In introduction of the performance-oriented personnel system, all the subsystem practices need to be well recognized in proper order by employees at workplaces in interaction with superiors, according to the fairness research. In this study, “the PM-practice recognition model,” upon the concept of the performance management cycle, was made. The model consists of 8 subsystem practices: “openness of workplace objectives,” “setting-objective,” “managers’ support,” “evaluation,” “reward decision( monthly salary and year‐end bonus),” “promotion & rotation decision,” and “advice for development.” In good practice case, all the practices are to be recognized in proper order and interrelated by employees. On the other hand, in bad practice case, they are not to be recognized so by them. The purpose of this research is to examine and test the model at workplaces of a medium sized enterprise. The questionnaire surveys were done twice to all exempted-employees at the packing-material-maker A in 2013(before introducing “the performance-oriented personnel system,”) and 2014(after that), and each 258 data set was obtained. As the result of path analysis and model testing for the sales division, while, before introducing the system, 3 practices: setting-objective, evaluation, reward decision, were independent with insufficient goodness of fit, after that, 7 practice factors, out of 8, determined the next factor with better goodness of fit. Thus, the model is said to well reflect changes in the PM-practice recognition of the division members. The use of this model may contribute practical business and academic research. At the end, some challenges and future research issues are discussed.
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