measure is described below;
Mean scores Evaluation Interpretation
4.24-5.00 Strongly agree Very high
3.43-4.23 Agree High
2.62-3.42 Not sure Moderate
1.81-2.61 Disagree Low
1.00-1.80 Strongly disagree Very low

21
3.4.2 Interview method
This took face to face interaction of the representative of the management of the school’s
secondary data which was obtained from the ministry of Education, magazines, annual report
records and other researches done. This gave other information required in the research. Oral
interview was conducted on head to head to support and translate the questionnaire. Both
structured and unstructured methods were used while interacting with different employees and this
helped the researcher in capturing the required information in relation to the topic under study.
With the structured interview a designed guideline was presented to the employees, the
unstructured interview was conducted among employees and customers of Kaabong district with
a defined goal.
3.4.3 Observation
The researcher involved himself and also watches the employees while performing their activities.
Observation entailed the systematic noting and recording of events, behaviors, and artifacts in the
social setting that is chosen for study. The observational record is frequently referred to as field
notes detailed, nonjudgmental, concrete descriptions of what was observed.
3.4.4 Documentary Reviews
The researcher reviewed files relating to the variables under study. In this case a number of
publications and journals and employee appraisal were reviewed in addition to visiting websites
for the organization under study.
3.5 Data quality control
Validity and reliability of the research instrument were measured as follow;
3.5.1 Validity of instrument
Prior to commencement of the data collection exercise, the data collection instruments were
subjected to a pre-test with three members of staff at different levels within the organization to
22 -
check for validity of the instruments. The purpose of the pre-test was to ensure the final
questionnaire and check list would generate the adequate and relevant information required.
3.5.2 Reliability of instrument
This was done through a test retest method which ensured that the data collected was accurate and
reliable and free of bias. Internal consistency technique was used, where the researcher
administered a single test to a sample of objects and the score obtained in one item was correlated
with scores obtained from other items in the instrument.
3.6 Ethical considerations

The researcher tried as much as possible to show the highest level discipline by respecting the
respondents irrespective of their ages or social status so as to portray a good image of the researcher
and the institution respectively.
The researcher tried to get to the field and reach out to every respondent and follow every step of
the research so as to avoid forgery and make generalizations about the study based on reality and
empirical evidence.
The researcher followed the advice and instructions given by the supervisor and tried as much as
possible to meet the deadlines as was demanded by the research supervisor.
3.7 Limitations of the study

Non-response to certain questions and providing of false information was the major limitation to
the study. This was due to the fear by some respondents that the information could leak and reach
their superiors. However, the researcher used logical questions so that the respondents were able
to release such information needed by the researcher.
it was not easy to locate the respondents the fact that these respondents were widely spread and
conducted their activities from different places this hindered data collection. The researcher
however designed a structured questionnaire that enabled respondents fill in their free time.
Besides, there may be insufficient time to conduct a study of this magnitude. The researcher
however, made sure that this piece of work was when sufficient time and maximum concentration.
23
ft may not be easy to cooperation of study subjects as most of them may have busy schedules at
their places of work. The researcher solved this barrier by conducting a reminding exercise through
telephone calls.
The cost of the research was high in regard to stationary, printing costs, photocopying, binding,
transport, telephone charges and postage expenses involved. This was solved by soliciting
financial assistance from friends, relatives and well-wishers.
Some respondents needed to go and read through the questionnaires at their leisure time. in which
requests granted which lead to collection delays which eventually affected the schedule for the
completion of the report.
24
CHAPTER FOUR
PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDING
4.0 Introduction.
The chapter comprises of the findings that were gathered by the researcher from the people of
Kaabong district in relation to the topic (performance management system and employee
productivity in Uganda)
The data is presented and interpreted in view of the objectives mentioned in chapter one of this
research. The interpretation also seeks to answer the research questions that were raised in chapter
one.
Presentation and interpretation of data in this chapter has been done with the aid of quantitative
and qualitative methods for example the use of tables, graphs, percentages, and personal analysis
and interpretation presented in essay form.
Questionnaires were provided to 50 respondents who filled them to their best of their knowledge.
Demographic characteristics
4.lGender of respondents
Table 1: showing gender respondents
Respondents Frequency Percentage
Male 22 44
Female 28 56
Total 50 100
Source: primary data
25
From the table above, it can be seen that the majority of respondents are female that is 28
respondents representing 56% of the total respondents and 22 respondents are male representing
44% of the respondents.
From the above presentation, a larger number of females were selected because they were believed
to be having enough information about the performance management system and employee
productivity in Uganda and were also the majority in Kaabong district compared to male
respondents. However, the total number of respondents selected from male side was almost equal
to the female in order to obtain the information that can be relied upon and not based in terms of
study.
4.1.2 Age of respondents

