The Effectiveness of Performance Management System Among Banks in Klang Valley

A Performance Management System (PMS) is a structured mechanism designed to assess and enhance both employee and organizational performance. In the Klang Valley banking sector,
an effectively implemented PMS can significantly boost employee morale, job satisfaction, productivity, and operational efficiency. This study aims to evaluate the effectiveness of PMS in the Klang Valley banking industry by examining key factors such as performance appraisal, reward systems, employee involvement, and management commitment. To achieve this, data were collected from 130 respondents across five branches in Damansara Heights within the Klang Valley using a survey questionnaire administered via Google Forms. The data were analysed with SPSS to assess the relationships between the identified factors and the effectiveness of PMS. The study explores whether these factors have a notable impact on PMS effectiveness and seeks to determine their correlations within the Klang Valley banking sector.
By analysing the data, the research provides insights into how performance appraisals, reward systems, employee involvement, and management commitment contribute to a more effective PMS. The findings of this research aim to offer practical recommendations for banks in the Klang Valley, particularly those in Damansara Heights, to enhance their PMS, ultimately leading to improved employee performance, greater job satisfaction, and better organizational outcomes. Additionally, the study contributes to the broader understanding of performance management practices, providing valuable evidence and guidance for future research and organizational implementations.