ABSTRACT
An Effective Performance Management system can foster the organisation to unimaginable levels of performance. It can also thrive innovative behaviour and build a Climate for creativity for the employees, thereby paving way for an organization’s competitive advantage. Businesses grow under good leadership and a better climate for creativity in an organization leads to employee innovativeness and organizational performance as a whole. This study attempts to assess the impact of PMS and Climate for creativity on Innovative Behaviour and Competitive advantage among ITES companies in Tamilnadu. Although many studies exist on PMS, the linkage between PMS and the individual innovative behaviour that affects the organizational outcomes has not been very clear. Descriptive research has been carried out with mid-level execs and team leads in ITES sector who are expected to exhibit critical and creative thinking skills in their role, the sample size was 176. In the data collections, structured instruments were used to assess the constructs like Performance Management System Effectiveness (Sharma et al 2016), Climate for Creativity and Innovative Behaviour (Scott and Bruce, 1994), and Perceived Competitive advantage (Lai et al. 2006). the data was subject to Path Analysis using SMART PLS Path Modelling and the results indicate a model fit. It was identified that, the effect of PMS effectiveness and climate had a positive impact on employee behaviour. On similar lines Innovative Behaviour had a significant impact on Perceived Competitive Advantage.
