Performance Management Systems in Australia Essay

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Nankervis, R.A., & Compton, R.L. (2006) 'Performance management: theory practice?' Asia Pacific Journal Human Resources, 44 (1), pp. 83 -- 101. Evaluate findings authors design, implementation, effectiveness performance management systems earlier studies conducted.

Performance management systems

Performance management systems have been defended as being advantageous to both employees and businesses alike by providing workers with feedback about how to improve their output. They have been criticized, however, because the use of performance reviews is said to be implicated in a focus on "short-term performance, annihilating long-term planning, building fear, demolishing teamwork and nourishing rivalry and politics" (Nankervis & Compton 2006: 84). However, flatter organizations and increased self-management have caused many managers to defend such reviews as necessities, given the lack of everyday direction many workers experience in their day-to-day existence (Nankervis & Compton 2006: 84-85).

According to Nankervis & Compton in their study of 992 Australian companies, performance reviews are used largely to review past employee performance and assess future training needs and in some instances in a strategic fashion to better leverage the human assets of the organization.

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Overall, they found that while performance reviews are more common, the format is not necessarily used to its maximum advantage and is often inconsistently applied. "The two major types of performance management systems in this study are 'performance management' (64%) and 'hybrid' (21%), both of which were combinations (or customized forms) of more traditional appraisal techniques" (Nankervis & Compton 2006: 88).

For a performance review to be effective it must not merely provide input to the individual employee. It must also be strongly linked to organizational goals and strategy. Managers who used the Balanced Scorecard (BSC) seemed more confident about maximizing the use of performance reviews to achieve this objective (Nankervis & Compton 2006: 90). Of those who used general performance….....

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