Enhancing Performance Management System for improved employee satisfaction

Abstract: An effective performance management system plays a crucial role in fostering employee engagement and productivity, which are essential for an organization's success. Employee satisfaction is one of the most important factors. However, the critical aspect of employee satisfaction has been largely overlooked in the existing literature. This study aims to bridge the gap by examining the relationship between performance management systems and employee satisfaction by highlighting the inefficiencies and limitations of current performance management practices in addressing employee satisfaction. Key factors identified include the design and implementation of performance management practices, communication and feedback processes, and the influence of recognition and rewards. To enhance employee satisfaction, our research should delve into various aspects of performance management systems. This includes investigating the effectiveness of different performance measurement techniques, the role of leadership and managerial practices, and assessing the impact of organizational culture. Furthermore, research should focus on developing strategies to align employee expectations with performance management goals and provide opportunities for employee participation and involvement. By addressing these research gaps, organizations can develop more comprehensive and employee centered performance management systems. We believe the findings of this study provide a foundation for future research directions to enhance employee satisfaction