A Double-edged Sword of Performance Management System on Employee Engagement and Burnout: The Moderating Role of Concertive Control

Abstract

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The abundance of literature certainly reveals that the influence of the performance management system (PMS) on employees’ well-being has been debatable. Furthermore, the PMS may arise constructive consequences for employee engagement which leads to the company’s success management, productivity, high dedication and positive behaviors. However, just like a coin, the PMS has two sides which also create destructive consequences for employee burnout too which lessen the company’s accomplishment. Employee burnout is manifested by symptoms of intense exhaustion and disengagement at the workplace. These double-edged sword risks have not obtained an equal degree of awareness in literature. Therefore, the first purpose of this study is to examine the relationship between PMS, employee engagement, and employee burnout. The second purpose is to explore and comprehend the moderating role of concertive control on the relationship between PMS, employee engagement, and employee burnout in the Jakarta, Indonesia context. Non-probability sampling technique specifically convenience sampling approach was adopted to collect the data of 250 employees in Jakarta. After gathering the data, the statistical software SPSS version 23 was used to analyze the data. The result of the study showed that PMS significantly has a positive relation with employee engagement. Furthermore, it has significant negative relationship with employee burnout. In the light of concertive control as moderating role, the result of the study particularly showed that it did not have moderating effect for the relationship between PMS and employee engagement as well as PMS and employee burnout