Effective Factors Influencing Performance Management System in Commercial Bank: An Exploratory Analysis
Keywords:
Performance management system, Balanced scorecard, Factor analysis, Commercial BankAbstract
By considering the dynamism of Performance management system (PMS) in the organizational context, the present study aim to explore the factor structure of PMS components. Further, the study has also considered balanced scorecard as a strategic PMS tool and thus intended to identify the factor structure of the same. Finally, the study examined the PMS effectiveness factors. The author has used exploratory factor analysis to optimize the items and extract the construct validity of the factors. Factor analysis was performed using Principle Component Analysis (PCA) on 32 variables pertaining to PMS components, 10 variables related to Balanced Scorecard (BSC) and 14 variables allied to PMS effectiveness. The study adopted a quantitative approach and thus collected data from 313 commercial bank employees’ by distributing questionnaire. The result confirms seven independent factors of PMS component, one factor of balanced scorecard and two factors of PMS effectiveness.
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