Designing a values-based performance management system towards promoting congruence of personal and organizational core values

This study gives emphasis on how a values-based Performance Management System can lead to promoting congruence between organizational core values and the personal values of employees. Specifically, this study focuses on a tertiary higher education institution located in Manila, Philippines and how a values-based Performance Management System may be designed in order to achieve congruence of values. Congruence contributes to success by ensuring that the behaviors exhibited by employees in the workplace are strategically aligned with the vision, mission, goals


Introduction
Human resources are assets of the organization. They are strategic business partners (Mitsakis, F., 2014) in the achievement of the vision, mission, and goals of the organization. It is important to manage human capital in ways that will bring out their potential to contribute positively to the success of the organization. in the workplace for activities unrelated to one's work, stress, and anxiety (Gulbovaitė, 2017). Employees give more importance to selecting organizations whose values match their own over how much they will be compensated for their work (Diskiene, D. & Gostautas, V., 2013).
Evaluating congruence of core and personal values is a measure aimed at diagnosing and minimizing a gap by ensuring consistency. Congruence is a condition where individual values are harmonized with those established by the organization. Adherence to these values is manifested in the conduct of daily activities. Harmonizing the values of employees and the core values of the organization means that there is congruence between the employees' personal values and the values prevailing in the organization . Concrete realization of core values involves consistence in identifying, describing, communicating, and practicing the values. Creating a strong organizational value system entails having employees who live by the values formally communicated by the organization and make strategic decisions grounded on these values even when faced with difficult situations. A performance management system anchored on the core values can ensure that the factors that matter most to the organization are incorporated on the expectations set among the employees. Immersing the core values into the processes of managing employee performance would facilitate workplace behavior anchored on these. Performance management system processes include planning, ongoing feedback, employee input, evaluation, and review (Pulakos, E., 2014). Establishing a values-based competency framework may be used to communicate performance expectations, provide clear standards on how jobs should be carried out, and gauge that employees have the required skills for success. In order to successfully integrate organizational core values in the performance of employees, functional and values-based competencies must be articulated.
The study aims to discuss the process of managing employee performance and how the core values can be incorporated in an organization's performance management system.

Literature Review Theoretical and Conceptual Background Values
Values serve as guide for actions and behaviors of employees to ensure alignment with the vision, mission, goals, and strategies of the organization. These are essential especially when the organization is surrounded by uncertainty and ambiguity.
Social scientists have established that values are precursory to the process of decision-making. Different circumstances have been analyzed in the light of the predictive and explanatory nature of values that are expressed consciously and unconsciously (Cheng, A. & Fleischmann, K., 2010). Adhering to values indicate what are appealing and enticing to a person, thus, directing the judgments and decisions he or she makes. Values develop early in life and are enduring once ingrained in the personality of an individual. They set the standards for priorities (Kumar, C., 2012) and serve as anchor for actions and decisions. Values embody desirable goals and the means to achieve these. (Marcus, J. & Roy, J., 2017).
Values, in the context of management, are associated with organizational performance. Organizations have established value systems (Gorenak, M. & Kosir, S., 2012) which may be seen through policies, guidelines, and practices. These are principles adhered to by an institution (Kumar, C. 2012) which are driven by the goal to succeed. An organization's value system is a mechanism used by management to bring about organizational success through desirable and purposeful employee behavior, favorable attitude towards work, and promotion of positive organizational climate (Gulbovaitė, 2017).
Organizational values mirror the mission and strategic goals of the organization. They pertain to the values articulated by management and are juxtaposed as critical to progress. They are aimed to positively influence and motivate employees to use their creativity geared towards the growth and development of the organization (Gorenak, M. & Kosir, S., 2012).
In the book "Execution: The discipline of getting things done", Larry Bossidy, Ram Charan, and Charles Burck (2011) emphasized the importance of values in operationalizing organizational culture. Values are critical to leadership and execution because they provide the standards that must be reinforced in the organization. They are deeply-rooted in the operations which make them enduring and there is rarity in the need for changing (Bossidy et al., 2011). This holds true despite the necessity to alter business practices and strategies in response to the volatility of the contemporary world. Values are rooted on the desirable end goals of the organization (Bourne, H. & Jenkins, M. & Parry, E., 2019); thus, they tend to be lasting and stable.

