An Evaluation of Performance Management Systems and Employee Engagement: A Study of Lafarge Cement in Kaduna State
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Background of the Study
Performance management systems (PMS) are vital in aligning employees' objectives with organizational goals, enhancing productivity, and ensuring the continuous growth of an organization (Akinyemi & Olayemi, 2024). These systems involve various processes, including setting performance expectations, monitoring progress, providing feedback, and making adjustments where necessary. In organizations like Lafarge Cement in Kaduna State, performance management systems are not only a tool for assessing employee effectiveness but also serve as a driver for employee engagement (Ng & Goh, 2023). Employee engagement refers to the level of enthusiasm and commitment an employee feels towards their job, which directly impacts organizational performance.
Lafarge Cement, a leader in the Nigerian cement industry, has implemented a performance management system designed to evaluate and improve employee performance. However, the effectiveness of this system in fostering employee engagement remains an underexplored area. Employee engagement is critical in a manufacturing company like Lafarge Cement because engaged employees tend to be more productive, committed, and motivated to contribute towards the company’s success (Aluko, 2023). An understanding of how Lafarge’s PMS influences employee engagement can inform strategies to optimize performance and reduce turnover rates.
This study seeks to evaluate the performance management system at Lafarge Cement in Kaduna State and explore its impact on employee engagement. The findings will contribute to improving performance management practices and employee engagement strategies within the company.
Statement of the Problem
Although Lafarge Cement has implemented a performance management system, its impact on employee engagement has not been sufficiently examined. Engaged employees are more likely to show higher levels of commitment, productivity, and satisfaction, but there is limited understanding of how Lafarge’s current PMS influences these aspects. The lack of detailed research on this relationship presents a challenge to the company’s ability to fully leverage its PMS to enhance employee engagement and overall organizational performance.
Objectives of the Study
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To assess the performance management system implemented at Lafarge Cement in Kaduna State.
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To examine the relationship between performance management systems and employee engagement at Lafarge Cement.
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To recommend improvements to Lafarge Cement’s PMS to foster greater employee engagement.
Research Questions
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What is the performance management system currently used by Lafarge Cement in Kaduna State?
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How does the performance management system at Lafarge Cement impact employee engagement?
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What improvements can be made to the performance management system at Lafarge Cement to enhance employee engagement?
Research Hypotheses
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There is a significant relationship between performance management systems and employee engagement at Lafarge Cement.
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Effective performance management systems lead to higher levels of employee engagement at Lafarge Cement.
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Employee feedback and recognition in the PMS positively affect employee engagement at Lafarge Cement.
Scope and Limitations of the Study
This study will focus on Lafarge Cement’s performance management system and its impact on employee engagement in Kaduna State. The limitations include possible biases in employee perceptions of the performance management system and the challenge of obtaining comprehensive data from all levels of staff within the company.
Definitions of Terms
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Performance Management System (PMS): A structured approach used by organizations to evaluate, manage, and improve employee performance through setting goals, monitoring progress, and providing feedback.
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Employee Engagement: The emotional commitment and enthusiasm an employee has towards their work, often resulting in higher productivity and job satisfaction.
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Employee Productivity: The rate at which an employee produces results in relation to their efforts and resources utilized.
