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JULY 2012
VOL 4, NO 3
Faculty of Management Sciences, Sector H-10 International Islamic University Islamabad, Pakistan
Abstract The article offers a survey of selecte literature on performance management. Purpose is to indentify key themes that govern the topic in the contemporary turbulent economic and business environment where empoloyees are more uncertain thatn anything else because everyday they face down sizing, valunteer retirement and golden hand shakes to get rid of them. Under these circumstances it is worthwhile to look into the ways by which they can be motivated to work under hard conditions. It is found that performance management processes, evaluation, its impact and factors are key themes. Researchers apply popular research approaches for data collection analysis and communication. KEYWORDS: PERFORMANCE MANAGEMENT, REVIEW, PERMANCE FACTORS, PERFORMANCE PROCESSES
1. INTRODUCTION
Performance Management (PM) has been a center of attraction for many years. Recent research shows that employing PM system on regular basis directs to better organizational results; so many organizations are inclined towards implementing new or improved performance management systems (Waal & Coevert, 2007; Waal, Goedegebuure, & Geradts, 2011). Fryer et al. (2009) quoted that performance management is action, based on performance measures and reporting, which results in improvements in behaviour, motivation and processes and promotes innovation. As cited in Hawke (2012) performance management is an interrelated strategies and activities to improve the performance of individuals, teams and organizations. Its purpose is to enhance the achievements of agency goals and outcomes for the government (Management Advisory Committee, 2001, p. 14). Performance management ideally makes significant contribution to individual and organizational learning and helps organizational effectiveness and promotes growth (Adhikari, 2010). The management of organizational performance has thus become a vital
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prerequisite of business process in the contemporary business environment. By focusing on last nine years research articles in the International Journal of Productivity and Performance Management, the study aims to provide recent trends of performance management. In this competitive world, can any organization survive without implementing proper performance management system? The aim of the study is to provide a review on performance management of a single journal in the last decade. The paper seeks the key features of a successful performance management system and the behavioral factors that are currently important for regular use of a PM system; it also identifies the issues that restrict the successful implementation of performance management system. The rest of this article is structured as follows. In the following section the paper provides a brief discussion of the method employed in our analysis of data. Findings are presented and discussed in the next section and the final section provides conclusion of the paper and lists some limitations. 2. METHODOLOGY Research methods are both inductive and deductive. Iqbal (2007) states The primary purpose of the inductive approach is to allow research findings to emerge from the frequent, dominant or significant themes inherent in raw data, without the restraints imposed by structured methodologies. Empirical research especially surveys induct from the frequent occurrences to arrive at appropriate conclusions. Facilitating the research with key words performance management at the beginning by targeting Emerald database, we found total 76212 results. The majority of them were from International Journal of Productivity and Performance Management, so we turn the direction of our search towards the specific journal. Our prerequisite was to get 30 articles and we found 1909 results in International Journal of Productivity and Performance Management. Firstly, selection of 30 articles was finalized from the already downloaded 40 articles on the basis of the title, which being manifested with the key words performance management. The word performance management is evident in the title of 29 selected articles, and in the 30th article word managing performance is apparent. Secondly the basis for selection is time frame, which we have limited to nine years (2004 to 2012). The selected articles are shown in Table 1.
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We categories the finding on the basis of subject category, year of publication, authors and their institutions, countries and continents with the most contribution etc. A number of analyses were then conducted on these findings. Counts and percentages were generated on each of the category to conclude the research output. Lastly we have classified the major themes into four major categories namely PM process, factors influencing PM, PM analysis and impacts of PM. The reason for compressing the number of subject category from nine to four, made the research more comprehensible and comparable with other researches.
