Performance Management System

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African Journal of Business Management Vol. 4(9), pp. 1856-1862, 4 August, 2010 Available online at ISSN 1993-8233 ©2010 Academic Journals

Full Length Research Paper

Performance management systems: A comparative

Jawaria Andleeb Qureshi, Asad Shahjehan*, Zia-ur-Rehman and Bilal Afsar

Department of Management Sciences, Hazara University, Manshera, Pakistan. Accepted 12 May, 2010 Many organizations install Performance Management Systems (PMS) formally and informally in their organizations, with the motivation to achieve better organizational results. In practice, organizations have difficulty in implementing a performance management system because its different dimensions are not taken into considerations enough. This article describes the findings of a comparative analyses conducted between a standard performance management model and performance management systems as applied by Local Development Organization (LDO). Data was collected from 50 employees of the organization with a Cronbach Alpha (0.935). Results identified barriers to implementation of effective PMS, also recommendations and viable solutions are presented.

Key words: Performance, performance management system, human resource management.


Performance Management System (PMS) is defined as ‘a strategic and integrated approach of conveying continued success to institutions by developing the people in a way that improves group and personal performance’

(Armstrong and Baron, 1998). These systems provide a
continuous and integrated approach for managing and
rewarding performance. As already developed and
implemented performance, related pay and appraisal
systems were failing to deliver the results according to the expectations of management (Armstrong, 2001), an
increasing number of profit and non-profit organization are turning towards PMS for their organizations in order to achieve better results and better psychosomatic
outputs (Carpinetti et al. 2002; Chau, 2008; Lam, 2008; Lawrie et al., 2004; Luthans et al., 2008; Mwita, 2000; Reilly, 2003; Verbeeten, 2008; De-Waal, 2007). Despite being, an avant-garde approach there has been many

difficulties in the proper implementation of the approach (De-Waal, 2007). PMS is impossible to be effective if focus is not given to performance driven behavior rigo- rously and managers acting as role models (De-Waal and Coevert, 2007). The efficient implementation and

*Corresponding author. E-mail:, Tel: 00923449584797, 0092997414146.

effectiveness of PMS depends upon the behavioral
factors of the employees and manager, and as how the
managers beguiled the employees towards PMS. This
gives us an impression that there are a variety of
behavioral, psychological, and managerial factors that
are involved in the effectiveness and efficiency of a PMS.
This article illustrates a comparative analysis of a
Standard PM Model and PMS being implemented in a
nongovernment and nonprofit organization LDO.
“Standard PMS Model” selected for this study is the
model given by Armstrong (2001).
LDO has implemented PMS “Informally” in their
organization. Implementation of PMS informally means
that the practices and procedures being put into practice
by LDO are similar to that of a PMS but not organized,
integrated, properly planned and executed. A study was
therefore initiated in LDO to identify the efficiency of their eccentric PMS and compare it to a PMS Model widely
used and accepted in other...
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