• Živana Veingerl Čič Business School, Maribor, Slovenia
  • Vesna Čančer University of Maribor, Faculty of Economics and Business, Maribor, Slovenia
  • Simona Šarotar Žižek University of Maribor, Faculty of Economics and Business, Maribor, Slovenia



individual employee performance management, nonlinear connections, service sector, structural equation modeling, Warp PLS 5.0


To discuss nonlinear connections between constructs of the conceptual model of individual employee performance management in Slovenian service sector. Constructs were analyzed with the validated measurement instrument, adapted to the Slovenian context due to preliminary research. Existence of significant nonlinear connections between them was checked by structural equation modeling. The software tool Warp PLS 5.0. based on the Warp2 algorithm was used. Holistic employee development methods significantly improve employees’ work satisfaction, individual performance, and well-being. The quality of the conceptual model obtained with Warp PLS 5.0 supports the consideration of nonlinear connections between constructs. They exist between the constructs of the conceptual model of the individual employee performance management system in e.g. the Slovenian service sector. Results make employees and managers aware that existing performance management systems are inadequate. Hence, one must place this knowledge of the situation and trends of individual work performance as the basis for sensible management action, including new performance management systems based on a requisitely holistic approach, focusing on the individuals and their performance, not on the performance management system. The designed employee performance model is individually oriented and applies mentoring, coaching, sponsorship and intergenerational cooperation. It clarifies how one can use holistic employee development to improve individual employee performance, job satisfaction, and well-being.


Download data is not yet available.


Aguinis, H., Gottfredson, R. K., & Culpepper, S. A. (2013). Best-practice recommendations for estimating cross-level interaction effects using multilevel modeling. Journal of Management, 39(6), 1490-1528.

Aguinis, H., Joo, H., & Gottfredson, R. K. (2011). Why we hate performance management—And why we should love it. Business Horizons, 54(6), 503-507.

Allen, T. D., & Eby, L. T. (2007). The Blackwell handbook of mentoring: A multiple perspectives approach. Blackwell Publishing.

Armstrong, M. (2015). Armstrong's handbook of performance management: An evidence-based guide to delivering high performance. London: Kogan Page.

Baldwin, T. & Ford, K. J. (1988). Transfer of Training: A Review and Directions for Future Research. Personnel Psychology, 4(1), 63-105

Böckerman, P., Bryson, A., & Ilmakunnas, P. (2012). Does high involvement management improve worker wellbeing?. Journal of Economic Behavior & Organization, 84(2), 660-680.

Bakotić, D. (2016). Relationship between job satisfaction and organisational performance. Economic research-Ekonomska istraživanja, 29(1), 118-130.

Bollen, K. A. (1989). Structural Equations with Latent Variables. New York: John Wiley and Sons.

Boyatzis, R. E., Smith, M. L. and Beveridge, A. J. (2013). Coaching with Compassion: Inspiring Health, Well-Being, and Development in Organizations. The Journal of Applied Behavioral Science, 49(2), 153 – 178.

Callegaro, M., Manfreda, K. L., & Vehovar, V. (2015). Web survey methodology. Sage.

Danna, K., & Griffin, R. W. (1999). Health and well-being in the workplace: A review and synthesis of the literature. Journal of management, 25(3), 357-384.

Diener, E. D., Emmons, R. A., Larsen, R. J., & Griffin, S. (1985). The satisfaction with life scale. Journal of personality assessment, 49(1), 71-75.

Dobrow, S. R., Chandler, D. E., Murphy, W. M. and Kram, K. E. (2012). A review of developmental networks: Incorporating a mutuality perspective. Journal of Management, 38(1), 210–242.

Fernandez, S. and Moldogaziev, T. (2015). Employee Empowerment and Job Satisfaction in the U.S. Federal Bureaucracy: A Self-Determination Theory Perspective. The American Review of Public Administration, 45(4), 375–401.

Fisher, C. D. (2000). Mood and emotions while working: Missing pieces of job satisfaction?Journal of Organizational Behavior 21(2), 185-202.<185::AIDJOB34>3.0.CO;2-M

Fornell, C. and Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39–50.

Garr, S. S. (2011). The Performance Management Framework Evolving Performance Management to Fit the Modern Workforce. Bersin & Associates.

Gerstner, C. R. and Day, D. V. (1997). Meta-analytic review of leader – member exchange theory: Correlates and construct ideas. Journal of Applied Psychology, 82(6), 827–844.

Goetz, J. L., Keltner, D. & Simon-Thomas, E. (2010). Compassion: An evolutionary analysis and empirical review. Psychological Bulletin, 136(3), 351-374.