3. FINDINGS
3.1 Performance management studies according to subject category In these articles a total of 9 subject categories have been identified on performance management that were published in the selected journal. The largest number (7) of articles provides evaluation of PM. Impact of PM were discussed in five articles and same number provides information related PM system/framework followed by implementation of PM (4). Process and strategies of PM were focused in three articles in each category. Different factor such as behavior, culture etc influencing PM were center of attraction for two of the articles. The lowest count (1) presented in table 1 is of two subject categories approaches and planning. The results show that the main body of work related PM exists in within analysis/evaluation although notable were within effect and PM system. Factors influencing PM is discussed in few articles that needs to be focused. TABLE 1 Subject category 1 2 3 5 4 6 7 8 9 Subject area Evaluation of PM Effects/ Impacts of PM Pm framework/system Implementation of PM Process of PM Strategy of PM Factors Influencing PM Approaches to PM Planning of PM
Count %
7 5 5 4 3 3 2 1 1
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TABLE 2 PM Studies According To Year No of articles Years 2009 2012 2011 2007 2006 2005 2004 2010 2008 6 4 4 4 3 3 3 2 1 % 20.0% 13.3% 13.3% 13.3% 10.0% 10.0% 10.0% 6.7% 3.3%
3.3 Performance management studies according to countries Our findings shows that PM research in the field across the data covers a total of 40 countries, as shown in table 3. By far, the largest numbers of published articles attributed to the UK. A number of other countries (included The Netherlands, Brazil, Australia, Canada, Ireland, Norway, Portugal, USA, Bangladesh, China, Nepal, Italy and Spain) are also source of substantial number of research publications. From the UK 14 publications had been identified, six publications from The Netherlands and three from Australia. Two publications were from Brazil, Australia, Canada, Ireland, Norway, Portugal & the USA and one publication each
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Countries UK The Netherlands Australia Brazil Canada Ireland Norway Portugal USA Bangladesh China Nepal Italy Spain
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It is evident through the table 4 and the figure that vast majority of articles (70%) is being carried out by Europeans in the specific journal, while little work (5 %) is from Latin America. North America, Asia, Australia, and Latin America altogether represents 30% of articles. It indicates that Europe is leading from the rest of the continents, which suggests the importance of PM to find out better ways to get benefit from PM; so the rest of the world should acknowledged its importance through more research.
3.5 Authors actively involved in publishing pm research Total 68 authors contributed; table 5 shows top authors because rest of the authors TABLE 5 Author actively involved in PM Research Authors No of articles % A.A. de Waal 4 13% Zoe J. Radnor 2 7% All others 1 3% contributed only one article. A.A. de Waal seems to be the most active author in publishing PM research in the journal who has contributed 4 articles from The Netherlands; Zoe J. Radnor contributed 2 articles and the rest of the authors a single article. Eight authors contributed one article, similarly four authors contributed a single article, three authors contributed nine articles, two authors contributed nine articles and one author contributed 10 articles. This shows that most of research is being done individually followed by two or three authors. Group research has been witnessed; 67% of the articles are the result of collective efforts (See table 6).
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No of authors 1 2 3 4 8
No of articles 10 9 9 1 1
3.6 PM research according to institutions The authors belong to 57 institutions; most of the institutions had contributed a single article. Maastricht School of Management contributed 4 articles and can therefore be considered as a leading institution in PM research. A.A. de Waal seems to be the most active author in publishing PM research in the journal who has contributed all these articles from Maastricht School of Management. Six other institutions contributed two articles each. Most of the authors represent different institutions; table 7 shows the names of institutions involved. TABLE 7 PM Studies According to Institutions Serial no. 1 2 3 4 5 6 7 8 9 10 11 Maastricht School of Management, Maastricht, the Netherlands. National University of Ireland. Norwegian University of Science and Technology, Trondheim, Norway Universite du Quebec a` Montreal, Quebec, Canada University of Canberra, Canberra, Australia University of Strathclyde, UK University of Warwick, Coventry, UK Active Management, Maidenhead, UK Anite Public Sector, Milton Keynes, UK Belfast City Council, Belfast, UK Business Planning and Performance Management Unit, Barnardos, Ilford, UK Institution Article count 4 2 2 2 2 2 2 1 1 1 1
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1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
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The results related to unit of analysis employed are depicted in table 8; the table and the associated chart shows that the majority of the research has been examined at organizational level (24). Fewer articles are examined in subject context (3), department (1), industry level (1) and country level (1). It is being witnessed that researchers of performance management tend to see it as organization-bounded area it because they are Table 9a PM Studies According to Research paradigm Research paradigm Count %
