The Effects of Diagnostic and Interactive Performance Measurement Systems on Organisational Commitment and Job Satisfaction: The Perception of Information and Communication Technology Practitioners in Hong Kong

Abstract

The rapid and accelerating development of information and communication technology (ICT) has caused an unprecedented expansion in Hong Kong’s ICT industry and a simultaneous increase in the demand for ICT practitioners. With the intention of helping ICT-related companies in Hong Kong retain valuable employees, this research identifies the effects of diagnostic and interactive use of performance measurement systems (PMS) on organisational commitment and job satisfaction. The research adapted the measurement from [1] and [2] in diagnostic and interactive performance measurement, organisational commitment were adapted from [3] whilst job satisfaction with five dimensions of compensation was adapted from [4]. With a critical review of these related literatures, two research questions and five hypotheses were formulated to explore ICT practitioners’ perceptions of job satisfaction, organisational commitment and PMS. An Internet-based anonymous questionnaire, using measures adopted from previous validated research, collected the research data. Six thousand invitation emails sent to randomly selected ICT practitioners in Hong Kong provided 302 responses for statistical analysis. Findings indicate that diagnostic and interactive use of PMS positively influences the job satisfaction and organisational commitment of employees and suggest that job satisfaction and organisational commitment are correlated. The study also found that employees’ position in the organisation and the nature of the business influences both job satisfaction and commitment, but that their marital status only influences job satisfaction and not organisational commitment; other demographics have no influence on either satisfaction or commitment. Results from this study provide insights for managers and owners of companies in Hong Kong’s ICT sector by suggesting how they can formulate appropriate strategies to reduce staff turnover. The research contributes to the literature related to the appropriate use of PMS in ICT organisations as a means of improving organisational commitment and job satisfaction.