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

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.