Development and Construct Validation of Performance Management of Human Resources in Line with Organization Objectives

Performance includes behaviors which are related to the objectives of an organization and are regulated on the basis of each individual skill. It helps managers to evaluate the fulfillment of each organization plans and strategic plans. The present study aimed at exploring the components of performance management in line with organization objectives. In doing so, a mixed research design was used. The qualitative were gathered through semi-structured interviews with 14 experts and the quantitative data were gathered through administering the researcher developed instrument among 504 employees working in banking industry, who were selected through random sampling. The qualitative data were analyzed through theme analysis technique. The quantitative data were analyzed through factor analysis. The results of the study showed that the components of performance management had acceptable internal consistency and high construct validity. Comprehensiveness of the model in a way that theoretical and practical applications for human resource management professionals and executives will bring organizations.
Introduction In the present changing world, organizations and their jobs have characteristics such as uncertainty and unpredictability. These organizations and people working in them are under pressure from changes inside and outside the system. These variables are affected by various factors such as political and social instability, the evolution of procedures and organizational structures, as well as cultural and social changes. As a result, employees are often faced with emerging, unstable, unpredictable, and complex situations. Performance management as one of the management processes has a prominent role in helping to realize the goals and missions of the organization. Organizations are equipped by their own personnel and the adjusted goals will be accessible by the same human resources. Performance includes behaviors which are related to the objectives of an organization and are regulated on the basis of each individual skill. It helps managers to evaluate the fulfillment of each organization plans and strategic plans. The present study aimed at exploring the components of performance management in line with organization objectives.
Case study: In the present study, employees from banking industry were selected. The participants were selected from 16 banks in Tehran city, Iran. The participants were 504 employees who were selected through convenience sampling procedure.
Materials and Methods A mixed method research design was used. In the qualitative phase, the items of the questionnaire were developed through in-depth interviews with the participants. The interviews were contented analyzed and the items were extracted. In the quantitative phase which was used for testing the developed model, the researcher-developed questionnaire was used for collecting data. It consisted of four main components and 57 items which are measured on five-point- Likert scale. The questionnaire measures individual performance management, organizational performance management, alignment, and organizational goals. The construct validity of the questionnaire was estimated through running Structural Equation Modeling using Smart PLS3 software.
Discussion and Results Results of the qualitative phase indicated that the model consists of four components: individual performance, organizational performance, alignment, and organizational objectives. Results of the quantitative phase shows that the model is valid. The relationship between the components of the model is significant that is individual performance and organization performance have significant on alignment as well as organizational goals.
Conclusion In line with the findings it can be postulated that it is of much significance to develop an organizational carrier that guarantees the variables listed and encourages a comprehensive performance management system aligned with organizational goals. Accordingly, organizations and HR managers should pay more attention to the importance and role of individuals in the management performance process. Moreover, managers of organizations should pave the way for creativity and do whatever which might lead to greater learning and cooperation of the individual in the organization. It can also be argued that efficiency, ethics and judgmental power as individual variables that influence organizational performance should be strengthened.