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Unlocking Success: Overcoming Challenges and Enhancing Performance Management in Aruban SMEs
Perez, Veronica
Perez, Veronica
Promotor / Advisor
Keyword
performance management
small-to-medium enterprises (SMEs)
Aruba
business strategies
organizational development
business optimization
small-to-medium enterprises (SMEs)
Aruba
business strategies
organizational development
business optimization
Location research
Date
2024-01-23
License
Attribution 4.0 International
Publisher
University of Aruba
Language
en
ISSN
ISBN
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Abstract
This study investigates performance management in Aruba's small and medium-sized firms (SMEs), with a focus on the strategies used to implement or modify performance management systems, implementation challenges, and success metrics. The study's main objectives are to investigate the performance management practices of Aruban SMEs, identify obstacles to implementing or redesigning effective performance management systems, and suggest solutions for them. The study employs semi-structured interviews with business owners, managers, and consultants to acquire information regarding SMEs' common challenges when implementing and redesigning performance management systems.
According to the findings, many SMEs in Aruba face difficulties establishing clear performance criteria, lack of structure in their performance management processes, inefficient systems for evaluation and feedback, and difficulties coordinating organizational and individual objectives. Other barriers include employee resistance to change and a lack of managerial capacity to drive performance initiatives. Despite these hurdles, the study found that effective performance management techniques in SMEs prioritize employee development, transparent communication, and alignment of individual performance with company goals. These techniques result in more effective performance measurements, improved organizational coherence, and increased employee engagement.
Based on these findings, the research proposes several strategies to strengthen performance management in Aruban SMEs. These tactics include increasing communication to lessen employee resistance, establishing clear and attainable performance standards, providing leadership development to improve managerial capabilities, and implementing customized employee recognition and development programs. The study indicates that SMEs can improve their performance management systems by using these measures, hence increasing organizational effectiveness, employee satisfaction, and long-term sustainability. These findings benefit Aruba's SMEs and provide a clearer understanding of performance management challenges.
Citation
Perez, V. (2024, January 23). Unlocking Success: Overcoming Challenges and Enhancing Performance Management in Aruban SMEs. [Bachelor thesis. University of Aruba].