Does Managing Performance Really Pay?

Performance management may drive public organizations towards higher individual and organizational effectiveness. This study seeks an insight into the role of organizational innovativeness in enhancing performance management and its mediating role on predicting organizational citizenship behavior (OCB) among local government employees. The study also explored the moderating role of organizational culture, goal clarity and high performance work barriers on the relationship between performance management and OCB. The data for the research variables were taken from the 2016 Public Employee Perception Survey collected on August 2016 by the Korea Institute of Public Administration. The results from the structural equation modeling supported the positive and significant relationship between organizational innovativeness and performance management. The research also supported the mediating role of performance management as well as the positive moderating roles of organizational culture and goal clarity. The study’s theoretical and practical implications and directions for future research are discussed.