The Impact of Effective Performance Management system on Employee Outcomes; Evidence from the Hoteling industry of Pakistan
Keywords:
Performance management, Employee satisfaction, Employee turnover, Behavioral outcomes, Employee outcomes, proposed agent-based model (ABM)Abstract
The study's objective is to examine the impact of performance on the employee’s behavior. The proposed agent-based model (ABM) is inspired by Guest (1997) within formal organizational structure frameworks that connect HRM and organizational performance to employee outcomes through performance management. Performance management was taken as the explanatory variable, and Employee outcomes were used as the explained variable. The sampling technique used was cluster sampling. The data was collected through designed questionnaires from 250 hotel employees across the provincial capital cities of Pakistan, including Islamabad, in 2023. Correlation and descriptive statistics were used in quantitative analysis. The regression was employed to estimate the data. In addition, ANOVA, R Square, standard error of the estimate, and Cronbach's are applied to check the model's significance, power, accuracy of prediction, and validity. A strong and positive relationship exists between Performance management and Employee outcomes. Organizations can positively impact employee outcomes by implementing effective performance, leading to a more productive, engaged, and successful workforce.
References
Afsar, B., Shahjehan, A., & Shah, S. I. (2018). Frontline employees’ high-performance work practices, trust in supervisor, job-embeddedness, and turnover intentions in the hospitality industry. International Journal of Contemporary Hospitality Management, 30(3), 1436-1452.
Ahmed, A., Hussain, I., Ahmed, S., & Akbar, M. F. (2010). Performance appraisals impact attitudinal outcomes and organizational performance. International Journal of Business and Management, 5(10), 62.
Aguinis, H. R. (2013). "Avoiding a “me” versus “we” dilemma: Using performance management to turn teams into a source of competitive advantage. Business Horizons 56.4, 503-512.
Amjad, F., Abbas, W., Zia-Ur-Rehman, M., Baig, S. A., Hashim, M., Khan, A., & Rehman, H. U. (2021). Effect of green human resource management practices on organizational sustainability: the mediating role of environmental and employee performance. Environmental Science and Pollution Research, 28, 28191-28206.
Armstrong, M. a. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.
Awan, S. H., Habib, N., Shoaib Akhtar, C., & Naveed, S. (2020). Effectiveness of performance management system for employee performance through engagement. SAGE open, 10(4), 2158244020969383.
B. Sripirabaa, R. K. (2009). Performance management systems in an Indian manufacturing sector. Management Research News, 32(10), 942-952.
Baliga, W. (1995). Want higher profits? Try managing job performance.". Journal of Accountancy 179.4, 13-17.
Bowlby, R. (2011). Living the Future: Organizational Performance Assessment. Journal of Library Administration, 51(7-8), 618-644.
Chompukum, P. (2011). Performance management effectiveness in Thai banking industry: a look from performers and a role of interactional justice. Journal of International Business and Cultural Studies, 5(3), , 1-22.
Corina GAVREA, L. I. (2011). Determinants Of Organizational Performance: The Case Of Romania. Management & Marketing, 6(2),, 285.
Counet, A. A. (2009). Lessons learned from performance management systems implementation. International Journal of Productivity and Performance Management, 58(4),, 367-390.
Danish, P. T. (2007). STAFF MANAGEMENT AND ORGANISATIONAL PERFORMANCE IN TANZANIA AND UGANDA:. Public Servant Perspectives: Final Report. Danish Institute for International Studies.
David Sinclair, M. Z. (1995). Effective process management through performance measurement. Business Process Re-engineering & Management Journal, 1(1), , 75-88.
de Waal, A. R. (2011). "The impact of performance management on the results of a non-profit organization. International Journal of Productivity and Performance Management, 60(8),, 778-796.
Delaney, J. T. (1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management journal, 39(4),, 949-969.
Deming, W. (2007). The Process of Performance management. Performance management, 15.
DeNisi, A. S. (2006). Performance appraisal, performance management and improving individual performance: A motivational framework. Management and organization Review 2.2 , 253-277.
Dev Raj Adhikari. (2012). Human resource development (HRD) for performance management, The case of Nepalese organization. International Journal of Productivity and Performance Management, 59(4), , 306-324.
Folan, P. J. (2005). A review of performance measurement: Towards performance management. 663-680.
Geradts, A. d. (2011). The impact of performance management on the results of a non-profit organization. International Journal of Productivity and Performance Management, 60(8), 778-796.
