The Relationship between Performance Management and Job Motivation of the Staff Working in Petrochemical Company

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1 International Journal of Psychology and Behavioral Research. Vol., 3(6), , 2014 Available online at www. ijpbrjournal.com ISSN Victor Quest Publications The Relationship between Performance Management and Job Motivation of the Staff Working in Petrochemical Company Saeed Savadkouhi 1*, Shahram Vahedi 1 1- PhD Student,Islamic Azad University, Dubai Branch, Dubai. *Corresponding Author Abstract The present research purpose is to investigate the relationship between performance management and job motivation of the staff working in petrochemical Company. The study employed a correlation method. The statistical population included all the staff working in petrochemical company of Iran, out of which, a sample of 290 individuals was selected through random sampling. The data gathering tools included performance management questionnaire and job motivation. Pearson correlation, multi-variate regression and determination were used to analyze the data. Results indicated that there is significant relationship between performance management and job motivation of the staff. Moreover, the obtained correlation is.508. According to the findings of this study, the subscales of performance management included the plans and strategies, cognition of the performance, management of accounting information system and action plan that explained 79 percent of the total variance of the job motivation of the staff except for the of mission statement. Keywords: performance management, job motivation. Introduction With regard to the technological development, worldwide competition and liberalistic economy, the organizations are seeking more effective managerial techniques for more effective dealing with such pressers and changes. One of the management techniques that are increasingly becoming prevalent is the technique of performance management. The concept of performance management is one of the most constructive and important developments in the realm of human resource in the recent years. This concept was first introduced by Beer and Ruh (1976); however, it was not recognized as a distinguished performance until the mid of the 1980s. This approach is rooted in this notion that there is crucial need for more stable and more consistent approach for the management and rewarding performance. Evaluation systems and payment based on the performance was first employed hastily and could not meet the individuals expectation (Safari, 2006). Mwita cited in Rogers (1994) defines performance management as an integrated set of planned processes by which the structure of the relationship between the individual and the total strategy of the organization are established (Mwita, 2000). The main purpose of performance management is to provide a tool through which better results can be obtained from the staff and organizational groups and this process is facilitated through perceiving the performance management in the agreed framework of aims, standard and organized needs (Soltani, 2003). The ability to define, evaluate and assess is one of the required conditions for performance improvement in each organization. An organization needs to empower its self in assessment, evaluation and delivering the performance in order to improve its function (Dariyani, 2007). Performance management is the tool for the improvement of organizational performance through the relationship and moderation of goals and individual, group and organizational outcomes. In addition, this is a tool for identification and encouragement of superior performance and management of different issues (APSS, 1999; cited in Dariyani and Rafi Zadeh, 2007). Knowing performance management and performance evaluation as equivalent is a mistake. Performance management is a system that is in relation and interaction with different part and aspects (Group of studies in

