Performance management systems in an Indian manufacturing sector

Abstract

Purpose – The functions of a performance management system in any organization encompass diverse activities, which include the performance appraisal process. In order to design appraisal systems and appraise employees appropriately, organizations may enter into partnerships with external consultants. In addition, organizations are required to allocate financial resources to support not only the performance management system itself but also incentives for employees with superior performance. The purpose of this paper, using a model, is to investigate the influence of partnering and financial support on the functions of a performance management system. The capacity of the system to align its functions to help achieve an organization's strategic goals is also examined.Design/methodology/approach – A questionnaire survey elicited responses from middle‐level employees using a validated instrument. The variables included in the study were based on prevailing practices in performance management, which include pa...