Performance management: Theory in practice?

This paper reports the findings of a recent Australian study of performance management systems conducted by the School of Management at Curtin University of Technology, Perth, in association with the Australian Human Resources Institute (AHRI). It was undertaken electronically via the AHRI website, and resulted in a broad range of responses from both the public and private sectors. It reflects the views of a broad sample of Australian HR professionals. Its main purposes were to update findings from earlier studies, to ascertain current levels of use and satisfaction, and to determine whether performance management has become a more effective strategic tool in the human resource management repertoire. The findings suggest, as in earlier studies, that the use of, and satisfaction with performance management systems remain problematic, although there are some indications that the increasing integration of the balanced scorecard within these systems appears to encourage more strategic links between individual, group, and organisational outcomes, as espoused by strategic human resource management theorists.