Abstract
Performance Management Systems (PMS) have an established reputation in outlining essential tools and metrics that enable the achievement of high-quality organisational outcomes. However, there is growing evidence that they may inadvertently compromise the efforts towards desired organisational outcomes. Short-term gains oriented, misaligned or inflexible performance management systems may debilitate the process and lead to counterproductive workplace behaviours and outcomes instead. This emerging paradox calls for deeper examination of the organisational dynamics and behaviours that cause PMSs to impede the achievement of long-term positive organisational outcomes and sustained competitive advantage.
This paper therefore argues that the way organisations design, develop and implement their PMS has a direct impact on the achievement (or lack of it) of Sustainable Human Resource Management (SHRM) outcomes. It further goes on to argue that positive organisational practices with respect to leadership, culture and employee engagement play a moderating role in encouraging Knowledge Sharing (KS); whilst negative practice encourage Knowledge Hiding (KH) instead. This creates a paradox in the impact of PMS on SHRM and KS and KH end up playing a mediating role in the final relationship. The paper adopts the Social Exchange Theory as the theoretical foundation to support the arguments being made.