Core Values
A specific value is established as core to the organization if it is essential to the strategy and operations (Byrtek, G. & Dickerson, M., 2013). Acting and thinking in accordance with established core values are critical to the organization's identity, mission, strategy, and success. Organizational mindset is steered towards the context of the vision, mission, and strategic direction (Barchiesi, M. & La Bella, A., 2014). It must be constantly and strongly reiterated that the core values serve as encompassing basis for all decisions the institution makes; thus, these must be introjected into all processes, including human resource management processes. Deliberate effort must be exerted to make employees aware of the organization's core values from their first interview until their last day of work because these are the institution's cultural foundation upon which actions and decisions are deeply-rooted.
Organizations establish core values that guide employees on how to go about with the daily activities in the workplace. Core values provide information on what are deemed acceptable in the organization. Values are perceived to be a fundamental aspect of organizational culture. Organizational culture is built upon the shared values of individuals who comprise the organization. Creation of organizational values is preceded by establishing the company's philosophy, which is ingrained in the organizational culture (Gorenak, M. & Kosir, S., 2012).

Congruence of Values
Based on the Person-Environment (P-E) fit paradigm, attitudes and behaviors arise from the congruence between characteristics of the individual and the environment. Characteristics of the individual include needs, values, end-goals, personality, and abilities, while environment characteristics include rewards, cultural values, and environmental conditions (Darrow, J. & Behrend, T., 2017). This paradigm is comprised of two traditions, namely: the complementary fit and the supplementary fit. Complementary fit is anchored on the psychological need fulfillment and is demonstrated as the match between a person's desires and the resources available from the environment to fulfill these desires. Supplementary fit gives emphasis to the matching characteristics of a person and an organization, including similarity between individual values and the value system of the organization. Theoretically, values congruence has effects on the attitude and behavior of a person because of the tendency to trust and be attracted to people with similar values and characteristics (Gulbovaitė, E., 2017). Similarities in values can yield a common approach to cognitive processing and interpretation of circumstances, thus, increasing predictability and enhances interaction with others. An employee is likely to be comfortable in a work environment where the things important to him are also considered important by others. Having shared values facilitates ease in communication and coherence in actions.
The broad concept of P-E fit has been broken down into different facets, one of which is Person-Organization (P-O) fit. P-O fit is oftentimes referred to as congruence between the personal values of the employees and the values of the organization subsumed under organizational culture. The P-O fit model by Jennifer Chatman defines this as the congruence of values (Gulbovaitė, E., 2017). Congruence affects the attitudes and behaviors of people due to the attraction towards others to whom one has similarities with. Values congruence is central to the study of P-O fit because this deals with the consistency of personal values with the culture and values of the organization the individual works for. P-O fit enhances an employee's identification and compatibility with the organization because it is concerned with the consistency of the employee's values, behaviors, and interests with that of the organization. Both the organization and its employees benefit from high degrees of P-O fit (Vveinhardt, J. & Gulbovaitė, E., 2015). Employees experience comfort and develop competence in an environment with values similar to them. The organization benefits as employees develop favorable attitudes toward work and this fosters positive organizational climate. The fit between the values of a person and the values of the organization is perceived to be fundamental and enduring. P-O fit and values congruence have been associated with employee workplace behaviors and outcomes, including motivation, job satisfaction, organizational commitment, intent to stay, and socialization. Individuals will seemingly remain satisfied and motivated by values that attracted them in the first place. An activity becomes meaningful if the employee is able to discover its alignment to his or her core values. Without this convergence, a person can become alienated and disengaged from their work.
Congruence contributes to success by ensuring that the behaviors exhibited by employees in the workplace are strategically aligned with the vision, mission, goals, and objectives of the organization. Creating a strong organizational value system entails having employees who live by the values formally communicated by the organization and make strategic decisions grounded on these values even when faced with ambiguity and difficulties.

