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Relationship between Performance Management and Organizational Performance

Pankaj Kumar[a], Dr. R. Nirmala[b] & Prof. Nandakumar Mekoth[c]
Abstract
The performance management system has been considered as the most significant system in
the organization. This research will study the relationship between performance management system
and organization performance. The aim of this study is to explore the possible relationship between
use of Performance Management and the Organization performance of manufacturing and service
firms in India. In this research, a survey is conducted using a questionnaire, in an International cor-
porate HR conference where most of senior HR executives/ Managing Director/proprietors have at-
tended, and a sample of such executives is included in the study. SPSS 16 software is used to analyse
the data and interpreted using tools like factor analysis, Regression etc.
Keywords: - Performance management, Rewards system, Perceived Organization Performance, Em-
ployee development, Goal oriented system etc.

Pankaj Kumar,
[a]
Dr. R. Nirmala,
[b]
Prof. Nandakumar Mekoth,
[c]

Research Scholar (HR), Assistant Professor (HR/OB), Professor,

Department of Management Department of Management Department of Management
Studies, Studies, Studies,
Goa University, Taleigao Plat- Goa University, Taleigao Plat- Goa University, Taleigao Plat-
eau, eau, Goa (India), eau, Goa (India),
Goa (India). Email:[email protected] Email: [email protected]
Email:[email protected]

1. Introduction
Performance management:
The words “performance management” has, over the recent past, very popular. But what is
performance and how will it help any organisation? Is it simply a different pay system, and an objec-
tive –setting methodology or an appraisal process, or is it about career management? A true perfor-
mance management system should comprise all of the above. When successful performance manage-
ment system is implemented, it helps in evaluating and improving both individual and company per-
formance against pre-defined business strategies and objectives. In literature, there are various models
and theories of performance management. Each concept of performance management has its im-
portance as a system for managing organizational performance, managing employee performance, and
for integrating the management of organizational and employee performance. Performance manage-
ment involves many stages of scrutiny, and is clearly linked to the evaluation of Human Resources as
well as performance of organisations. Many terms refer to performance management initiatives in or-
ganizations, for example, performance based mission and goals, performance based reward system,
planning, performance review and appraisal and training and development, and management by ob-
jectives (Bevan, S. & Thompson, M. 1991).
Performance management helps an organisation understand the effectiveness of the people
who work in it. The literature on employee performance is large and growing continuously, with a
number of books and hundreds of articles and case studies published every year. Performance man-
agement system can benefit both the organizations and its employees. It provides individual feedback
and helps in collecting organizational data which can be used for HR planning and program evalua-
tion.

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2. Literature Review
Performance management is an ongoing process of identifying, assessing and developing hu-
man performance in organizations. It is hoped that data are gathered from systematic observations, not
only to measure current performance accurately but also to provide the necessary feedback infor-
mation for changes that will improve future performance. The purpose is to measure improvement,
differentiate between levels of performance, determine training needs, validate rewards and identify
employees for promotion (McCarthy, A. M., & Garavan, T. N. 2001, Buchner, T. W. 2007)
Indian managers have been criticized for not involving employees in the performance man-
agement process (Virmani and Guptan, 1991). Bredrup and Bredrup (1995) sees performance man-
agement as comprising three main processes – planning, improving and reviewing. Of course, these
three processes could be taken as applying to the management of performance at all levels – organiza-
tion, business unit, department, team, individual, etc.
Guinn (1987) and Ainsworth & Smith (1993) have proposed a three-step cycle: performance
planning; assessment of performance; and corrective and adaptive mutual action via mutual feedback
discussions. Torrington and Hall (1995) also likewise have three stages: planning, supporting and re-
viewing performance.
McDonald and Smith‟s (1995) study involved 437 companies in the USA and it demonstrated
that companies that applied Performance Management outperformed companies without such systems
on a wide range of financial and productivity measures.
Likewise, Beer, Ruh, Dawson, McCaa and Kavanagh (1978) evaluated the Performance De-
velopment and Review part of their Performance Management System by means of a 136-item ques-
tionnaire (the other parts being Management by Objectives and Salary and Placement Review). Re-
sults were positive but the 'hard' side of the overall Performance Management System was not ad-
dressed.
Nankervis and Compton (2006), in their study (covering 961 organizations across Australian
industry), came out with few ideal principles of PMS design and implementation. These are: "strategic
alignment of organizational goals and employee goals and outcomes; user friendliness, consistency,
equity and transparency, and clear links between an appraisal and salary review, human resource de-
velopment, coaching and succession plans.
Performance management is the part of Human resource practices so the extensive review of
the literature reveals that adopting wide range of HRM practices is the key to achieving outstanding
performance (Hoque, 1999). Wan et al. (2002) also found a positive relationship between various
company‟s strategic HRM policies/practices and its HR performance. Delaney and Huselid (1996)
found that progressive HRM practices, including selectivity in staffing, training, and compensation
were positively related to perceived organizational performance. The author measured perceived or-
ganizational performance in terms of product quality, customer satisfaction, and new product devel-
opment while perceived market performance as growth in sales, Profitability and market share.
In this study both organizational performance and market performance are combined to
measure the overall organizational performance in perceptual context such as, Profitability, market
share, growth rate, employee productivity, good place to work and public image. However, in pro-
ceeding literature review, an attempt is made to separately review the impact of independent variables
as below:

