RESEARCH AT CRANFIELD SCHOOL OF MANAGEMENT HIGH COMMITMENT PERFORMANCE MANAGEMENT: THE ROLES OF JUSTICE AND TRUST Clare Kelliher Professor of Work and Organisation For organisations, this study’s findings emphasise the importance of justice and trust to achieve desired performance outcomes. There has been intense interest in how Human Resources Management (HRM) can add value to organisations. Conceptual models have started to explore the links between Human Resource Management (HRM) practices and HRM outcomes, but more empirical investigation is needed to “open the black box” between HRM and performance. The purpose of this paper is to explore the relationship between employees’ perceptions of a particular subsystem of HRM practices (performance management) and their commitment to the organisation. In addition, the study sought to examine the mechanisms by which these perceptions translate into employee attitudes and behaviours. When exploring the impact of high commitment work practices on firm performance, little attention has been paid to the employee perspective, even though employees ultimately are the recipients of an organisation’s HRM practices, and as such their perceptions of these practices affect their attitudes and behaviour in the workplace. The paper focuses on performance management as a subsystem of high commitment work practices. These practices are designed to engender commitment form employees through involvement and personal development, such as regular appraisal feedback, input into the process of target setting, choosing pay and benefit options and appraisals leading to development opportunities and new targets. In return for these organisational practices, the employee reciprocates with higher commitment to the organisation, in line with social exchange theory (Blau, 1964). In addition, when employees feel they have opportunities to develop, the reciprocal repayment of this investment is demonstrated again in terms of commitment and a lower intention to leave. Farndale et al present the argument that for performance management practices to have the effect of achieving high commitment; this RESEARCH AT CRANFIELD SCHOOL OF MANAGEMENT depends on the extent to which employees perceive these practices to be fair, both in terms of the process and the outcomes. The approach adopted is to consider how the company’s organisational climate affects employee reactions using theories of organisational justice and trust. Organisational justice is proposed to play a key mediating role in this relationship, and has been found to explain a wide range of employee behaviours, triggering employee commitment in organisations. The extent of trust that employees have in the organisation, as represented by senior management, is an important aspect of organisational climate. Employee trust in senior management is interpreted through the company’s policies and practices, in this case performance management practices. Farndale et al construct a model of HCPM and its relationship with these variables and test it in an empirical study to explore its applicability to theory and practice. For organisations, this study’s findings emphasise the importance of justice and trust to achieve desired performance outcomes. The findings also suggest, particularly for the companies in the study, that increased focus on improving perceptions of justice, through ensuring line management are capable of carrying out HCPM practices, may help improve commitment to the organisation during change. The study also leads the authors to believe that it is essential to examine the actual employee experience of HCPM practices and outcomes at the employee level if we are to understand their effects on firm performance and to consider the broader organisational context, if researchers and practitioners are to understand the high commitment performance management practices effects on firm performance. Farndale, E., Hope Hailey, V. & Kelliher, C. (2011) ‘High commitment performance management: the roles of justice and trust’, Personnel Review, vol. 40, no. 1, pp. 5-23. WATCH THE VIDEO INTERVIEW http://tinyurl.com/bltbnn3 2012 Outstanding Paper Award for Personnel Review Management Theme: Managing People and Global Careers MANAGEMENT THEMES AT CRANFIELD SCHOOL OF MANAGEMENT Business Economics and Finance Business Performance Management Corporate Responsibility and Sustainability Entrepreneurship and Business Growth General Management Information Systems Innovation and Operations Management Leadership Managing People and Global Careers Marketing, Sales and Client Relationships Programme and Project Management Strategy, Complexity and Change Management Supply Chain and Logistics Management