The influence of individual employee performance metrics on a sub-culture in a professional services firm in Durban, South Africa

In today’s fast paced and global economy, competitive advantage is increasingly focused more on organisational behaviours rather than on the traditional tenets of land, labour and capital. Going beyond the traditional, organisations that are best able to get the most and the best out of their people are the ones most likely to perform better. This study aims to build an understanding of how culture is influenced by individual employee performance metrics that are used in an organisation. Previous research has been done in the broad fields of organisational culture and employee performance metrics separately, but no studies were identified in literature that focused on the interaction of the two concepts specifically. Therefore, this study seeks to answer the following research question: How do individual employee performance metrics influence sub-culture in the context of a professional services firm in Durban? This study predominantly focused not on performance at the organisational level, but rather the more granular level of individual employee performance metrics and sub-culture in one of the divisions of a professional services firm. This qualitative study explores the multiple perspectives of reality of ten of the 32 managers in the Advisory division of a professional services organisation, regarding how individual employee performance metrics influence their world view of work, or the way they perceive, think, feel and interact in the world of work. The focus of the study was limited to one department, in one branch of a multinational organisation and focused only on the horizontal layer of the “manager group” within the staff levels. Semi-structured, in-depth and face-to-face interviews were conducted with these managers as a means of gathering and saturating data. Interviewees were identified using a stratified sampling from the group of managers in the Advisory division. Open coding and constant comparison was used to analyse data. Page ii of viii The results of the study show that managers had very varied and complex perceptions of how the individual performance metrics used to assess their performance influence the sub-culture of their world of work. The key findings manifested that misuse and abuse of performance metrics by leaders, leadership bias in respect to recognition, reward and remunerations, the predominant focus of the division on the bottom line and emphasis on success at all cost, and low employee morale were all aspects of performance that impacted on how employees behaved in the division. The effect of these factors on the managers operating in this division was that there were low levels of employee commitment which were experienced through low morale and reduced productivity; managers felt that there was a restriction in the development of their careers, all of which resulted in a disregard to values of the organisation. This study reflects how the reward and recognition system using the balanced scorecard has shifted the focus of the department away from the organisation’s espoused values. This has resulted in various leadership and management questions for the leadership of the division in this study. This research also adds to existing literature that links performance and culture within the organisational context that it goes beyond the prevalent themes in literature which focus on performance at the organisation level. This study focuses on performance at the employee level and in particular in a professional services firm in South Africa. The study has three interrelated sections which are however considered as standalone. The first section is an evaluation report based on the Advisory division of a professional services firm in Durban, South Africa, and consists of a literature review, the methodology followed in conducting the study, results and the discussion thereof. The report also highlights limitations of the study, recommendations and the perceived value of the study. The report ends with a summary in the form of a conclusion. Section 2 comprises a more comprehensive literature review while Section 3 documents the research methodology followed in the study