It can be defined as the range of activities including the goal setting, performance appraisal systems, reward strategies and training and development (DeNisi 2000). The primary objective of the PM is to ensure that all of the organisational processes, units and employees are operating together in the best and efficient way to acquire the organisation’s strategic goals (Biron, Farndale & Paauwe, 2011). Moreover, the strategic performance management is about implementing the strategies. It is the alignment of the HR and organisational strategies (vertical fit) and the alignment of the HR strategies and policies with each other (Horizontal fit) (Latham et al., 2007). A survey report by CIPD (2009), indicates that the PM system that is implemented correctly can improve the business performance. However, the PM system must be tailored according to the internal and external factors of the organisation to achieve the desired organisational goals. Thus, an effective PM system can be a crucial HR strategy to achieve enhanced organisational performance by effectively aligning all the organisational subsystems, in order to achieve the company’s long-term …show more content…
Although in some cases, employment legislation can enhance the employee’s sense of job security and commitment to the company, there is the literature based evidence to support that the highly legislated economies have lower productivity levels (Brinkley, 2015). Similarly, the positive link between the trade union representation and productivity can be confronted with the argument that the unions reduce the productivity and slow down the decision making and policy making through the violent acts like union strikes and other disruptive activities (Freeman & Medoff, 1984). However, Ghilarducci (1985), in her book review of Freeman and Medoff, discusses that the main function of the unions is to provide the voice to the employees to maintain the employee involvement in the company decision and policy making. For example, United Welsh a non-profit organisation, had a recognition agreement with the union but it was not working well. Thus, the management introduced an option-based consultation model where the management involves the trade unions in