Consequences of Performance Measurement System: The Case of Sri Lankan Water Board

The purpose of this study was to investigate the extent to which PMS influences employee behavior, organizational capabilities, and organizational performance. A questionnaire was used to collect data from 223 managerial employees of Sri Lankan Water Board. PMS was tested against employee behavior, organizational capabilities, and organizational performance via regression analysis. The findings of this study revealed moderate positive relationship between PMS and its consequences. The relationships were statistically significant. Consequences were categorized as employee behavior, organizational capabilities, and organizational performance. This study offers an understanding of existing literature relating to PMS and its consequences. The study was instrumental in testing the relationship between PMS and its consequences by using the survey data collected from Sri Lankan Water Board.