Investigating the effect of performance management system on empowering employees of executive financial institutions

Abstract:

The effort to improve the productivity of human resources and their optimal use is one of the vital programs of organizations. Performance management as a theoretical concept has a great impact on organizational effectiveness and initiative. By implementing performance management programs, employees gain more flexibility in controlling and performing tasks, remove obstacles, and become empowered as a result. Undoubtedly, today, empowering employees, especially in the financial sector of the government, can play an important role in improving the quality of services provided, and it can reduce coercive financial corruption. Therefore, the current research was conducted with the aim of investigating the effect of the performance management system on the empowerment of employees of executive financial institutions in West Azarbaijan province. For this purpose, seven hypotheses were designed and the information needed to analyze the research hypotheses was obtained through two questionnaires. The reliability of the questionnaires using Cronbach's alpha method has been estimated as 0.78 for the first questionnaire and 0.83 for the second questionnaire. The current research is of applied type and correlation description method is used in it. The statistical population of the research is all the employees of the financial institutions of West Azarbaijan province, who were randomly selected from among all the financial departments of the province, using the decision triangle model in selecting a sample of 3 departments, which have more than 1404 human resources. The sample size was calculated using multi-stage random sampling method and based on Cochran's formula of 309 people, and linear regression test was used to analyze and test the hypotheses. The results of the research indicate that performance management has a significant effect on employee empowerment and related sub-hypotheses (delegation of authority, job enrichment, participation, training, motivation, formation of work teams and job satisfaction).                            

Key words: human resources, performance management, empowerment, evaluation, control, employees of executive financial institutions

Introduction

Government organizations are usually formed in order to carry out legal duties in order to achieve the goals of the government, implement approved programs and provide services to the people, and they operate according to the wide range of government activities, increase in public expenses and political conditions. And the world economy has become more and more important to pay attention to government organizations; Therefore, efforts to improve the performance of government organizations seem necessary. Managers play the most important and sensitive role in government organizations. If the managers of government organizations can provide conditions that actualize the potential forces of employees, the performance of these organizations will certainly improve. Performance management is an integrated activity whose purpose is to strengthen and institutionalize performance management as the infrastructure system of the organization. Also, performance management is the process of designing and implementing strategies, considerations and drivers, which aims to transform the raw talents of human resources into performance. All humans have multiple talents for the practical field. However, exploiting and converting these talents into deliverable performance is often not very desirable for some reasons. Performance management has the role of converting talent into performance, which is achieved by removing obstacles and encouraging and empowering human resources employees. (Japleghian, 1388, p. 2)

On the other hand, as the duties in organizations become more specialized and professional day by day, the situation has become such that everything is changing and developing, and managers with their past thoughts and focusing everything in their work area are not able to manage the affairs of the organization, and if they want to manage their subgroups in terms of expertise, they must focus on education, organization, powers, responsibilities, policies and systems. Provide a favorable environment. (Japleghian, 1388, p. 3)

In order to overcome the uncertain, complex and dynamic conditions that organizations are facing today, the only way facing managers is to use the performance management method to empower the organization and employees through the acquisition of knowledge and skills that quickly become outdated and obsolete. Therefore, having capable and efficient human resources, which are the foundation of the national wealth and vital assets of the organization, will bring many benefits for organizations, companies and economic enterprises. (Qalipour, 1390, p. 1)

Empowerment provides organizations with potential capacities for exploiting the source of human ability that is not fully utilized.If organizations want to survive in today's complex and dynamic world, they need this potential force and must manage and use it. Therefore, the existence of rapid changes, technological advances and open and hidden competition in the world has made the importance and necessity of empowerment more obvious. (Bardbar, 1389, p. 3)

1-2 statement of the problem      

Environmental changes require organizational changes. Major changes within the organization rarely happen without the help of people, and if there is no mutual trust between management and employees, no method will work. Whenever organizations want to survive in today's complex and dynamic world, they must harness human potential, performance management is recognized as a tool that provides potential capacities for exploiting human ability that is not fully utilized. (Blanchard et al., 1381, p. 13)

Today, environmental and social pressures for organizations to be accountable for their performance have made the need to implement performance management a common issue for organizations, therefore, they use multiple approaches to evaluate the performance of individuals, groups, and organizations. Managers of organizations generally comment on the performance and job behaviors of employees. For this reason, employee performance evaluation is a part of management's job. A performance management system that is appropriate to the organizational structure, culture and atmosphere is a necessity in order to develop and improve the performance of employees, and its effectiveness also requires rules. Performance management includes a wide field of management in the organization, because its main goal is to improve the quantitative and qualitative results inside the data and outside the data in the organization. According to Peter Drucker, the organization has the task of turning ordinary people into exceptional people. To further clarify the topic of the research, I will give a definition of performance management and empowerment.

Performance management can be considered a set of actions and information in order to increase the level of optimal use of facilities and resources in order to achieve goals in a way It is economical with efficiency and effectiveness. (Management and Planning Organization of the country, 2012) Empowerment is the process of achieving continuous improvement in organizational performance, which is achieved through the development and expansion of the influence of competent and competent people and teams in most of their aspects and duties, which in turn affects the performance of the entire organization. (Iran Nejadparizi and Ali Sulaiman, 2013, p. 14) The wealth and capital of today's organizations are no longer physical and technological capital, but the foundation of the wealth of any organization is formed by the employees in the form of their knowledge, skills and motivations. Many organizations consider effective human management to be the most important productivity factor. In a powerful organization, a successful manager is someone who has the idea and ability to manage employees and lead them towards a common organizational goal, and who uses a method that increases the efficiency of employees, so that they can take advantage of all the capabilities of human resources, and this is the way to empower employees. to do In fact, create a win-win relationship between the organization and its employees, which is the ideal of many organizations and their employees.

Therefore, considering the necessity of the issue in the public and private organizations of the country, in recent years, the 20-year vision of the system that was drawn up and approved, the need to evaluate and monitor the system at different levels and areas with a systemic approach, through a notification, to the country's management and planning organization, requesting to provide suitable solutions that lead to improved performance and increased productivity and also approve and promulgate the law of state service management, which the eleventh chapter of articles (81, 82, 83) of this law announced the establishment of the performance management system in the devices, and the eighty-second article of this law mandates organizations to supervise the establishment of this system.