Performance Management System
Performance Management System includes HR practices that accentuate the important role of human resources in accomplishing the desired goals of the organization. Performance Management activities aim to positively influence employee behavior and organizational performance (Okechukwu, 2017). These actions are planned and implemented for the enhancement of organizational effectiveness, achievement of organizational goals, and improvement of organizational outcomes through human resources (Ali, M., Lei, S., & Wei, X., 2018). Values-based Performance Management practices promote values congruence by introjecting the organization core values from the performance planning phase to the performance review phase. Introjecting the values in managing performance provide conditions aimed at harnessing the capability of the employees to achieve the vision, mission, goals, and objectives of the organization.
Managing the performance of employees is concerned with establishing clear and realistic goals and objectives, monitoring, measuring, providing feedback, and performance improvement. The relationship between the employee and the immediate superior plays a key role in the success of an implemented Performance Management System. A values-based Performance Management System is a holistic approach as it emphasizes not just the evaluation of an employee's performance. Goals and strengths are also highlighted (Cappelli, P. & Travis, A., 2016). HR management practices related to performance management are designed to motivate and retain employees. Performance evaluation must be underpinned on mutually established goals and objectives and must be the basis of giving performance feedback. The objectivity and accuracy of evaluation measures are important in maintaining the overall quality of performance. Values-based practices in managing performance will promote employee motivation, job satisfaction, organizational commitment, intent to stay, and socialization by strengthening congruence of values.

Research and Methodology
The qualitative research design was used to establish an extensive understanding of the core values of a tertiary higher education institution located in Manila, Philippines. A set of questions focused on establishing the definition and the conceptualization of the core values were prepared for the semi-structured interviews. The questions were used to interview University administrators to identifying the definitions and hallmarks of the core values, namely: competence, commitment, and compassion. The data gathered became the basis for developing the values-based competency framework. The core values of the institution were translated into competencies and behavioral indicators based on the definitions and hallmarks gathered from the interviews.
The interviews were conducted in the offices of the identified respondents, with the exception of one administrator, wherein the interview was conducted through an online platform. Being in a comfortable environment can posit favorable effects on the interviewee, thus, can positively affect the quality of the interview (de la Croix, Barrett, & Stenfors, 2018).

Findings and Discussions
This study includes highlighting the various phases of performance management system. It is important to identify these phases to ensure that the core values are well-introjected into the whole system. In order to illustrate this, the core values of a tertiary higher education institution located in Manila, Philippines is thoroughly discussed to show how these can be incorporated in the process of managing performance. The competencies and behavioral indicators corresponding to each core value are identified to make the latter more concrete.
A values-based Performance Management System integrates the core values into the management of employee's performance and daily workplace activities. The core values become the internal determinants of employee behavior. Organizational core values lose their meaning if employees do not live by them. When values are internalized, they become actionable . The core values are translated into competencies and are expressed as performance standards. The organization must establish a performance management system that encourages and recognizes employees who support and adhere to the core values. Valuesbased behaviors may be reinforced through the administration of rewards.
Managing the performance of employees is concerned with performance planning, providing feedback, performance appraisal, performance review, and employee development. An organization's performance management system aims for better overall performance. This includes different facets of quality management (Raziq, A. & Wiesner, R., 2016). Part of the standards of performance must be the extent to which employees are able to meet established expectations in relation to promoting the organizational core values.
Effective performance management spells out responsibilities and expectations. The process is a means of developing employee capabilities, thus, enhancing individual and organizational productivity. Behaviors are aligned with the organizational strategies, goals, and values. There is improved communication between managers and employees which aids in enhancing the effectivity of feedback and coaching.
The core values are translated into competencies and are expressed as performance standards. A Performance Management System may be designed specifically for the purpose of employee development. This is focused on utilizing information gathered from appraisal as basis for developing the capabilities of employees. This encourages and recognizes employees who support and follow the core values. Employees who do not adhere to the values will be assisted on how to comprehend the values and how these should guide their actions and behaviors.
The values-based competency framework can be used to communicate performance expectations, provide clear standards on how jobs should be carried out, and gauge that employees have the required skills for success. In order to successfully integrate organizational core values in the performance of employees, functional and values-based competencies must be articulated.
The core values must be expressed in terms of actual behaviors of employees. In order to objectively and accurately evaluate employees, values and behaviors need to relate to what they actually do in the company and how they perform their tasks.