2 humanities, 1992). Performance assessment should be differentiated from performance management. Performance management is a more comprehensive, exhaustive and through concept in management that aims to identify the mutual expectations and emphasizes on the support role of managers who are expected to act as teachers not judges and it also centers on the future (Safari, 2006). In the evaluation of responsibility performance, the obtained outcome is produced by the organization; however, in the process of performance management, the obtained outcome is achieved by all the staff working in the organization and also the management of the organization (Hefzi Far, 2008). Performance management is a dynamic and constant process that is not specific to a certain stage or period and managers can achieve their organizational goals in an effective way (Alvani, 2007). The process of performance management is regulated by guaranteeing real goals and the implementation of practical planning support achieving the strategies (Arabi and Izadi, 2002). However, no specific attention is paid to this issue in some of the organizations and deal with it with a traditional approach; on the other hand, it has an undeniable importance in the management of new human resources. One of the most important issues of management is performance assessment and evaluation in the organization and in recent years it has been replaced with the concept of performance management and has a comprehensive viewpoint about the discussion of performance in the organization. The concept of performance management is one of the most important and constructive progresses in the realm of human resource in recent years. Performance management can make connection between what is the desired by the organization (eg, goals, objectives and performance standards) and how personnel provide the connectivity between behaviors, competencies and processes). Performance management as a behavior alteration tool as well as the tools for expanding the organizational performance can move toward changing the existing tools (Cheng, Dainty & Moore, 2007). On the other hand in the domain of human resource management, the motivational process of the employees is of crucial importance because trying to motivate the staff is a highly specialized activity. Motivation is a dynamic force that causes mobility or human action. Put it differently, it s an inner state that encourages people to do a certain activity. The term motivation can be defined as a power factor, behavior guide and maintainer of the behavior (Seif, 2005). Motivation in the modern sense suggests psychological processes that stimulate, guide and track the actions and volunteerism in attaining the specific goals. Manager should completely perceive such psychological processesif they seek to successfully guide the staff in achieving their organizational goals (Farhangi and Safar Zadeh, 2006). Each individual considers each activity with a certain possibility for success. This possibility is indicative of the individual s image of the difficulty of the task for himself/herself. Put it differently, the possibility for success is indicative of the possibility of becoming successful by investing effort. If we summarize the concepts we can conclude that the motivation reaches its highest point when the individual believes that a certain kind of task will lead to a specific outcome (expectation of obtaining a reward from the performance), when the result appeals to an individual and when the individual believes that s/he can operate at a desired level (the relationship between effort and performance). (RahmanSeresht, 2004). Revolutionary changes, complex and high-tech technologies and global completion have forces today s organizations to rely on their human resource. On the other hand, in the ever-changing and fast-paced world, organizations can hope for survival by having motivated staff (Abbas Pour, 2005). An organization that has an effective performance management can use its function to generate motivation in its staff. Recognition of good staff, providing reward for them and motivating for improving their performance can be important functions of performance management. Performance management encompasses a wider range of influencing factors on the motivation. Therefore, the present research aims to investigate the relationship between performance management and job motivation of the staff working in petrochemical Company. The study employed a correlation method. The research questions Main question Will there be any relationship between the performance management and job motivation of the staff? Alternative questions Will there be any significant relationship between mission statement and job motivation of the staff? Will there be any significant relationship between the organization s plans and strategies and job motivation of the staff? Will there be any significant relationship between action plan and job motivation of the staff? Will there be any significant relationship between cognition of performance and job motivation of the staff? 621

3 Will there be any significant relationship between management accounting information system and job motivation of the staff? Method and materials The research is applied in terms of goal and descriptive-correlational in terms of method. The statistical population included all the personnel working in Iran Petrochemical Company. The research sample comprised 290 of the staff working in petrochemical company who were selected through random sampling. Pearson correlation test, multivariate regression and determination were used to analyze the data. The data gathering tools included two questionnaires. Performance management questionnaire was designed and developed by Movita (2000). This 18-item questionnaire is scored on 5-point Likert scale and the respondent is asked to select from five options of strongly agree (5), agree (4), neither agree nor disagree (3), disagree (2) and strongly disagree (1). Performance management questionnaire includes five subscales of mission statements, strategies and plans, cognition of performance and accounting information system. This questionnaire has a content validity and internal consistency based on Cronbach alpha was used to determine the reliability of the questionnaire. The s of internal consistency for the total scale on a sample of 30 individuals was equal to.92 for the total scale and.71 to.87 for the subscales and this is indicative of the desirable validity for the total scale and subscales (Safari, 2006). Job motivation questionnaire: this questionnaire was designed and developed by Herzberg and based on the theoretical and experimental knowledge and the related research in the realm of motivation. This 20-item questionnaire scored on 5-point Likert scale. Performance management questionnaire has content validity and internal consistency based on Cronbach alpha was used to determine the reliability of the questionnaire. The of internal consistency for the total scale on a sample of 30 individuals was equal to.94 which indicates the acceptable validity of the scale (Kohan, 2008). Results and findings Will there be any relationship between the performance management and job motivation of the staff? Table 1- Pearson correlation test between performance management and job motivation of the staff Independent Dependent Standard Correlation Level of sig. Performance management Job motivation According to table 1, the correlation between the s of job motivation and performance management is equal to r=.508. Therefore, with 99 percent of confidence, it can be concluded that there exists significant and positive relationship between performance management and job motivation of the staff. First alternative question: Will there be any significant relationship between mission statement and job motivation of the staff? Table 2- Pearson correlation test between mission statement and job motivation of the staff Independent Mission statement Dependent Standard Correlation Job motivation Level of sig. According to table 2, the correlation between the s of job motivation and mission statement is equal to r=.074. Therefore, with 99 percent of confidence, it can be concluded that there exists significant and positive relationship between mission statement and job motivation of the staff. Second alternative question: Will there be any significant relationship between the organization s plans and strategies and job motivation of the staff? 622

