Performance Management at the Wheel: Driving Employee Engagement in Organizations

Based on a study conducted in a large corporation (XINC, a pseudonym) and other research, it appears that performance management can be used to increase levels of employee engagement. We begin this article with a discussion of employee engagement, define engaged employees as those who feel involved, committed, passionate, and empowered, and demonstrate those feelings in work behavior. We then discuss an expanded view of performance management, conceptualizing it as five major activities that serve to organize relevant behaviors shown to be either direct or indirect predictors of employee engagement in the study at XINC. These major activities include setting performance and development goals, providing ongoing feedback and recognition, managing employee development, conducting mid-year and year-end appraisals, and building a climate of trust and empowerment. In turn, we briefly discuss how each of these major activities contributes to employee engagement, suggest which activities benefit from further research, and recommend possible studies. Although there is evidence for performance management as a driver of employee engagement, we conclude there is a need for additional research that clarifies for managers which of these activities have the strongest impact on employee engagement.