EMPLOYEE PERFORMANCE MOTIVATION AND PERFORMANCE MANAGEMENT SYSTEM-EXPLORING THE PERTINENCE

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.