Effectiveness of Performance Management Systems in the Indian Construction sector

Abstract

This exploratory study seeks to specifically understand Performance management systems, their applicability and effectiveness in relation to the Indian construction sector . The sample for the study consisted of 138 employees from 3 major Indian construction firms. Factor analysis and chi-square test was conducted to understand factors that contributed significantly to the effectiveness of PMS in Indian construction firms. Results showed fair understanding of PMS systems and its linkage to HR sub-systems (Training & Development and Pay & Rewards). Major concern areas outlined in the study related to managerial aspects of ‘understanding appraisee viewpoint’, ‘objectivity in review’ and ‘periodic review’. Recommendations have been provided with an outlook to improve effectiveness of PMS in Indian construction firms.