How Does Performance Management Look Like Across Africa?

As global business practices continuously evolve, performance management systems remain critical to organisational success. This is especially true in Africa, a continent characterised by dynamic markets and diverse cultural landscapes. In this month's feature, we delve into the state of performance management across Africa, examining how different regions approach this crucial aspect of business strategy.

These four key pillars influence Performance management across Africa, among others. Firstly, a diverse approach. Secondly, the challenges in implementation. Thirdly, local adaptations and cultural attitudes towards innovations. Lastly, the role of HR in improvement. These pillars collectively highlight the complex landscape of performance management in Africa and the need for strategies adapted to regional and cultural contexts. We asked experts in each country critical questions in these pillars to get their perspective.

1. Diverse Approaches

Africa is not a monolith but a vibrant mosaic of cultures and business practices. From Cairo to Cape Town, Dakar to Nairobi, the approaches to performance management can be as varied as the continent's languages. In many African countries, performance management is not just about assessing outcomes but also involves integrating local cultural nuances that influence how goals are set and achieved.

In Nigeria, HR experts favour the Balanced Scorecard approach, emphasising its comprehensive view of organisational performance. In Uganda, the preferred method is Management by Objectives (MBO), which focuses on aligning individual goals with the company’s objectives. In Ghana, HR experts favour the 360-degree feedback system, highlighting its holistic evaluation from multiple perspectives. Meanwhile, in Kenya, HR experts favour combining the 360-degree approach with Objectives and Key Results (OKR), integrating comprehensive feedback with clear, measurable goals. These diverse perspectives underscore the importance of adapting performance management systems to local market dynamics and cultural nuances.

1. Challenges in Implementation

While many African businesses strive to adopt Western performance management models, several challenges hinder their effective implementation. A significant issue is the widespread lack of understanding and resistance to new systems, with a preference for traditional methods. Time management challenges also arise with advanced performance tools, making integration difficult. Scepticism towards new methodologies and favouritism in some work environments further undermine these practices. These challenges underscore the need for tailored performance management strategies in Africa. Here’s what HR experts from various African countries had to say:

Question: What makes performance management hard to implement in your country??

Efunseke Tugbobo , HR & Admin Manager, Nigeria:?

“Line managers often struggle to provide objective assessments and feedback to their team members. This challenge is compounded by the lack of executive management buy-in, which cascades to employees and results in laxity, particularly when the performance management process is not linked to any rewards.”

Key Takeaway: Lack of leadership buy-in and promotion into performance management.

Atim Belindah , HR Business Partner, Uganda:

“Many organisations and employees may resist adopting new performance management practices due to a preference for traditional methods, viewing change with scepticism, especially if perceived as top-down and without adequate consultation. Significant workforce skills and competencies gaps necessitate continuous professional development, which organisations often struggle to provide. Additionally, informal networks and favouritism can undermine formal performance management processes, and sometimes, the metrics used fail to reflect performance or align with organisational goals accurately.”

Key Takeaway: Scepticism to new methods and favouritism.

Caroline Muli , HR Manager, Kenya:

“Timelines can be challenging, especially when deadlines coincide with heavy workloads. Performance management technologies like the Leapsome system add to the difficulty by making it difficult for new employees to navigate.”

Key Takeaway: Time management issues around using sophisticated performance management tools.

Vera Sablah , Head of HR, Ghana:

“People often fail to see the importance of a performance management system, and the cost and the challenge of transitioning from manual methods to a system-based approach add to the difficulty.”

Key Takeaway: Lack of understanding/ resistance to adopting new systems.

1. Innovative Solutions and Local Adaptations

Despite these challenges, a wave of innovation is sweeping across the continent as businesses adapt to local conditions. For example, in Kenya, companies leverage mobile technology to track and manage performance remotely. This practice has become increasingly relevant in the wake of hybrid and remote job structures adopted by organisations post-COVID to improve performance efficiency while reducing overhead costs.

Question: What new performance management framework/methodology have you employed recently, and how did it affect the OKR??

Atim Belindah, HR Business Partner, Uganda

“A recent performance management framework that has gained traction is Continuous Performance Management (CPM). Unlike traditional annual reviews, CPM involves regular check-ins, real-time feedback, and ongoing goal setting.

Through regular updates, CPM ensures that employees’ objectives remain aligned with the company’s strategic goals.

Regular check-ins and feedback foster higher employee engagement as they feel more supported and valued.”

1. The Role of HR in Continuous Improvement

Human Resources departments across Africa are pivotal in transforming performance management from a mere evaluative process to a comprehensive development tool. There's a strong emphasis on continuous improvement and learning, aligning performance management with overall personal and professional development goals. This approach helps build a more engaged and motivated workforce prepared to tackle the unique challenges in fast-growing markets.

Question: How influential is your department in affecting overall company performance?

Efunseke Tugbobo, HR & Admin Manager, Nigeria

“We are the drivers of performance management, learning and development, employee engagement, reward and recognition, and other functions directly related to performance. Therefore, we are very influential in the overall company performance.”

Key Takeaway: HR is a key driver of business performance.

Atim Belindah, HR Business Partner, Uganda

“HR contributes to strategic planning by aligning human resource management with the company's long-term objectives, ensuring the workforce is prepared for future challenges. It plays a pivotal role in shaping and maintaining company culture, affecting employee morale, collaboration, and productivity. HR also establishes performance management systems with regular appraisals and constructive feedback to identify high performers, address performance issues, and align individual goals with organisational objectives.”

Key Takeaway: HR is critical in shaping company culture and driving morale.

Vera Sablah, Head of HR , Ghana:

“HR plays a crucial role in the organisation's success, starting from the recruitment process by attracting and retaining top talent, directly impacting productivity. Supporting employee well-being through wellness programs enhances productivity, while engagement activities such as departmental competitions and charades keep staff motivated and involved. HR also ensures legal compliance, protects the company's reputation, makes it an attractive place for top talent, and strengthens its talent pool.”

Key Takeaway: HR is responsible for driving effective employee attraction and retention.

Looking Forward

Evolving performance management is essential to ensuring African companies thrive in the global marketplace. Embrace technology and develop tailored strategies that blend global best practices with local realities. The diversity in African performance management reflects its capacity for innovation and adaptability. Focus on understanding and implementing effective performance management systems to unlock the full potential of Africa's workforce. By doing so, we can drive sustainable business growth and maintain a competitive edge. Stay proactive and committed to continuous improvement in performance management practices.

What are the opportunities in unlocking performance management to drive business success across Africa ? Share your thoughts in the comment section

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