EFFECTS OF PERFORMANCE MANAGEMENT SYSTEM ON EMPLOYEES MOTIVATION: A STUDY IN BANKING SECTOR OF KARACHI

Abstract

Purpose- Major aim of this study is to describe the effects of performance management employee’s motivation. Changing environment and globalization has developed order to survive in the systems on urge to continuously improve organizational performance in marketplace. The previous researches provide significant evidence that employees’ performance is positively related to employee’s motivation. Methodology/sample- The study involved use of questionnaires filled by 100 respondents. Five banks were targeted for this research. The respondents belonged to different banks, designation levels and had different length of experiences in their respective organizations. To analyze the data, Regression, ANOVA and Correlation tests were applied. Findings- The results clearly show that there is a significant relationship between Performance Management Systems and employees’ motivation. If there is a proper PMS in organization that monitors employee performance then employees are tend to perform better due to increased motivation and satisfaction level from meaningful goal setting, feedback and communication, regular formal and an an coaching and mentoring, continuous informal feedback, employee personnel development, fair performance evaluation and appraisals and pay-for performance. Practical Implications- The research findings can help HR department to develop their performance management systems in such a way that they can encourage their employees to put their best efforts in achieving organizational objectives and will help the HR professionals to solve issues related to employees’ performance that occur due to Performance Management Systems.