Employee Performance as Function of Performance Management System: An Empirical Study Information Technology Enabled Services Companies around Hyderabad


In this manuscript we report the results outcome of an empirical study carried out on, how the employee performance is a function of performance management system in Information Technology Enabled Service Companies around Hyderabad. A survey was carried on the employees of IT Enabled Services companies around Hyderabad using a sample of 924 employees, consisting of 545 men and 379 women employees. The influence on performance management system was measured against the a) Factors responsible for improved employee performance and b) Factors that impact on performance management system. Using a structured survey instrument a five-point Likert-type scale, 13 factors of dependent variable performance management system was measured against the two independent variables 9 factors responsible for improved performance and 5 factors that impact the performance management applying multiple regression analysis. The survey instrument reliability and internal consistency was measured using reliability statistic Cronbach Alpha which is 0.84, 0.76 and 0.73 respectively, for performance management system, factors responsible for improvement performance management and factors that impact performance management system. The results reveal that both the independent variables significantly influencing the performance management system and there were statistically significant gender differences observed in the sample. However, there were no significant differences in different age groups of the employees.

  1. Agyare, R., Yuhui, G., Mensah, L., Aidoo, Z., and Ansah, I. (2016). The impacts of performance appraisal on employees job satisfaction and organizational commitment: A case of microfinance institutions in Ghana. International Journal of Business and Management, 11(9), 281.  |   Google Scholar
  2. Babu, T.N., & Suashini, N. (2017). Performance management – effective tool for talent management International Conference on Emerging Trends in Engineering, Technology, Science, and Management, 99581-585.  |   Google Scholar
  3. BISWAJEET, P. 2009. Human resource management. PHI Learning Private Limited.  |   Google Scholar
  4. Columbus: Merrill Greenwood.  |   Google Scholar
  5. Draper, N. R., & Smith, H. (1998). Fitting a straight line by least squares. Applied regression analysis, 15-46.  |   Google Scholar
  6. Gay, L.R., Mills, G.E. & Airasian, P. (2006). Educational Research: Competencies for Analysis and Applications.  |   Google Scholar
  7. Gudla, S, and Veni, V. (2012). The study of performance management system in IT Organisations. IOSR Journal of Business Management, 6(3):37-52  |   Google Scholar
  8. Gunasekaran, A., Patel, C., & Tirtiroglu, E. (2001). Performance measures and metrics in a supply chain environment. International Journal of Operations and Production Management, 21(1/2), 71-87.  |   Google Scholar
  9. Gungor, P. (2011). The relationship between reward management system and performance. Procedia Social and Behavioural Sciences 1510-1520  |   Google Scholar
  10. Kumari, N. (2017). A comparative study of performance management system in IT/ITES Industry. London Journal Press 17(1), 1-10  |   Google Scholar
  11. Kumari, N. (2017). A study of performance management system in IBM. Business and Management Reserch Journal 7(2), 19-24  |   Google Scholar
  12. Mamatha, Ch., & Prasad, K.D.V. (2017). Employee Performance A Function of Social Support And Coping: A Case Study with Reference to Agricultural Research Sector Employees Using Multinomial Logistic Regression. IOSR Journal of Business and Management 19 (7), 12-21.  |   Google Scholar
  13. Matalala, M.M. (2011). Performance management hurdles in a Public Health Sector Organization in Zimbabwe. European Scientific Journal, 11(32)244-261  |   Google Scholar
  14. Makhubela, M., Biotha, P.A., & Swanepoel, S. (2016). Employees’ perceptions of the effectiveness and fairness of performance management in South African public sector institution. SA Journal of Human Resource Management/SA TydikrifvirMenlikehulpbronbestuur 14(1), 728.  |   Google Scholar
