Dewettinck, Koen; van Dijk, Hans (International Journal of Human Resource Management, 2013)
Based on expectancy theory, goal-setting theory and control theory, we propose a model in which perceived fairness mediates the relationship between characteristics of employee performance management (PM) systems and their perceived effectiveness by employees. PM system characteristics we propose are the frequency and length of formal reviews, the frequency of informal reviews and feedback, whether the formal conversation focused on evaluation or development and finally the degree of participation. The model was tested on a cross-industry sample of 3192 employees in Belgium. The measurement and structural models were simultaneously tested using structural equation modeling, and we used a bootstrapping approach to test the mediation hypothesis. Our findings indicate that performance review focus and employee participation strongly relate to perceptions of appraisal fairness and PM system effectiveness and that the frequency of informal performance reviews is stronger related to PM system effectiveness than the frequency of formal performance reviews. This suggests that the manifest expressions of PM have more impact on PM system effectiveness rather than the more latent characteristics of PM systems. The findings advance research to the role and functionality of PM systems by showing that (a) the manner in which PM systems are shaped and executed is of fundamental importance for their effectiveness, (b) fairness partially mediates the relationship between PM system characteristics and their effectiveness and (c) the three motivational theories appear useful for understanding the consequences of PM practices on individual employees.
Private equity firms are accused by trade unions of changing industrial relations in buyouts by demonstrating an unwillingness to recognize and work with trade unions, and by downgrading information and consultation. To explore these important policy issues, this article reports the first representative pan-European survey of managers’ perceptions of the impact of private equity on industrial relations. Managers report that private equity investment does not result in changes to union recognition, membership density or changes in management attitudes to trade union membership. Furthermore, managers in firms recognizing unions after private equity buyouts do not report reductions in the terms and conditions subject to joint regulation. Under private equity ownership more firms report consultative committees, managers regard these as more influential on their decisions, and indicate increased consultation over firm performance and future plans. Comparing industrial relations changes in different social models in Europe, the results suggest private equity firms adapt to national systems and traditional national industrial relations differences persist after buyout.
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