Performance Management Reviews
Rationale
The agency theory of the firm suggests that organisations implement performance reviews to control their employees’ performance, firm’s productivity and profitability (Eisenhardt, 1989).
Research Aim
Our research shows that organisations could obtain additional benefits from performance reviews on ‘the internal way organisations perform’, which underpin the firm’s productivity, profitability and reputation.
Our Findings
Performance reviews at operational levels have the power to:
- Drive cultural changes
- Change peoples behaviours
- Develop key competencies
- Make operational improvements
- Improve business results
- Refresh the whole organization bottom-up
- Create inimitable skills
Performance reviews at executive level have the power to:
- Improve management capabilities
- Improve people management skills
Implications for Practice
- Performance reviews have a direct effect on the ‘internal way organisations perform’, which underpin firms’ sustainable advantage
- Managers should consider the deployment of performance reviews to operational levels to ‘liberate the full potential’ of their PMS.
- Organisations which identify and understand the factors that positively affect performance reviews have ‘more opportunities to maximise their results’.
- Organisations implementing performance reviews at managerial levels are potentially missing more than 50% of their benefits.
For further information please contact:
Dr. Veronica Martinez
Outputs and Publications
FREE DOWNLOADS
CERES - Cranfield Collection of E-Research
Martinez V. and Kennerley M.; The power of performance management reviews.pdf
Papers
- Martinez V. and Kennerley M. (2005); ‘Impact of performance management reviews: evidence from an energy supplier’; Conference Proceedings EUROMA, Operations and Global Competitiveness; Budapest, Hungry; June 19-22
- Martinez V. and Kennerley M. (2005); ‘Performance management systems: Mix effects’; Conference Proceedings EURAM; Munich, Germany; May 4-7
- Martinez V. and Kennerley M. (2005); ‘How do performance measurement and management systems impact business performance? an UK cross-regional comparison’; Conference Proceedings Strategic Management Society; Orlando, Florida, US; Oct 23-26
- Martinez V. and Kennerley M. (2006); “Towards a definition of performance management reviews”; PMA Conference; London, UK