Gonçalves, S. P. and Neves, J. (2012). The Link between Perceptions of Human Resource Management Practices and Employee Well-being at Work. Advances in Psychology Study, 1(1), 31-39.

Hair, J. F. Jr., Black, W.C., Babin, B. J. and Anderson, R. E. (2005). Multivariate data analysis. Upper Saddle River: Pearson Prentice Hall.

Hair, J. F., Black, W. C., Babin, B. J. & Anderson, R. E. (2010). Multivariate Data Analysis. Seventh Edition. New Jersey, Upper Saddle River: Prentice Hall.

Hair, J. F., Hult, G. T. M., Ringle, C. M. & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks, CA: Sage.

Harter, J. K., Schmidt, F. L., & Keyes, C. L. (2003). Well-being in the workplace and its relationship to business outcomes: A review of the Gallup studies. (pp. 205– 224). American Psychological Association.

Herb, K. (2015). Investigating the impact of employee development activities on employee well-being, doctoral diss., The University of Akron.

Hinssen, P. (2017). The Day after Tomorrow: how to survive in times of radical innovation. Gent: nexxworks NV.

Jalagat, R. (2016). Performance in CPA Examination: Benchmarking for Opportunities to Meet Market Demands. International Journal of Social Science and Economic Research (IJSSER), 1(9), 1350-1381.

Jayasuriya, R., Whittaker, M., Halim, G. and Matineau, T. (2012). Rural health workers and their work environment: The role of interpersonal factors on job satisfaction of nurses in rural Papua New Guinea. BMC Health Services Research, Journal of Business Ethics, 81(4), 837–850.

Jones, R. J., Woods, S. A. and Guillaume, Y. R. F. (2015). The effectiveness of workplace coaching: A meta‐analysis of learning and performance outcomes from coaching. Journal of Occupational and Organizational Psychology, 89(2), 223– 445.

Judge, T. A., Bono, J. E., Thoresen, C. J. and Patton, G, K. (2001). The job satisfaction-job performance relationship: a qualitative and quantitative review. Psychological Bulletin, 127(3), 376–407.

Judge, T. A. and Klinger, R. (2007). Job satisfaction: Subjective well-being at work. In M. Eid, and R. Larsen (Eds.). The science of subjective well-being (pp. 393–413). New York, NY: Guilford Publications.

Judge, T. A. and Ilies, R. (2002). Relationship of Personality to Performance Motivation: A Meta-Analytic Review. Journal of Applied Psychology, 87(4), 797–807.

Kingston, J., Chadwick, P., Meron, D. and Skinner, T. C. (2007). A pilot randomized control trial investigating the effect of mindfulness practice on pain tolerance, psychological well-being, and physiological activity. Journal of Psychosomatic Research, 62(3), 297–300.

Kock, N. (2011). A mathematical analysis of the evolution of human mate choice traits: Implications for evolutionary psychologists, Journal of Evolutionary Psychology, 9(3), 219–247.

Kock, N. (2015). Warp PLS 5.0 User Manual. Laredo, TX: Script Warp Systems. Kock, N. (2016). Advantages of nonlinear over segmentation analyses in path models. International Journal of e-Collaboration, 12(4), 1–6.

Kock, N. and Gaskins, L. (2016). Simpson’s paradox, moderation, and the emergence of quadratic relationships in path models: An information systems illustration. International Journal of Applied Nonlinear Science, 2(3), 200–234.

Kooij, D. T., Guest, D. E., Clinton, M., Knight, T., Jansen, P. G. and Dikkers, J. S. (2013). How the impact of HR practices on employee well‐being and performance changes with age? Human Resource Management Journal, 23(1), 18–35.

Koopmans, L., Bernaards, C. M., Hildebrandt, V. H., Schaufeli, W. B., De Vet, H. C. W. and Van der Beek, A. J. (2011). Conceptual frameworks of individual work performance – A systematic review. Journal of Occupational and Environmental Medicine, 53(8), 856–866.

Koopmans, L., Bernaards, C. M., Hildebrandt, V. H., de Vet, H.C.W., and van der Beek, A. J. (2014). Construct validity of the Individual Work Performance Questionnaire. Journal of Occupational and Environmental Medicine, 56(3), 331–337.

Košir, K. (2013). Socialniodnosi v šoli (Social relations at school). Maribor: Pedagoška fakulteta Univerze v Mariboru & Subkulturni azil Maribor.

Kraimer, M. L., Seibert, S. E., Wayne, S. J. Liden, R. C. and Bravo, J. (2011). Antecedents and outcomes of organizational support for development: The critical role of career opportunities. Journal of Applied Psychology, 96(3), 485-500.

