Is performance management applicable in developing countries?

Abstract

PurposeTo test whether performance management is a useful management tool for organisations in developing countries.Design/methodology/approachFirstly, an overview is given of the status of performance management in developing countries and in particular in Africa. Secondly, prescriptive empirical research, in the shape of a case study at the Tanzanian College of Business Education, is used to test whether performance management is a useful technique for organisations in developing countries.FindingsIt seems clear from the case study that the management technique of performance management is suitable for organisations in developing countries to try out. At the same time, the case study also makes clear that performance management, and especially the fostering of performance‐driven behaviour, cannot be implemented lightly and should not be underestimated. Its takes continuous attention, dedication and in particular stamina from management to keep focussing on performance management in order to keep it “alive” in the organisation.Research limitations/implicationsPerformance management was only tested at one organisation in one developing country. More research is needed to identify the manner in which performance management can be implemented in other types of organisations and other countries.Practical implicationsPerformance management has been proven to improve the performance of western organisations. The case study in Tanzania gives an indication that the same might be true for organisations in developing countries. This gives management of organisations in these countries the incentive to also start improving the results of their organisation by implementing performance management.Originality/valueThere is not much known yet about the factors influencing and behavioural changes needed to make performance management a success in organisations in developing countries. The case study provides insight into the suitability of performance management and the importance of performance‐driven behaviour for organisations in these countries.