International Doctoral ConferenceNew Challenges in Global Economy

Title of contribution: Performance Management: A Business StrategyAuthor: Samuel Lewatle, South AfricaCategory: Research Paper

Table of Contents1. Introduction2. Methodology3. Performance Management and GEMS Strategy Alignment4. Performance Management Implementation as a Business Strategy5. Research Results – Some of the key Findings6. Conclusion and Discussion7. Sources

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1. Introduction

The aim of the paper is to evaluate the implementation process of performance management as a business strategy within the Government Employee Medical Scheme (GEMS). The objectives of the paper, will therefore be to:

• Evaluate the role of performance management as a component that drives business strategy;

• Determine the value of performance management as a business strategy;

• Analyses performance management as a business execution tool; and

• Positioning performance management in GEMS as a key business strategy enabler.

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1. Introduction Continued…The formulation of the paper is based on the research question: Is PerformanceManagement a Business Strategy? The question seek to evaluate the role ofperformance management in driving the strategy implementation and execution within theGovernment Employee Medical Scheme (GEMS) in South Africa.

Atkins (2013), defines performance management as a process of harnessing all availableresources (human and materials) within an organization and ensuring that these performto the maximum, in order to achieve the desired results.

According to Gitney (2013), to succeed in driving the performance management as abusiness strategy it should not be the senior leadership project but a company -wideproject that impacts how everyone in the company prioritizes the work they do andcontinuously focus on key business strategic goals driven by performance culture.

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2. Methodology1. The researcher used the Phenomenological research paradigm that

focuses on observation, reflection and experience.2. The research type or paradigm was be linked to the qualitative approach.3. The research method applied was Interpretative. The method focuses on

the implication and experience derived from the implementation of theperformance management system in the organization.

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3. Performance Management and GEMS Strategy Alignment

A systematic and planned process is key in guiding the strategic planning process thatfeed into the performance management process. The strategic plan and performancemanagement implementation alignment is depicted as Table 1 as follows:

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Source: GEMS Strategy and Performance Management Alignment Framework, 2016

GEMSVision

GEMSMission

GEMSValues

GEMSStrategy

Performance Management Development

Scheme Scorecard

Employee Scorecard

4. Performance Management Implementation as a Business Strategy

The framework below will show how the integration and alignment of strategy andperformance management at the three levels of business are to be executed andmeasured:

www.ligsuniversity.com 7Source: GEMS Three Tiered Performance Management Framework, 2015

5. Research Results -Some of the Key Finding:

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1. Effective remuneration practices and policies to be developed;2. Reward and recognition incentives programmes to be designed and

allocated in a transparent manner based on the risks and complexity of responsibilities and accountabilities;

3. Leadership to be developed to inculcate a high performance culture by effectively managing their teams to support their overall business strategy;

4. Performance Management to be driven as a corporate priority that lead into accountability and consequence.

5. Management to align their business strategy to performance key requirements such as targets, measures, terminologies and reporting/ monitoring.

6. Continuous informal reviews and formal feedback formalised at all levels.

6. Conclusion and DiscussionThe following conclusions and discussions could be drawn:

• Performance management drives the strategy implementation and execution;• Bring about business competitiveness, sustainability, adaptation to market conditions,

and drive change management;• Reinforce the business culture, talent management and contributes to the high

performing organization and employees brand;• The shareholders value will be realised when the strategy delivers on its expectations;

and• Performance management is a business strategy as it brings about business results

and promote innovation and collaboration.

GEMS is maturing in aligning performance and strategy and is delivering on its strategicgoals.

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7. Sources• Gitney, Jim. 2013. Performance Management As a Business Strategy. P1-3.

https://www. group50.com/performance-management-business-strategy/• Gray, Rob.2011. Aligning Performance Management with Business Strategy.p1-2.

http:www.hrmagazine.co.uk/article-details/aligning-performance-management-with-business Practices. p71.

• Harvey, S. 2016. Savvy Performance Management: Turn Painful Performance Management into Savvy Conversation. 1st Edition. Bookboon.com

• Mankins, Michael C., and Steele, Richard. 2005. Turning Great Strategy into Great Performance. Harvard Business Review:p.2-4.https/:www.hbr.org

• Aligning Performance Management with Business Strategy.p2-5. https://www.breathehr.com/blog/aligning-performance-management-with-business-strategy

• Sewalha, Leen. 2011 Performance Management Best Practices Everyone Should Know.p1-4. https://www.atmanco.com

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Thank youwww.ligsuniversity.com 11