Employee Perception of Performance Management and Its Outcome: Evidence from Nonprofit Non government Education Organizations of Pakistan

Abstract

Performance management is considered the most debated topic in organizations. It is also argued that employees^ perception of performance management plays a key role in organizational performance. Numerous researches have been conducted to explore this topic more comprehensively. Literature review found that corporate sector is giving little importance to performance management, while the nonprofit nongovernment sector has been overlooked by preceding researchers. The impact of the nonprofit nongovernment sector cannot be ignored in the economic development of developing countries like Pakistan especially in the field of education.

Keeping in mind the due importance of this subject and lack of research in the area, this study aims to fill this gap in existing research by analyzing employees' perception of performance management and its outcome in nonprofit nongovernment educational organizations of Pakistan. The outcome of this perception has been further divided into five different variables namely; work performance, organizational commitment, voluntary turnover intention, organizational citizenship behavior and job satisfaction. The method adopted to collect primary data for the research is the close ended structured questionnaire. The survey was conducted in both print and online forms, 164 employees of nonprofit nongovernment educational organizations of Pakistan responded the questionnaire. Data was analyzed on the software, SPSS 20.

Results demonstrate that a significant relationship exists between the independent variable (employees' perception of performance management) and the dependent variables (work performance, organizational commitment, voluntary turnover intention, organizational citizenship behavior and job satisfaction). The relationship of employee's perception of performance management system was observed to be positive in respect of all dependant variables except for voluntary turnover. One conclusion is that, an increment in independent variable was noted to lead to a positive effect in all the dependent variables. After a careful analysis all the null hypothesis have been rejected as per regression model results.