Performance Management Methods: A Comparative Essay Analysis

This essay provides a comprehensive analysis of performance management methods, drawing on the perspectives of M. Biron, E. Farndale and J. Paauwe (2011) and V. Haines and S.St-Onge (2012). It examines the key components of performance management, including monitoring, reviewing, and assessing employee contributions. The essay explores the strategic and tactical elements of performance management, emphasizing the importance of senior management involvement, clear communication, and employee training. It compares the two articles, highlighting their approaches to evaluating performance management effectiveness and the factors that influence it, such as culture, climate, and strategic integration of human resource management. The essay also discusses the limitations of the studies and the challenges in achieving effective performance management, concluding with the importance of applying the methods appropriately for optimal results.

Assignment 1
Essay : Performance Management Methods
Student Name: Student ID:
Subject Name: Subject ID:
Date Due: Professor Name:
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Introduction
Employee management is the most important part of resource management for any organisation
(Aguinis, 2008). There are multiple functions that are managed by human resources department
for managing employees, one of the most critical amongst them is performance management.
Performance Management involves processes where employees along with managers review and
monitor employee’s work objectives for analysing their contribution towards the organisation.
The scope of this current analysis involved reviewing of views regarding performance
management of two distinct group of authors. M. Biron, E. Farndale and J. Paauwe (2011)
article, Performance management effectiveness: Lessons from world-leading firms. In The
International Journal of Human Resource Management, volume 22(6), pages 1294 to 1311
(Biron, 2011). V. Haines and S.St-Onge (2012) article, Performance management effectiveness:
Practices or context? In The International Journal of Human Resource Management, volume
23(6), pages 1158 to 1175 (Haines, 2012). Views of the two articles are covered and compared in
the analysis.
Analysis
Performance management involves monitoring, reviewing and assessing of employee’s work
contribution towards the organisation. It is a continuous process by which objectives are set
enabling an ongoing feedback and coaching, ensuring employees are able to meet their
objectives. In contemporary management, there has been a growing prevalence of role of human
capital that is played in a firm’s success. Growing relevance of human capital in organisation
success of performance management has been becoming important for management. Divergent
findings propose a framework that is drawn from signaling theory for facilitation of
organisational practices. Performance management is seen as a strategic and tactical tool for
attaining diverse set of objectives. Globalisation has imposed pressure on organisations for
gaining productivity, hence they need to impose performance appraisal techniques. Scholars
along with organisation, are focused on devising strategies bent on improving techniques of
performance management.
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In review of the first journal by M. Biron, E. Farndale and J. Paauwe (2011) reflects the growing
importance of performance management in recent years regarding its effectiveness. The journal
examines factors that can increase effectiveness of a performance management systems. In this
study data has been obtained from 16 world leading firms from around the world for their
performance management systems. It has made use of signaling theory for purpose of facilitating
practice which employees can infer management is concerned with performance management.
Such use of signaling theory might have trickle-down effect according to a firm’s performance
management systems. This journal provides key insights into four facilitators of performance
management system. Firstly, obtaining a broad view of performance management systems
including strategic along with tactical elements. Secondly, involving senior management in the
process of performance management. Thirdly, communicating performance expectations.
Fourthly, formally training of performance raters, who are involved in the process of reviewing
of performances. Strategies application are integral for success of any organisation, tactical
elements needs to be integrated for better productivity of employees. This article views integral
role of senior management in the process of performance management, as leaders and managers
role has been identified as being crucial in directing employees to specific set of objectives.
Managers and leaders play an active role in designing and implementation, informing employees
regarding targets and deliverable processes to reduce any kind of biases present in performance
rating processes. Thus, it can be derived that communication mechanism which act as a signaling
technique regarding expectations of employees in their current and future intentions. Results of
this study provides that signaling theory can be ambiguous for organisations to facilitate and
interpret employee performance in the practice. The major limitation of this study is that it is
qualitative in nature and as data has been obtained from 16 varied firms there is difficulty in
generalizing them. The research findings has not been able to indicate any relation between high
performance and success of the firm. Thus, the scope of the research needs to be extended across
low success firms such that performance indicator attribute can be verified. The study is also
limited to enacted performance set of indicators. Researcher Sum Chau (2008) also supports the
view and focuses on strategic connection of performance management with that of the
organisation (Sum Chau, 2008).
