Developing a Framework for Performance Management at a Saudi Food Company

Performance management involves formulating a common vision of the organisation’s aims and purposes, supporting employees in understanding how they contribute to the vision and purposes, and helping employees align their performance accordingly. This sequential mixed methods single case study was conducted at a large publicly traded agribusiness in Saudi Arabia (“Organisation A”) with the aim of conducting a formative evaluation of its performance management system. The aim was to identify needed design and delivery features, oversight and accountability features, and impacts of the system. Using a sample of 311 survey respondents from across the professional roles in the organisation, 18 employees distributed across two employee focus group interviews, and 24 managers distributed across two manager focus group interviews, data were gathered regarding participants’ evaluations of and suggestions for optimizing the organisation’s performance management system. Survey data were subjected to descriptive statistical analysis, while open-ended survey and interview data were examined using thematic analysis. The present study offers a framework to support Organisation A in implementing a more effective performance management system characterized by (a) design and delivery features of clarifying and improving policies and procedures; improving alignment with organisational structures and staff; clarifying and enforcing roles and responsibilities; and incorporating effective, user-friendly software and tools; (b) oversight and accountability features of increased executive sponsorship; monitoring guidance, and oversight by human resources; use by employees and managers; employee commitment and engagement to the process; and training for managers and employees to use the process; and (c) impacts such as informing promotion and compensation decisions, career planning and development, training opportunities, and employee-valued outcomes. This framework constitutes a substantial contribution to research and practice by filling gaps and adding to previous frameworks related to performance management in Saudi Arabia. Implementation and use of the framework should lead to improved assessment and understanding of the firm’s human capital and yield strategic benefits such as improved staffing decisions, training and development, productivity, and employee satisfaction. These results, in turn, should improve the company’s financial bottom line. The findings may additionally have some transferability to other organisations in Saudi Arabia, the Middle East and other regions of the world.