Interplay between performance measurement and management, employee engagement and performance

Purpose The purpose of this paper is to recognise the importance of the interplay between performance measurement, performance management, employee engagement and performance. However, the nature of this phenomenon is not well understood. Analysis of the literature reveals two dimensions of organisational control, technical and social, that are used to develop a conceptual framework for studying this phenomenon. Design/methodology/approach The authors conducted explorative action research involving pilot and control groups from two departments of a UK bank. Findings The authors show that an intervention on the social controls has led to changes in technical controls of the performance measurement system resulting in significant improvement in employee engagement and performance. Research limitations/implications The research was undertaken with two cases from a single organisation. Further fine-grained, longitudinal research is required to fully understand this phenomenon in a wider range of contexts. Practical implications The paper contributes to the theory on performance measures and gives guidance on how organisations might design their performance measurement systems to enhance employee engagement and performance. Originality/value The study makes three contributions. First, the authors introduce a new theoretical framework based the organisational control theory providing a basis for future research. Second, through nine propositions, the authors establish a causal relationship between performance measurement, performance management, employee engagement and performance. Third, the authors identify a gap in knowledge concerning the design of organisational controls in the context of the process that is being managed.