Performance Planning
Performance planning must include an agreement between the employee and the manager or supervisor regarding behavioral and results expectations anchored on the core values. Expressing competencies in the form of behavior provides a clear basis for differentiating between employees who are performing more or less effectively than others (Pulakos, E., 2004). It facilitates internalizing the values as employees develop a deep understanding of what is expected from them. It goes beyond mere awareness of the core values. In planning for performance, there is intentional action to incorporate the values in setting performance targets and expectations. Translating the core values into competencies provide uniformity and objectivity in evaluating employees, whether their performance reflects the essence of the values. Defining competencies in terms of behavioral performance standards increases consistency, transparency, and fairness.
The strengths and weaknesses of employees are identified and become basis for future development (Ashkezari, M. and Aeen, M., 2012). Employees who do not adhere to the values must be assisted on how to understand the values and how these should guide their actions and behaviors. The implementation of the values by the employees must be included in their evaluation.

Performance Feedback
Once behavioral and results expectations have been identified, it will be beneficial for employees if they will be provided with feedback regarding daily accomplishments. Conversations should not only focus on outstanding performance nor ineptitude. Ongoing feedback can be conducted informally and inserted as part of the daily work routine (Pulakos, E., 2004).
Values-based performance management is employee-oriented. Feedback is an opportunity for the supervisor or manager to gauge if the actual performance is aligned with the planned performance. Values must be embedded in the decision-making process to constantly remind employees of what the company stands for. The extent to which acuity and judgment of the employees reflect the core values must be included in the feedback process.

Employee Self-Appraisal
Employee input may be conducted through self-appraisals using the performance standards identified in the Performance Planning phase. The use of these performance standards will ensure consistency in terms of the performance targets and expectations anchored on the core values. The result of the self-appraisal may be processed by comparing it with the appraisal to be accomplished by the supervisor or manager. This may also be discussed as part of the performance review.
Soliciting employee input enhances the sense of ownership and acceptance (Pulakos, E., 2004). The employee is provided a chance to gauge his own performance. If the Performance Management System is anchored on the values, self-appraisal will allow the employee to have an objective basis to evaluate congruence of personal and organizational values. This also promotes communication between supervisors or managers and employees. It is an opportunity for the former to recall results achieved by employees and the behaviors that enable them to achieve these. This promotes understanding and minimizes any discrepancies regarding employee's contributions during the performance review phase.

Performance Evaluation
Expressing competencies in the form of behavior provides a clear basis for differentiating between employees who are performing more or less effectively than others. It facilitates understanding of expectations and provides uniformity and objectivity in evaluating employees. Defining competencies in terms of behavioral performance standards increases consistency, transparency, and fairness.
Performance evaluation information can be obtained from superiors, peers, subordinates or customers. This type of rating process is often referred to as 360-degree feedback. Considerations include which rating sources should be included and how performance evaluation information will be collected, managed, and controlled. The use of 360-degree feedback provides a comprehensive view of performance from various perspectives. A more complete assessment of effectiveness is generated. Ideally, the ratings of at least three raters from each rating source should be averaged and discussed with the employee. This increases reliability and accuracy of feedback and protects the anonymity of individual raters.
In designing the performance appraisal tool, functional competencies may be validated by subject matter experts. Critical tasks may be identified by senior members of the staff. For values-based competencies, these must be expressed using simple language relevant to the day to day jobs of employees. These must be validated in accordance with the definition and hallmarks of the values to ensure that they reflect the essence of the core values.

Performance Review
The performance review is a recap of what has taken place during the appraisal period (Pulakos, E., 2004). If ongoing feedback has been done as part of the performance management process, this phase can focus on discussing the ratings, narratives, and rationale of the evaluation. This is also the ideal time to plan developmental activities with employees. Competency models and performance standards can help managers and employees identify and address areas for development. Unmet standards of performance are considered as development areas. If all job standards have been met, employees and managers can look into plans for advancement of the career of the employee. Information from the performance review can also be used as basis for administrative decisions (Rodriguez, J. & Walters, K., 2017), such as rewarding behaviors and results consistent with what the core values stand for. Linking appraisal with compensation, rewards, and recognition can be utilized to move employees to increase effort and performance toward organizational goals while successfully meeting their own individual needs as well.

