Employee performance management culture and system features in higher education: relationship with employee performance management satisfaction

Little is known about the satisfaction with employee performance management systems in higher education institutions. In this study, we contribute to this field by focussing on the alignment features of employee performance management systems, on communication related to these systems and on control tightness in the academic unit. An important contribution to the literature is the adoption of an integrated approach to employee performance management in higher education institutions. Employee performance management system features and satisfaction result from a survey to which 589 employees of a Flemish University contributed. Separate estimations are done for different tenure types of academics. The estimation results show that a higher level of internally consistent employee performance management systems, more communication and tighter control are associated with higher academic employee performance management satisfaction. The study also reveals that employee performance management satisfaction depends on the tenure type, suggesting that a diversified employee performance management policy should be considered in universities.     

Strategic HR system differentiation between jobs: The effects on firm performance and employee outcomes

The purpose of this research was to understand whether firms apply different human resource management systems to different occupations within the same organization (HR differentiation) and how the extent to which they do so may influence firm and employee outcomes. We conducted two studies pertaining to these questions. The first study was based on data collected from managers, and the results suggest that firms differentiate their HR investments based on the strategic value of occupations to the firm, which was further associated with the human capital of those occupations. Differentiation in human capital was also associated with firm performance. The second study was based on data obtained from nonmanagement employees. The findings indicated that employees who were recipients of less HR system investment had lower fairness perceptions, which were further associated with higher turnover intentions and lower organizational citizenship behavior. Although the evidence from these studies suggests that firms may realize benefits from strategic HR system differentiation, managers should carefully consider how to balance the effects of differentiation on firm performance and employee well‐being before implementing such systems.     

Can performance appraisals motivate employees to improve performance? A Mexican study

In this study of Mexican employees, we examined the relationship between performance appraisal characteristics (appraisal source, appraisal purpose and feedback richness) and perceived reactions of employees to the appraisal characteristics (perceived fairness and perceived accuracy of appraisals) and appraisal outcomes (appraisal satisfaction and motivation to improve). We hypothesized that multisource appraisals, appraisals used for administrative and developmental appraisals (multipurpose appraisals) and appraisals that have a high degree of feedback richness would lead to more perceived accuracy and perceived fairness of appraisals. We further hypothesized that higher levels of perceived fairness and accuracy would lead to higher levels of employee appraisal satisfaction and motivation to improve performance in the future. Results based on a survey of Mexican employees provide support for most of the hypothesized relationships. We discuss implications of the findings for research and practice of performance appraisals in the Mexican context.     

The transfer of HRM policies and practices to a transitional business system: the case of performance management practices in the US and Japanese MNEs operating in Vietnam

This paper focuses on employee performance management (PM) to explore how multinational enterprises (MNEs) localise their human resources within their subsidiaries in a developing country. It uses qualitative research methods to examine four US and four Japanese MNEs operating in Vietnam. The paper identifies both home and host country effects as significant factors in the transfer of MNEs' PM policies and practices. The US firms emphasised financial and non-financial measurements and utilised a wide range of PM management tools and techniques. These techniques, despite being unfamiliar in Vietnam and possibly considered incompatible with Vietnamese culture, were transferred successfully to the Vietnamese subsidiaries. The Japanese firms' PM approach was characterised by a more informal form of regular performance review, within a strictly top-down process and which suffered from accusations of bias and lack of transparency by Vietnamese respondents. This paper argues that the transitional period in Vietnam from a centrally planned economy to a market-oriented one has made the national business system more receptive to new and seemingly contrasting practices. It provides no evidence to support the argument that transfer of practices is more likely, where the cultures of the countries involved are relatively similar.     

Performance benefits of reward choice: a procedural justice perspective

Reward choice – employees' ability to exercise control over the formal rewards they receive from work – is an important part of many HRM strategies. Reward choice is expected to increase employee performance, but conflicting findings highlight the need to better understand how and when it will do so. Based on fairness heuristic theory, we predicted that procedural justice mediates reward choice's influence on performance, and that choice attractiveness moderates that influence. A field study and an experiment both had similar results, supporting our predictions. Reward choice can increase performance by as much as 40 per cent, but only when the available choices are attractive to employees.     

