Performance Management A model and research agenda Performance Management deals

Performance management a model and research agenda

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Performance Management: A model and research agenda Performance Management deals with the challenge organizations face in defining, measuring and stimulating employee performance with the ultimate goal to improve organizational performance. Thus, Performance Management involves multiple levels of analysis and is clearly linked to the topics studied in strategic HRM as well as performance appraisal. This paper presents a model for Performance Management combining insights from strategic HRM and I/O psychology. The model incorporates multi-level elements, and adds to previous models by explicitly incorporating employee perceptions, the role of direct supervisors and possible reversed causality. Challenges for future research are also presented. Key words: Performance management, Human Resource Management The process of measuring and subsequently actively managing organizational and employee performance in order to improve organizational effectiveness is currently seen as critical to the development and survival of organizations. Different terms refer to performance management initiatives in organizations, for examples: performance-based budgeting, management-by-objectives, planning, programming and budgeting, and pay-for-performance (Heinrich, 2002). Initially, such initiatives stressed the need to make employee performance explicit and measurable in order to make performance more ‘manageable’. However, Performance Management has come to signify more than a list of singular practices aimed to measure and adapt employee performance. Rather, it is seen as an integrated process in which managers work with their employees to set expectations, measure and review results, and reward performance, in order to improve employee performance, with the ultimate aim to positively affect organizational success (e.g. Mondy, Noe & Premeaux, 2002). This same emphasis is found in the literature on strategic Human Resource Management (HRM)
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