Author(s)
R. Sangeetha, R.Sathya
- Manuscript ID: 121119
- Volume 2, Issue 6, Jun 2026
- Pages: 3138–3150
Subject Area: Business and Management
Abstract
This study examines the effectiveness of the Employee Performance Management System (PMS) with special reference to an agro-based private organization. In today's competitive business environment, an effective performance management system plays a vital role in improving employee productivity, organisational growth, and overall efficiency. A well-structured PMS helps organisations evaluate employee performance, identify strengths and weaknesses, provide constructive feedback, and align individual goals with organisational objectives. The primary objective of this research is to analyse the effectiveness of the performance management practices adopted by the organization and to evaluate their impact on employee performance, motivation, job satisfaction, and organisational development. The study also aims to identify key factors such as employee engagement, communication, training, appraisal methods, and feedback systems that influence the success of the performance management system. The research is based on primary data collected through a structured questionnaire distributed among 150 employees of the organisation, along with secondary data gathered from company records, journals, articles, and websites. Statistical tools such as percentage analysis, Chi-square test, correlation, and one-way ANOVA were used to analyse and interpret the data. The findings reveal that employees hold mixed opinions regarding the effectiveness of the PMS: while many trust the appraisal system and perceive professional growth through reviews, concerns persist around communication gaps, feedback quality, and perceived bias. The study concludes that regular performance evaluation, transparent communication, proper feedback, and employee development initiatives are essential for enhancing the effectiveness of the performance management system and achieving long-term organisational success.