Creating Values-Based Competency Profiles
Competency profiles identify the key competencies and their importance. This maps out the characteristics and demeanor expected of employees. Identifying the behaviors that embody the core values transform these into concrete and measurable attributes.
A competency model is an inventory of pertinent behavior, knowledge, skills, and abilities necessary for superior performance (Pulakos, E., 2004). This is derived through the examination of what comprises exceptional employee performance. This is an ideal framework for the purpose of strengthening congruence of personal and organizational core values because it can be used to identify the values-based competencies employees need to develop. This can also be used for analyzing the gap between the available and needed competencies of employees and the organization. A competency model is especially useful because it communicates what is important to an organization and provides a common foundation for developing integrated employee performance management system.

Competence as a core value
Competence as a core value is associated with performance (Campeanu-Sonea, E., Sonea, A., Gabor-Supuran, R., & Muresan, A., 2011). This ensures that the knowledge, skills, and experiences possessed by an individual match those necessary to meet the expected quality of performance. Competence is essential in order to yield performance and efficiency of superior quality. It is the ability to function efficiently in one's work environment and operate amid challenging situations (Agha, S., Alrubaiee, L. & Jamhour, M., 2012).
Organizations expect employees to perform tasks that are assigned to them. Competence indicates that they possess the skills and behaviors required to accomplish these tasks and fulfill the desired results (Campeanu-Sonea et al., 2011). It can either be behavioral, technical, and abilities. Behavioral competence is often referred to as the soft skills. This refers to having the type of behavior consistent with achieving expected results. Technical competence refers to possessing the hard skills in order to accomplish one's roles. Ability is often interchanged with technical competence; however, this has a limited meaning. This pertains to vocational qualities in order to perform activities at minimum standards.
The table below illustrates how the value of competence is translated into competencies and behavioral indicators that may be incorporated in appraising performance.

Commitment as a core value
Commitment as a core value is characterized by an adherence to identified goals, eagerness to be at the forefront, and enthusiasm to pursue a job (Chiang, Y., Lee, H., Chu, T., Han, C. & Hsiao, Y., 2015). Persistence, dedication to one's role, and the interest for professional development are elements of commitment (Mazerolle, S. & Dodge, T., 2015). This is a continuous process where the individual works beyond expectations, for the benefit of achieving the goals of the organization and attain success.
Commitment can either be professional or organizational. Professional commitment is adherence to a chosen career, the people who are engaged in the same line of work, and the practices and idiosyncrasies established within the profession. A person is intrinsically motivated to perform work to which he/she is loyal to. There is inclination to establish a strong linkage and be well-recognized within the professional circle (Perry, S., Hunter, E. & Currall, S., 2016).
Organizational commitment is defined by an association with the organization where one is working for. This is characterized by loyalty, engagement, and attachment (Perry et al., 2016). Commitment is reflected by one's identification with the organization (Paino, H., Thani, A. & Zulkarnain, S., 2012) manifested through congruence of goals. A person committed to one's organization exerts effort to deliver more and exhibits favorable workplace behavior.
The table below illustrates how the value of commitment is translated into competencies and behavioral indicators that may be incorporated in appraising performance.

Compassion as a core value
Compassion as a core value is being other-oriented and inter-relational, manifested by genuine sympathy for another person's plight and the urge to take action to bring ease. In the paper "Aquinas on Compassion: Has He Something to Offer Today?", Thomas Ryan (2010), substantively discussed compassion as explained by St. Thomas Aquinas in his works. Compassion is an emotion and virtue that defines human nature. It is in man's nature to extend assistance to another.
A healthy love of self is an antecedent of compassion. Respect for oneself is the foundation of respect for others. Envy is seen as the opposite of compassion. Envy is an unfavorable attitude towards the fortune of another. Compassion is the sympathetic attitude towards the distress of another person.
It has three dimensions: cognition, affective, and volitional. Cognition is the awareness of another person's distress. Affective is being moved by what one sees. Volitional is taking active steps to bring solution or relieve the distress of the other person.
St. Thomas used the Latin word "misericordia", which when translated to English can mean compassion, pity, or mercy. Misericordia as compassion means that a person willfully acts to help ease the suffering of another. Identification with another's distress differentiates compassion with pity. Misericordia as mercy is more associated with forgiveness. Identificatory compassion is characterized by empathy where one suffers "in" the other, not "with" the other. This means that there is not only awareness of the difficulties of another individual. With compassion, a person experiences the difficulties of the other. The plight is shared and there is consciousness to act.
Central to the concept of compassion is acknowledging and giving recognition to personhood, or the value of a person. Compassion is person-centered and is built upon respect and trust. It is a key value that aims to address the unique needs of individuals (Sharp, S., McAllister, M. & Broadbent, M., 2015). It is characterized by supportive and helpful acts that express care, concern, and tenderness (Eldor, L., 2018).
In the field of healthcare, compassion is tantamount to providing holistic and individualized care (Sharp et al., 2015). In management, compassion is emotion-based, which includes expressions of warmth and affection (Eldor, L., 2018). It is anchored on authentic sensitivity to the feelings of others. Compassion is characterized by a well-thought of response and action to alleviate the distress of another (Sharp et al., 2015).
The table below illustrates how the value of compassion is translated into competencies and behavioral indicators that may be incorporated in appraising performance.

