An Assessment of Performance Management and Employee Engagement in the Banking Sector: A Case of Absa Bank Zambia in Lusaka

Performance management is crucial in aligning employee efforts to organizational goals and accelerating engagement and development in the financial sector. The study aimed to assess the impact of performance management on employee engagement in the banking sector in Zambia. It identifies a research gap regarding the effectiveness of performance management strategies in enhancing employee engagement in the banking sector in Zambia. The study employed a mixed-method approach and utilized a descriptive and correlational design, combining 100 structured questionnaires and 10 interviews, out of 100 questionnaires 88 were successfully received, Secondary data was obtained from bank reports and academic sources. Data was analyzed using descriptive statistics and statistical inferences using SPSS V.23. Thematic analysis was used to identify key themes that connect performance management practices to employee engagement. The results revealed that the annual performance reviews were widely used as an appraisal tool in evaluating employees' performance. The study also established that there is a relationship between performance management and employee engagement r= 0.569 P < 0.05, indicating a moderate to strong positive correlation between the variables. However, it was revealed that employees were not satisfied with the performance management review approach. Challenges were identified, including infrequent feedback, a lack of clear communication, a biased reward system, and no proper engagement during the process. The study concluded that addressing such challenges requires a holistic approach to performance management systems. The study recommended the adoption of a more dynamic performance management system approach, improve communication and feedback systems and revamp a fair and unbiased recognition and reward system.