The accelerating rate of digitalization is transforming organizational performance management systems (PMS), with real-time feedback becoming an essential driver of employee productivity. This research investigates employees’ responses to digitalization efforts in performance management within Bangladesh’s telecommunications sector, a country at the forefront of technology adoption. A mixed-method sequential approach was used, beginning with focus group discussions (FGDs) and key informant interviews (KIIs) to validate the research framework, followed by a survey of 268 employees from several telecom organizations. Data were analyzed through SPSS and SmartPLS, including descriptive statistics, measurement model validation, and structural equation modeling (SEM) to examine direct, mediating, and moderating effects. The results show that real-time feedback via digital platforms significantly improves employee engagement and productivity, with engagement partially mediating the effect. In addition, the perceived usefulness of feedback and organizational support for a feedback culture positively moderate the effects, thus highlighting the need for strategic alignment between digital systems and organizational culture. This research contributes to theory and practice by combining the Job Demands–Resources (JD-R) model and Technology Acceptance Model (TAM) to explain the impact of feedback technologies on employee outcomes. Practical recommendations are provided for HR leaders and policymakers who aim to streamline digitalization efforts to improve workforce performance in emerging economies.