Models and theories of performance management system

Increasing complexities in functions of business have lead to the emergence of new and comprehensive concepts in business management. Performance management is a concept in the field of human resource management. “It is a continuous process of identifying, measuring and developing the performance of individuals and aligning performance with the strategic goals of the organization” (Aguinis, 2009). Performance management is many times mistaken as performance appraisal but the latter is just a part of the former.

There is no single universally accepted model of performance management. Various experts have explained the concept in their own ways. Mabey has prescribed the model in the form of ‘performance management cycle’. This cycle has 5 elements which suggest how performance management system should be implemented in an organization. The elements of performance management system cycle includes:

  1. Setting of objectives.
  2. Measuring the performance.
  3. Feedback of performance results.
  4. Reward system based on performance outcomes
  5. And amendments to objectives and activities (Mabey et al, 1999).
Performance management system
Performance management system

What others say

Salaman says there are two theories underlying the concept:

  1. The goal setting theory.
  2. Expectancy theory.

Goal setting theory had been proposed by Edwin Locke in the year 1968. This theory suggests that the individual goals established by an employee play an important role in motivating him for superior performance. This is because the employees keep following their goals. If these goals are not achieved, they either improve their performance or modify the goals and make them more realistic. In case the performance improves it will result in achievement of the performance management system aims (Salaman et al, 2005).

Expectancy theory had been proposed by Victor Vroom in 1964. This theory is based on the hypothesis that individuals adjust their behavior in the organization on the basis of anticipated satisfaction of valued goals set by them. The individuals modify their behavior in such a way which is most likely to lead them to attain these goals. This theory underlies the concept of performance management as it is believed that performance is influenced by the expectations concerning future events (Salaman et al, 2005).

References

  • Aguinis, Herman. 2009. 2nd Edition. Performance Management. Dorling Kindersley India Pvt. Ltd.
  • Salaman, Graeme; Storey, John; Billsberry, Jon. 2nd Edition. 2005. Strategic Human Resource Management: Theory and Practice. Sage Publications Ltd.
  • Mabey, Christopher; Salaman, Graeme; Storey, John. 2nd Edition. 1999. Human Resource Management: A Strategic Introduction. Blackwell Publishers Ltd.

Ankita Agarwal

Analyst at Project Guru
Ankita is working with the editorial board of Project Guru as a Research Analyst and Writer. With Masters in Commerce and Business Studies, Ankita learned much of what she knows about management through experience. She has previously worked in various financial institutions like Birla Global, HDFC Ltd. and Citi Financial. She is self-motivated and writes for the Knowledge Tank section of Project Guru. She has authored more than 80 articles so far in Human Resources Management, Strategic Management, Finance and Marketing. She likes to pen her thoughts about the latest issues gripping these areas across the world.
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69 thoughts on “Models and theories of performance management system”
  1. Avatar kgati 6 years & 10 months ago

    thank you for the info. I will find this useful.

    • Avatar Nelly 4 years & 2 months ago

      hi Guys.

      Please can someone share grounded theories in performance management particular in the public sector … this is for masters thesis proposal

  2. Avatar kgati 6 years & 10 months ago

    Doing research on performance management for PHD.

    • Avatar Tom 5 years & 10 months ago

      Hi there,

      noticed you said you’re doing your PHD on performance management. I also an doing my dissertation on performance management and was wondering if you knew of any solid theories or techniques you found in your research?

      Thanks,

      Tom

      • Avatar Priya Chetty 4 years & 7 months ago

        Hi Tom,
        You can study on new-age methods to assess performance, particularly in dynamic industries like IT and entertainment. traditional methods are no more relevant and you can do a comparative analysis.

    • Avatar Mahubul Alam 2 years ago

      working in same field. wish to contact you.

  3. Avatar kgati 6 years & 10 months ago

    information provides useful background to performance management.

  4. Avatar dagim 6 years & 9 months ago

    doing my thesis proposal on performance managment,

    ….i coudn’t find the full article……….failed to open the pdf…………can i get a copy at anymeans???

    thank you,

    • Avatar Priya Chetty 4 years & 7 months ago

      HI Dagim
      Sorry, the articles cannot be downloaded in pdf format. You can view the full article in html itself.

  5. Avatar DENIS AMUKUN 6 years ago

    Friends i find this network of friends important and helpfull to as well, could you provide me information about Performance Management for my research work as well. Will be glad to share mine as well.

