Generating organisational performance: The contributing effects of performance measurement and human resource management practices

Purpose: This paper investigates the contribution of both business performance measurement and human resource management practices to business performance Design: The paper is based on ten case studies conducted across both manufacturing and service organisations capturing evidence from both the human resource function and line management. Findings: In the performance measurement and human resource management literatures there is a debate about the contribution these practices make to the overall performance of the organisation. In particular, the results from the performance measurement literature are inconclusive. This paper argues that performance is a result of employee commitment to the organisation and that the performance measurement system is a communication and guiding mechanism, which if implemented well and used appropriately, can channel the efforts of employees striving to perform. Originality: This paper contradicts the performance drivers approach to performance measurement by providing new insights into the roles performance measurement and human resource management practices play in delivering business performance and proposes a set of propositions for future research in this area.