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3. Objectives / Aims of the research study

In the light of the above literature, this paper attempts to determine of Performance manage-
ment on Perceived Organization Performance. The main objectives are:
1) To investigate the impact of Performance management practices on Perceived Organizational Per-
formance
2) To Investigate the relationship between Independent variables (Goal Oriented Systems, Reward
Systems, Employee development, Performance Appraisal and Review, Justice Perception by In-
dividuals, Individual Competence Review with dependent variables ( Perceived organizational
Performance )

4. Research Methodology
Respondent Sample
This study was conducted in a major three-day Human Resources Management conference
conducted in Goa, India, where printed questionnaires were distributed to all individuals. The total
number of participants in the conference was 300. As it was a prestigious National HR conference,
most of the participants were senior HR executives representing organisations from across the coun-
try. Although it took considerable time to collect data, participants have responded enthusiastically to
the questionnaire. The filled in questionnaires are collected by the researcher and reviewed. Wherever
deficiencies were noted, the respondents have been contacted and the responses are clarified or cor-
rected. The response rate works out to 21-22% of the target sample and compares favourably with
responses achieved by similar studies (Delaney et al., 1989; Huselid, 1995; Guest & Hoque, 1994)
with a response rate ranging between 6.4 to 23 percent).
Though many of the existing studies in the area collected data from organisations using quali-
tative research, there is a general observation that the data collected a cross section of organisations,
and cross-section of employees in each organisation may reflect reality better. There are also concerns
of reliability of studies based on a single respondent. In the corporate setting, usually a single person
(Mostly the human resource manager) answers the questionnaire, and hence this survey data collec-
tion process is relevant for this study. To reduce the respondent bias, the researchers took great care to
brief the respondent on anonymity maintained. On this occasion the researchers had the opportunity to
clarify questions, if any, of the respondents while giving the responses.

5. Research Analysis
Demographic Characteristic of Responding Organisations:
The questionnaire developed for this study has two distinctive parts. The first part listed the
demographic variables like name of the company, sectors (manufacturing, services and others), loca-
tion, annual turnover, average age of employee, financial performance, quantitative data on perfor-
mance management and employees.
On analysing the demographics of responding organizations, Survey Companies (Table- 1)
included 39 Public ltd companies (66.1%) and 20 Private ltd companies (33.9%).
Table 1: Type of company
Frequency Percent Valid Percent Cumulative Percent
Valid yes 39 66.1 66.1 66.1
no 20 33.9 33.9 100.0
Total 59 100.0 100.0
It was found (table -2) according to size of the companies of majority of large companies
(33.9 %).

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Table 2: Size of the company

Frequency Percent Valid Percent Cumulative Percent
Valid Small 7 11.9 11.9 11.9
Medium 15 25.4 25.4 37.3
Large 20 33.9 33.9 71.2
Very Large 17 28.8 28.8 100.0
Total 59 100.0 100.0

As the annual turnover of an organisation reflects its general health, the organisation in-
cluded in the study are analysed also be their turnover, reflected in table -3
Table 3 : Annual turnover in crores
Frequency Percent Valid Percent Cumulative Percent
Valid <50 6 10.2 10.2 10.2
50-100 3 5.1 5.1 15.3
101-200 4 6.8 6.8 22.0
200-500 8 13.6 13.6 35.6
>500 38 64.4 64.4 100.0
Total 59 100.0 100.0