Halachmi, A. (2005). Performance measurement is only one way of managing performance. International journal of productivity and performance management, 54(7),, 502-516.
HrToolkit. (2011). Keeping the right people. Retrieved from hrcouncil.ca: http://hrcouncil.ca/hr-toolkit/keeping-people-performance-management.cfm
iacono, P. C. (2015). The boundaries of a performance management system between learning and control. Measuring Business Excellence, 19(3), 7-21.
Jena, C. K. (2012). Organizational performance management system: exploring the manufacturing sectors. Industrial and Commercial Training, 44(5), , 296-302.
Jost, W. H. (2005). Corporate performance management. 71-82.
Khan, R. A., Mirza, A., & Khushnood, M. (2020). The role of total quality management practices on operational performance of the service industry. International Journal for Quality Research, 14(2).
Lebas, M. (1995). Performance measurement and performance management. International journal of production economics 41.1, 21-35.
Letsoalo, M. B. (2010). An evaluation of performance management in the public service. Doctoral dissertation.
Li, C., Naz, S., Khan, M. A. S., Kusi, B., & Murad, M. (2019). An empirical investigation on the relationship between a high-performance work system and employee performance: measuring a mediation model through partial least squares–structural equation modeling. Psychology research and behavior management, 397-416.
Marten Schläfke Riccardo Silvi Klaus Möller. (2012). A framework for business analytics in performance management. Schläfke, M., Silvi, R., & Möller, K. (2012). A framework for business analytics in perfInternational Journal of Productivity and Performance Management, 62(1), 110-122.
McDonnell, H. I. (1996). Effective performance management – the teamwork approach considered. 38-42.
Mei-I Cheng Andrew Dainty David Moore. (2006). Implementing a new performance management system within a project-based organization. Journal of Productivity and Performance Management, 56(1), , 60-75.
Minitab. (2008). What Are T Values and P Values in Statistics? Retrieved from minitab blog: http://blog.minitab.com/blog/statistics-and-quality-data-analysis/what-are-t-values-and-p-values-in-statistics
Mizrahi, S. (2015). Performance Management and Organizational Performance. 33-39.
Muhammad, S., Khan, I., & Hameed, F. (2021). The impact of performance management system on employees performance. International Journal of Business and management sciences, 2(3), 38-47.
Naeem, M., Jamal, W., & Riaz, M. K. (2017). The relationship of employees' performance appraisal satisfaction with employees' outcomes: Evidence from higher educational institutes. FWU Journal of Social Sciences, 11(2), 71-81.
Pankaj kumar, D. R. (2014). Relationship between performance management and organization performance.
Paolo Canonico, E. D. (2015). The boundaries of a performance management system between learning and control. Measuring Business Excellence, 19(3), 7-21.
Parakandi, M. B. (2014). Adopting a contemporary performance management system, A fast-growth small-to-medium enterprise (FGSME) in the UAE . 22-43.
Perry-Smith, J. E. (2000). Work-family human resource bundles and perceived organizational performance. Academy of management Journal,43(6), , 1107-1117.
Sahoo, C. K. (2012). "Organizational performance management system: exploring the manufacturing sectors." Industrial and Commercial Training. Industrial and Commercial Training, 44(5), 296-302.
TOOLKIT, H. (2001). Keeping the right people. Retrieved from HRcouncil.ca: http://hrcouncil.ca/hr-toolkit/keeping-people-overview.cfm
Toolkrit, H. (2001). Keeping the right people. Retrieved from hrcouncil.ca: http://hrcouncil.ca/hr-toolkit/keeping-people-overview.cfm
Tortosa, V. M. (2009). internal market orientation and its influence on organisational performance. European Journal of Marketing 43.11/12.
Waal, A. A. (2007). Successful performance management? Apply the strategic performance management development cycle. Measuring Business Excellence, 11(2),, 4-11.
Rahman, W. (2012). The relationship of attitudinal and behavioral outcomes with employee development in the context of performance appraisal in public Universities of Khyber Pakhtunkhwa (Doctoral dissertation, NATIONAL UNIVERSITY OF MODERN LANGUAGES, ISLAMABAD).
Yadav, R. K. (2013). Performance management system in Maharatna Companies (a leading public sector undertaking) of India–a case study of BHEL, Bhopal (MP). International Letters of Social and Humanistic Sciences, (04), , 49-69.
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 IBT- JOURNAL OF BUSINESS STUDIES
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles are published under Creative Commons License term i.e. CC BY 4.0 International
