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Study on Factors Affecting Productivity of the Employee with Special Reference to Organizational Climate

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FACTORS AFFECTING PERFORMANCE MANAGEMENT SYSTEM OUTCOMES

Journal of Information Technology Management
ISSN #1042-1319 A Publication of the Association of Management

FACTORS AFFECTING THE OUTCOMES OF PERFORMANCE MANAGEMENT SYSTEMS
AL BENTO UNIVERSITY OF BALTIMORE abento@ubalt.edu REGINA BENTO UNIVERSITY OF BALTIMORE rbento@ubalt.edu

ABSTRACT
This paper proposes and tests a model to explain three critical outcomes of Performance Management Systems: information quality, effectiveness, and usefulness of the PMS to managerial decision-making. Drawing from Organizational Information Processing Theory (OIPT), we examined how those three outcomes may be influenced by factors that affect OIP requirements (industry, size, and geographic …show more content…

RESEARCH QUESTION, MODEL AND HYPOTHESES
Performance Measurement Systems (PMS) enable organizations to plan, measure and control their performance, so that decisions, resources and activities can be better aligned with business strategies to achieve desired results and create shareholder value. This study addresses the following research question: "What factors, internal or external to the organization, explain the outcomes of Performance Management Systems?" In order to answer this question, we used the model shown in Figure 1 to examine the factors contributing to three types of PMS outcomes: usefulness, effectiveness and quality of information.

Figure 1. Factors contributing to PMS outcomes

Usefulness is defined in the literature as the degree to which a person believes that using a particular system would enhance performance [11]. Usefulness is related to the concept of voluntary IS "use" [2,3]. The actual usage of information systems is widely considered an important measure of IT success in organizations, and has been found to have a strong correlation with the perceived usefulness of a system by the user [8].

Effectiveness of a PMS is the degree to which the system delivers its intended results [9], i.e, helping organizations to plan, measure and control their performance, as described above. Information Quality

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