Role of Performance Management and Reward Systems During Organizational Change in Enhancing Employee Commitment in Manufacturing Units of Delhi NCR

Abstract

Organizational change in the manufacturing sector has become a strategic imperative due to globalization, technological innovation, and shifting consumer expectations. Within this dynamic environment, human resource practices, particularly performance management and reward systems, emerge as critical levers to maintain and enhance employee commitment. This paper investigates how structured performance appraisal processes, fair and transparent reward mechanisms, and participative feedback systems can influence employees’ affective, continuance, and normative commitment during organizational transformation. Drawing upon a mixed-methods approach involving surveys and semi-structured interviews with employees and HR managers across manufacturing units in Delhi NCR, the study explores the interrelationships between performance management, reward practices, and organizational commitment. Results indicate that alignment of performance metrics with change goals, recognition of individual and team contributions, and transparent communication of reward criteria significantly enhance employee buy-in and retention. The paper contributes to the literature on change management HR practices by offering a practical framework for designing performance management and reward systems that support employee engagement during organizational transitions.