“THE IMPACT OF SOCIAL RECOGNITION THEORY ON PERFORMANCE MANAGEMENT SYSTEM IN INDIAN COMPANIES”

This paper examines the influence of Social Recognition Theory on the performance management systems (PMS) of Indian companies. As organizations strive to enhance employee engagement and productivity, integrating social recognition into PMS has emerged as a vital strategy. The study explores theoretical foundations, assesses current practices in Indian corporates, and presents empirical evidence from selected companies. The findings suggest that recognition-based PMS leads to improved employee satisfaction, retention, and performance outcomes, especially in knowledge-driven industries. In today’s dynamic corporate environment, Indian companies are increasingly shifting from traditional, evaluation-focused performance management systems (PMS) to more holistic, employee-centric approaches. This research investigates the impact of Social Recognition Theory on the effectiveness of PMS within Indian organizations. Drawing from behavioral psychology, the theory emphasizes the power of recognition—particularly peer and public recognition—in reinforcing positive workplace behavior. Using a mixed-method research design involving surveys and interviews with employees and HR professionals across five major Indian firms, the study reveals that the integration of social recognition significantly improves employee engagement, satisfaction, and performance outcomes. The paper also identifies key challenges in implementation, including cultural resistance and the need for technological adaptation. The findings underscore the potential of recognition-driven PMS to foster a more motivated and productive workforce in the Indian business context