Performance & Compensation Management Annotated Bibliography

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Denrell, J., 2005, ‘Should we be impressed with High Performance?’, Journal of Management Inquiry, Vol. 14, No. 3, pp. 292-298.

This article discusses the common assumption that high performing firms have efficient management and organisational processes thus differentiating themselves from lower performing firms. The article argues that this actually may not be the case and that high performance in firms may actually be the outcome from several variables such as: economic factors; luck; risk taking; random variables and chance events such as larger resource allocation; and/or incompetence such as a result of mistakes.

The author strongly emphasises the main focus of the article which is that due to economic and several other factors, firms with exceptionally high performance are actually less capable than firms with lower performance. The article does however highlight key factors attributing to performance which many organisations would not normally consider and would find valuable. Specifically that in contrast to the common perception there is in actual fact less to be learnt from successful firms. Additionally firms looking to obtain competitive advantage through examining and observing the successful determinants of current high performance organisations would particularly find the arguments presented by the author useful in establishing the determinants of failure, rather than the determinants of success.

Kavanagh, P., Benson, J., & Brown, M., 2007, ‘Understanding Performance Appraisal Fairness’, Asia Pacific Journal of Human Resources, Vol. 45, No. 2, pp. 132-150.

This article discusses employee’s perceived fairness in the performance appraisal process and how this influences their job satisfaction, performance and organisational commitment. The author’s focus is on several areas identified as influencing employee’s perceptions of fairness in the performance appraisal process including: employee’s roles and participation; the attitudes of...
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