Vaasan yliopiston opinnäytteet

Kauppatieteellinen tiedekunta, 2016

Granmo, Nina

The role of employee performance management as a tool for implementing the company strategy

Ohjaaja/Valvoja (DI):
Annika Tidström
Kauppatieteiden maisteri
Johtaminen ja organisaatiot
Master's Degree Programme in Strategic Management
Tutkielman kieli:
78+19 (article)
Due to publishing rights the article that originally was enclosed to this thesis is left out of this version but can be found online through the Tritonia website
Employee Performance Management (EPM) makes out the root that controls and develops employee competence, a type of management without which a company cannot survive for long. As a base for this thesis is an article published in Management Research Review 2011 by the author Granmo (then Hellqvist). The conclusion of the article stated that EPM and Human Resource Management (HRM), together with company strategies on more individual levels, are seen as matters of interest as well as opportunities. One of the perspectives of the article is reviewing the tool and processes of EPM in order to widen the understanding of the subject. This thesis starts with a literature review of the core subject to explain and foresee EPM’s role to the individual and the company strategy. Individual developmental theory and the information achieved from the tool is something a company can work with to gain competitive advantage.

EPM is seen as an instrument for the individual that can cause changes in strategy for the company. The information gathered by EPM affects management decisions and employee issues and can benefit different levels of the company. With the information the tool gives it affects decisions and employee issues. In looking at different levels in the company the benefits of the tool can be seen. Learning has become more valued and is now ranked on the same line as capability thinking - as a core competency. Adjusting individual efforts with the aims of the company will play a role in achieving growth and assessing the potential for the company. The purpose is to look for similarities in the literature compared with information from the case company and find out what will give the best results for the company and the individual.

The methodology is qualitative. The data capture the concepts strategy, HRM and EPM. The theoretical contribution consists of 3 steps in the tool implementation; divided into position, direct and fuel. This thesis describe how they work and the results achieved with empirical evidence. The impact is mainly positive but some improvements can be done. The future for EPM is predicted to be previews instead of appraisals, the ratings and measurement also need some rethinking.
employee performance management, strategy, individual development, human resource management, tool
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