The impact of performance management system on employee perfomance - Analysis with WERS 2004

The aim of this master thesis is to define performance management system, employee performance and employee performance measurement, and also analyze the relationship between performance management system with employee performance. The 2004 WERS data was analyzed in order to test the impact of performance management system on employee performance by using a package STATA for windows. The Kruskal-Wallis test and Ordered logit regression were used to test the relationship and the results show the activities: continuous communication within organization and personnel development impact significantly and positively on employee performance. However, the results show that the performance management system has a positive but insignificant relationship with employee performance.