Navigating the Complexities of Performance Management: A Thematic Analysis of Organizational Challenges

Brudan Adrian, Pentek Borbala, Gorski Teodora and Mihailoaie Cristina
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Brudan Adrian: PhD Student, Doctoral School of Economics and Business Administration, West University of Timisoara & General Manager, The KPI Institute, Melbourne, Australia
Pentek Borbala: PhD Student, Doctoral School of Communication, Babes-Bolyai University & Management Consultant, The KPI Institute, Melbourne, Australia
Gorski Teodora: PhD Student, Faculty of Economics, Lucian Blaga University of Sibiu & Head of Consulting Services, The KPI Institute, Melbourne, Australia
Mihailoaie Cristina: Business Unit Manager-Research Division, The KPI Institute, Melbourne, Australia

Timisoara Journal of Economics and Business, 2024, vol. 17, issue 1, 21-40

Abstract: This paper presents insights into the various challenges managers and employees encounter in implementing and using Performance Management Systems (PMS) within their organizations. The analysis draws on a decade of qualitative data collected from participants of The KPI Institute’s training programs. The primary objective of the paper is to provide an in-depth understanding of the challenges faced by professionals in the field. Data was collected qualitatively, through focus groups organized at the beginning of each training session between 2012-2022. The research employs a thematic analysis approach to categorize and interpret the data collected through focus groups. In addition to the thematic analysis, a narrative analysis provides a richer, contextual understanding of the data. Data reveals seven key themes where participants encountered challenges. The study identified the primary challenges in performance management systems as KPI selection, organizational culture, system implementation, KPI activation, measurement process standardization, learning and improvement, and employee performance management. Participants emphasized that addressing these challenges requires aligning KPIs with strategic objectives, fostering a supportive organizational culture, ensuring accurate data collection and standardization processes, and mitigating subjectivity in employee performance appraisals.

Keywords: Performance management system; KPI selection; Organizational culture; System implementation; Employee performance management (search for similar items in EconPapers)
JEL-codes: M10 M12 M14 M19 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:timjeb:v:17:y:2024:i:1:p:21-40:n:1002

DOI: 10.2478/tjeb-2024-0002

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