Performance Management System in Manufacturing Industries: Strategies for Enhancing Employee Productivity and Engagement: A Literature Review

Abstract

This paper examines the existing body of work on Performance Management Systems (PMS) in the manufacturing sector, with the goal of identifying best practices that could be adapted for every Firm. A thorough literature review was undertaken to assess the current research landscape on PMS in manufacturing Industries. The study delves into key topics such as leadership, organizational culture, role clarity, employee motivation and the integration of technology and data analytics. The review concludes that effective PMS can greatly boost productivity, employee engagement and innovation by aligning individual performance with the goals of the organization. Contemporary PMS utilize both qualitative and quantitative metrics and focus on building trust, strategic development and knowledge sharing. However, there are significant discrepancies between the design and implementation of PMS, especially in performance appraisal practices. Linking PMS with competency management and training programs can enhance their effectiveness and support organizational growth. Insights from the manufacturing sector provide valuable guidance for creating adaptable and inclusive PMS in manufacturing. Focusing on cultural integration and technological support is essential for enhancing employee performance and organizational outcomes. This study adds to the understanding of PMS in manufacturing Sector and lays the groundwork for adapting successful practices in the Industry. It identifies areas for future research, including the long-term impacts of PMS on employee behavior and organizational sustainability.