Designing a Qualitative Model of Human Capital Governance Based on Performance Management

Abstract

Introduction and Objective: In today’s dynamic and competitive environment, effective human capital governance is recognized as one of the key factors for enhancing organizational performance and achieving strategic objectives. However, the absence of a comprehensive framework for directing, developing, and evaluating human capital may challenge the effectiveness of performance management systems. Therefore, the present study aimed to design a qualitative model of human capital governance based on performance management.

Methods: This study was applied in terms of purpose and qualitative in terms of approach, employing thematic analysis as the research method. The participants consisted of academic experts and managers with experience and expertise in the fields of human resource management and performance management, who were selected through purposive sampling. Data collection was conducted through semi-structured interviews and continued until theoretical saturation was achieved. The collected data were analyzed using coding procedures and thematic analysis. Basic, organizing, and overarching themes were extracted and subsequently classified into the final conceptual model.

Findings: The findings revealed that the proposed model of human capital governance based on performance management comprises three major dimensions: structure, process, and outcomes. In the structural dimension, meritocratic justice was identified through the components of fairness orientation and merit-based practices. In the process dimension, empowerment, strategic alignment, participation, performance monitoring, and accountability emerged as the core pillars of the model. Furthermore, motivation and efficiency were identified as the most significant outcomes of implementing human capital governance based on performance management.

Conclusion: The findings indicate that achieving effective human capital governance requires the establishment of justice- and meritocracy-based structures, the development of empowering, participatory, goal-oriented, and accountable processes, and attention to employees’ motivational and performance-related outcomes. Accordingly, implementing the proposed model can enhance organizational productivity and efficiency while increasing employee motivation, commitment, and participation, thereby facilitating the optimal utilization of human capital in achieving organizational strategic objectives.