Advanced Performance Based Human Resource Management

Although performance-based human resource management (PHRM) is commonly accepted as a norm in public organizations, many have questioned its motivational effect. Participants have claimed that the effectiveness of PHRM depends on a number of contingencies and that managers need to consider these contingencies when implementing it. This course examines how the qualities of the implementation process moderate the effect of PHRM on intrinsic motivation and work effort. Analyzing the data from the course found that the motivational effect is greater for those who perceive performance appraisal as fair and are satisfied with post-assessment feedback. It was somewhat counterintuitive to find that the motivational effect was lessened when managers take active roles to communicate the goals and priorities of the organization and constantly review their employees’ progress toward meeting those goals. These results provide the workable leverages for enhancing employee motivation through PHRM. In addition, the main effect of PHRM on work effort is found to be negatively significant, while its effect on intrinsic motivation is positively significant.