Exploring the Relationship Between Performance Management and Employee Motivation: Case Study of Serbian Railways

Purpose – It aims to emphasize the importance of effective performance management practices in today's competitive business landscape, highlighting how they contribute to organizational success through enhanced employee motivation, engagement, and productivity. Aims(s) –The aim of this paper is to investigate various aspects of performance management, focusing on goal setting, feedback mechanisms, performance appraisals, recognition, and coaching. By examining the relationship between performance management and employee motivation, the paper aims to provide insights for organizations to design strategies that foster a motivated workforce and drive performance. Design/methodology/approach – it examines real-world examples and best practices to illustrate how organizations can implement these strategies to enhance employee motivation and ultimately achieve organizational success. Findings – The findings underscore the significance of goal setting within performance management, highlighting that specific and challenging goals increase employee motivation and performance levels. Moreover, performance management systems that emphasize goal alignment and regular feedback are found to further enhance motivation. Limitations of the study – Despite the comprehensive review of literature and empirical evidence, this paper acknowledges several limitations. Firstly, the findings are primarily based on existing research and may not encompass all possible perspectives or developments in the field of performance management and employee motivation. Originality/value – This paper contributes to the existing body of knowledge by synthesizing various theories and empirical evidence on performance management and employee motivation. It provides a comprehensive overview of key components of effective performance management practices and their impact on employee motivation and organizational success.