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Abstract
This study is going to establish a relationship between performance management system (PMS) and Organizational Effectiveness (OE). Data were gathered from 54 companies from Indian manufacturing sectors using a structured questionnaire. Factor analysis, reliability and regression tests in SPSS 22.0 have evaluated data. The results show that the practices of PMS have a significant relationship with organizational effectiveness. Findings reveal a positive association between many of identified system of Performance Management such as Organization vision and mission and goal setting measures. This study has presented implications for both managers and practitioners. Limitations of the study, and directions for future research are discussed.
Keywords: Performance Management System (PMS), Organizational Performance, Manufacturing Enterprises, Organizational Effectiveness, Human Resource Management.
Before designing a Performance Management System (PMS), there needs to be a clear definition of performance management. The purpose of this section is to identify the key activities included in the performance management process, by reviewing different definitions of performance management that exist in the literature. Management literature has been searched by using keywords such as 'definition of performance management,' 'define performance management', 'performance management system.'
The term 'performance management' has come to replace the phrase 'performance appraisal' in many organizations. In the process of Performance appraisal system highlighted the assessment of performance of the employee. The concept of Performance management has been one of the most important and positive developments in the field of Strategic HRM. All organizations are interested in superior organizational effectiveness. This research study explores the relationship between Performance Management Systems (PMS) and organizational effectiveness (OE), using a survey of the perceptions of senior executives in Indian manufacturing organizations.
Litreture Review
Performance Management System (PMS)
When a successful performance management system is implemented, it helps in evaluating and improving both individual and company performance against pre-defined business strategies and objectives, at an organizational level of analysis. This research assumes that an organization that is performing well is one that is successfully attaining its objectives; in other words, one that is effectively implementing an appropriate system. The following definitions are taken into account with consideration to Performance management as a system.
There are some researchers who object to associating the word 'system' with performance management because of its association with the notions of the...