Relationship between Performance Management System (PMS) and Organizational Effectiveness (OE): Manufacturing Enterprises in India

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

JEL Classification: L16, L21, L22, L23, L25