Edinburgh Napier University

  Literature on performance management (PM) indicates that the concept has gained momentum in its use by organisations, with the ultimate goal of improving business performance. It is argued that PM makes significant contributions to individual employees and organisational performance by enabling expectations to be defined and agreed in terms of the role, responsibilities and accountabilities, and providing opportunities for individuals to identify their own goals and to develop their skills and competencies. However, there has been much debate as to whether PM optimises or leads to improved overall business performance as other factors other than human resources policies, such as personality, job role experiences, and structural factors, may have a detrimental influence on job performance. Moreover, several studies have shown that PM, and performance management systems (PMS) has resulted in unintended impacts, both positive and negative, in addition to those sought by organisations.

This research is an investigation into the perception of managers and care assistants in private care of the elderly in care homes in Scotland on the impact of performance management systems. Use is made of both PM literature and empirical research to understand the perceived impact of the PMS with the ultimate aim of developing an enhanced PMS framework.

In addition to documents review, twenty-four in-depth interviews were conducted, comprising of eight managers and sixteen care assistants drawn from eight different private care homes. The interviews focused on eight key PM elements, the PM concept, goal-setting, performance reviews, performance measurement, supporting performance, rewards system, training and development, and managing underperformance. The interview results from managers and care assistants were compared with the normative/ideal PM practice from the PM literature to determine how PMS is being implemented in the private care homes. The research findings reveal an overall positive perception towards PMS implementation by managers. However, the care assistants raised many of concerns which influenced a negative perception towards the PMS implementation. This was used as the basis for developing recommendations for an enhanced PMS framework. The
recommendations are centred around the identified two main problem areas: management/leadership style and the communication process. In addition to staff involvement in performance planning, and a fair underperformance management process, three other theories: power distance, vertical and horizontal trust, and the principal-agent problem were recommended to private care homes. This would help change the negative perception towards PMS implementation by care assistants.