Purpose –

Research
has not fully
recognised
the
significance
of employee
stakeholders
to the design
and effective
operation of
performance
management
systems.
The purpose
of the paper
is to
demonstrate
the centrality
of
employees
within the
stakeholder
systems
model of
performance
management
it proposes.
Design/meth
odology/appr
oach –
Stakeholder
theory is
utilised to
critique
current
scorecard-
type
performance
management
frameworks
with a
particular
focus on the
balanced
scorecard as
the most
popular of
these.
Conceptual
analysis is
supported by
case study
evidence
relating to
the
effectiveness
of
performance
management
systems in
knowledge-
intensive
organisation
s. Findings –
The paper
identifies the
concept of
the
responsible
organisation
as a means
of assessing
organisation
al maturity in
performance
management
, and links it
to
dimensions
of
organisation
al justice.
Linkage
enables
stakeholder
perceptions
of equitable
treatment to
be combined
with
effectiveness
measures in
the more
holistic
performance
management
framework
proposed.
Practical
implications
– The paper
demonstrate
s the
significance
and
application
potential of
the
stakeholder
systems
development
of scorecard-
type
performance
management
frameworks.
Conclusions
confirm the
“why” and
the “how” of
a more
participatory
role for
organisation
stakeholders
, and why
employee
stakeholders
merit a “first
among
equals”
status within
these.
Originality/va
lue – The
paper shows
that the
stakeholder
systems
approach
represents a
holistic
approach to
performance
management
through its
incorporation
of
stakeholder
perspectives
at system
design,
operation
and
evaluation
stages. The
paper
responds to
the need for
a new
philosophy
of
performance
management
in an era of
stakeholder
accountable
organisation
s.