Performance Management, a New Strategy for Improving Public Sectors Effectiveness

Performance Management processes have become prominent in recent years as means of providing a more integrated and continuous approach to the management of performance in the Public Sector of the economy. Performance management is based on the principles of Management by Agreement or contract, rather than management by command. It emphasizes development and the initiation of self-managed learning plans as well as the integration of individual and corporate objectives. It can, in fact, play a major role in providing for an integrated and coherent range of human resource management processes which are mutually supportive and contribute as a whole to improving organizational effectiveness, as it is forward-looking and developmental. It provides a framework in which managers can support their team members rather than dictate to them, and its impact on results will be much more significant if it is regarded as a transformational rather than as an appraisal process. The overarching objective of Human Resources Management is to contribute to the achievement of high levels of organizational performance.

The integration of human resources and business strategies will generally focus on this goal. Boxall and Purcell (2003) suggests that: ‘‘Human Resource advantage can be traced to better people employed in organizations with better processes’’. This echoes the resource-based view of the organization which states that ‘distinctive human resource practices help to create the unique competencies that determine how organizations compete, (Capelli and Cracker-Hefter, 1996). Performance goals within the public service can be achieved with the help of high performance work systems which take into account the factors affecting individual performance and promote flexibility. They also include rigorous recruitment and selection procedures, performance-contingent incentive compensation systems, and management development and training activities linked to the needs of the organization, (Becker et al, 1997). As defined by Boxall and Purcell (2003), the level of individual performance is a function of ability, motivation, and opportunity (AMO).

People perform well when they are able to do so, (they can do the job because they have the necessary abilities and skills); when they have the motivation to do so, (they will do the job because they want to and are adequately incentivized); and when their work environment provides the necessary support and avenues for expression, (for example, functioning technology and the opportunity to be heard when problems occur). It is based on the above premises that this research study is conducted on Performance Management as a new strategy for improving public sectors effectiveness, vis-à-vis, the relationship between Human Resources Management and Performance Management, with the hope that people can make an impact on performance, by leading or contributing to the development and successful implementation of high performance work practices, particularly those concerned with job and work design, flexible working, resourcing (increasing skills and extending the skills base), reward and giving employees a voice; the formulation and embedding of a clear vision and set of values (the big idea); the development of a positive psychological contract and means of increasing the motivation and commitment of employees, the formulation and implementation of policies which in the words of Purcell et al (2003), meet the needs of individuals and ‘‘create a great place of work’’; the provision of support and advice to line managers on their role in the implementation of human resources policies and practices; and the effective management of change.