Table 2: showing the age of respondents
Age brackets Frequency Percentage
21-30 6 12
31-40 8 16
41-50 20 40
51-60 9 18
6landabove 7 14
Total 50 100
From the table, it is seen that 6 respondents representing 12% of the total respondents are in the
age bracket of2l -30, 8 respondents representing a total number of 16% were in the age bracket of
3 1-40, 4 1-50 had 20 respondents representing 40% of the total number of respondents, 5 1-60 had
9 respondents representing a total number of 18% and 61 + had 7 respondents representing 14% of
the total number of respondents.
26
4.1.4 Academic qualification of the respondents.
Table 3: showing academic qualifications of the respondents.
Qualifications Frequency Percentage
0 level 6 12
A level 10 20
Diploma 16 32
Degree 12 24
Masters 6 12
Total 50 100
From the above table, it is seen that the majority of the respondents were diploma holders 16
respondents representing 32% of the total respondents, followed by respondents who were degree
holders that is 12 respondents representing 24% of the total respondents and finally followed by
respondents who were master’s holders and those with certificates represented by 12% of the total
respondents.
This implies that the respondents from Kaabong district have attained education levels that can
make the information obtained from them become reliable. This was evidenced by the majority of
respondents who had obtained a diploma and those with degrees.
Level of employee productivity
Financial constraints.
The respondents were asked the source of their unit/department finance and the results were
expressed in the table as shown below.
28
Table 4: showing responses of the unit/department that provide finance.
Responses Frequency Percentage