Most of the organisations included in the study belong to manufacturing sector, and
only a small percentage of them are providing services.
Table 4: Sector
Frequency Percent Valid Percent Cumulative Percent
Valid manufacturing 48 81.4 81.4 81.4
Service 9 15.3 15.3 96.6
others 2 3.4 3.4 100.0
Total 59 100.0 100.0

Number of employees on company‟s payroll suggests the size of an organisation, based on its
manpower. It has been noticed that most of them employ 1000 or more employees, which alo corrob-
orates with the number of organisation having higher turnover.
Table 5: Number of Employees on Company payroll
Frequency Percent Valid Percent Cumulative Percent
Valid <100 5 8.5 8.5 8.5
100-500 7 11.9 11.9 20.3
501-1000 7 11.9 11.9 32.2
>1000 40 67.8 67.8 100.0
Total 59 100.0 100.0

At the same time, most of the organisations included in the study have significant number of
employees working for them on contract. Also it can be seen that most of the organisations have em-
ployed people on contract, and can be understood as order of the day.

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Table 6 : app. no. of contract employee working

Valid Per-
Frequency Percent cent Cumulative Percent
Valid <50 4 6.8 7.0 7.0
50<100 4 6.8 7.0 14.0
100<500 12 20.3 21.1 35.1
>500 36 61.0 63.2 98.2
5 1 1.7 1.8 100.0
Total 57 96.6 100.0
Missing System 2 3.4
Total 59 100.0

Number of branches which an organisation has reflects the extent of reach of the organisation.
When analysed for this, it was found that 28 % companies have 2-5 number of branches and that 9
companies have no branches, as shown in table 7.
Table 7 : Number of branches
Frequency Percent Valid Percent Cumulative Percent
Valid nil 9 15.3 15.8 15.8
2<5 17 28.8 29.8 45.6
6-10 13 22.0 22.8 68.4
11-15 8 13.6 14.0 82.5
>15 10 16.9 17.5 100.0
Total 57 96.6 100.0
Missing System 2 3.4
Total 59 100.0

Reliability and Validity of the Research Instrument:

Though there are many performance management practices, not all of them may link to firm
performance. The theoretical and empirical work reviewed indicates that there are certain perfor-
mance management variables which have a bearing on organizational performance. However, for the
purpose of the present study, four practices were selected, which had greater support across a diverse
literature (Beer, Ruh, Dawson, McCaa, and Kavanagh 1978).
The performance management system as used in the present study include: organization
measuring goals, performance reviews and appraisal, reward system, employee development. There
are 28 items constructed based on these themes, and 6 items are added to reflect perceived organisa-
tional performance, viz., Profitability, market share, growth, employee productivity, a great place to
work and public image of the organisation. The data collected from the respondents on the first 28
item are subjected to factor analysis using SPSS 16.0. The exploratory factor analysis done with the
26 independent variables resulted in 6 factors explaining 71.399 percent of the total variance. These
factors are named as:
 Goal Oriented Systems
 Performance based Reward Systems
 Performance Oriented Training Systems

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 Performance Appraisal and Review

 Justice Perception by Individuals
 Individual Competence Review
Before applying statistical tools, testing of the reliability of the scale is very much important
as its shows the scope to which a scale produces consistent results if measurements were made repeat-
edly. This is done by determining the association in between scores obtained from different admin-
istrations of the scales. If the association is high, the scale yields consistent results, this is reliable.
Cronbach‟s alpha is most widely used method. It may be mentioned that its value varies from 0 to 1
but satisfactory value is required to be more than 0.6 for the scale to be reliable (Malhotra, 2002;
Cronbach‟s, 1951). In the present study, we, therefore, have been using Cronbach‟s alpha scale as a
measure of reliability (Table-8).
Table 8: Reliability value of the Scale
Scale No. of Items Cronbach‟s Alpha
(α)
Goal Oriented Sys- 5 .861
tems
Performance Based 5 .826
Reward Systems
Performance Orient- 5 .868
ed Training Systems
Performance Ap- 5 .803
praisal and Review
Justice Perception by 4 .850
Individuals
Individual Compe- 2 .496
tence Review
Source: Survey data

From the table-5, it is seen that the reliability value was estimated to be α =. 496 to. 868, if we com-
pare the reliability value of the scale used in the present study with the standard value alpha of 0.6
advocated by Cronbach‟s (1951). Here is only five variables are better perform than last one individu-
al competence review. Hence that, researchers satisfied reliability and validity of the scale.
The exploratory factor analysis done with the 28 independent variables resulted in 6 factors
explaining 71.399 percent of the total variance, and two items did not load on any of the six factors,
and hence they are removed from further analysis. The first factor could be explained as goal oriented
systems, while the second as performance based reward system and the third as performance oriented
training systems. The fourth factor included variables corresponding to performance appraisal and
review, the fifth had variables representing justice perception by individuals and the last had variables
representing individual competence review. The results of the factor analysis are provided in table 9

