Remuneration and Performance Management

Running head: REMUNERATION AND PERFORMANCE MANAGEMENT
REMUNERATION AND PERFORMANCE MANAGEMENT
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1REMUNERATION AND PERFORMANCE MANAGEMENT
Introduction
Remuneration and performance management are one of the basic elements that the
human resource department needs to look it in order to facilitate the performance of the
employee for organization benefits (Gabčanová 2011: 32). Most organizations have
incorporated strategic remuneration policies and performance management measures to reap
competitive advantage in the market. This paper is going to analyze two journal articles that
cover the topic performance management and talk about the similarities and dissimilarities in
the paper.
Article 1
The first article that this paper is going to shed a light on is Performance management
effectiveness: lessons from word- leading firms by Michal Biron, Elaine Farndale and Jaap
Paauwe. In this article the authors discuss about the growing importance of performance
management in organizations however the inconsistent result that comes from the
organization. The article is a research paper that addresses issues after investigating the
performance managements systems in 16 leading firms (Biron, Farndale & Paauwe 2011:
1294-1399). The authors use signaling theory and get divergent findings about the usefulness
of performance management system in the effectiveness of the organizations. The signalling
theory helps in identifying the issues that exist in the organization and also helps in
understanding specific facilitating process in the organization. The paper focuses on four
structural practices that are the involvement of senior managements that contribute to the
effectiveness of the organizations, practices related to feedback and performance evaluation,
concrete and clear communication helping employees to understand the work needed to be
done clearly and formal rater training in order to keep the performance assessments of

2REMUNERATION AND PERFORMANCE MANAGEMENT
employees unbiased. According to the paper there are limitations however, these practices
have a significant role to play in shaping the efficiency and the effectiveness of the
performance management systems (Biron, Farndale & Paauwe 2011: 1294-1399).
Article 2
The article, Performance management effectiveness: practice or context? By Victor Y.
Haines and Sylvie St-Onge reflects and puts emphasis on the mutual influence of both
practice as well as context that helps in contributing to the effectiveness of performance
management in the organization. This paper emphasizes on the positive association of the
practices like employee recognition and training and development of employees in
performance management and also states the relevance of contextual variables like climate,
strategic integration and culture of human resource management (Haines III & St-Onge 2012:
1158-1175). The focal point of the article is on the extent of the training in terms of
performance management that are received by people at the managerial levels and the use of
feedback from multiple resources and practices that help in employee recognition. This
article states the importance of the research and study of the contextual factors in an
organization that helps and contributes to the overall development of the employees and
paves way for effective performance management that is fruitful for employees as well as
organizations (Haines III & St-Onge 2012: 1158-1175).
Similarities in the two articles
Both the articles reflect and shed a light on the same topic which is the effective
performance management systems that help in facilitating the performance of the
organization. Both the articles talk about the practices that organizations have incorporated
and the growing importance of performance management in organizations which has had