Monthly subscription 5 10
Government 31 62
Donations 8 16
Fund raising 6 12
Total number of respondents 50 100
From the table above, it can be seen that the majority of the respondents of 62% said that finance
is obtained from the government, followed by 16%of the total respondents who said that funds are
obtained from donations, followed by 12% of respondents who said that their source of funds was
fund raising and finally followed by 10% of the respondents who said that their source of funds
was monthly subscriptions.
This implied that the major source of funding for the people within Kaabong district was
government evidenced by the majority respondents who agreed. Monthly subscription had very
few respondents and people seemed not to be very well informed on to the ways in which it
operates.
The respondents were asked to whether the money received was enough for the department and
the respondents were expressed by the table as shown below
Table 5: showing whether the money was enough to run department activities.
Yes 18 36
No 22 44
idon’tknow 10 20
Total number of respondents 50 100
29
From the above table, 18 respondents representing 36% of the total respondents agreed that the
money received was enough to run the departments activities, 22 respondents representing 44% of
the total respondents disagreed and 10 respondents representing 20% of the total respondents
didn’t know.
This implied that the funds were little to run department activities evidenced by the majority
respondents who disagreed and those who are not sure. This implied that the government needs to
create more avenues of increasing funds to the district and finding for them more donors especially
those who were operating private businesses
Figure 2: Graph showing whether the funds contributed are well managed.
Fund Management
Yes Not Sure No
Source: primary data.
According to the responses from the people of Kaabong district, majority of the respondents
totaling to 48% said that the funds were not being well managed, 32% of the total respondents said
that funds were well managed and 20% of the total respondents said that they were not sure on
whether funds were well managed.
The above information implied that there was a prevalence of corruption evidenced by the
respondents who said that funds were not being well managed. Therefore, basing on the above
statement, government has to set strategies of eradicating corruption in Kaabong district so that
the funds collected can be used to execute the intended purpose.
30
The respondents said that apart from organizing and recruitment of staffs, funds were being used
to construct schools, roads and even provide other health facilities to the people of Kaabong
district,
4.3 Nature of performance management system at Kaabong district local government
The respondents were asked whether there are workers representative at the national level and
results were expressed by the figure as show below;
Figure 3: showing whether there are workers representatives at national level.
Workers representatives
~Yes ~No
The respondents were asked whether there were workers representatives at national level and 70%
of the total respondents agreed and 30% of the total respondents disagreed.
This implied that the representatives at national level were not playing their roles well because
they were doing so, respondents who were selected from Kaabong district would have been aware
that they have representatives at the national level.
The respondents were asked whether the representatives were qualified and competent in handling
grievances and the results were expressed by the table as shown below.
31
Table 6: showing the competence of their representatives in handling grievances
Good 35 70
Fair 10 20
Poor 5 10
Total 50 100
From the above table, 35 respondents representing 70% of the total respondents sad that the
competence of representatives in handling grievances was good, 10 respondents representing 20%
of the total respondents said that it was fair and 5 respondents representing 10% of the total
respondents said that it was poor.
This implied that the competence of the representatives in handling grievances was worrying given
the majority respondents who said that it was good and those who said that it was fair
The respondents were asked to mention the ways in which the representatives assume the offices
and the results were expressed by the table as shown below.
Table 7: showing the ways in which their representatives assume their offices.
Election 35 70
Appointment 10 20
Application 5 10
Total 50 100
32
In line with the table above, 35 respondents representing 70% of the total respondent said that
representatives assume their offices through election, 20% said that representatives assume their
offices through appointment and 10% of the total respondents said that the representatives assume
their offices through application.
The respondents were asked whether they get full training to join unit or department and the results
were expressed by the table as shown below.
Table 8: showing whether respondents get full training to join unit or department.
Yes (Full) 21 44
Little 20 40
Notatall 9 18
Total 50 100
From the table above, 21 respondents representing 44% of the total respondents said that they
receive full training to join unit or department, 20 respondents representing 40% of the total
respondents said that they receive little training and 9 respondents said that they do not receive
training at all.
33
Table 9: showing whether there is coordination between departments/units
Yes 28 56
No 22 44
Total 50 100
Basing on the table above, 28 respondents representing 56% of the total respondents agreed that
there is coordination with other departments/units, 22 respondents representing 44% of the total
respondents disagreed.
This implied that coordination between departments is not strong and more emphasis should be
placed since it increases morale, efficiency, and effectiveness at work.
The respondents were asked whether they ever get problems at their work place and and the results
were expressed by the table as shown below.
Table 10: showing whether they ever get problems at their work place.
Yes 33 66
No 17 34
50 100
From the above table, 33 respondents representing 66% of the total respondents agreed that they
get problems at their work place, 17 respondents representing 34% of the total respondents
disagreed.
34
The information above implied that problems exist at the work place and strategies must be laid to
ensure that dispute resolution strategies are known by all workers.
The respondents were asked whether the department has tried to resolve its disputes with their
employers and the results were expressed by the table as shown below.
Table 11: showing whether the department has tried to resolve its disputes with their
employers.
Good 29 58
Fairly 11 22
Poorly 10 20
Total 50 100
The results in the table above shows that 29 respondents representing 58% of the total respondents
said that it was good, 11 respondents representing 22% of the total respondents said that it was fair
and 10 respondents representing 20% of the total respondents said that it was poor.
The information above implied that disputes have always been resolved with the employers
evidenced by the majority respondents who agreed.
The respondents were asked on the ways in which the employers handle and treat them and the
results were expressed by the table as shown below.
35
Table 12: showing the ways in which their employers treat them.
Good 16 32
Fairly 27 54
Poorly 7 14
Total 50 100
From the information above, 16 respondents representing 32% of the total respondents said that it
was good, 27 respondents representing 54% of the total respondents said that it was fairly and 7
respondents representing 14% of the total respondents said that it was poor.
The above information implied that employer mistreat their employees though not to alarger extent
based on the majority respondents who said that it was just fair.
The respondents were asked how their welfare is in terms of salary, protective gears, medication
and allowances and the results were expressed by the table as shown below.
Table 13: showing the ways of their welfare in terms of salary, protective gears, medication
and allowances.
Excellent 11 22
Good 16 32
Moderate 14 28
Poorly 9 18
Total 50 100