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Table 9: Rotated Component Matrixa of data reduced using SPSS

Component
1 2 3 4 5 6
formal training to teach new employee
.788
the skills need to perform in their jobs
goals documented very specifically &
.765
detailed
PMS current focus of org appraisal
.745
scheme
appropriate system for periodic interim
.651
review of performance
objective & goal clear to employee for
.610
appraisal & monitor
salary & other benefits compare to
.747
market
Profitability sharing is used reward
.717
higher performance
unambiguously related to goals of the
.595
org.
promotion criteria r clearly spelled out
.591
for employee
org conduct extensive training program
.536
aspect of quality
work environment is conducive to im-
plement the learning derived in training .710
program
Provide the facility for counselling &
.708
coaching to improve indi, team behav.
superior & peers involved in determin-
.659
ing training need of individual
Performance based skill training identi-
.635
fied through Performance appraisal.
each job will go through training pro-
.614
gramme every year
POM is measured basis of objective
.659
quantifiable result
Performance Planning & Monitoring
.632
consider by Org's strgy and goals
job performance important factor de-
.573
termining d incentive comp
performance goals clear defined begin-
.533
ning year

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HR dept responsible for PM of the em-

ployee <.5
employee faith on performance ap-
.736
praisal system
Appraisal, review system strong influ-
.685
ences ind. & team behave.
Ind. & org growth & strgy matched org
.563
goals & objectives
compensation system based on equity
.508
for all employee
compensation decided on d basis of
.630
competence & ability
periodic assessment is done impact of
.591
training given on the workplace

a. Rotation converged in 16 iterations

The factors named thus, are explained in the context of existing literature, to understand their
significance in the current study, as given below:
Goal Oriented Systems: In an organization, Performance management system begins with
goals. Goals define the results that people should aim to achieve objectives. Goals are criterion for
performance planning, appraisal, rewards and improvement. Without goals and objectives would be
wasted on actives that‟s contributed very little to organization success and performance. Every com-
pany or organization, firm and every employee needs and plans for achieving them. Goals focus the
limited resources and time of individual and organization on the things that matters most. Some goals
must also be shared. Without shared goals, people would strike out in different directions and collabo-
ration would be minimal. A key element for effective coaching employees is the practical use of goal
setting. The prime proverb of goal setting theory is that specific, difficult goals lead to higher perfor-
mance than when people strive to simply “do their best”, (Locke, 1966; Locke & Latham, 2006).
Performance Appraisal and Review: It is a process by which organizations evaluate em-
ployee‟s performance (Werther and Davis, 1985). The study of Cunha (2002) showed that Perfor-
mance management has a positive and significant impact on organizational performance. Moreover,
competitive advantage may be strengthened through performance management practices that enhance
worker motivation. Performance appraisal system has become a generally banner for a variety of most
of activities through which the organization seeks to assess employee and develop their competence,
enhance performance and disturbed performance based rewards it sometimes becomes a part of a
broader approach to strategic human resource management known as a performance management sys-
tem.
The effective performance appraisal systems help to create a motivated and committed work-
force. To be effective they require the support of top management to show their commitment and to
translate organizational goals and objectives into personalized employee specific objectives (Boice,
1997). Such objectives become the basis of their performance appraisal.
Performance based Reward Systems: Pay for performance and accurate feedback constitute
a powerful tool for managing organizational performance. Brown, M., & Heywood, J. S. (2005).
found positive relationship between organization-level compensation decisions and organizational
performance. The results of Delaney and Huselid (1996) also suggest that progressive HRM practices

