Employee Perception on Organizational Performance: A Structural Equation Modeling Approach

Abstract

Organizational Performance Measurement has been gaining significant importance in recent times. Some of criteria that determine the performance of the organization are efficiency, quality, quality of work life, productivity and profitability. In order to make any performance measurement method effective it is very important to know perceptions of the employees regarding the criteria involved in the measurement. This paper focuses upon capturing the perceptions of the employees with regard to the criteria involved in the performance measurement using Structural Equation Modeling (SEM) approach. The study was carried out in a reputed Line Pipe manufacturing firm in India. The results show that quality and quality of work life had a significant relationship with productivity and productivity had a significant relationship with profitability.