Restructuring the Relationship Between Performance Management and Employee Engagement

This is a conceptual study which proposes a new model exhibiting the relationship between performance management system (PMS) and employee engagement (EE), using social exchange theory. Although, there could be many determinants which could affect employee engagement; this particular study intends to review the impact of performance management system on increasing trend of employee engagement. Thorough literature review and synthesis has been carried out for the said theoretical study proposing a new model (Not complete range of articles in the relevant field, however, specific criteria for review has been followed). Relationship of each variable and construct has been established through strong theorizing and logical reasoning. The article covers the broad spectrum activities of performance management system, whereas, the role of HR and Supervisor/Leader has been inculcated as moderators for strengthening its relationship with the employee engagement. Literature shows a positive relationship between PMS and EE if employees receive due care and support from HR and have strong leader-member exchange relationship. Further, future researchers may test the same in different geographical location, demographic features, whereas various personality traits may also be tested since engagement is an individual decision and may vary across various traits; for instance, age race and gender etc. in different cultural settings as individual personality traits vary with the variance of cultural effects