The Role of Performance Management in Creating and Maintaining a High-Performance Organization
There is still a good deal of confusion in the literature about how the use of a performance management system affects overall organizational performance. Some researchers find that performance management enhances both the financial and non-financial results of an organization, while others do not find any positive effects or, at most, ambiguous effects. An important step toward getting more clarity in this relationship is to investigate the role performance management plays in creating and maintaining a high-performance organization (HPO). The purpose of this study is to integrate performance management analysis (PMA) and high-performance organization (HPO). A questionnaire combining questions on PMA dimensions and HPO factors was administered to two European-based multinational firms. Based on 468 valid questionnaires, a correlation analysis was performed on the PMA dimensions and the HPO factors in order to test the impact of performance management on the factors of high organizational performance. The results show strong and significant correlations between all the PMA dimensions and all the HPO factors, indicating that a performance management system that fosters performance-driven behavior in the organization is of critical importance to strengthen overall financial and non-financial performance.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
JOD requires that at least one author of each accepted paper sign a Copyright Transfer Agreement form. Copyright will be transferred to Organizational Design Community when the paper has been accepted.
Articles published in JOD are licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License.