The Effect of Performance Management on Executives’ Performance in Manufacturing Firms: A Case Study at Kulim-Hi Tech Park Kulim, Kedah, Malaysia

Abstract

The purpose of this study is to assess the extent of the role of performance management and its contribution to the performance of executive work in manufacturing firms. Methodology in this study was built where a questionnaire was designed for data collection to measure performance management-related executives’ attendance, attitude/discipline, communication, creativity and innovation, human relations, job knowledge, and teamwork on executives’ performance. Data were collected among executives in manufacturing firms at Kulim Hi-tech Park, Kulim, Kedah, Malaysia which had a 4438 population, 351 samples, and 244 respondents successfully collected from 25 manufacturing firms. A stratified sampling method was used to collect data and the data obtained were analyzed using SmartPls version 3.7.8. The finding of this study found that there is a significant relationship between executives’ attendance, attitude /discipline, creativity and innovation, and teamwork on executives' performance. While communication, human relations, and job knowledge have not-significant. It is proved from SmartPls analysis shown that 4 independent variables have a positive impact on executives’ performance in manufacturing firms and 3 variables have not significant. The limitation of the research only covers the manufacturing firms. Another limitation is the respondents only included executives. Apart from these limitations, this research can give a strong impact on the top management of manufacturing firms to design the strategy of performance management to be more effective in improving the work performance of executives.