36
Based on the table above, 11 respondents representing 22% of the total respondents said that their
welfare was excellent, 16 respondents representing 32% of the total respondents said that their
welfare was good, 14 respondents representing 28% of the total respondents said that their welfare
was moderate and 9 respondents representing 18% of the total respondents said that their welfare
was poor.
This implied that there was a need to improve the welfare services of their employees evidenced
by the respondent’s views.
The respondents were asked whether there is a human resource unit in the district service and the
results were expressed by the table as shown below.
Table 14: showing whether there is human resource unit in the district service.
Yes 42 84
No 8 16
Total 50 100
In relation to the results in the table above, 42 respondents representing 84% of the total
respondents agreed that there is human resource unit in the district service, 8 respondents
representing 16% of the total respondents disagreed.
The above results implied that there is human resource unit in the district service evidenced by the
majority respondents who agreed.
37
4.4 The relationship between performance management system and employee productivity.
The respondents were asked whether there is a relationship between department and management
and the results were expressed by the table as shown below.
Table 15; showing how the relationship is between department and management.
Excellent 8 16
Good 16 32
Fair 19 38
Poor 7 14
Total 50 100
The results in the table above shows that 8 respondents representing 16% of the total respondents
said that there was excellent relationship between department and management, 32% of the total
respondents said that the relationship was good, 38% of the total respondents said that the
relationship was fair and 14% of the total respondents said that the relationship was poor.
This implied that the relationship was not very strong and more efforts were needed in order to
strengthen the relationship between department and management.
The respondents were asked whether there was a need for the department to intervene in the
employees fight for their rights and the results were expressed by the table as shown below.
38
Table 16: showing whether there was a need for the department to intervene in the
employees fight.
Responses frequency Percentage
Yes 27 54
No 23 46
Total 50 100
From the table above, 27 respondents representing 54% of the total respondents agreed that there
was a need for the department to intervene in the employees fight, 23 respondents representing
46% of the total respondents said that there was no need for the department to intervene in the
employees fight.
In relation to the information above, the department should intervene in the employees fight based
on the above respondents who agreed though the minority disagreed.
The challenge with the employer is that most of the employee’s views pertaining payment are not
considered seriously and yet every challenge that comes and can affect the company is solved there
and then without delay.
The challenge with the department is that we are very few employees and yet there are many things
we are assigned to which reduces our ability to perform well and increase fatigue.
39
CHAPTER FIVE
SUMMARY, CONCLUSIONS, RECOMMENDATIONS AND AREAS FOR

FURTHERRESEARCH.
5.0 Introduction
The chapter focuses on summary of the findings of the study, the conclusions, recommendations
and suggested areas of further research to build the study variables under consideration.
5.1 Summary
The researcher’s interest was to investigate on performance management system and employee
productivity in Uganda and was being guided by the following research objectives which were
intended to; examine the level of employee productivity at Kaabong district local government,
examine the nature of performances management system at Kaabong district local government and
determine the relationship between performances management system and employee productivity
at Kaabong district local government. The researcher distributed questionnaires to 50 respondents
and both of them were returned.
5.2.lThe level of employee productivity at Kaabong district local government.
employee productivity was being affected by financial constraints with the majority of the
respondents of 62% said that fiancés is obtained from government, followed by 16% of the total
respondents who said that funds were obtained from donations, followed by 12% of respondents
who said that their sources of funds was fund raising and finally followed by 10% of the
respondents who said that their sources of funds was monthly subscriptions. The implication was
that, the major sources of funding for people within Kaabong district was government evidenced
by the majority respondents who agreed. Monthly subscriptions had very few respondents and
people seemed not to be very well informed onto the ways in which it operates.
In relation to the money to run the department, 18 respondents representing 36% of the total
respondents agreed that the money received was enough to run department activities, 22
40
respondents representing 44% of the total respondents disagreed and 10 respondents representing
20% of the total respondents didn’t know and the implication was that the funds were little to run
department activities evidenced by the majority respondents who disagreed and those who were
not sure. This implied that the government needs to create more avenues of increasing funds to the
district and finding for them more donors especially those who were operating private business.
5.2.2 The nature of performances management system.
In relation to this, the employees were asked whether they were having representatives at national
level and 70% of the total respondents agreed and 30% of the total respondents disagreed and the
implication was that the representatives at the national level were not paying their roles well
because of they were doing so, respondents who were selected from Kaabong district would have
been aware that they have representatives at the national levels.
In relation to the competences of representatives in handling grievances, 70% of the total

respondents said that it was good, 10 respondents representing 20% of the total respondents said
that it was fair and 5 respondents representing 10% of the total respondents said that it was poor
and the implication was that the competences of the representatives in handling grievances was
not worrying given the majority respondents who said that it was good and those who said that it
was fair.
5.2.3 Relationship between performances management system and employee productivityat

