This study examined the effects of digital transformation on employees’ performance management systems in the Bangladeshi telecommunications industry. Using both primary and secondary data, the study sought to comprehend the evolution of digital performance management and its impact on competition. Two hundred employees from Bangladeshi telecommunications companies filled out a questionnaire for the study, and interviews were conducted to obtain additional insight. The findings indicate that digital transformation improves performance management systems, workforce performance, and sustainability. Respondents concurred that digital tools could potentially automate numerous performance management system functions. The implementation of digitalization enhanced operations, productivity, and process management. Employees have also expressed support for digital access to performance-related data. The research identified several drivers of digital transformation in performance management systems, including managerial and operational capabilities, the development of digital skills, and innovation capabilities. Respondents noted that digital performance management facilitates effective communication, enables employees to participate in evaluations, improves objectivity and precision, and provides timely feedback. It was discovered that digital performance management systems reduce costs by rapidly identifying performance issues and eliminating inefficient practices. In addition, they contributed to enhanced productivity, innovation, employee retention, and talent attraction. Cloud-based performance management systems were especially effective at attracting a diverse talent pool. With a Cronbach’s alpha coefficient of 0.877, the research instrument employed in the study exhibited high levels of internal consistency and reliability. The findings of the study indicate, overall, that implementing digital performance management solutions has the potential to confer long-term competitive benefits onto the telecommunications industry in Bangladesh.
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