Publish Date
30 Nov -0001
Performance-based management has been widely adopted as a managerial approach to enhance organizational efficiency and accountability in increasingly competitive and complex environments. However, many organizations continue to experience inefficiencies despite the formal implementation of performance-based management systems, indicating a gap between managerial intent and actual operational outcomes. This study aims to examine the role of performance-based management in improving organizational efficiency by analyzing its overall effect and the relative contribution of its key dimensions, including performance planning, performance monitoring, performance evaluation, and performance feedback. This study employed a quantitative explanatory research design. Data were collected through a structured survey administered to managerial-level employees involved in the implementation and evaluation of performance-based management practices within their organizations. The data were analyzed using descriptive and inferential statistical techniques to assess the relationship between performance-based management and organizational efficiency. The results indicate that performance-based management has a positive and statistically significant effect on organizational efficiency. Further analysis shows that performance planning and performance monitoring are the strongest contributors to efficiency, emphasizing the importance of proactive managerial practices. In contrast, performance evaluation and feedback demonstrate weaker effects, suggesting that their impact depends on how effectively performance information is used in managerial decision-making. This study contributes to the performance management literature by offering an integrative organizational-level perspective and provides practical insights for managers seeking to enhance efficiency through effective performance-based management implementation.
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