Kaabong district local government.
In relation to the relationship between management system and employee productivity at Kaabong
district local government, 16 respondents representing 32% of the total respondents said that it was
good, 27 respondents representing 54% of the total respondents said that it was fairly and 7
respondents representing 14% of the total respondents said that it was poor. This implied that
employers mistreat their employees though not to a larger extent based on the majority respondents
who said that it was just fair.
In relation to whether there is a human resource unit in the district service, 8 respondents
representing 16% of the total respondents disagreed and 42 respondents representing 84% of the
41
total respondents agreed. The above results implied that there is a human resource unit in the
district service evidenced by the majority respondents who agreed
5.2 CONCLUSION
The research found out that there is a relationship between performance management and
employee productivity evidenced by the majority respondents who agreed. Performance
management is attained enhancing communication within the organization, so that employees are
not only aware of the objectives and the business plan but can contribute to their formulation which
intern increases their rate of productivity. There is a need for a direct interpersonal communication
to mediate communication when there is a need more information on ongoing issues of their
cooperation. Favorable performance management strategies have been shown to increase job
satisfaction and employee productivity and finally results in organizational success. On the other
way, providing the quantitative and qualitative standards for judging individual and organizational
performance are important elements in managing performance since it enables individual
employees to become aware ofthe standards which will encourage them and be the main objectives
of them. Therefore, Kaabong district and its management as well as local government and public
service should work hand in hand to ensure that performance management strategies are put in
place and made clear to all employees and this will automatically increase employee’s
productivity.
5.3 RECOMMENDATIONS
Arising from the findings and conclusion of this study are the following recommendations;
government should increase allocation of funds to districts in order to meet the needs of their
employees. This is because payment motivates workers and enables them to increase their level of
output in the period of time.
The district council must ensure that there is a relationship between management and the
department by increasing the rate of idea sharing, handling employees complains and giving
feedback to employees so that they can correct their mistakes. This will in turn increase the
employees rate of output.
42
There is a need for the department to always intervene in case there are misunderstanding between
the employers and the employees. This can be done by setting up a dispute resolution strategy that
bridges the gap between employer and employees.
5.4 SUGGESTION FOR FURTHER STUDIES
Sequel to the findings of this research work, the researcher is suggesting that further research
should be carried out on impact of performance management on quality of output.
43
REFFERENCE
Zaffron, Logan, Steve, David (Feb 2009). Performance Management: The Three Laws of
Performance: Rewriting the Future of Your Organization and Your Life (1st ed.).
Madden, Bart ley J (September 2014). Reconstructing Your Worldview.Learning What Works Inc.
p. 99.
Nielsen, Poul A. (2013). Performance Management, Managerial Authority, and Public Service
Performance.Journal of Public Administration Research and Theory.Published electronically on
June 2. doi:10.1093/jopart/mutO25.
Swiss, James E. (2005). A framework for assessing incentives in results-based management.

Public Administration Review 65:592-602.
Abrohelembattera (2005) A Handbook for Measuring Employee Performance, by the US Office

of Personnel Management
HRM annual r report [2009-201 0]HRM-KAMP ALA
Hrrnstrategic planj [2007-2012) Mmtti-kampala
P. Rausch, A. Sheta, A. Ayesh (2013) Business Intelligence and Performance Management:

Theory, Systems, and Industrial Applications, ISBN 978-1-4471-4865-4.
Gary Cokins, John Wiley & Sons. (2009) Performance Management - Integrating Strategy
Execution, Methodologies, Risk, andAnalytics..ISBN 978-0-470-44998-1
Routledge Taylor & Francis Group (2009) Journal of Organizational Behavior

Management,. Published quarterly. 2009.
Thomas C. Mawhinney, William K. Redmon& Carl Merle Johnson. Routledge. (2001) Handbook
of Organizational Performance,
44
Geary A. Rummler& Alan (1995) 2nd edition Improving Performance: How to Manage the White
Space in the Organization Chart.
Thomas F. Gilbert, Pfeiffer. (1996) Human C’ompetence: Engineering Worthy Performance.
Terry B. McSween(1995) The Values-Based Safety Process: Improving Your Safety Culture with
Behavior-Based Safety,.John Wiley & Sons. 1995.
Dale Brethower& Karolyn Smalley (1998) Performance-based Instruction: Linking Training to