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especially incentive compensation, are positively related to perceptual measures of organizational per-
formance
Performance Oriented Training Systems: Noe, R. A. (1986) defined training as a planned
effort to facilitate the learning of job related knowledge, skills and behaviour by employees. It repre-
sents activities that teach employees, how to perform their present job (Werther and Davis, 1985).
Research studies have demonstrated that training has a positive influence on organizational perfor-
mance. Zwick (2006) stated that increasing the training intensity has a positive and significant effects
on establishment of productivity. In the same way Bartel (1991) also demonstrated a direct and posi-
tive relationship between productivity and training program. The amount of training is an important
antecedent for firms who wish to improve their productivity (Savery and Luks, 2004). Delaney and
Huselid (1996) took a broad view of HRM practices and found that training along with other HRM
practices were positively related to perceptual measures of organizational performance.
Justice Perception by Individuals: Performance management mechanism that has broad im-
plications for attitude and behaviours in organizations. In this study justice perception research has
been mainly focused on how employee evaluates justice in the performance management context. Re-
searchers have recently differentiated procedural from interactional justice by examining the source of
the justice perception (supervisor and organization). Moorman (1991) differentiated procedural justice
and not procedural justice. Erdogan, B. (2003) said Justice Perception is related to different attitude
and behaviours and justice perceptions are important reactions in the performance appraisal context
and his study focused on what makes appraisal fair and the consequences of appraisal fairness. Still
there is a need to pay attention to operationalization of justice perception used by researcher and need
to modify these measures in line with their respective theories.
Individual Competence Review: Armstrong and Baron (2002) described the concept of per-
formance management therefore underpins the philosophy of the learning organization, promoting
continuous improvement, focusing on the accumulation of skills and competencies in the short term to
meet the organizations long term requirements. The process involves creating linkage between strate-
gy and organization's skills, competencies, policy, internal support systems, the reward structure and
organizational culture. Thus, the tighter the linkage, the more powerful strategy execution and more
likely targeted performance can be achieved.
Moreover, implementing a strategy is a job for the whole management team and all employees are
participants (Thompson and Strickland, 1995).
Dependent Variables:
Further regression analyses were performed with factor scores as independent variables and the 6 firm
organisational performance indicators as dependent variables. The six indicators included are relevant
for study, as explained below:
Profitability: Bruns, W. (1998) studies Profitability is the powerful tools to measure the performance
of the business.
Market share: it is indicate the market performance of the organization. Economic theory also sug-
gests that when an organization becomes more efficient and is able to lower its prices due to improved
technology, it can increase its sales, and therefore, overcome its competitors (Chang and Sing, 2002).
Several competition measures have been proposed to compare how a firm is performing relative to its
competitors. Market share is the proportion of the total available market that is being served by an
organization.
Growth rate: is an indicator of organisation performance, as it reflects the potential of organisation in
the near future. Many independent research organisations publish relative growth rates of organisa-
tions in a particular industry and that is given significant importance by the organisations and its vari-
ous stakeholders. Hence this dimension has been included for study.

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Employee Productivity: Caves (1974) and Kokko (2006) use employee productivity to compare effi-
ciency among organizations in a specific industry. They define employee productivity as the total out-
put divided by the number of employees. Patterson et al. (1997) propose the use of an alternative
measure of employee productivity
Great Place: The primary defining characteristic of a great place to work is the level of trust between
management and employees, not specific policies and practices. Fulmer, I. S., Gerhart, B., & Scott, K.
S. (2003) created instrument of great work place to measure performance of the organization.
Romero, E. J. (2004) found positive relationship between great place in organisation and firm perfor-
mance.
Public Image: public image with their company-image, and here examining how the relationship be-
tween their perceived public image and company-image was associated with organizational perfor-
mance.

6. Data Analysis
Therefore, have been using Cronbach‟s alpha scale as a measure of reliability in table 10.
Table 10: Reliability Statistics
Cronbach's Alpha No of Items

.812 6

In social science research, Cronbach‟s alpha >80 is preferred and is considered “Good relia-
bility”. From the table-7, it is seen that the reliability value was estimated to be α =. 812. Here is only
six items are better performing. Hence that, researchers satisfied reliability and validity of the scale.
The results of the regression analyses are provided in table 11.
Influence of Performance Management Systems on Firm Performance and Employee Produc-
tivity
Factor Profitability Market Growth Employee Great Public
Share Rate Productivity Place Image
Goal Oriented 0.134 0.094 0.085 0.149 0.231** 0.090
Systems
Performance 0.349*** 0.258* 0.326*** 0.368*** 0.076 0.054
Based Reward
Systems
Performance -0.021 0.056 -0.014 0.370*** 0.110 0.120
Oriented Train-
ing Systems
Performance -0.082 0.093 -0.150 -0.104 -0.079 -0.057
Appraisal and
Review
Justice Percep- 0.243** -0.024 -0.207 0.157 0.497*** 0.455***
tion by Individu-
als
Individual Com- -0.178 -0.031 -0.079 0.178 0.237** -0.119
petence Review
R Square 0.237 0.089 0.185 0.362 0.381 0.250
ANOVA S NS NS S S S
*** Significant at 1% level, **Significant at 5% level and *Significant at 10% level