High Job Performance Through Co‐Developing Performance Measures With Employees

According to various studies, employee participation in the development of performance measures can increase job performance. This study focuses on how this job performance elevation occurs. We hypothesize that when employees have participated in the development of performance measures, they perceive these measures to be of higher quality, which in turn elevates their attitudes toward, perceived social norms for, and perceived control over performing well in their jobs. Based on the theory of planned behavior, the latter three factors are hypothesized to increase job performance. Survey data from 95 employees as well as 88 of their managers were analyzed using structural equation modeling. Employee participation in developing performance measures is found to be related to job performance, via perceived measurement quality and employees’ perceived control over performing well. We discuss the practical and theoretical implications of these findings, including the limitations of this study's design, and sketch a number of future research paths in this area. © 2015 Wiley Periodicals, Inc.     

Determinants of employee willingness to use feedback for performance improvement: cultural and organizational interpretations

This study was designed to identify determinants of employee willingness to use feedback for performance improvement. The proposed determinants included objectives of appraisal, supervisor's knowledge of subordinate's job, agreed plan for performance improvement, trust in supervisor and perceived fairness and accuracy of performance evaluation. Data were collected in two phases. The first phase consisted of a questionnaire survey among 100 Hong Kong Chinese employees working in public and private sector organizations. Regression analysis of questionnaire data indicated that agreed plan for performance improvement and perceived fairness and accuracy of performance evaluation had significant positive effects on employee willingness to use performance feedback. In the second phase, focus group interviews were held to triangulate survey findings. Interview data suggested that Chinese cultural characteristics of paternalism and personalism influenced the underlying dynamics of the evaluation process. Findings are interpreted in the context of employees cultural and organizational background.     

Exploring the black box in Spanish firms: the effect of the actual and perceived system on employees' commitment and organizational performance

Several studies in strategic human resource management have described a relationship between people-management practices and organizational performance. However, the mediating processes that explain such a relationship remain unexplored. This study examines how both the actual people-management system (assessed by managers) and the perceived system (assessed by employees) influence employees' commitment, and how this in turn contributes to employee and organizational outcomes. Multilevel analyses of a sample of 732 employees from 26 Spanish small and medium-sized enterprises (SMEs) supported a model in which employees' commitment mediates between the actual system and unit-level absenteeism, which in turn has an effect on productivity. Results also showed the importance of the perceived system in attempting to understand the true effect of the actual system on employees' commitment to the organization.     

Antecedents and consequences of performance management enactment by front-line managers. Evidence from Belgium

Although researchers have extensively stressed the critical role of line managers in the effective implementation of HR practices, little is known about what exactly causes managers to enact these practices. In this paper, we draw from signaling theory, theory of planned behavior and social exchange theory to investigate both the antecedents and the outcomes of front-line management’s enactment of performance management (PM) activities. Results from two Belgian samples of 731 front-line managers and 425 employees show that line management’s beliefs regarding the usefulness of PM activities mediate the relationship between HR support and line management’s implicit person theory, on the one hand, and PM enactment, on the other. This relationship is moderated by the manager’ span of control. Furthermore, line management enactment shows to be positively related to employee engagement and job satisfaction.     

Too much of a good thing: The interactive effects of cultural values and core job characteristics on hindrance stressors and employee performance outcomes

This study contributes to research on core job characteristics by examining when employees may perceive enriched jobs as a hindrance stressor and in turn may experience lower performance at work. Utilizing time-lagged data collected from a sample of 386 employee–coworker dyads and drawing on cognitive appraisal theory of stress and coping, we explore the mediating role of hindrance stressors on the relationship between core job characteristics and key employee performance outcomes (i.e., creativity, counterproductive work behaviors, in-role performance, and organizational citizenship behaviors) and the moderating roles of cultural values (i.e., power distance and uncertainty avoidance) in influencing this mediation. The results supported the hypotheses, providing evidence that the experience of hindrance stressors mediates the relationship between core job characteristics and job performance outcomes when employees score high on power distance and uncertainty avoidance cultural values, and not when their scores on these cultural values were low. Practical implications and future research are discussed.     

