Effectiveness of Performance Management System for Employee Performance Through Engagement

Abstract

This article seeks to explore the effectiveness of a comprehensive performance management system in terms of employee performance. Besides, the mediating effect of work engagement was also examined. The performance management system effectiveness (PMSE) was determined by the extent of its accuracy and fairness, as recommended by previous researchers. A sample of 285 employees was selected from various branches of private banks located across Pakistan. A structured questionnaire was used, which was validated through confirmatory factor analysis (CFA) in the Pakistani context. The results indicated a significant impact of PMSE and work engagement on task and contextual performance of employees. Also, complementary mediation of employee work engagement in the relationship between PMSE and employee performance (in terms of task and contextual performances) was also supported. The findings of the research are helpful for the development of HR and PMSE strategy in the private banks of Pakistan. The study also suggests that a comprehensive PMSE model including the perception of fairness as a mandatory part, may be introduced for employees’ enhanced work engagement and task/contextual performance. The mediating relationship of work engagement has established the process of PMSE for the task and contextual performances of employees, which is a valuable contribution of the study.

Linkage between Leaders’ Behaviour in Performance Management, Organisational Justice and Work Engagement in Public Sector

“…Consequently, previous studies have analysed more proximal outcomes of performance management, in terms of cognitive, affective and conative outcomes, such as affective commitment (Norris-Watts and Levy 2004) and turnover intention (Van Waeyenberg et al 2017). More recently, work engagement has started to attract attention, referring to it as to the positive result of performance management; however, still there is a dearth of studies that focus on performance management as the antecedent of work engagement in public organisations (West and Blackman 2015;Andrews and Mostafa 2019;Awan et al 2020). Furthermore, this happens despite the relevance of the concept of work engagement (Ancarani et al 2018), as disengaged employees are costly to public organisations due to their potential to negatively influence public service delivery (Andrews and Mostafa 2019).…”

The Concept of Digitalization-based Performance Management In An Effort to Improve Employee Performance During the Covid-19 pandemic in Village-Owned Enterprises (BUMDES) throughout Buleleng Regency

“…The application of this concept will encourage BUMDes administrators or their employees to think and act to always maintain and be oriented towards long-term organizational goals. Employee performance can generally be understood as the contribution that employees have given to the progress and development of an organization or instance, where the performance of the organization will be satisfied if work targets are able to be implemented properly (Awan et al, 2020;Mangipudi et al, 2019;Nainggolan et al, 2020).…”

Performance measurement systems, environmental satisfaction, and green work engagement,

“…The evidence from the literature suggests that PMS use can positively influence employees' satisfaction (Franco-Santos et al, 2012;Souza & Beuren, 2018), as well as being beneficial for work engagement (Awan et al, 2020). Despite the literature in the environmental context lacking empirical evidence, it is hoped that the logic shown is perpetuated.…”

“…First, satisfaction with organizational environmental engagement potentially leads employees to higher levels of green work engagement (Côté et al, 2021;Rayton & Yalabik, 2014); that is, the inspiration, pride, immersion, enthusiasm, happiness, and energy of employees to carry out environment-related tasks (Aboramadan, forthcoming). The PMS literature traditionally highlights positive effects on job satisfaction (Franco-Santos et al, 2012;Souza & Beuren, 2018) and work engagement (Awan et al, 2020), but less is known for the environmental context. Along general lines, the evidence suggests that using PMS can promote environmental satisfaction (Hristov et al 2021;Lisi, 2015;Paillé et al, 2020) and result in green work engagement (Aboramadan, forthcoming;Bhutto et al, 2021;Çop et al, 2021); that is, environmental satisfaction can potentially play a mediating role.…”