Performance Management and Employee Productivity in Selected Manufacturing Organizations in Kampala Uganda

ABSTRACT The purpose of the study was establish the relationship between performance management and employee productivity in the manufacturing sector in Uganda. The objectives was to assess the extent to which performance appraisal influences productivity, to explore the extent to which training influences employee productivity and determine the extent to which perfonnance planning affect employee productivity in manufacturing sector of Uganda. The study adopted a correlation design based on both qualitative and quantitative research approaches. The study was conducted in three manufacturing companies of Steel and tubes industries, Mukwano group of Companies and Harris international limited. The sample population of 221 was interacted with for data collection using the research questionnaires. The study findings were that there was a positive relationship between performance appraisal and employee productivity in the manufacturing sector of Uganda. The results on the effect of training on employee Productivity in manufacturing organizations in Uganda revealed a closer relationship between training and employee productivity. Performance planning affect employee productivity in the manufacturing sector of Uganda. The findings reveal significant values much above the level of significance of 0.05 level of significance. The researcher conclude that performance appraisal had a positive but not significant relationship with employee productivity meaning that the effect between the two variables was week. This could be associated to weaknesses in performance appraisal and the fact that other factors much explain employee productivity in the study area. On the second research objective training was found to have a closer but insignificant relationship with the employee productivity the researcher though conclude that the effect was not much and could be associated to constraints in training for employees and probably other key determinants of employee productivity other than training in the manufacturing sector. On the last objective, the performance planning dimension of the performance management was found inadequate even the effect on productivity of employees was low. The researcher recommend that there is need to strengthen the employee appraisal process and involve the employees as a mechanism for reward that can create a productive work force, there is need for enhanced training on both on job and off job to enable attainment of skills for expertise and performance planning be enhanced through employee participation, there is need for effective assessment of the work anticipated risks before planning for performance and a clear parameter for performance need to be adequately detennined.

 TABLE OF CONTENTS

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENTS iv

TABLE OF CONTENTS v

ABSTRACT viii

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1.1 Background of the study 1

1 .1 .1 Historical Perspective 1

1.1.2 Theoretical Perspective 2

1.1.3 Conceptual Perspective 3

1.1.4 Contextual Perspective 5

1.2 Statement of the Problem 6

1.3 Purpose of the Study 6

1.4 Objectives of the Study 6

1.5 Research questions 6

1.6 Hypothesis 7

1.7.0 Scope of the study 7

1.7.1 Geographical Scope 7

1.7.2 Subject Scope 7

1.7.3 Time Scope 7

1.7.4 Theoretical Scope 8

1.8 Significance of the study 8

1.9 Operational definition of key terms 8

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CHAPTER TWO .10

LITERATURE REVIEW 10

2.0 Introduction 10

2.1 Theoretical Review 10

2.2 Conceptual Framework 12

2.3 Related Literature 13

2.3.1 Performance planning and Employee Productivity 13

2.3.2 Training and Development and Employee Productivity 15

2.3.3 Performance appraisal and employee Productivity 18

2.4 Employee Productivity in organizations 20

2.5 Related Studies 22

2.5 Research Gap 22

CHAPTER THREE 24

METHODOLOGY 24

3.0 Introduction 24

3.1 Research design 24

3.2.1 Research population 24

3.2.2 Sample Population 24

3.3 Sampling Techniques and Procedure 25

3.4 Data Sources 26

3.4.1 Primary Data Collection 26

3.5 Data Collection Instruments 26

3.5.1 Questionnaires 26

3.5.2 Key Informants Interviews 26

3.6 Procedure for data collection 27

3,7 Validity and Reliability of instruments 27

3.7.1 Validity 27

3.7.2 Reliability 28

3.8 Data analysis 28

3.7 Ethical Considerations 29

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CHAPTER FOUR .30

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 30

4.0 Introduction 30

4.1 Demographic information 30

4.2 Performance planning and employee productivity in the manufacturing sector of Uganda32

4.3 Training and employee productivity in manufacturing sector of Uganda 34

4.4 Effect of performance appraisal on employee performance in the manufacturing sector of

Uganda 36

4.4.2 Employee productivity in the manufacturing sector of Uganda 38

4.5 Relationship Between Performance Management and Employee Productivity 40

4.6 Relationship between Performance management and employee productivity 43

CHAPTER FIVE 44

DISCUSSION, CONCLUSIONS, AND RECOMMENDATIONS 44

5.0 Introduction 44

5.1 Summary of Findings 44

5.2 Discussion of Findings 45

5.3 Conclusion 47

5.4 Recommendations 47

5.5 Areas of further study 48

REFERENCES

Appendices i: Appendix I: Research Questionnaire 55

Appendix ii: interview guide 59