SKILL-BASED PERFORMANCE MANAGEMENT AND ITS EFFECT ON EMPLOYEE ATTITUDES: A FIELD STUDY

Significant research over the last 30 years has focused on the impact of traditional appraisal-driven performance management systems. However, research on novel performance management systems that incorporate a bundle of human resource management practices has been limited. This study fills this void by examining the impact of a bundle that emphasizes skills enrichment and managerial coaching, called skill-based performance management (SBPM). Its impact on the organization has been viewed as being akin to a black box, with researchers suggesting the existence of intervening variables. This study draws upon the abilities, motivation, and opportunities (AMO) framework to hypothesize that SBPM would have a positive impact on intervening variables around employees’ skill-seeking orientation, connectedness to goals, career satisfaction, and the organizational climate for performance. The research design consisted of a field experiment at a company where a group of employees were subject to an SBPM intervention while a second group (control) was not. A longitudinal survey of employee attitudinal sentiments was conducted for 360 employees over two years using custom survey scales that were verified for comparability to published scales. A MANOVA was conducted with time (before and after intervention) and group type (intervention vs. control) as the independent variables and the attitudinal variables as the dependent variables. The results provided evidence that employee attitudes toward skill-seeking behavior were enduringly impacted. This study provides a prescription for operationalizing a bundle of HRM practices utilizing the AMO framework to influence organizational outcomes. Moreover, it provides credence to the addition of skills-related human resource practices to achieve improved employee outcomes.