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Strategic Human Resource ManagementCorporate Rhetoric and Human Reality$
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Lynda Gratton, Veronica Hope Hailey, Philip Stiles, and Catherine Truss

Print publication date: 1999

Print ISBN-13: 9780198782049

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198782049.001.0001

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Performance Management in Fast-Changing Environments

Performance Management in Fast-Changing Environments

Chapter:
(p.59) 3 Performance Management in Fast-Changing Environments
Source:
Strategic Human Resource Management
Author(s):

Philip Stiles

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198782049.003.0003

Performance management is a central tool used to align employee behaviour and organizational objectives, especially in the hard model. This chapter examines how this process works in four companies in the sample which operate in high-velocity environments (Citibank and Lloyds Bank UK Retail Banking from the banking sector, Hewlett Packard from the computer industry, and Glaxo Pharmaceuticals UK from the pharmaceuticals business). The objectives and design of the formal performance management processes in the four organizations were largely similar, intended to create vertical linkage between corporate and business objectives and employee performance. Goals were set participatively, often supplemented by competency frameworks; appraisal was more frequently conducted through multiple perspectives; rewards decisions were more likely to be decentralized; and formal training was supplemented by coaching and self-development activities. The application of performance management is influenced by the degree and experience of change, the involvement and commitment of line managers, and the transparency and perceived fairness of the process.

Keywords:   performance management, high-velocity environments, human resource management, employee behaviour, organizational objectives

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