To Study The Impact Of Performance Management On Organizational Performance In Merino Industries Ltd.

Abstract

Purpose: This study primarily deals with the impact of performance management on organizational performance of Merino Industries Ltd. Managing the performance of the employees working in the organization is one of the hardest challenges the organizations are going through now a days, Performance Management entirely rest on the employee’s commitment, competence and clarity. Design/methodology/approach: During the study, the descriptive research design was conducted to analysis the effect of performance management on organizational performance. Questionnaire was constructed to extract the primary data from the employees working at Merino Industries Ltd. 67 employees were included as the sample for the study. The exploratory factor analysis was done using SPSSv16 with the 26 independent variables resulting in six major factors and four items did not load on any of the six factors, and hence they are removed from further analysis. Findings: Findings of the study suggests that if a well- planned reward exercise and feedback mechanism is followed, the performance management system aids as an important tool for employee motivation and development which in turn leads to better organizational performance. Value: The major groups of interest (i.e. management students, academicians, researchers, practicing managers etc.) will be able to understand the impact of Performance Management on Organizational Performance in Merino Industries in a better way.