Impact of performance management reviews: evidence from an energy supplier.

Organisational researchers and managers alike have long held the view that performance reviews, based on performance measurement systems, have a positive impact on business performance. Nevertheless, there is relatively little research to support this hypothesis. This study sets out to tackle this gap by testing the effect of performance reviews on business performance in a UK energy supplier using agency theories. Our evidence shows thirty-three positive effects of performance reviews; twelve of them are identified as the most cited by our interviewees. Seven factors that moderate the firm’s results are identified; the ‘local leadership’ on performance reviews, which is a contribution to knowledge from this research, stood out as one of the most powerful factors that moderate performance reviews. Two negative effects of performance reviews are highlighted by this research. Finally, this research discusses the implications to the body of knowledge and practice.