Employee ownership and affective organizational commitment: employees’ perceptions of fairness and their preference for company shares over cash

Interest in profit-sharing and employee ownership is growing among both practitioners and researchers. This study examines the relationship between the preferences and perceptions of employees regarding an ongoing share ownership plan on the one hand, and the employees’ affective organizational commitment on the other. After controlling for various personal and work-environment characteristics and for size of the financial contribution it was found that preference for ownership and the perceived fairness of the employee ownership plan were significant predictors of affective commitment. These findings support the notion that employee ownership may have intrinsic motivating effects on employees by way of a mediating mechanism, whereby the effects of ownership on organizational commitment depend on how employees evaluate and perceive formal ownership plans.     

At the Expense of others: Altruistic helping behaviour,performance management and transformational leadership

This article explores the influence of performance management (PM) and transformational leadership (TL) on altruistic helping behaviour (AHB). We argue that PM and TL provide alternative value frameworks against which employees will evaluate costs associated with AHB, and that consequently their influence may be interdependent. The results of regression analysis suggest that TL exerts a stronger influence on AHB in organizations that also have strong PM-based human resource systems, and that PM’s negative effects are stronger when leadership is weak. We conclude that leadership may be an important factor in determining whether public organizations can reap the benefits of PM.     

Line managers’ AMO to manage employees’ performance: the route to effective and satisfying performance management

Abstract

Performance management systems are used to increase employees’ performance with the ultimate aim of increasing organizational performance. Organizations rely on line managers to implement performance management systems and to engage in a continuous process of goal-setting, feedback, coaching and performance appraisal with their employees. Drawing on the AMO theory, we predict that the effectiveness of performance management implementation will be a function of three factors. First, line managers should have the Ability to enact the activities that are involved in performance management. Secondly, they should be Motivated to perform these activities. Thirdly, line managers should have sufficient Opportunity to fulfill these activities on top of the demands from other organizational. If not, they could experience role conflict. We developed several cross-level hypotheses. The data came from 71 line managers and 318 employees working in Flemish education. Hierarchical linear modelling found that line managers’ AMO to implement performance management systems was positively related to employees’ satisfaction with the system. These relationships were mediated by employees’ perceptions that the performance management system is strong. A strong system signals that its features are salient across employees and that the system is clear and understood. This study has several theoretical and practical implications.     

Institutions as constraints and resources: Explaining cross‐national divergence in performance management

This article compares performance management practices in call centres from four telecommunications firms in the United Kingdom, France, Denmark, and Germany. Findings show that different combinations of institutional constraints, such as strong job security protections, and participation resources supporting worker voice were influential in shaping choices among policies to motivate and discipline workers. Performance management most closely approached a high‐involvement model where both constraints and resources were high, where worker representatives were able both to restrict management's use of sanctions and to establish procedures that improved the perceived fairness of incentives. Findings contribute to debates concerning the role of contextual factors in the design and effectiveness of HRM.     

Performance evaluation will not die,but it should

A wide range of systems for evaluating performance have been used in organisations, ranging from traditional annual performance appraisals to performance management systems built around informal, real‐time evaluations, and these systems almost always fail. Rather than continuing to make cosmetic adjustments to this system, organisations should consider dropping the practice of regularly evaluating the performance of each of their employees, focusing rather on the small subset of situations in which evaluations of performance and performance feedback are actually useful. Four barriers to successful performance evaluation are reviewed: (a) the distribution of performance, (b) the continuing failure to devise reliable and valid methods for obtaining judgments about performance, (c) the limited utility of performance feedback to employees, and (d) the limited utility of performance evaluations to organisations. In this paper, I propose ways of managing performance without relying on regular performance evaluation, refocusing managers' activities from performance management to performance leadership.     

