Organizational Performance Management: The Importance Of Performance Management

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Recommended: Strengths and weaknesses of the Balanced scorecard

In 21st century, there has been a rising worldwide concern where organisations are claiming to be struggling with the concept of engagement and satisfaction within workforce (Bersin, 2014). Gallup (2013) research suggests only 13% of employees are adequately engaged around the world, which raises contemporary issue in effectiveness of performance management and how it continues to hinder economic productivity within organisations on a global scale. In the literature world, there is a wide range of HRM literature available in three broad theoretical perspectives on strategic HRM which are Best fit (Miles and Snow, 1978; Schuler and Jackson, 1987; Paauwe and Boselie, 2006), Best practice (Delery and Doty, 1996; Beer et al, 1984) and Resource-based …show more content…

(Amaratunga and Baldry, 2002). Otley (1999) argues the vital importance of performance measurement and how businesses utilise various frameworks for performance management. The literature determines the viability and utilisation of prominent balanced scorecard framework into organisational practice.

The concept of balanced scorecard was introduced by Kaplan and Norton (1992), which proposes an effective performance measurement tool for organisations to incorporate into their business processes, in order to effectively assess and evaluate organisational performance management. Kaplan and Norton (1996a) later recognised that the framework has to adapt to each specific organisation due to distinct …show more content…

Barney and Wright (1998) provides the VRIO framework for businesses which enables them to have competitive advantage through recognising key characteristics of value, rarity, inimitability and organisation.

However, not all organisations have sole objective of achieving competitive advantage and RBV approach can be introspective without much consideration of socio-political and economical environment (McKenna and Beech, 2008). Buller and McEvoy (2012, p.53) states that each corporate environment and requisite strategy are “unique, complex and dynamic” therefore, HRM practices and their implementation in organisation will also be “unique, complex and

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