Chapter no 3 Methodology

Research Design
The current study is concerned with tracing the influence of Performance management system on
Employees performance in air blue Pakistan. However, the nature of the current research is
Quantitative and the purpose of this current study is primary. The data will be collected through
different questions. The questionnaire has been used in this research study. Here we use deductive
approach in this research study. We have used the hypothesis and the research begins with theory
and moreover the test has been run on the hypothesis that has been proposed. The validity of theory
and hypothesis has been tested (Creswell 1994).

Measuring Variables
To examine the moderating role of BSC on the impact of performance management system on
employee performance, this study uses three constructs to measure performance management
system, four constructs to measure BSC measures usage, and four constructs to measure employee
performance.

Data collection tool:

The tool for collecting the data for the present research study is questionnaire.

Sampling technique:

The purpose of the study is to reduce the biasness in distribution of questionnaire so simple

convenience sampling technique is used for the data collection process.

Sample size:

There are 250 questionnaires used in this research study.

Method of Data Analysis:

Data analysis techniques in this research were conducted using two approaches; descriptive and

multiple regression analyses. In addition to both analyses, the data tabulation was done on human

characteristics at the private sector organization of Pakistan.

Testing Procedures:

A regression analysis was applied to test the moderating role of BSC usage on the relationship
between performance management system and employee performance. Employee performance
(dependent variable) was regressed with the three variables of performance management system
(independent variables) in the first step to evaluate hypothesis 1. The second step include the
moderating variable to examine hypothesis 2. In determining the moderating effects, the variation
in R2 was observed. The moderating effect will be identified when the variation in R2 is
statistically significant. Based on these methods, the regression model used to examine the
hypotheses goes thus:
Y = βo+ β1X1 + β2X2 + β3X1 X2 + e

Where Y is employee performance (motivation, employee satisfaction, and commitment), X1 is

performance management system (developing and planning, managing, and rewarding system),
X2 is the BSC usage(financial perspective, customer perspective, internal business processes
perspective, as well as innovation and learning perspective), while X1X2 represents the interaction
term, and stands for the error term.
Theoretical Framework:

As a result of the theoretical framework of the current research is to contain of having planning

and development, and reward as Independent variables and commitment, satisfaction and

motivation as dependent variables.

Balance Scorecard

Performance Employees
Management Performance

Planning and Commitment

Development Satisfaction
Reward Motivation

Independent variables Dependent variables

Planning and Development Commitment

Reward Satisfaction

Motivation

The Moderating Role of Balance Scorecard Usage

www.irmbrjournal.com June 2017 International Review of Management and Business

Research Vol. 6 Issue.2