Abstract:
People are intellectual assets and the success of any organization depends
largely on how the people are valued. Performance management system is the very
manifestation of the effective intellectual asset management in the organization .The
purpose of this article is to understand the performance management system and its
relationship with employee performance motivation. This study is based on research
data of 416 working professionals from telecommunication companies in India. We
propose a new three step model indicating the interrelationships of the two
components of the performance management system viz. Design and Execution
identified as latent classes responsible for the employee motivation to perform
because of performance management system. The relationship is tested with the
research hypotheses on these classes using multinomial logistics regression.