Factors shaping the use of outcome based performance management system in central state, Australia

Factors shaping the use of outcome based performance management system in central state, Australia

This study examined the factors shaping the use of outcome based performance management system (OBPM) in a state government organisation in Australia. This study developed a theoretical model that identified three internal factors (employee engagement, organisational culture and leadership/management commitment) influencing the use of OBPM. In examining these factors, this study relied on institutional theory focussing on the impact of three institutional pressures: coercive, normative and mimetic on the use of OBPM. The research methodology adopted for this research is a case study. The study was conducted at Case A which is the largest employer in Central State Government Directorate. The study used a qualitative approach to collect and analyse the empirical data. Data were collected from three primary sources: in-depth interviews; questionnaire and document.

This study found that factors such as leaders support, employees’ know-how, performance management culture, technological advancement and social networks have positive impact on the use of OBPM in Case A. The study also identified factors that prevented OBPM from being fully useful such as silo culture, lack of shared understanding, weak evaluative and learning culture, dispersed OBPM IT system and lack of employee engagement: in strategic planning; development of KPIs and design of OBPM. It is concluded that sources of coercive isomorphic pressures potentially came from political leaders and central government, while normative pressures came from employee engagement and organisational culture. This study also concluded that the uncertain institutional environment, ongoing restructure and technological advancements were likely to exert mimetic pressures on the use of OBPM.

This study made significant contribution to performance management system literature and practice by empirically examining the factors shaping the use of OBPM in a state government agency. This study deepened our understanding of the institutional environment of Case A and how the specific coercive, normative and mimetic forces influenced the use of OBPM in the organisation. The assertions made within this study were based on a single case study. Further work is required to validate the findings and examine the additional factors exerting influence in the use of OBPM with larger samples.