Performance Management Trends: Reflections on the Redesigns Big Companies Have Been Doing Lately

Katrine Schrøder-Hansen, Allan Hansen*

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

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Abstract

Purpose
Since several high-profile companies announced that they were radically redesigning their performance management systems and processes (PMSPs), commentators and scholars argue that these changes represent a trend that many companies are following, and even more are considering pursuing. The present paper aims to provide an overview of these redesigns and their rationales from the companies' point of view and theoretically reflect on their organisational value.

Design/methodology/approach
The analysis is based on a review of articles from journals, professional magazines and the business press that describe how nine high-profile companies from the debate changed their PMSP design.

Findings
The PMSP redesigns are directed towards what in the literature has been referred to as people PMSPs. The authors identify five organisational challenges to which the people PMSPs are exposed and specify the design elements that the companies have changed to meet these challenges. Finally, the authors outline a set of theoretical propositions that demonstrate some of the trade-offs involved with the redesigns.

Originality/value
The paper contributes to researchers and practitioners by providing more insight into why and how companies have redesigned their people PMSPs. Answers to these questions are vital in understanding the trends and redesigns that practitioners are currently considering. Furthermore, since the empirical research of the effects of these redesigns is still limited, we outline a set of theory-based propositions helpful for future empirical investigations.
Original languageEnglish
JournalInternational Journal of Productivity and Performance Management
Volume72
Issue number5
Pages (from-to)1201-1220
Number of pages20
ISSN1741-0401
DOIs
Publication statusPublished - 2023

Bibliographical note

Published online: 7 March 2022.

Keywords

  • Performance management
  • Performance appraisal
  • Human resource management
  • Organisational change

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