Performance Management System

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Organizations have to provide the best products and services by capitalizing on their most important and valuable asset (employees) in order to sustain in the competitive world. With knowledge based competence becoming more valued and necessary, human capital is an increasingly important investment for any thriving business, and Performance Management is significant in facilitating and maximizing the return on investment (ROI). The present study is on Performance Management in software industry, with the opinion that the focus of Performance Management is organization performance but not individual performance and the true essence of Performance Management is the linkage of various dimensions, measures, initiatives, and indicators influencing the overall performance outcome expected. It aims at examining the critical dimensions of Performance Management and most importantly the influence of the critical dimensions on performance outcomes. The present work is a modest attempt which has come up with a good model specifying the relationships between the critical dimensions of Performance Management. The model was tested using path analysis.