40% 12 Positivist 33.3% 10 Descriptive/ conceptual/ theoretical 20% 6 Interpretive 3.3% Critical 1 3.3% Not known 1 inclined towards exploring performance of organizations. Less attention has been paid on
country, industry or department level. 3.8 PM studies according to research paradigm & research design Table 9a provides us the information regarding research paradigm of the articles; positivists are dominating research paradigm. Descriptive/conceptual/theoretical are 34 % of research (10); interpretive is only 20 % of our research (6). Critical and unknown are only one each. Maximum research is in positivist paradigm, followed by
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Descriptive/conceptual/theoretical and minimum research is in critical one. Large majority of positivist profile indicates the practical nature of this domain and descriptive/conceptual articles majority can be due to its emerging concept so researchers would likely to propose new proposition regarding the particular approach that is helpful in PM implementation or in making the PM system effective. Findings regarding research methods suggest that author used multi-methods in most of the research (40%). After that case study is seem to be a prominent research method. Literature review is used in 17% of our research, conceptual method 7% and action research in 3%. Findings indicate that in most of our articles multi-research methods have been used. But if we talk about a single method than the case study is an important and frequently used research method, even in multi-method it has been used along with any other methods. For the authentication of results researcher focused on multi-methods because applying more methods allow to use more than one data collection and analysis techniques. It helps to corroborate them to find out multi-dimensional outcome. Table 9b specifies the research findings related to research methodologies; empirical methods dominate PM research followed by non-empirical methods. Empirical method has been used in 13 (43%) articles; non-empirical in 11 articles (37%) and some other methods in 6 articles (20%). Research method was not clearly defined so we counted them as other methods in some articles. Empirical method as compare to non-empirical has been employed in more papers than the others because it has been implemented in many organizations round the world and researcher test the outcome and identify the bottlenecks. Table 9b Research methodologies applied, alternative view Research Methodology Empirical Non-Empirical Others Count 13 11 6
According to table 9c, a substantial number of articles (8) employed mixed approach. A total of seven (27%) articles employed a quantitative approach in comparison to the
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qualitative approach, which was employed by four (13%) articles. A large number of papers were unknown due to lack of information while conceptual/theoretical/meta analysis is four in numbers (13%). Again this shows that combinational approach to investigating performance management is most popular as compare to other and followed by quantitative approach. It also shows conceptual/theoretical/meta analysis and qualitative approach is less in number as compare to other approaches.
TABLE 9c PM Studies According to Research methodology Research methodology Mixed Quantitative Not known Qualitative conceptual/theoretical/meta analysis Count 8 7 7 4 4
3.9 PM studies according to research topics Although different topics have been discussed under performance management literature but its not possible to provide insight into the specific nature of performance research, so we distributed these topics into 11 major topics. Sometimes a single article discusses more
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than one topic; we have considered them as such therefore, a single topic may b included under two topics, for example. Table 10 suggests that a large number of articles investigated research issues related to challenge and problem related to performance management followed by Characteristics/approaches to performance management. Benefits of PM had been discussed in seven articles, Implications/practices of PM in four articles and comparing PM with other subjects (HRD/ HRM or OM) in four of them. The list of topics also includes cultural perspective and its economic value in strategic PM. TABLE 10 PM Studies According to Topics TOPICS 1 Challenges/problems/ Deficiencies 2 Characteristics/approaches of PM 3 Benefits 4 PM with HRD/HRM/OM 5 Implications/ Practices of PM 6 Design of a new corporate Performance management (CPM) system 7 Developing of an integrated framework/theory 8 PM as fact or fiction? Role of behavioral factors in the use of performance management 9 systems 10 Cultural perspective of performance management 11 Performance measured by economic value added (EVA). Count 12 10 7 4 4 3 3 2 2 1 1 % 24% 20% 14% 8% 8% 6% 6% 5% 5% 2% 2%
3.10 PM studies according to key themes Although we have provided the research with different findings that were categorized accordingly, but to provide the insight to performance management the researchers have identified four key themes. Our findings are shown in table 11, it advocates that the large number of articles examined research issues related to process and system of performance management (55% n=17). These were followed by analysis /evaluation of performance management (22.5% n=7). The third most researched topic in the specific journal is impact of performance management, which has been identified in five papers (16%). Finally, different factors are influencing performance management such as behavioral factors, cultural aspect etc. Their impact has been discussed in two articles (6.5%).
