Performance Management of Human Resources in Project-Based Organisations: Evidence from Non-Governmental Organizations in the Batticaloa District

Abstract

Project-Based Organizations increasingly face sustainability and accountability challenges in today’s dynamic environment. To address these demands, they require flexible, intelligent, and technically advanced performance management practices that foster continuous improvement, dialogue, and innovation. Stakeholders now prioritize not only productivity and efficiency but also creativity, innovation, and problem-solving capabilities. In response, organizations must continuously refine their performance management strategies to meet evolving expectations. Human resources represent a critical asset for any organization, as they are essential for managing non-human resources and achieving strategic goals. Accordingly, many organizations are adopting robust performance management practices to enhance project performance and ensure long-term sustainability. These practices contribute to completing project activities effectively within the triple constraints of time, cost, and scope. This study aims to examine performance management practices in three selected project-based organizations, focusing on ten interview participants from non governmental organizations in Batticaloa, Sri Lanka. The research investigates how specific performance management practices, such as setting SMART goals, providing feedback, conducting performance reviews, implementing reward systems, managing under-performance, and sustaining high performance, contribute to project success and organisational sustainability. Despite the recognized benefits, the implementation of performance management practices faces several challenges, including limited resource allocation, communication barriers, technological constraints, donor requirements, and organizational sociocultural factors. To overcome these issues, organizations emphasize staff capacity building, competency-based employment, and professional development. Nevertheless, the effectiveness of these practices is often constrained by inconsistent funding and fluctuating project timelines. In conclusion, successful performance management in PBOs requires a balanced, context-sensitive approach that aligns human resource management strategies with local realities and the broader goals of humanitarian and developmental initiatives.