An Assessment of the Impact of Performance Management on Employee and Organization Performance - Evidence from Selected Private Organizations in Tanzania

Performance management is one of the important key activities performed by organizations to monitor the performance of their employees. Organizations must regularly evaluate the performance of their employees in order to understand their current and future abilities. The purpose of this paper is to assess the impact of performance management on employee and organizational performance. The study adopted a cross-sectional survey research design and involved a sample size of 120 human resource officers and managers from selected private organizations in Tanzania. Data was collected using structured questionnaires and interviews and analyzed using descriptive and inferential statistics and the results presented using tables. The findings of the study reveal that private organizations practice performance management and have effective performance management system to evaluate/appraise the performance of their employees. Moreover, the findings reveal that there is a significant relationship between performance management and employee performance as well as between performance management and organizational performance. The study recommends the need of the private organizations to maintain and continue practising and implementing effective performance management systems, also to continue evaluating the performance of their employees frequently because it helps to determine training needs and at the same time acts as a motivational strategy hence leads to a better performance of employees and organization.