Work context and employee behaviour as antecedents for intrapreneurship

Intrapreneurial employees and intrapreneurial projects are considered to be an important driver of innovation and strategic renewal within companies. While many studies addressed the top-down implementation of innovative projects, analyses of employee initiatives in promoting innovation within companies are scarce. This paper therefore takes a bottom-up approach and focuses on employee behaviour and how it can be stimulated towards intrapreneurship. We propose and test a two-step model where formal and informal work context affects employees’ intrapreneurial behaviour, which then provides the basis for bottom-up initiated intrapreneurial projects. Our empirical data consist of questionnaire responses of 176 employees in six Dutch companies. The results of structural equation model estimations indicate that formal organisational factors (horizontal participation, resource availability) affect employees’ intrapreneurial behaviour, but also highlight informal factors such as trust in the direct manager. We also find that innovativeness and personal initiative, but not risk taking, play a role for an effective translation of employees’ behaviour into intrapreneurial projects.     

Flexible Working,Individual Performance,and Employee Attitudes: Comparing Formal and Informal Arrangements

In the context of a wider trend to individualize human resource management, this article examines the relationship between flexible working arrangements and individual performance. Drawing on a range of theories, this article also examines potential indirect effects on employee performance via job satisfaction and organizational commitment and analyzes whether these relationships vary according to whether the arrangement was set up through a formal process or negotiated informally between the employee and his or her line manager. Extant research has tended to focus on formal arrangements, however, informal arrangements are widespread and may better accommodate work‐life preferences, thereby potentially fostering more positive attitudes from employees. Survey data from 2,617 employees in four large organizations with well‐established flexible working policies are analyzed. Results from structural equation models show average positive indirect effects from informal flexible working, but also negative direct effects from formal flexible working. When two forms of flexible working amenable to being set up by both formal and informal means are examined separately, formal arrangements for flexibility over working hours are found to be negatively associated with performance, but also a source of greater job satisfaction; informal remote working arrangements have positive indirect effects via organizational commitment and job satisfaction on worker performance. © 2016 Wiley Periodicals, Inc.     

Discretionary and transactional human resource practices and employee outcomes: The role of perceived organizational support

Utilizing perceived organizational support (POS) as the mechanism linking HR practices to employee behaviors in the workplace, we examine a broad set of HR practices in order to understand the relative importance of each HR practice (i.e., those that explain incremental variance over other practices) in influencing employee behaviors. We differentiate between discretionary and transactional HR practices to test the discretionary investment requisite of POS theory. The results show that of the eight discretionary practices, only participation and decision making directly influenced the extra‐role behaviors that employees exhibit, and only training and development directly impacted the customer‐oriented behaviors. Furthermore, one of the transactional HR practices was found to have a direct effect on organizational citizenship behavior. Our findings indicate that the performance management process, promotional opportunities, participation, and involvement in decision making affect how employees behave toward the customer and the extra‐role behaviors they exhibit. Furthermore, this occurs through the view employees develop of the organization as a place to work. That is, these four HR practices demonstrate to employees that they are valued, and, in turn, this feeling of being appreciated impacts their commitment to delivering high‐quality service to the customer and going beyond their job responsibilities. Implications for research and practice are discussed. © 2012 Wiley Periodicals, Inc.     

The role of human resources in ethics/compliance management: a fairness perspective

Many large corporations now have formal programs for managing ethical behavior and legal compliance. But the often minor role of human resources (HR) in companies' ethics management efforts is problematic. This is because ethics management efforts are likely to raise questions of fairness, and trigger a fairness heuristic among employees that can generate important outcomes for the ethics program specifically and the organization generally. Relying on research on fairness in organizations and corporate ethics practices, we explain why the extensive involvement of HR in corporate ethics programs is important to the perceived fairness, and thus the likely outcomes (e.g., employee commitment), of those programs.     

Antecedents and outcomes of acceptance of performance appraisal system in Korean non-profit organizations

This study identifies the antecedents of non-profit public service motivation (NPSM) and employee outcomes using Korean non-profit acceptance of performance appraisal system (APAS) survey data. We test an NPSM model and examine the concept through public service motivation (PSM) in the non-profit sector. We then apply findings on work motivation, PSM, and performance appraisal systems to quantitative research and test several hypotheses concerning how (1) the non-profit sector’s APAS affects and uniquely shapes non-profit workers’ motivation, (2) NPSM relates to organizational trust, and (3) organizational characteristics affect Korean non-profit employees. We discuss our findings’ implications for non-profit theory and practice.