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In this manuscript we report the results outcome of an empirical study carried out on, how the employee performance is a function of performance management system in Information Technology Enabled Service Companies around Hyderabad. A survey was carried on the employees of IT Enabled Services companies around Hyderabad using a sample of 924 employees, consisting of 545 men and 379 women employees. The influence on performance management system was measured against the a) Factors responsible for improved employee performance and b) Factors that impact on performance management system. Using a structured survey instrument a five-point Likert-type scale, 13 factors of dependent variable performance management system was measured against the two independent variables 9 factors responsible for improved performance and 5 factors that impact the performance management applying multiple regression analysis. The survey instrument reliability and internal consistency was measured using reliability statistic Cronbach Alpha which is 0.84, 0.76 and 0.73 respectively, for performance management system, factors responsible for improvement performance management and factors that impact performance management system. The results reveal that both the independent variables significantly influencing the performance management system and there were statistically significant gender differences observed in the sample. However, there were no significant differences in different age groups of the employees.

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