The influence of perception of performance management system and regulatory focus on work engagement

Abstract

The relationship between perception of performance management systems (PMS) and work engagement is the main focus of this study. It is postulated that employee perception of performance management system (PPMS) determines their engagement with work by altering their internal motivational state. Using the HR attribution theory (Nishii et al., 2008), the study argues that day to day execution of practices of PMS such as goal setting, feedback, appraisal and rewards, develop cumulative perceptions regarding the entire performance management system in employees. The effect of these PMS perceptions on engagement is explained using the regulatory focus theory (RFT). It is argued that positive perceptions of PMS increase employee sensitivity towards positive hedonic outcomes in the organization. This triggers an approach motivation characterized by the priming of the psychological mechanism of promotion focus which maximizes employee invested efforts in work tasks. This increased investment of efforts is reflected in the form of higher work engagement. Conversely, negative perceptions of PMS increase sensitivity towards potential losses which primes prevention focus in employees as they seek to avoid potential harm to their wellbeing in the organization on account of poor PMS practices. This results into a lack of willingness to invest more efforts in work, as an ineffective PMS is perceived to do little in facilitating or acknowledging such an investment. This results into a loss of work engagement. Self-report measures were used to gather data from 779 employees from three large organizations in India. The PLS-SEM package ADANCO and PROCESS macro for SPSS were used for data analysis. The study found that promotion focus mediated the relationship between PMS perceptions and work engagement. It was also found that general affective state of employees in the organization moderates their regulatory focus priming. The study addresses a critical gap in literature on how organizational systems such as PMS influence employee work engagement and sheds light on the cognitive mechanisms that may explain the relationship. Theoretical and practical contributions of the study are discussed.