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V. Haines and S.St-Onge journal also reflects relevant insights into performance management
tools and techniques. The article analyses technical or measurement issues in employee
performance management for investigating mutual influence of practices for examining
effectiveness. The study has considered 312 private along with public organisations with 200
employees. It has effectively derived positive correlation between training and employee
recognition with performance management effectiveness. Positive performance management
outcomes can be further related to culture, climate and strategic integration of human resource
management. It can be said that both journal analyses ways that performance management can be
performed in an effective manner. While performance management is the key factor that can
enhance employee’s measurement of performance, it is integral that it is conducted in an
appropriate manner. Both the group of scholars in their analysis to review effectiveness of
performance management collected data from a wide available sources. The first article focuses
on identifying the particular factors that are likely to increase effectiveness of performance
management systems whereas, the scope of the second journal analyses scope in regards to
technical and measurement issues. While both articles are focused on measurement of
effectiveness, the first journal draws on more quantitative techniques whereas, the second journal
draws various contextual factors. Hypothesis of assumptions are varied for two different
journals. While focusing on performance management enhancement as the dependable variable
in both literatures, the first journal identifies independent variables as strategic and tactical
elements, senior management’s involvement, communication regarding performance appraisal
process and training of performance raters. In the second journal review, items recognised that
are independent and have effect on performance management are climate, culture and strategic
integration of human resource management. Thus, the first article recognizes facilitators of
performance management, the second article identifies a positive correlation of performance
management. Employee performance management has been seen to be a vehicle for developing
workforce through strategic initiatives. There remains high amounts of dissatisfaction from
functioning of performance management systems. Researchers since a long time wants to
improvise overall functioning of performance management systems. Scholar Ferreira (2009)
refutes the view and views performance management in similar approach as considered by the
previous article’s author (Ferreira, 2009). This article provides that performance management
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cannot alone act as a function of system based design with best practices, but also
implementation having a key role in organisational context. There might be several leader, who
imposes the idea of training and development for better application of performance management
systems but influence of organisational culture cannot be disregarded.
Both the research papers has been effective in analysing and diagnosing the importance of
performance management. While performance management is identified as an useful indicator,
there are several relevant challenges that determine factors for finding effectiveness. The
findings from both studies indicate that performance management in case applied appropriately
can yield potentially significant empirical results (Harris, 2007). Past research trends had focused
on various dependent as well as independent factors that can determine performance
management. Performance management has been considered a dependent variable, whereas
studies are aimed at forming of hypothesis of dependent variables as communication, climate,
role of seniors, culture, strategic integration with tactical factors and so on. Firms need to focus
on the various parameters that can lead to positive results from performance management. firms
needs to recognize signals that employees send out from designing and implementation of
performance management systems. While both the studies aim to diagnose relevant factors in
performance management, but the first journal identifies broad factors, whereas the second
journal identifies more specific factor roles. The second journal has been concerned with
possible ways in which effective performance management can be applied, whereas the first
journal in merely diagnosing these factors.
Conclusion
Analysis from the above articles reveals various insights into performance management
frameworks as identified across various systems. While effectiveness of performance
management systems remains the key goal of research for various scholars and multiple
organisations, factors might vary widely that actually influence its effectiveness. There are
certain similarities as well as certain distinctions amongst the articles that have been compared n
this analysis. The first journal identifies that factors that are prevalent in designing of a system
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for effective performance management system. Whereas the second journal has been more
effective in determining implementation of tools and techniques for the success of performance
management. Thus, both the articles are important and critical as they provide various intrinsic
factors of performance management.
Reference Lists
Aguinis, H. &. 2008. Enhancing the relevance of organizational behavior by embracing
performance management research. . Journal of Organizational Behavior, 139-145.
Biron, M. F. 2011. Performance management effectiveness: Lessons from world-leading firms.
The International Journal of Human Resource Management, 1294-1311.
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Ferreira, A. &. 2009. The design and use of performance management systems: An extended
framework for analysis. Management accounting research, 263-282.
Haines, V. &.-O. 2012. Performance management effectiveness: Practices or context? The
International Journal of Human Resource Management, 1158-1175.
Harris, K. J. 2007. The impact of political skill on impression management effectiveness.
Journal of Applied psychology, 278.
Sum Chau, V. 2008. The relationship of strategic performance management to team strategy,
company performance and organizational effectiveness. Team Performance Management: An
International Journal, 113-117.
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