The Role of Performance Management System on the Effectiveness of Employee Performance in Private Companies

Therefore, this study intends to investigate the influence of performance management systems effectiveness with a special focus on the mediating role of employee promotion in Kar Company. It aims to explore valuable connections, refine employee’s performance, values, efficiency, and flexibility, and offer guidance on optimizing human resource technology within the realm of KAR Company, a privately owned company. The methodology used in this research is a quantitative research method that consists of both employees and managers from KAR Company in the Kurdistan region/Iraq, with the survey conducted in Erbil. A total of 100 questionnaire forms were distributed through hand delivery, resulting in 89 completed. Data analysis was conducted using correlation and moderation analysis via the PROCESS macro in SPSS. Using the interaction effect model, the study controlled for factors that would lead to results that are not accurate, as it employed the interaction effect model and explored the relations between evaluating the performance management system effects by examining three core dimensions of employee performance and promotion by value, efficiency, and flexibility. According to the study, the study found we conclude that the third main (Ha3) hypothesis is accepted, which state that “Employee Promotion mediated the positive relationship between Performance Management systems and Employees Performance, each as Values, Efficiency, and Flexibility”, and the third sub hypothesis (Hb3) is also accepted which is state that the “There is an influence of Employee Promotion as mediator, and it is possible to predict the increase in the levels of the Employees Performance, such as Values, Efficiency, and Flexibility”.