The Role of Performance Management Practices on Organizational Performance: A Functional Framework

The Role of Performance Management Practices on Organizational Performance: A Functional Framework

Kijpokin Kasemsap (Suan Sunandha Rajabhat University, Thailand)
DOI: 10.4018/978-1-4666-5154-8.ch006
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Abstract

This chapter introduces the framework and causal model of leadership style, organizational culture, performance management practices, and organizational performance. It argues that dimensions of leadership style, organizational culture, and performance management practices have mediated positive effect on organizational performance. Performance management practices positively mediate the relationships between leadership style and organizational performance and between organizational culture and organizational performance. Leadership style is positively correlated with organizational culture. Understanding the theoretical learning is positively beneficial for organizations aiming to increase organizational performance and achieve business goals.
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Background

The details of constructs such as leadership style, organizational culture, performance management practices, and organizational performance related to this chapter are shown as follows

Key Terms in this Chapter

Leadership Style: The activity pattern of leading a group of people or an organization.

Organizational Culture: The values and behaviors that contribute to the unique social and psychological environment of an organization.

Organizational Performance: The work related activities expected of an employee and an organization and how well those activities were executed.

Goal Setting: The determination of an observable and measurable end result having objectives to be achieved within a fixed timeframe.

Performance Management Practices: A process by which organizations align their resources, systems, and employees to strategic objectives and priorities.

Dynamic capability: The measure of the ability of an organization to achieve its objectives.

Framework: Broad overview, outline, or skeleton of interlinked items which support a particular approach to a specific objective of the study.

Relevant Resource: An economic factor required to achieve the desired outcomes.

Agency Relation: The practice of creating and maintaining goodwill of an organization’s various substitutes.

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