Milfelner, B., Mumel, D. and Snoj, B. (2006). Meta analiza dveh pristopov k raziskovanju kompleksnih marketinških problemov (A meta-analysis of two research approaches to complex marketing problems). Naše gospodarstvo (Our Economy), 52(5/6), 37–51.

Mulej, M. et al. (2008). Invencijsko-inovacijski management z uporabo dialektične teorije sistemov: Podlaga za uresničitev ciljev Evropske unije glede inoviranja. (Invention-innovation Management by using the Dialectical Systems Theory: A basis for realization of goals of the European Union about innovation (in Slovenian) Korona plus. d.o.o. Inštitut za inovativnost in tehnologijo, Ljubljana.

Murphy, W. and Kram, K.E. (2014). Strategic Relationships at Work: Creating Your Circle of Mentors, Sponsors, and Peers for Success in Business and Life. New York, N.Y.: McGraw Hill.

Musek, J. (2008). Dimenzije psihičnega blagostanja (Dimensions of psychic well-being). Anthropos, 1(2), 139–160.

Noe, R., Hollenbeck, J., Gerhart, B. and Wright, P. (2003). Human resource management: gaining a competitive advantage (4th Ed.). Boston: McGraw Hill.

Podjed, K. (2014). Proaktivni pristop k promociji zdravja na delovnem mestu (A proactive approach to promoting health at the workplace). Ekonomska demokracija, 4(August 2014), 13–19.

Rahman, W., Rahman, H. and Fayyaz, A. (2015). Interrelationship of employee development, organizational commitment, job satisfaction and their impact on turnover intentions. City University Research Journal, 5(2), 301– 314.

Robbins, S. P. (2012). Organizational Behaviour (15th ed.). Upper Saddle River, New Jersey: Pearson Education, Inc.

Ryan, R. M. and Deci, E. L. (2001). On happiness and human potentials: A review of research on hedonic and eudaimonic well-being. Annual Review of Psychology, 52(1), 141–166.

Ryff, C. D. (1989). Happiness is everything, or is it? Explorations on the meaning of psychological well-being. Journal of Personality and Social Psychology, 57(6), 1069–1081.

Šarotar Žižek, S., Treven, S., Mulej, M. and Vaner, M. (2011). The integrative and innovative model of UČV in Slovenian tourism. Academica turistica, 4(2), 33–49.

Šebjan, U. (2015). Kritični dejavnik iuporabe informacijskih rešitev analitičnega upravljanja odnosov s strankami (Critical factors of analytical customer relationship management information solutions use). Doctoral dissertation, Maribor: Faculty of Economics and Business, University of Maribor.

Seibert, S.E., Kraimer, M. l. and Linden, R.C. (2001). A social capital theory of career success. Academy of Management Journal, 4(2), 219 – 237.

Sharma, P. N. and Kim, K. H. (2012). Model selection in information system research using partial least squares based structural equation modeling. In Proceedings of the 33rd International Conference on Information Systems (pp. 1-13), Orlando, FL.

Tavakol, M. and Dennick, R. (2011). Making sense of Cronbach’s alpha. International Journal of Medical Education, 2, 53-55.

Tenenhaus, M. Esposito Vinzi, V., Chatelin, Y., and Lauro, C. (2005). PLS path modeling. Computational Statistics and Data Analysis, 48(2005), 159–205.

Watson, D., Clark, Lee A. and Tellegen, A. (1988). Development and validation of a brief measure of positive and negative affect: The PANAS scales. Journal of Personality and Social Psychology, 54(6), 1063–1070.

Weiss, D. J., Dawis, R. V. England, G. W., Lofquist, L. H. (1967). Manual for the Minnesota Satisfaction Questionnaire. Vol. 22, Minnesota Studies in Vocational Rehabilitation. Minneapolis: University of Minnesota, Industrial Relations Center.

Wright, T. A. (2005). The role of “happiness” in organizational research: Past, present and future directions. In P. L. Perrewe and D. C. Ganster (Eds.), Research in occupational stress and well-being (pp. 221–264). Amsterdam: JAI Press.

Wright, T. A. and Bonett, D. G. (2007). Job Satisfaction and Psychological Well-Being as Nonadditive Predictors of Workplace Turnover. Journal of Management, 33(2), 141–160.

Wright, T. A., Cropanzano, R. and Bonett, D. G. (2007). The moderating role of employee positive wellbeing on the relation between job satisfaction and job performance. Journal of Occupational Health Psychology, 12(2), 93–104.




How to Cite

Čič, Živana V., Čančer, V., & Žižek, S. Šarotar. (2020). CONSIDERING NONLINEAR CONNECTIONS IN THE INDIVIDUAL PERFORMANCE MANAGEMENT MODEL. Acta Economica, 18(32), 9–35.



Original Scientific Papers