Conclusion
Performance management system is a means of achieving organizational goals by providing a work environment that sets the groundwork for high quality employees. The organization can influence the performance of employees (Idowu, A., 2017) by facilitating the achievement of expectations. An organization's Performance Management System can contribute to values congruence if performance standards are aligned with the core values. Performance assessment metrics must reflect the desired outcomes and behaviors of employee performance (Rodriguez, J. & Walters, K., 2017). Appraisal is a major part of the management of employee performance. Identifying strengths and weaknesses, providing meaningful feedback, and highlighting training needs are some of the important developmental aims of appraisal. Recognizing excellent as well as poor performance, validating the criteria for selection, and deciding on transfers and layoffs are some administrative aims of appraisal (Rodriguez, J. & Walters, K., 2017). Designing appraisal based on the core values can form a basis for recommending actions that will strengthen values congruence and improve employee performance. A well-designed performance appraisal system can be an objective basis for determining if employees have values congruent with those espoused by the organization. Decisions on the kind of support employees need can be anchored on the results of appraisal. In planning for employee development, administrators must assist employees in formulating performance objectives and action plans to guide on the proper allocation of resources such as time and effort (Rodriguez, J. & Walters, K., 2017). Tasks expected to be accomplished must be clearly identified. Performance criteria anchored on the core values will help translate these into actions and assess if employee activities are aligned with what the organization aims to achieve. Positive feedback lead employees to perform better. While for employees whose performance fall below standard, feedback can help in addressing areas of deficiencies and highlighting appropriate behavior leading to better performance (Idowu, A. 2017).Performance management system is a platform for harnessing employee motivation (Idowu, A. 2017). Recognizing employees' work efforts is a key incentive. Following the lines of the expectancy theory, incentives have a positive impact on motivation. Linking appraisal with compensation, rewards, and recognition can be utilized to move employees to increase effort and performance toward organizational goals while successfully meeting their own individual needs as well. In linking pay with performance, setting precise targets is a very important step. This will ensure that rewards are anchored on the ability to obtain targets. Non-monetary awards that recognize achievements, efforts, and behaviors are also known to generate employee motivation. Recognition leads and encourages employees toward better performance. Meeting expectations and superior performance are indications of commitment and loyalty to the organization (Idowu, A. 2017). Implementation of the rewards system can motivate and retain high quality employees (Rodriguez, J. & Walters, K., 2017). Relating this with diversity as a consequence of inclusiveness, performance management can be used to align employee activities to the values espoused by the organization. Organizational leaders must support employees in identifying outcomes and behaviors that are in conformity with expectations and standards ideally anchored on the core values. Performance management facilitates consistency in achieving organizational goals through effective and efficient means (Rodriguez, J. & Walters, K., 2017). Rewards and recognition can be used to sustain the motivation of employees to achieve explicit goals and boost performance.

Acknowledgement
Author Contributions: Conceptualization, Methodology, Data Collection, Formal Analysis, Writing-Original Draft Preparation, Writing-Review And Editing by authors with equal participation. All authors have read and agreed to the published the final version of the manuscript. Institutional Review Board Statement: Ethical review and approval were waived for this study, due to that the research does not deal with vulnerable groups or sensitive issues. Data Availability Statement: The data presented in this study are available on request from the corresponding author. The data are not publicly available due to privacy.

Conflicts of Interest:
The authors declare no conflict of interest.