COL MBA synopsis on Performance Appraisal System and Employee Satisfaction

AIOU COL MBA synopsis on Performance Appraisal and job satisfaction

The current study aims to examine the relationship of employee performance appraisal system (PER) and employee satisfaction (SAT) in a sample of 101 employees working at one of the international non for profit organization. The data was collected by convenient sampling and snow ball sampling techniques with the help of adopted questionnaires. The reliability of the instruments used is reaffirmed which is accordance with the required standards. After applying Pearson’s correlation and linear regression the results show that there is a positive relationship between the independent and the dependent variables. The study has implications for managers of all the profit and non – for profit organizations. The results are compared with and discussed in the light of relevant research studies.

Assessment of employees‟ performance is one of the common practices in almost every organization, a necessary phenomenon for the better performance of employees and the organizations. For better performance of the organizations satisfied employees play a vital role. Seldon, Ingraham & Jacobson, (2001) reported that more than 90 percent of bigger organizations use performance appraisal system and more than 75 percent are scheduled annually. Employee satisfaction is considered a key to organizational success.

Khan (2007) defines employee satisfaction with job as how well ones personal expectations at work are in line with outcomes. Malik, Bibi and Rahim (2010) state that people enjoy working, and strive to work in those organizations that provide positive work environment where they feel they are making difference and where most people in the organization are proficient and pulling together to move the organization forward. the organizations in this regard are struggling hard to keep their valued employees satisfied.

Malik, Saleem and Ahmad (2007) explained employee satisfaction with work as the degree to which an employee likes his or her job. In simple words it can be said as the likening ness to the job that motivates the employees to be present at their work places and carry out tasks to accomplish goals. Whereas employee performance appraisal system can be better understood as Alternate words used for this concept may be employee appraisal, performance review, career development discussion etc. Anthony, Perrewe and Kacmar (1996, pp. 374-5) state that a performance appraisal system must be well defined, corporately supported and monitored. It must also be widely communicated and focused towards achieving corporate objectives.

A performance appraisal system must be integrated as part of a performance management system aligned toward achieving corporate goals (Schneier, Shaw & Beattie, 1991, p.298; Marchant, 1999). Coens and Jenkins (2000) suggest that performance appraisal is a mandated process in which, for a specified period of time, all or a group of an employee’s work behaviors or traits are individually rated, judged, or described by a rater and the results are kept by the organization.

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