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Majority of other researchers focused planning/implementing, creating the framework or strategies; they focus on process of performance management because they tend to explore the challenge or problem which can create hindrances during the PM process or during PM implementation. Performance management is considered to be an important element for successful organizations. A low number of researchers tend to study the factor that can influence the process or its implementation; therefore, more research is needed about these factors that might be beneficial for practical implication of performance management. TABLE 11 Key Themes Category # 1 2 3 4 Key Themes Process/ Planning /System/ Strategy/ Approaches framework/Implementation Analysis /Evaluation/ of PM Effects/Impacts of PM Factors Influencing PM Frequency 17 7 5 2 % 55% 22.5% 16% 6.5%
4. DISCUSSION The major purpose of this investigation is to provide insight to performance management, targeting only journal within a specific time span (2004-2012). From the analysis of performance management, we have highlighted that there is a fragmented perspective in term of range of subject areas, which address this topic. We have presented the result of our examination along a series of magnitudes including author most active in PM area, commonly used unit of analysis, methodological practices. Despite much of the work had been done in this domain but there is no mutual consensus regarding methodology or theoretical dimensions of the subject. This research provides a limited understanding regarding methodology and theories pertaining to this domain that had been published in the specific journal in last few years. The research comprised of different themes that involves the research within the study. Studies pertaining to PM inclined towards the challenges and problems related to performance management, finding its benefits and
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focus on different approaches. Some of researchers tried to find out the connection between PM and other subjects (HRM/OM), while other showed their interest in implications and practices. Researchers and practitioners of PM had tried to develop theories, frameworks and showed concern in designing PM systems in literature. Our study had identified novel themes that had been the center of interest for some researchers. Researchers should focus on cultural context related to PM, what kind of behavioral facts required in implementing performance management in organizations and how organizations can increase economic value by implementing performance management. From this study, we conclude the performance management is one of an important function for any of the organization. This research tends to provide insight and understanding of performance management trends and tries to highlighted its importance so that PM implementation in organization can get evolutionary results. PM seems to be a significant function in the success of an organization. We anticipate this article will prove to be a constructive source of insight for those readers who wish to learn more about performance management and may benefit by becoming aware of how the various researchers approaches/methods that fit with different theories/models and in multidisciplinary contexts. 5. CONCLUSION This article provides an overview of performance management research, by presenting the orderly and compressive review of thirty articles from a single source International Journal of Productivity and Performance Management during the period of 2004-2012. Though tables and figures we tried to make the information easy to understand and divided them in to different sub-heading which were discussed in a sequence. The analysis of PM literature executed within this article has identified several key demographic and trend findings. We have presented the results of our investigation along a series of dimensions including the commonly used unit of analysis, research methods and techniques. According to the demographic, Europe seems to be the major contributor in this domain; the UK and the Netherlands are the most prominent countries. The maximum articles were published in 2009. It is that positivist and empirical approach has been used in the research. The articles focused on organizations as unit of analysis. The findings indicate in term of the common
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research approaches are positivist followed by conceptual/descriptive and interpretive. Mixed technique is considered to be the most dominating one emphasis both quantitative as well qualitative methods. Multi-methods approach seems to be mostly employed in organizations by PM authors within the period. Study had identified some novel themes that had been employed in the research. Four key themes have been identified. Some of the work has been done on different factors that can serve as an input such as planning/PM system/ strategies. Many processes have been applied in the process. Some of the articles have targeted to explore the impact of performance management on different organizations. Keeping in view these key themes, another key element that provides us the deeper insight about evaluation of performance by comparing the historical aspects and future inclination towards PM. Organization should first analyze the need for PM by comparing the prone and corns of performance management that had been done in many of research papers. The researchers compared their challenges and the promising benefits related to PM. That led them to recognize the factors that will influence the performance management process. Performance management is considered to be an important element for organizational success so more studies focused the planning/ implementing or in creating the framework or strategies; the process of performance management. If the importance of PM has been proved so researcher interest, make them to explore its impact or effects on organizations.
ANALYSIS
FCATORS INFLUENCING PM
PM PROCESS
IMPACT OF PM
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We acknowledged that our study has a number of limitations so the reader should keep these in mind while elucidating the. Firstly, we restrict our search to the key word embedded in the title, although there were many articles, which may contain relevant methods were excluded. Secondly, targeting one journal and a limited time span has made our study limited. We suppose that the more comprehensive research is required to lessen the impact of limitation we have acknowledged in order to provide a greater understanding of the domain. For future researcher, it would be useful for them to investigate on least common topic those are shown in the table 10. Less of the work has been done from cultural perspective, so investigating on this topic will be beneficial. Performance management and measurement are center of attraction for many researchers but relating the performance measurement and management to the organizational financial outcome seem to be attractive and is infrequent. And if we considered table 11 in mind the key themes; it would be beneficial for researchers to explore more factors that can influence performance management because very less work has been done on this key theme. Secondly, table 10 exhibits that process and system related to performance management is the center of attraction for many researchers in the last few years, so working on these topics will also be beneficial for researcher. Moreover, researchers also may take advantage by investigating various research approaches/ methods that fit with different theories/models or unit of analysis. Finally, the study can be extended for achieving comprehensive results through changing sample size.
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