ABSTRACT
This chapter presents a review of behavioural issues associated with organisational performance-management practices. This review covers the period from 1992 to 2015, contributing to the literature on performance-management systems (PMS) in a number of ways. The chapter provides the most current review of PMS behavioural research. A great deal of behavioural research in PMS is supported by psychological theories. This review found that of the 118 articles examined, 42 did not employ any theory, and of the remaining 76 papers, 49 used psychology theories. That is, approximately, 41 per cent of the articles used psychological theory to support the research on behavioural issues related to PMS. Social-psychology theories are concerned with how social factors influence human behaviour. It has been found that the general use of PMS can contribute to improved manager decision making and learning, as well as self-monitoring ability because the use of performance measures focuses managers' attention on important performance areas.
