This literature review aims to examine and evaluate the existing literature, which relates to the role of performance management in both controlling and developing employees. In the beginning, the review will emphasize on defining ‘performance management’, its brief history, evolution, and definitions through the existing literature available. In between this literature review, will highlight the issues related to performance management, which act as a hindrance in its perfect execution in organisations. The latter part of this literature review will focus on the examination of existing research if any, which has aimed to identify a link or no link between performance management and controlling and developing employees. Finally, limitations in the existing literature will be discussed before coming to a conclusion. OBJECTIVES
The primary objective of this literature review was to review and critically analyse existing literature/ existing research on performance management and its role in both controlling and developing employees. Therefore the objectives are: •To review and critically analyse existing literature
•To establish any link/no link in the role of performance management in both controlling and developing employees with supporting literature •To critique and conclude the findings
History and definition of Performance Management
To establish the role of Performance Management in controlling and developing employees it is imperative to understand the definition of Performance Management and its evolution. Evolution
Performance Management is relatively a new concept, which has developed tremendously since the last two decades. As per CIPD (2009) Performance Management has been around in the language of HR and people management since the 1980’s. The above point is also mentioned by Williams R, (1998) stating that Performance Management came into prominence in the late 1980s/ early 1990s. “The term performance management was first used in the 1970’s but it did not become a recognised process until the latter half of 1980s” (Armstrong, 2009). Thorpe, (2004) states that ‘Performance management as an identifiable subject for academic study and research arguably began in the mid-1990’s’ Performance Management has evolved over the years from performance appraisal systems into a more holistic approach. As per Bach, (2005) “With the increased recognition of the problems that permeate many company appraisal schemes, there has been a shift of emphasis from performance appraisal to performance management” (p290). “The reality of contemporary performance management practice is probably best seen as ‘a logical progression in the history of the development of appraisal systems’” (Lundy and Cowling, 1996, p307). Definitions
‘The essence of Performance management is establishing a framework in which performance by human resources can be directed, monitored, motivated and refined; and the links in the cycle can be audited’ (Clark, 2005) As per Armstrong and Barron, (2009) Performance management is ‘A process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance’ (cited in CIPD 2012). ‘Performance management encompasses activities such as joint goal-setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee-development programs and rewarding achievements. It can be regarded as a systematic process by which the overall performance of an organisation can be improved by improving the performance of individuals within a team framework’ (Drum, 2005) ‘Performance management is the process of creating a work environment in which people can perform to the best of their abilities. It is a whole work system that begins when a job is defined as needed and expectations are clearly communicated to the employee’ (Den...