Audenaert_et_al._2015 (MS Word Document, 29.3 KB)

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The role of Performance Management in achieving Environmentally

Responsible Organizations

Mieke Audenaert

,1

, Adelien Decramer , Saskia Crucke , Tine Claeys

Department HRM and Organizational Behavior, Faculty of Economics and Business Administration, Ghent

University, Henleykaai 84, 9000 Ghent, Belgium

Purpose

The aim of this study is to investigate how performance management can contribute to organizational performance, more specifically; we are interested in the impact of these management systems on the environmental dimension of organizational performance.

We focus on environmental responsibility , i.e. the extent to which organizations engage in excellent environmental planning, employ environmental impact minimizing procedures, or where they have taken the initiative to use environmental-friendly natural resources (Chen et al., 2008).

The aim of this article is to study the role of performance management in developing environmentally responsible organizations and test as such the effect of strategic Human

Resource Management on environmental responsibility. Performance management relates to a cyclical Human Resource Management (HRM) process with different phases: planning,

1 Corresponding Author at Department HRM and Organizational Behavior, Faculty of Economics and Business

Administration, Ghent University, Henleykaai 84, 9000 Ghent, Belgium. Tel.: +32 9243 2919

(Mieke.Audenaert@Ugent.be)

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monitoring, evaluation and (eventually) reward of individual employee performances

(Decramer et al., 2012). Performance management systems are typical HRM systems that lead to employee outcomes (such as job satisfaction and organizational commitment) and ultimately to higher organizational performance (Author et al., 2012; Boselie et al., 2005).

Our first important contribution to the literature is the relevance of an integrated approach to performance management for environmental sustainability.

Our second contribution pertains to the role of expected contributions in the relationship between performance management and environmental responsibility. Expected contributions refer to the employers’ requirements for employees to contribute to the organization with a high extent of broad behaviors and attitudes. The expected contributions encompass unspecified ethical work behaviors. When employees face high expected contributions, they may be expected not only to work hard and perform effectively, but also to contribute to the organization’s long-term, future development. We build on the employment relationship literature (Tsui et al., 1997, Wang et al., 2003) to conceptualize about the role of broad expected contributions as a boundary condition for effectiveness of performance management in terms of environmental responsibility.

Methodology

This study was confined to a broad range of profit and nonprofit organizations. The organizations in the sample have in common that they are expected to have social sustainability goals.

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We obtained data from 192 organizations in Belgium (19 % response rate), which is above the average response rates of top managers of 10%–12% (Hambrick et al., 1993).

Results

The results demonstrate that system – features of performance management in organizations are linked to higher levels of environmental responsibility in organizations. These results underpin the emphasis on the integrated approach to performance management. In addition, the impact effect of performance management is amplified when the expected contributions are broad. Considering the significance of Environmentally Responsible Organizations, understanding organizational drivers and antecedents is of great theoretical and practical importance. Our study contributes to this understanding through the analysis of performance management and broad goals. We suggest that environmental sustainability can be achieved by paying attention to an integrated approach to performance management, and the expectation of broad goals.

References

BOSELIE, P., DIETZ, G. & BOON, C. 2005. Commonalities and contradictions in HRM and performance research. Human Resource Management Journal, 15, 67-94.

CHEN, J. C., PATTEN, D. M. & ROBERTS, R. W. 2008. Corporate charitable contributions: A corporate social performance or legitimacy strategy? Journal of Business Ethics, 82, 131-144.

DECRAMER, A., SMOLDERS, C., VANDERSTRAETEN, A. & CHRISTIAENS, J. 2012. The Impact of

Institutional Pressures on Employee Performance Management Systems in Higher Education in the Low Countries. British Journal of Management, 23, S88-S103.

HAMBRICK, D. C., GELETKANYCZ, M. A. & FREDRICKSON, J. W. 1993. Top executive commitment to the status quo: Some tests of its determinants. Strategic Management Journal, 14, 401-418.

TSUI, A. S., PEARCE, J. L., PORTER, L. W. & TRIPOLI, A. M. 1997. Alternative approaches to the employeeorganization relationship: does investment in employees pay off? Academy of Management

Journal, 40, 1089-1121.

WANG, D., TSUI, A. S., ZHANG, Y. & MA, L. 2003. Employment relationships and firm performance:

Evidence from an emerging economy. Journal of organizational behavior, 24, 511-535.

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