4 Table 3- Pearson correlation test between organization s plans and strategies and job motivation of the staff Independent Dependent Standard Correlation Level of sig. strategy Job motivation According to table 3, the correlation between the s of job motivation and organization s plans and strategies is equal to r=.508. Therefore, with 99 percent of confidence, it can be concluded that there exists significant and positive relationship between organization s plans and strategies and job motivation of the staff. Third alternative question: Will there be any significant relationship between action plan and job motivation of the staff? Table 4- Pearson correlation test between action plan and job motivation of the staff Independent Dependent Standard Correlation Level of sig. Action plan Job motivation According to table 4, the correlation between the s of job motivation and action plan is equal to r=.67. Therefore, with 99 percent of confidence, it can be concluded that there exists significant and positive relationship between action plan and job motivation of the staff. Fourth alternative question: Will there be any significant relationship between cognition of performance and job motivation of the staff? Table 5- Pearson correlation test between cognition of performance and job motivation of the staff Independent Cognition performance of Dependent Standard Correlation Job motivation Level of sig. According to table 5, the correlation between the s of job motivation and cognition of performance is equal to r=.73. Therefore, with 99 percent of confidence, it can be concluded that there exists significant and positive relationship between cognition of performance and job motivation of the staff. Fifth alternative question: Will there be any significant relationship between management accounting information system and job motivation of the staff? 623 Table 6- Pearson correlation test between management accounting information system and job motivation of the staff Independent According to table 5, the correlation between the s of job motivation and Dependent Standard Correlation Level of sig. management accounting information Job motivation system management accounting information system is equal to r=.79. Therefore, with 99 percent of confidence, it can be concluded that there exists significant and positive relationship between management accounting information system and job motivation of the staff. Multivariate regression analysis was performed between independent (performance management) and dependent (job motivation. In this method, all the independent s entered the regression equation. In the investigation of regression correlation, the factor of mission

