The Dynamics of Digital Transformation in Employees’ Performance Management Systems in Bangladesh

Abstract

The rapid growth of digital technologies has led to significant changes in performance management systems. This doctoral thesis explores the nexus of digital transformation of performance management systems (PMS) in the Bangladeshi telecom workforce. The telecommunications industry is a significant contributor to economic growth and innovation in Bangladesh, and this study aims to examine the dynamics of digital transformation of employees’ performance management systems in the telecommunications sector in Bangladesh. Therefore, this study aims to understand the trends of Digital Performance Management Systems (hereafter DPMS) implementations, and their impact on organizational capabilities, employee perceptions, competitive advantages, sustainability, and data privacy & Security challenges. The telecommunication sector has been selected for this study since it is one of Bangladesh’s most technologically dynamic and rapidly changing industries. This study uses a theoretical framework that combines Maximilian`s Theory of Digital Transformation and the Technology Acceptance Model (TAM). This study addresses theoretical gaps through empirical evidence on the effect of DPMS on performance evaluation and management processes. Through a comprehensive mixed-methods approach, the study entailed pilot testing, Focus Group Discussions (FGDs), Key Informant Interviews (KIIs), and a guided survey of 176 employees from top telecom firms. Quantitative data were examined through SPSS for ascertaining reliability and regression analysis, along with Smart PLS for Structural Equation Modeling (SEM). The analysis validated six hypotheses, revealing strong connections between digital Performance Management System (PMS) adoption and important factors such as employee perceptions, organizational capabilities, sustainability, competitive advantage, employee privacy, and security concerns. The findings indicate that Digital Performance Management Systems (DPMS), if strategically adopted, drastically improve employee engagement, data accuracy, timely decision-making, and organizational sustainability in the long term. Privacy and security concerns, however, must be addressed meticulously to establish trust and effectiveness. Furthermore, this research highlights the need for customizing digital PMS tools based on the specific requirements of employees and the strategic agenda of the organization. The study makes a significant contribution to literature by reporting empirical findings from a ii developing country setting where these changes are in emerging stages. Secondly, the study offers practical recommendations for human resource practitioners and policy makers in the areas of performance appraisal strategy improvement, system uptake improvement, and fostering digital resilience. Lastly, this thesis contends that digital transformation is more than a technological change; it is a strategic enabler of organizational excellence and nurtures employee-centric performance cultures.