    • Avatar Priya Chetty 4 years & 7 months ago

      Hey Denis!
      In performance management, you can study:
      – new age performance management styles
      – impact of performance management initiatives on employee motivation
      – performance management methods for temporary workers
      – performance management techniques for senior management

  6. Avatar olu 6 years & 3 months ago

    pls can i get more articles on pm in public sector…

    • Avatar bernard 4 years & 7 months ago

      Hi guys. am also doing a research on effects of performance appraisal in the public sector. I need your help in this area

  7. Avatar Rabbie 6 years & 2 weeks ago

    Hi, I really find this useful. please can I get articles on PM and PA(performance appraisals) in the banking sector in Africa and UK. thank you.

  8. Avatar Andy 4 years & 9 months ago

    Am doing my PhD in Performance Management systems in the care sector, would you help me find journals and articles that deal with the performance management systems please?

    • Avatar Priya Chetty 4 years & 7 months ago

      Hi Andy,
      which care sector are you studying? Do you mean healthcare?

  9. Avatar ngugi 4 years ago

    thank you so much, i found this article very educative.

  10. Avatar Ngora Richard 4 years & 6 months ago

    help us and put this work in pdf dia

  11. Avatar Glory 4 years & 5 months ago

    Thanks for the writes up I got for theories of PMS. Please I get more literature reviews on PMS a of a pharmaceutical industry

    • Avatar Abhinash 4 years & 5 months ago

      Thanks for your input we are working on it and we will post another article related to PMS in pharma sector in 10 – 15 days.

  12. Avatar Glory 4 years & 5 months ago

    Literature review on Performance management system in pharmaceuticals industry

  13. Avatar Dan-Eheremwen 4 years & 5 months ago

    Hello all,

    am working on quality assurance in sellected academic programmes and performance of polytechnic graduates. i need comment from the house

  14. Avatar peter chimoto 4 years ago

    Dear all

    am doing a research on service delivery performance. please help what questionnaire can I use and the related theories.

  15. Avatar Kide AA 4 years & 4 months ago

    It is very interesting note.
    Please, send me the full journal, if it is published

  16. Avatar sandali 4 years & 3 months ago

    pls, help me to find out articles on impact of performance management system on employee performance.

  17. Avatar kema abdurahim 4 years & 3 months ago

    i am doing my PhD research on Performance management

  18. Avatar Andy 4 years & 3 months ago

    Am struggling to find journals/articles dealing with performance management and its impact on employees – healthcare assistants and managers in care of the elderly care homes.
    Could someone help please?

  19. Avatar adrian 4 years & 2 months ago

    hey i find the articles useful, can u plz help m define how perfomance management is linked to HRM practices .

  20. Avatar Dr. Mumtaz Ali 4 years & 1 month ago

    The sharing is wonderful. I refer it to my students who are interested to conduct the study on performance management.

  21. Avatar Nombulelo Yeni 4 years & 4 weeks ago

    Hi guys

    Wonderful ideas guys. I am thinking of using systems theory as my theoretical framework in my research project on the execution of performance appraisal in the public sector. I am not sure if this theory is right or there is another one better. Please assist.

    • Avatar Tjhetane 3 years & 2 months ago

      Hi Nombulelo, i recently got feedback on my Masters research on performance management at a local municipality, having used the same systems theory for my framework, it is said that it is outdated. Any idea on the recent theories?

  22. Avatar meluzolanga 4 years & 3 weeks ago

    I am a student at at Unisa doing my Ba degree in public Administration can you help me on how to write acritical essay on perfomance management in the public sector departments ?

  23. Avatar Kide, AA 4 years & 1 week ago

    Please, send me a free copy of the article entitled on ” Models and Theories of performance management system”, which was published On 3 November, 2011. I am a PhD. candidate.

    Thank you.

  24. Avatar Felix Okere 3 years & 7 months ago

    Hi there,

    I’m in search of a short case study on downsizing in a UK company. I’ll really appreciate if anyone can send me something.
    Cheer

  25. Avatar Felix Okere 3 years & 7 months ago

    Hi,

    I’m in search for a short case study on downsizing in any uk based organisation.

    Can any one send me something

    thanks

  26. Avatar norzianis 3 years & 3 months ago

    Please send to me article about latest model and teories of performance in governance or public sector. I am a PhD candidate

  27. Avatar Tjhetane 3 years & 2 months ago

    Hi, kindly send me free articles on recent models and theories of performance management, i’m doing Masters research on pm.

  28. Avatar Tjhetane 3 years & 2 months ago

    Specifically recent theories on pm (10 yrs or less)

  29. Avatar mwayi 3 years & 2 months ago

    Performance management conceptual framework

  30. Avatar Abhinash Jena 3 years & 2 months ago

    Heres the link to Expectancy theory of performance managent: https://www.projectguru.in/publications/expectancy-theory-performance-management/

  31. Avatar Tjhetane 3 years & 2 months ago

    Kindly send me articles on recent theories on performance management in the public sector.