  15. Messah, O.B., & Kamencu, S.M.(2011) Effect of Performance Appraisal Systems on Employees in Kenya Tea Development Agency: A Survey of Selected Tea Factories in Meru County-Kenya. Research Journal of Finance and Accounting 2(3), 16-35  |   Google Scholar
  16. Mruthyanjaya Rao Mangipudi., (2018). Performance Management Systems in IT Enabled Services (ITES) and its impact on improvement in employee performance with reference to mobile commerce companies operating in and around Hyderabad. ( A doctoral thesis submitted to the RTM Nagpur University, Nagpur during October 2018)  |   Google Scholar
  17. Mustafa, M.S., (2013). Key factors in performance management: Employee point of view. Dissertation, Hamk University of Applied Sciences.  |   Google Scholar
  18. Njuguna, E.N., and Orwa, B.H. 2015. Antecedents of Performance Appraisal and Organizational Performance in Water and Sanitation Companies in Kenya:A Case of Murang’a Water and Sanitation Company limited. International Journal of Business and Economics Research.4(5): 250-263, doi: 10.11648/j.ijber.20150405.14  |   Google Scholar
  19. Paile, N.J., (2014). Employee Performance Appraisal Satisfaction: The Case Evidence from Bruner’s Civil Service. PhD. The University of Manchester  |   Google Scholar
  20. Prasad K.D.V., & Rajesh Vaidya. (2018). Association among occupational stress factors and performance at workplace agricultural research sector employees at Hyderabad, India. Pacific Business Review International 10(7):27-36  |   Google Scholar
  21. Prasad, K. D.V., & Vaidya, R. (2018). Causes and Effect of Occupational Stress and Coping on Performance with Special Reference to Length of Service: An Empirical Study Using Multinomial Logistic Regression Approach. Psychology, 9, 2457-2470 -2470.  |   Google Scholar
  22. Prasad, K.D.V., & Vaidya, R. (2018). Causes and effect of occupational stress and coping on performance and psychological well-being among the Agricultural Research Sector: An Empirical Study using Multinomial Logistic Regression Approach. Helix Journal - The Scientific Explorer. 8(6)4114-4119. DOI 10.29042/2018-4114-4119.  |   Google Scholar
  23. PWC. (2006). Performance management in India A change beckons. PWC Publications.  |   Google Scholar
  24. Ramanuj, N.K. (2012). Measuring the total performance of Reliance Communication-through balance scorecard (Doctoral dissertation, Saurashtra University), http://etheses.saurashtrauniversity.eduy/760/  |   Google Scholar
  25. Sanyal, M.K., & Biswas, S,B. (2014). Employee motivation from performance appraisal implications: Test of a theory industry in West Bengal(India). Procedia Economics and Finance 11, 182-196.  |   Google Scholar
  26. Tilca, M., Mare, E., & Apatean, A. (2018). A model to measure the performance of human resources in organizations. Studia Universitatis “Vasile Goldis” Arad. Economics Series 28(1):57 – 73  |   Google Scholar
  27. Toppo, L., and Prusty, T. (2012). From performance appraisal to performance management. Journal of Business and Management 3(5):16.  |   Google Scholar
  28. Ying, Z.Y., (2012). The impact of performance management system on employee performance. Retrieved on 2nd December 2017. http://essay.utwente.nl/62260/1/Daisy-master_thesis.pdf  |   Google Scholar
  29. Youndt, M.A., Snell, S.A., Dean Jr, J.W., & Leopak, D.P. (1996). Human resource management, manufacturing strategy, and firm performance. Academy of Management Journal. 39(4), 836-866  |   Google Scholar
  30. Zhou, J., Wei, J., Chen, L., & Li, Z. (2010). SaaS-model-based approach for mobile government security. International Journal of Mobile Communications, 8(6), 654-666.  |   Google Scholar


Download data is not yet available.

How to Cite

Mangipudi, M. R., Prasad, K., & Vaidya, R. (2019). Employee Performance as Function of Performance Management System: An Empirical Study Information Technology Enabled Services Companies around Hyderabad. European Journal of Business and Management Research, 4(4). https://doi.org/10.24018/ejbmr.2019.4.4.87

Search Panel

 Mruthyanjaya Rao Mangipudi
 Google Scholar |   EJBMR Journal

 KDV Prasad
 Google Scholar |   EJBMR Journal

 Rajesh Vaidya
 Google Scholar |   EJBMR Journal