In recent times, leading information technology (IT) multinational enterprises claim to have abandoned many traditional features of their performance management systems (PMSs), including the bell curve. However, there is no published empirical study on how employees are perceiving the change. Using an inductive approach and an employee-centric theoretical lens, we investigated employees' (n = 426) perceptions and satisfaction levels with the revamped PMS in three Indian IT services and business solutions multinational enterprises. Employees perceived the present purposes of PMS marginally more favorably than those in the past; however, the gap between the present and future aspirational perceived purposes of PMS was significantly much higher. Satisfaction levels with different dimensions of PMS and alignment of PMS with other human resource functions and leader-member exchange were only modest. Employees mentioned goal setting and continuous feedback as the most positive features of the current PMSs, and transparency, 360 feedback, and adherence to timelines-as improvement areas. The results are indicative of a positive, but the only modest trend in employee satisfaction and perceptions. We discuss the implications of the findings for the employee-centric theory and practice of PMS in the IT industry.
K E Y W O R D SEmployees' perspective, Indian IT MNEs, revamped performance management systems
| INTRODUCTIONThe advent of the 21st century knowledge economy has led to increasing globalization and outsourcing-offshoring of services, powered by disruptive digital technologies, such as social, mobile, artificial intelligence, and cloud technologies, as well as big data and business analytics (Thite, 2018). Accordingly, the business landscape has undergone fundamental changes with tremendous impact on the world of work and people management, especially in the information technology (IT) industry. In the current volatile, uncertain, complex, and ambiguous business environment, IT companies are looking for innovative ways and means to attract, develop, and retain top global talent.Although in terms of innovations in people management practices, high-technology companies, especially in emerging economies, have been the pioneers (Thite, Budhwar, & Wilkinson, 2014), like most other industries, they find performance management system (PMS) to be one of the most contentious aspects of human resource management (HRM). PMS issues get all the more complicated in IT companies because knowledge work is highly dynamic and evolving in nature and requires high-skilled workers. With a view to harness and optimize employee performance, leading IT MNEs are taking a fresh look at the critical PM function, with many IT companies, one after the other, doing away with the bell curve (Rock & Jones, 2015).The "scrapping of the bell curve," initiated by high profile IT organizations, such as Adobe, Microsoft, and Deloitte, reached a mass movement in 2015, attracting a lot of media, academic, and practi-