The paper "Employee Performance Management " is a perfect example of a management annotated bibliography. Performance management is a relatively old construct that has existed for nearly two millennia in a wide range of forms. As early as the third century AD, the Chinese were already using performance appraisal systems. This concept emanated as a result of the need to improve worker’ s performance or output (Evans 2004; Murphy & Cleveland 1995). In the course of the Industrial Revolution on the 18th century, the use of performance gained significant momentum as many factory managers gradually became aware of the significance of employee performance in the production of outputs (Grote & Grote 1996; Murphy & Cleveland 1995).
Consequently, many factory managers began to employ different strategies in the form of performance appraisal and rewards so as to enhance the performance of their employees. Huprich (2008) observes that by 1960, at least 60% of American organisations had some form of the performance appraisal system. Moreover, many researchers and scholars such as Drucker, Fredrick Taylor, W.D Scott and Douglas McGregor among others began to develop models and theories on employee performance management (Huprich 2008).
In this regard, Armstrong (2009) observes that one of the earliest references in literature to the concept of performance management was made by Warren (1972) in a study that focused on performance management in manufacturing companies (Armstrong 2009; Warren 1972). Nonetheless, Gillespie & Parry (2009) observe that although early literature explored the issues pertaining to performance management, a majority of this literature significantly focused on appraisal or measurement issues while overlooking theory and practice issues pertaining to strategic planning, employee development and coaching.
With time, as more research studies are being conducted on performance management, the concept is evolving from being an appraisal or measurement oriented process to a more holistic process that touches on different aspects of employee performance such as employee development and strategic alignment of organisational goals to employee performance (Gillespie & Parry 2009; Armstrong 2009). A critical look at various literature sources, it is evident that employee performance management is a broad and multi-dimensional concept that does not have a clear-cut definition (Aguinis 2007; Halachmi 2005; Varma, Budhwar & DeNisi 2008).
Throughout history, this concept has been perceived and defined differently. According to Halachmi (2005), performance management is a process of enhancing organisational performance by defining organisational goals and making a decision about the effective and efficient use of resources. Similarly, Aguinis (2007) argues that performance management is a continuous process that involves identifying, assessing, developing employee performance within the organisational context by linking employee’ s performance with the overall mission and goals of the organisation (Aguinis 2007). Conversely, Varma et al (2008) define performance management as a system through which an organisation defines its goals, identifies the performance standards, assigns and assess work, provide feedback, determines development and training needs and allocate rewards in order to enhance employee performance (Varma et al 2008, p.
15). Ferreira & Otley (2009) further observe that performance management encompasses are a set of continuously changing formal and informal processes, mechanisms, networks or systems employed by organisations in conveying objectives and goals, assisting in the management and strategic processes through planning, analysis, measurement, control, managing and rewarding performance. As earlier observed, performance management is a multi-dimensional concept that encompasses different dimensions and variables (Demartini 2013; Ferreira & Otley 2009; Sahoo & Mishra 2012).
Over the years, a number of studies have examined different dimensions of performance management. Studies by Ferreira & Otley (2009), Sahoo & Mishra (2012) and Demartini (2013) have found that some of the key dimensions of performance management include; planning, monitoring and assessing performance, rating, coaching and developing employees, providing feedback and rewarding employee performance. Each of these dimensions has been examined in different studies and have been found to play a critical role in the process of employee performance management (Armstrong 2009; Bryson 2011; Murphy & DeNisi 2008; Noe 2010).
Many studies have particularly looked into issues revolving employee appraisal and rating, employee development and reward in the process of performance management. However, few studies have examined issues pertaining to feedback in the course of performance management (London 2014).
Aguinis, H. (2007). Performance Management. New Jersey: Pearson Education.
Armstrong, M. (2009). Armstrong’s Handbook of Performance Management: An Evidence-Based Guide to Delivering High Performance. Great Britain: Kogan Page Publishers.
Becker, K., Antuar, N. & Everett, C. (2011). “Implementing an employee performance management system in a nonprofit organization”. Nonprofit Management and Leadership, 21 (3), 255-271.
Bianchi, C. & RivenBark, W.C. (2012). “A Comparative Analysis of Performance Management Systems: The Cases of Sicily and North Carolina”. Public Performance & Management Review 35(3), pp. 509-526
Chartered Institute of Personnel and Development (CIPD) (2009). Performance Management in Practice: Current trends and Practice. Retrieved January 7 2015
Claus, L. & Briscoe, D. (2009). “Employee Performance Management Across Borders: A Review of Relevant Academic Literature”. International Journal of Management Review 11(2), 175-196.
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Demartini, C. (2013). Performance Management Systems: Design, Diagnosis and Use. London: Springer Science.
Dewettinck, K. & Dijk, H. (2013). “Linking Belgian Employee Performance Management Systems Characteristics with Performance Management System Effectiveness: Exploring the Mediating Role of Fairness”. International Journal of Human Resource Management 24 (4), 806-825.
Dubrin, A. (2008). Essentials of Management. Mason, OH: Cengage Learning
Evans, G. E. (2004). Performance Management and Appraisal: a How-to-Do-It Manual for Librarians. New York: Neal-Schuman Publishers.
Ferreira, A. & Otley, D. (2009). “The design and use of performance management systems: An extended framework for analysis”. Management Accounting Research 20, 263-282.
Gillespie, T.L. & Parry, R.O. (2009). “Applying Performance Management Principles in the Management of Classroom”. Journal of Management Education 33(5), 533-576.
Grote, D. & Grote, R.C. (1996). The Complete Guide to Performance Appraisal. New York: AMACOM Publishing.
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Huprick, J. (2008). A Brief Introduction to Performance Management. Retrieved January 7 2015
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Murphy, K. R. & Cleveland, J.N. (1995). Understanding Performance Appraisal: Social, Organizational, and Goal-Based Perspectives. New York: Sage Publications.
Murphy, K. R., & DeNisi, A. (2008). A model of the appraisal process. In A. Varma, P. S. Budhwar, & A. DeNisi (Eds.), Performance management systems: A global perspective (pp. 131 − 146). New York: Routledge.
Noe, R. A. (2010). Employee Training and Development. New York: McGraw-Hill.
Nzuve, S.N & Njeru, L.K .(2013). “Perceived Factors Affecting Performance Management among Local Authorities in Kenya: A Case Study of City Council of Nairobi”. DBA Africa Management Review 3(2), 59-69.
Rooyen , M. (2014). Five Challenges in Implementing Performance Management. Retrieved January 7 2015
Sahoo, C.K. & Mishra, S. (2012)."Performance management benefits organizations and their employees", Human Resource Management International Digest 20 (6), 3-5.
Sumlin, R. (2010)“Performance Management: Impacts and Trends”. DDI Whitepaper. Retrieved January 7 2015
Upadhyay, D. & Gupta, A. (2012). “Efficacy of Performance Management System: An Empirical Study at ICICI Bank”. International Journal of Advanced Research in Management and Social Sciences 1(3), 216-225
Vurma, A., Budhwar, P.S. & DeNisi, A.S. (2008). Performance Management Systems: A Global Perspective. New York: Taylor & Francis.
Yeoh, W., Richards, G. & Wang, S. (2014). “Benefits and Barriers to Corporate Performance Management Systems”. Journal of Computer Information Systems, 14, 105-116.