  32. Avatar Tjhetane 3 years & 1 month ago

    Have not received feedback on recent theories of performance management, kindly assist.

  33. Avatar Abdukadir 3 years & 1 month ago

    Hi,
    I am a student at at University of Nairobi doing my MPA. can you help me on how to write acritical essay on perfomance management in the public sector departments ?

  34. Avatar Anne 3 years & 2 weeks ago

    I am currently doing a research on PMS and its effects on Organizational success. Can you please help me with materials?

  35. Avatar David 3 years & 2 weeks ago

    I am also working on PMS and its effects on Organizational success and I need additional materials. Please assist.

  36. Avatar anathi 2 years ago

    I am appointed as the Personnel Officer in a public service department, and iam required to provide advice on a performance management model that can be implemented effectively in the public service delivery, and also I am required to provide advice and support on the implementation of performance management policies, systems and practices in the department..,please help me out.

  37. Avatar Anne M Vasallo 2 years & 8 months ago

    Where i can find the exact theories of employees performance.

  38. Avatar Noble Tinoe S 2 years ago

    hey guys, I found this useful. can anyone just tell me more on Performance Appraisal.

  39. Avatar Barick Badi 2 years & 7 months ago

    Hi, please send me a free article of social cognitive theory of performance management

  40. Avatar nikki 2 years ago

    hi…can anyone help me
    i have to do a section on different models of performance management for my dissertation….
    can anyone tell me what the main models are

  41. Avatar Jasmier 2 years & 6 months ago

    can someone help find a theory about managerial perdormance?

  42. Avatar Tanaka 2 years ago

    Can someone help on performance management theories

  43. Avatar f-b 2 years & 4 months ago

    i am appointed as the Personnel Officer in a public service department, and iam required to provide advice on a performance management model that can be implemented effectively in the public service delivery, and also I am required to provide advice and support on the implementation of performance management policies, systems and practices in the department..,please help me out

  44. Avatar mehr 2 years & 1 month ago

    Dear all
    hi
    I am also doing a research on design a model of performance management . I need your help in this area
    tnx

    • Avatar Sudeshna Chakraborty 2 years & 3 weeks ago

      Dear Mehr,

      Greetings!
      Kindly let us know exactly on which area of research do you need our assistance. Also, you can drop your query at [email protected] in case you require any personal assistance.
      🙂

  45. Avatar Benjamin 2 years & 1 month ago

    I would like to get more information about performance management

    • Avatar Sudeshna Chakraborty 2 years & 3 weeks ago

      Dear Benjamin,

      Greetings!
      Nice to hear from you. We are currently enriching our repository on Performance Management. You can subscribe to our newsletters to obtain updates whenever articles are published.
      Also, you can share your interest area within performance management so that we can assist you or develop articles on the same. 🙂

  46. Avatar Mahubul Alam 2 years ago

    Greetings. Would you please help me learning regarding employee performance index and indicators.

    Best regards
    Mahbubul Alam

  47. Avatar Zak 1 year ago

    Hi There,

    doing research into PM surrounding purchasing, can anyone please give me relevant literature?

    Huge Thanks!

  48. Avatar Pinky 1 year ago

    Hi guys,

    I need your assistance, I am currently working on PM assignment within Catering division.

    Regards
    Pinky

  49. Avatar Sophie 1 year ago

    Afternoon.

    My name is Sophie and i am doing my research study on Aligning employee performance plans and performance to that of the organisation (a Public entity). I got a few ideas on the theories I can use but since the systems theory is outdated as a framework, what else can i use? The objectives of the study is to establish if the plans of the employees are aligned to that of the organisation and if empoyees understand the importance of appraisals

  50. Avatar dee 1 year & 3 months ago

    hello guys.
    how do i tackle this question. am doing BA administration.

    Choose one performance management approach of your choice and demonstrate how it can be applied in an SME you are familiar with.

  51. Avatar ISHTEE 1 year & 2 months ago

    I would like to extend my gratitude for this website, i am learning a lot and grateful for the useful information for my mba thesis… thanks, can you suggest best theoretical framework for performance management… thanks a lot, more power and God Bless…

  52. Avatar marshal mapako 1 year & 1 month ago

    I am a Human Resources Manager in one of the companies and greatly thankful about this website. I am managing to convert evething i am mastering theoratically into pratice.

  53. Avatar Mimmie 10 months ago

    I am doing a research on performance measurement framework for fast food industries in developing countries. I need journals related to that study please help. Any suggestion on which i should use

  54. Avatar Nasho 9 months ago

    Hi, I am doing a research on teachers perception on the performance management strategies. Please help me out with the literature review

  55. Avatar Jekoy 5 months & 1 week ago

    How can I get thevrefferences of theory of performance about addiction in offline mobile gaming

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