The Implementation of Management Information System and its Impact on Performance Management of Employees: With Special Reference to Apparel Industry of Sri Lanka

Abstract

Performance Management (PM) is an assessment of efficiency of a worker by the respective persons in the organization or providing an accurate and relevant rating of an employee performance as compared to pre-established criteria.All most all organizations included to the Apparel Industry tend to measure the level of performance of an employee as it is a major criteria for salary increments or any other perquisites. However the managers facing a critical situation as majority of employee grievances are regarding injustice of PM. Thereby the general objective of this study is to suggest some ways to the management to enhance the quality and the transparency of PM through effective implementation of Management Information System (MIS) that enable sound awareness of information to all levels of employees as well as for the managers. Criterions of effectiveness of PM is with whether the system generate accurate outcomes, generating quick reports, employees can see overall performance, evaluation status and performance evaluation discussions. The unit of analysis was at individual employees. The target population of the study was consist of employees both managerial and non-managerial who have worked with the similar organization since the organization not experiencing the MIS in PM. The study selected 150 employees by stratified random sampling technique from a particular organization included to the apparel industry of Sri Lanka. This study has proceeded with the questionnaire to collect data as primary data. Descriptive analysis, and chi-square analysis were used to analyze data with the limitation of considering the effect of implementation of MIS only on one management practice. As the results indicated according to the comparison made before and after implementing the MIS to the particular organization there is a significant reduction in grievances from employees regarding PM procedure. Similarly the employees are satisfied towards PM as the dissemination of information relevant to PM of each employee is transparent. Thereby the PM practices that measured with the effectiveness of timeliness, appropriate content, system quality, format and other benefits of using MIS as an administrative tool have been accomplished by the organization after the execution of MIS for PM.