THE EFFECT OF PERFORMANCE MANAGEMENT ON EMPLOYEE PRODUCTIVITY IN THE PETROLEUM INDUSTRY AND ITS BENEFICIAL IMPACT ON WORK-LIFE PRODUCTIVITY AND OPERATIONAL EXCELLENCE IN GUJRAT, INDIA.

Abstract

Purpose: Performance management has historically been a system that is entirely reliant on the past and has an eye towards the future. Nevertheless, the organisational culture is evolving to one that is characterised by continuous, technology-driven feedback. This allows managers to anticipate potential issues based on an employee's performance at any given moment and implement any necessary corrective measures to facilitate their return to the path of success.

In this piece, we provide concise explanations of performance management, its definition, its cycle and recommended practices, the characteristics of a good performance management software, and its prospects. This study underscores the indispensable function of performance management in optimising employee productivity and operational efficiency in the petroleum sector.

Design/Methodology/Approach: In this research we have collected data through survey directly from the employees of Petroleum Industry. Individual interviews were collected from each employee regarding their performance and including demographic variables. The research was conducted using qualitative and quantitative approach and questionnaires were asked individually from the employees and analysis was interpreted. In this research SPSS analysis was used to obtain the results.

Findings: In this research we have found that do we measure our performance in the industry level. What are the right decisions to succeed and what are the metrics required to improve our decision. The statistical significance of the observed productivity differences is confirmed by the t-test results (t = 10.45, p < 0.0001), This supports the hypothesis that employee productivity is positively influenced by performance management.

Practical Implications: Effective performance management can enhance operational efficiency and cost-effectiveness. Managers can determine strategic growth prospects and evaluate the company's performance in comparison to industry peers using performance evaluation methods like benchmarking and balanced scorecards. Managers may inspire staff members to pursue excellence and contribute to the success of the company by setting performance goals, giving frequent feedback, and offering rewards for reaching them.