TABLE OF CONTENTS The great majority of organizations today, in order to prosper or even to survive, are obliged constantly to seek ways of improving their performance. In some cases this may be merely through fine tuning existing performance. In other cases it may involve fundamental changes to policy, market positioning, objectives, structures, sourcing materials, human resources and even organizational culture. Many different approaches to achieving these ends are used by organizations, with greater or lesser effect. These include performance-related pay (PRP) systems, performance management systems (PMS), empowerment and various forms of management by objectives (MbO). Figure 7.1 summarizes what many would consider to be the essentials of effective performance management. How each of these is dealt with will vary from one employer to another. In some cases staff will be fully involved in decisions. In other cases senior management take all the decisions and communicate them to supervisors and staff.
It can readily be seen that there are consistent linkages between the factors highlighted in Figure 7.1 and the defining characteristics of HRM as discussed in Chapter 2 earlier. Indeed, one aspect considered to be an essential element of HRM in contrast to earlier versions of the so-called personnel or people management is its concentration on individual and organizational performance. Holbeche is unequivocal in supporting the notion, arguing that HR helps to implement high-performance work practices, 'by creating a culture which is supportive of high performance . .