Business Results,. Pfeiffer; Har/Dis edition. 1998.
John Austin & James E. Carr (2000) Handbook ofApplied Behavior Analysis,. Context Press.
2000.
Alasdair A. K.( 1995) Managingfor Performance, White. Piatkus Books, 1995
Geary A. Rummler& Alan (1995) 2nd edition .ImprovingPerformance: How to Manage the White
Space in the Organization Chart.
Thomas F. Gilbert. Pfeiffer. (1996) Human Competence: Engineering Worthy Performance.
Terry B. McSween(1995) The Values-Based Safety Process: Improving Your Safety Culture with
Behavior-Based Safety,.John Wiley & Sons. 1995.
Dale Brethower& Karolyn Smalley (1998) Performance-based Instruction: Linking Training to

Business Results,.Pfeiffer; Har/Dis edition. 1998.
John Austin & James B. Carr (2000) Handbook ofApplied Behavior Analysis,. Context Press.
2000.
Alasdair A. K.( 1995) Managingfor Performance, White. Piatkus Books, 1995
45
APPENDIX I
SELF ADMINISTERED QUESTIONNAIRES
Dear respondents,
I am LOTYANG EMMANUEL LUX a student of Kampala international university pursuing a

bachelor’s degree in development studies (BDS). I am carrying out a research on performance
management system and employee productivity in Uganda. A case study of Kaabong district local
government (KDLG). Of which you are a member. The aim of carrying this research is purely for
academic purpose and it is going to be focusing on financial, union management, leadership,
departments/units, and employers’ management’s strategies. I therefore kindly request you to
complete filling this questionnaire as accurately as possible. All information you provide will be
treated with absolute confidentiality. For this reason, even your name shall not appear in this
questionnaire.
Thanks for your cooperation.
A) DEMOGRAPHIC DATA.
Place tick in the most appropriate box according to you.
1. Gender:
a) male ~ b) female
2. Ages:
a) 21-30 years U) 31-40 years ~ 41-50 years~~~ d) 51-6Oyears ~
3. Marital status:
a) married ~ b) single ~
4. Level of education:
a) O’level ~~jb) A ‘level ~Jc) diploma L~ d) degree ~J e) masters
46
B) THE LEVEL OF EMPLOYEE PRODUCTVIVTY AT KAABONG DISTRICT
LOCAL GOVERNMENT.
Please kindly respond to the following questions by ticking in the most appropriate box
writing in the space provided according to the scaling and your understanding and opinion.
1. What is the source of your unit/department of finance?

a) Monthly subscription~~J b) government~J~) donations L~~und raising ~
2. Do you think the money is enough for unit/department activities?
a) Yes[~J b) No ~ c) I don’t know El
3. Is your money you contribute being managed well?
a) Yes ~ b) No ~ c) I don’t know ~
4. Where has the fund been used apart from organizing and recruitment of staffs?
5. Give any other relevant information about finance as a challenge to your

unit/department?
C) THE NATURE OF PERFORMANCE MANAGEMENT SYSTEM AT KAABONG

DISTRICT LOCAL GOVERNMENT.
1. Are there worker’s representatives at?
i) National level?
a) Yes ElbNo El
ii) Your branch level?
a) Yes El b) No El
iii) Are they qualified and competent in handling your grievances?
a) Good b) Fair El c) Poor El
47
2. How do they assume their offices?
a) Election Elb) appointment ~ b) application ~J
3. Do you get full training to join unit/department?
a) Yes/full ~ b) little~c) Not at all ~
4. Do you coordinate with other departments/units?
a) Yes ~ b) No
5. Have you ever got problems at your work place?
a) Yes ~ b) No
6. If yes, how has the department tried to resolve it with your employer?
a) Good ~ b) Fairly ~ c) Poorly ~
7. Are you provided with collective bargaining agreement to guide in execution of your
duties?
a) Yes El b) No El
8. Are there some workers who are “Free Riders”. (non-staff members)?
a) YesLJb)NOE~
9. If yes specify:
a) More than you El b) Equal to your numberEl c) less than your number El
10. Give any other relevant information about management and leadership in your
department/unit?
48
D) THERELETIONSHIP BETWEEN PERFORMANCE MANGEMENT SYSTEM
AND EMPLOYEE PRODUCTIVITY.
1. What is the name of your employer/organization?
2. How does your employer handle and treat you?

