Exploratory Study On Performance Management And Performance Re-wards: a Systematic Literature Review

Business and HR leaders are under constant pressure to leverage their human capital to maximize organizational performance and remain competitive. These strategic goals are interconnected with the performance management and performance reward systems. Further, adoption of digital HR has resulted in significant impact on performance management and rewards, especially within Indian businesses. This study investigates the relationship between performance management and performance rewards, aiming to understand how the integration of structured performance management systems with various reward mechanisms, which influence employee motivation and organizational success. The research examines the role of factors such as feedback, review, and goal alignment in enhancing the effectiveness of rewards. It further examines key factors such as the frequency and transparency of performance reviews and its impact on employee perception of fairness, the role of feedback, and the alignment between individual and organizational goals. By meticulously analyzing these dynamics, the study provides insights into how organizations can optimize their performance management and reward strategies to drive employee engagement and achieve strategic objectives. Systematic literature review has been carried out by using PRISMA framework by studying sixty-two research articles including six foundational theories. Most research articles are largely 2019 onwards, however few articles before 2019 have also been included based on relevance and reliability. This is a qualitative study to measure the relationship between performance management and performance rewards. Limitations of the study are discussed further in the paper.