How Organizational Learning Is Supported by Performance Management Systems: Evidence from a Longitudinal Case Study

Performance management is meant to encourage organizational change by providing better and more relevant feedback to managers. But there is no denying the complexity of learning and change. How performance management helps this process goes beyond the simple availability of performance information. In this study, we examine the learning processes in a large Belgian public organization through interviews of managers, directors, and administrators. By using 4Is framework of organizational learning—from Intuitions to Interpretation to Integration to Institutionalization—we identify critical blocks and enablers of learning and change. Critical impediments include off-topic discussions of performance information, lack of opportunity to share and discuss management practices, and limited motivation to change entrenched processes of work. Performance management also provides reliable enablers of organizational learning, such as giving credibility-by-results to new management practices, focusing discussions on processes that lead to measurable results, the ability to follow new innovations closely as they are implemented, and the possibility of creating a learning culture supported by performance information. Finally, we discuss how perceived credibility of performance information is crucial to organizational learning and how it is reinforced by use and dialogue.SCOPUS: ar.j