a) Good E~Jb) Fairly~~ c) Poorly~
3. How is welfare in terms of salary, protective gears, medication, and allowances?
a) Excellent~b) Good ~jc) Moderate ~d) Poorly El
4. Do you have the human resource unit in the district service?
a) Yes ~ b) NoE~j
5. Does your organization handle your grievances without the involvement of the staff
representatives?
a) Yes El b)NoEI
6. Does your employer have recognition agreement with the department?
a) Yes~~ b)No~~j
7. How is the relationship between the department and management?
a) Excellent Lib) Good Ec) Fair El d) Poor LLi
8. Have staffs been suspended or dismissed by the manager?
a) YesEJ b)NoEl
9. Do you have the human resource manual guiding you in the execution of your
work?
a) Yes ~ b) No
10. If yes, how different is it from collective bargaining agreement (CBA)?
s there still need for the department to intervene in your fight for your rights?
a) Yes ~ b) No El
11. Give any other relevant information about your employee/department as a
challenge to the performance management system?
Thanksfor your response.

49
APPENDIX II
REEARCH TIME FRAME
This entails different activities and their stipulated weeks and months when to be performed.
S/N ACTIVITY WEEK/MONTH
01 Proposal write up March 2017
02 Questionnaire and methodology & literature April 2017

review
03 Submission of proposal May 2017
04 Data collection June 2017
05 Data processing &analysis July 2017
06 Complete dissertation review and submission August 2017
50
APPENDIX III
RESEARCH BUDGET
S/N ITEM COST

01 Photocopying/printing 130,000&
02 Relevant Research Analysis 150,000/=
03 Meals 123,500/=
04 Data Analysis 120,000/
05 Consultation 100,000/=
06 Miscellaneous 725,000/
07 Transport 405,000/=
08 Accommodation 140,000/
TOTAL 1,241,000/=
51
APPENDIX IV: KREJCE & MORGAN (1970) TABLE FOR SAMPLE SIZE
DETERMINATION
52

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THE IMPACT OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEE

PRODUCTIVITY, A CASE STUDY OF KAABONG DISTRICT LOCAL

LOTYANG EMMANUEL LUX

A RESEARCH REPORT SUBMITED TO THE COLLEGE OF HUMANITIES AND

Signature ~ Date ..~.L! E~L.?

LOTYANG EMMANUEL LUX

Pr. Rwabuhihi Emmanuel Festus

LIST OF ACRONYMS AND ABREVATIONS xii

Table 1: showing gender respondents 25

Figure 1: a graph showing the marital status of the respondents 27

KDLG Kaabong District Local Government

PMS Performance Management System

IDPs Integrated Development Plans

HRM Human Resource Management

1.1 Background of the study.

1.1.1 Historical perspective

1.1.2 Theoretical perspective

1.1.3 Conceptual perspective

Definition of employee under various Acts

1.2 Statement of the problem

1.3 purpose of the study

1.4 Objective of the study/purpose of the research

1.5 Research question

1.6 Scope of the study

1.6.1 Geographical scope.

1.6.3 Content scope.

1.7 Significance of the study.

PERFORMANCE MANAGEMENT EMPLOYMENT PRODUCTIVITY

2.0 Theoretical review

Performance-to-outcome expectancy is the individual perspective that performances will lead to

Outcomes are consequences of behavior. An individual may experience a variety of outcomes in

2.2.1 Performance management system

Level of employee productivity

Nature of performance management system

Developing and planning Managing and reviewing performance

Phase 1 developing and planning performance

Phase 2 managing and reviewing performance

Personnel strategies of creating information”, organizational behavior and human performance,

The relationship between performance management system and employee productivity.

3.1 Research Design

3.2 Population of the study

3.3.1 Determination of sample size and selection

Table showing research respondents by category and sample

No. Category of respondents (N) (S) Sampling technique

1 Top officers 12 3 Simple random sampling

3.4 Data collection method

The scale of measure is described below;

Mean scores Evaluation Interpretation

4.24-5.00 Strongly agree Very high

3.43-4.23 Agree High

2.62-3.42 Not sure Moderate

1.81-2.61 Disagree Low

1.00-1.80 Strongly disagree Very low

3.4.4 Documentary Reviews

3.5 Data quality control

Validity and reliability of the research instrument were measured as follow;

3.5.1 Validity of instrument

3.5.2 Reliability of instrument

3.6 Ethical considerations

3.7 Limitations of the study

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDING

Respondents Frequency Percentage

Source: primary data

4.1.2 Age of respondents