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Of the six multiple regression analyses performed four models were found to be having good
predictive power in terms of R squares and ANOVA results. Two R squares were considerably low
and the corresponding F ratios were insignificant. The models predicting firm performance in terms of
Profitability, employee productivity, great place to work and public image were significant but those
predicting market share and growth rate were found to be insignificant.
Of the independent variables, performance based reward system was found to be the most in-
fluential factor which predicts the maximum number of firm performance measures. Profitability,
growth rate and employee productivity were predicted with beta coefficients being significant at 1%
error level and market share at 10% error level. Performance oriented training was found to influence
employee productivity and the coefficient is significant at 1% level. Justice perception by individuals
was the second most influential factor and was found to predict greatness of the place to work, public
image and Profitability. Goal oriented systems and individual competence review were found to make
the firm a great place to work. Performance appraisal and review was found to predict none of the
firm performance measures. Thus performance based reward system was found to have the most pow-
erful influence on most measures of firm performance.

7. Findings
1) A statistical correlation has been found between Goal oriented system and perception of it
being a great place to work, significant at 95% confidence level
2) Performance based reward systems in an organization found to have a statistically signifi-
cant correlationship with profitability (at 99% confidence), Market share of the organiza-
tion (at 90% confidence), Growth rate (at 99% confidence) and employee productivity (at
99% confidence).
3) Performance oriented training system correlates significantly with employee productivity
at 99% confidence
4) Performance appraisal and review doess not correlate significantly with any of the organ-
izational performance variables included in the studied.
5) Justice perception by individuals correlates significantly with profitability (95% confi-
dence level), great place to work (99% confidence) and public image (99% confidence)
6) Individual competency review correlates significantly only with the organization being
perceived as a great place to work at 95% confidence.

8. Suggestions:
1) Organisations that focus on goals, this research suggests are considered to be great
place to work by employees. Hence, it makes sense for organisations to involve em-
ployees in goal setting, and have a focused approach to achieving the same, with the
added benefit of improving employee image of the organisations.
2) Organisations place emphasis on performance based reward systems to improve indi-
vidual employee productivity. This research showed that performance based reward
system was found to have maximum impact on organisation productivity. Hence, it is
suggested that organisations give maximum importance to these dimensions, which
can significantly impact the overall organisation performance.
3) The relationship observed between performance oriented training system and em-
ployee productivity is predicted, and the organisations interested in improving em-
ployee productivity are suggested to invest in performance oriented reward systems.
4) However, one of the factors, performance appraisal and review was found not to have
any significant impact on any of the firm performance variables. This is quite surpris-

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ing since performance appraisal is a basis for all performance related systems like
training, rewarding, and so on in many organisations. Thi research suggests that while
employees splace a lot of importance on the performance management process, actual
review and appraisal is not considered significant and does not contribute to organiza-
tional performance.
5) Justice perception by the employees, which may be considered as an outcome of the
review and appraisal process, on the otherhand has a significant impact on organiza-
tional productivity and perceived image of the organization. Thus, organisations can
be suggested to ensure that the process of performance management bemade trans-
parent to the employees and involving people in the design and implementation of
Performance management system may yield benefits and add to organizational per-
formance.
6) Individual competence and review, as perceived by employees, significantly impacts
their perception of the organization ass a great place to work. So, organisations will
do better to adopt competence based performance management systems.

9. Conclusion
Statistical analysis shows relationship between performance management practices and per-
ceived organizational performance. This indicates that such practices of performance management
help an organization to achieve sustained growth. The current study shows a significant relationship
between the independent and dependent variables. It is interesting to note that the variable „perfor-
mance appraisal and review‟ was found not to have any significant impact on organization perfor-
mance. This is quite surprising since performance appraisal is a basis for all performance related like
training, rewarding in most of the organisations. This relationship can be explored further, as it sug-
gests that organisations may have to take a re-look at the total performance management system so as
to improve organisational performance

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Acme Intellects International Journal of Research in Management, Social Sciences & Technology ISSN 2320 – 2939 (Print) 2320-2793 (Online)
Let your Research be Global search– An Ultimate search of Truth- Reforms through Research Vol- 9 No. 9 Jan 2015

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