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In recent years, practitioners have identified a number of problems with traditional performance management (PM) systems, arguing that PM is broken and needs to be fixed. In this chapter, we review criticisms of traditional PM practices that have been mentioned by journalists and practitioners and we consider the solutions that they have presented for addressing these concerns. We then consider these problems and solutions within the context of extant scholarly research and identify (a) what organizations should do going forward to improve PM practices (i.e., focus on feedback processes, ensure accountability throughout the PM system, and align the PM system with organizational strategy) and (b) what scholars should focus research attention on (i.e., technology, strategic alignment, and peer-to-peer accountability) in order to reduce the science-practice gap in this domain.

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement systems to communicate information to their employees, it is useful to ascertain if and how the developments of performance measurement systems that are far more comprehensive than traditional financial systems affect employees’ perceptions of informational fairness through the information communicated to employees. Informational fairness refers to employees’ perceptions of workplace fairness that is based on the amount and the truthfulness of information that organizations provide to their employees. Based on a sample of managers from manufacturing organizations, the Partial Least Square results indicate that comprehensive performance measurement systems (comprehensive PMS) have a significant direct effect on job-relevant information. They also indicate that comprehensive PMS have an indirect effect on informational fairness via job-relevant information. In contrast, systems that are based on financial measures have no significant effects on job-relevant information and informational fairness. These results demonstrate how comprehensive PMS (through the communication of a greater amount of job-relevant information) can be used to engender employees’ perceptions of high workplace fairness.

Decision-making in human resources management is done at both the micro and macro level of organizations. Unfortunately, the decisions at each level are often executed without consideration of the other, and current theory reflects this issue. In response to a call for integration of micro- and macro-level processes by Huselid and Becker (2011), we review the extant literature on strategic human resources and high-performance work systems to provide recommendations for both research and practice. We aimed to contribute to the literature by proposing the incorporation of the situation awareness literature into the high-performance work systems framework to encourage the alignment of human resources efforts. In addition, we provide practical recommendations for integrating situation awareness and strategic decision-making. We discuss a process for the employment of situation awareness in organizations that might not only streamline human resources management but also result in more effective decisions. Additional considerations include implications for teams, boundary conditions (e.g., individual differences), and measurement.

A strong, useful theoretical foundation for performance assessment and prediction relies on four components: preliminary observation of a system, identification of key or dominating variables in the system, synthetic and vertical thinking, and successive refinement.

Purpose: This chapter aims to analyse and highlight the current landscape of performance management (PM) systems, and the benefits of integrating modern technology such as smart analytics (SA) and artificial intelligence (AI) into PM systems. The chapter discusses the application of AI in PM tasks which successively simplify many offline PM tasks.

Methodology: To carry out this analysis, a systematic literature review was performed. The review covers literature detailing PM components as well as research concerned with the integration of SA and AI into PM systems.

Findings: This study uncovers the merits of using SA and AI in PM. SA technology provides organisations with a clear direction for improvement, rather than simply state failure in performance. AI can be used to automate redundant tasks while retaining the human element of decision-making. AI also helps reduce the time required to take action on feedback.

Significance: The findings of this research provide insights into the use of SA and AI to make PM tasks fast, scalable, and error-free.

This chapter examines organisational change processes that occur when accountability demands from powerful external stakeholders change. It investigates, firstly, whether these external accountability demands impact on the performance management systems of two different types of organisations. Secondly, it considers whether the goals for improved performance contained within the external accountability demands are realised. The chapter derives its primary insights from analysing in-depth interviews with managers working in a private sector company and in public sector organisations. The analyses reveal complex organisational responses. In the public sector case study, the organisations tended to reorient their performance management systems towards the external accountability demands; whilst in the private sector organisation, pressures from falling share prices forced managers to focus their decision making on the preferred performance measures contained in shareholders’ accountability demands. However, whilst there is some evidence of performance management system changes, the desires for improved performance subsumed by the external accountability demands are not necessarily realised through the performance management system changes.

This chapter examines performance management, which has arguably been the kernel of New Public Management inspired version of public sector reform. The first part is a literature review that looks at experiences of performance management in both developed and developing countries. It looks at the difficulty in transferring public sector reforms from developed to developing countries. This is followed by the evaluation of performance management in the post-1994 public service in South Africa. Both the individual and organisational performance systems are highlighted, followed by an analysis of performance management reforms. There is a well-developed performance management system but the empirical data and qualitative reports found that it has not worked particularly well. There are concerns around a number of issues, including the measurement of targets; the signing of performance targets; a focus on outputs rather than outcomes; a lack of harmonisation between individual and organisational performance; a lack of capacity of managers, which in some cases is due to unskilled patronage appointments; a focus on compliance rather than performance; and a lack of accountability.

This research aimed to verify how the performance measurement system (PMS) and the quality management system (QMS) work in small and medium Brazilian enterprises in the light of the typology proposed by Garengo (2009).

Using a qualitative approach PMS’s and QMS’s managers were interviewed. The data from the first interview were analyzed using the technique of content analysis and have been subsequently triangulated with other data collected. The study was conducted by means of two questionnaires, two semi-structured interviews, and the analysis of the performance measures used by five small/medium manufactures based in the State of São Paulo.

It was found that in four out of five companies, PMS does not function singly, but along with QMS, mainly with respect to performance indicators. In spite of that intrinsic operation, the systems are in different stages of evolution. It was also found that in three out of five companies, quality management area is responsible for coordinating the process of PMS use, without effective participation from the controlling and/or accounting areas in this process.

The typology of Garengo (2009), used to check the stage of the PMS, was validated and can be used by practitioners to diagnose and improve the PMS in their enterprises; companies with QMS certified by ISO, particularly with higher degree of quality management maturity, can be encouraged to implement or improve the PMS in their organizations.

An organization’s ability to navigate uncertain conditions hinges on its members generating timely and productive responses to ongoing changes in their local task environments. Since less healthy employees are less productive, organizations stand to gain from fostering their physical and mental health. Little knowledge, however, exists as to whether and how an organizations’ internal control systems affect employee health. In the following the authors, therefore, shed light at this relation drawing on an empirical study with 179 employees. Results suggest that the design of control systems has an impact on employee health. This has important implications for ongoing theory-building efforts on the effects of organizations’ internal control systems and for business practice.

High-involvement work processes (HIWPs) are associated with high levels of employee influence over the work process, such as high levels of control over how to handle individual job tasks or a high level of involvement at team or workplace level in designing work procedures. When implementations of HIWPs are accompanied by companion investments in human capital – for example, in better information and training, higher pay and stronger employee voice – it is appropriate to talk not only of HIWPs but of “high-involvement work systems” (HIWSs). This chapter reviews the theory and practice of HIWPs and HIWSs. Across a range of academic perspectives and societies, it has regularly been argued that steps to enhance employee involvement in decision-making create better opportunities to perform, better utilization of skill and human potential, and better employee motivation, leading, in turn, to various improvements in organizational and employee outcomes.

However, there are also costs to increased employee involvement and the authors review the important economic and sociopolitical contingencies that help to explain the incidence or distribution of HIWPs and HIWSs. The authors also review the research on the outcomes of higher employee involvement for firms and workers, discuss the quality of the research methods used, and consider the tensions with which the model is associated. This chapter concludes with an outline of the research agenda, envisaging an ongoing role for both quantitative and qualitative studies. Without ignoring the difficulties involved, the authors argue, from the societal perspective, that the high-involvement pathway should be considered one of the most important vectors available to improve the quality of work and employee well-being.