5 statement had no correlation with job motivation. After excluding the mission statement, the standard correlation for the independent s included as following: Table 7- regression analysis between performance management and job motivation Independent s Effect size R R2 Sig management accounting information system 70% 70% 50% 0.00 management accounting information system 66% 71% 50% 0.00 strategy 8% management accounting information system strategy 5% planning 37% management accounting information system strategy 23% planning 26% Cognition of performance 50% 47% 75% 56% % 79% 62% 0.00 In the first stage, the strategy entered the regression equation. In the second stage, and third stage, action plan and cognition of performance entered the equation. Finally the management accounting information system entered the equation. R2 indicates that 50% of the variance of job motivation is explained by management accounting information system with effect of 70%. Moreover, 50% of the job motivation of the staff is explained by the s ofmanagement accounting information system and strategy with effect of 66% and 8%, respectively. Furthermore, 56% of the job motivation of the staff is explained by management accounting information system with effect of 47%, strategy with effect of 5% and action plan with effect of 37%. R2 indicates that 62% of the job motivation of the staff is explained by management accounting information system with effect of 26%, strategy with effect of 23%, action plan with effect of 26% and cognition of performance with effect of 50%. Mission statement didn t enter the equation from among the dependent s. That is to say that, the of mission statement exerts no effect on job motivation. Discussion and Conclusion Based on the research findings, there is significant correlation between performance management and job motivation and the employment of effective performance management increases the job motivation of the staff. According to the findings of this research, the s of performance management including strategies and plans, cognition of performance, management accounting information system and action planning explain 79 percent of the total variance of job motivation. Results also indicate no significant relationship between mission statement and job motivation. Mission statement means precise and unambiguous definition of the general goal of the organization that clearly identifies what should be done and what should be obtained. The clarity of the goals of the company (either long-term goals or short-term goals) increases the motivation of the staff and this helps the organization reach its goals more easily. Based on the results of the research, there exists significant relationship between the strategy and plans of the organization. An organization can provide the staff with adequate level of motivation by having clarified strategies and plans. It can also increase the job motivation of the staff and achieve its goals by clarifying the goals and methods to reach them. Expansion of the strategies for attaining long-term goals determines the duties and responsibilities for shouldering and also sets a time span for fulfilling them (Patterson, 1997). Dividing the plans into short-term, medium term and long term goals can prioritize the activities done by the staff and provide the managers and the staff with clear and determined plans. The clarity of the goals and plans exerts direct and positive effect on the job motivation of the staff. Based on the results of this research, action plan also produces direct effect on the increase of the motivation of the staff. The organization does this by establishing the perception in the employees to attain the organizational goals and reaching alternative goals. On the other hand, allocating right 624

6 resources to different sections can help the staff understand that there exists no discrimination in the allocation of the resources. Moreover, there exists significant relationship between cognition of performance and job motivation. It can be concluded that the organization can effectively enhance the job motivation by recognizing the staff performance and implementing the decisions based on the real performance of the individuals. One of the methods that helps the individuals identify the performance of the staff is the evaluation of the staff s performance. The organization attempts to determine the effectiveness of its staff through recognizing and evaluation of the performance. Furthermore, results indicate that, the existence of the information systems that have been regularly planned can be effective in increasing the job motivation among the staff and boosting its efficiency. What s more, theresult is indicative of a significant relationship between management accounting information system and job motivation. Organizational management can provide its staff with information and employ such information in organizational decision-making. Management can use different systems of receiving feedback and proposal systems to know the opinionsof the staff. The job motivation of the staff will increase, if the organization can collect their opinions and assure them of considering these ideas in decision-making. References Abbaspour A, Progressive human resource management:approaches,processes and functions, Tehran:Samt Publication. Alvani M, 2007.Performance management in a meta-organizational perspective.national Conference on Performance Management.Tehran: University of Jihad. Arabi M, &Izadi D, Strategic human resource management: practical guide. Tehran: Office of Cultural Research Publication. Azizi A, The relationship between job motivation and performance management of the staff in Shiraz University of Medical Sciences.Master's Thesis. Cheng MI, Dainty A, & Moore D, 2007.Implementing a new performance system within a project -based organization a case study.international journal of producting& performance management.56(1. Dariyani MA, &Rafi Zadeh A, 2007.New trends in performance management. Tehran: Jihad University. National Conference of performance management. Department of Human Resources Development Studies (2002.Approach of performance management system.journal of Accounting.4(1. Farhangi AA,& Safarzadeh H, 2005.Management of Organizational Behavior.Tehran: Payam-e Pouya Publication. HefziFard M, Role of performance management in organizational development.journal of the employees of Iran's oil industry Kohan G, Theories oforganization and management. Tehran: Doran Publication. Mwita J, Performance management model: a systems-based approach to public service quality. The International Journal of Public Sector Management.13(1. Patterson D,1997. Using the McGill action planning and total quality management to facilitate development on supervisor employee communication, Royal Roads University. RahmanSeresht H, Identifying employees' motivation based on the theory of V.H.WORM. Tehran: An Publication. Safari S, &Vahabian A, Performance Management: Key Strategies and Practical Guidelines. Tehran: Jihad Publication. Seif AA, Educational psychology, psychology of learning and teaching. Tehran: Agah Publication. Soltani I, Performance management as the foundation of human resources.tadbir Journal,

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