Perceived effect of performance management practices on employee satisfaction at Swedish Cooperative Centre
Performance management is one of the key Human Resource Management function and it highly involves both the employee and the manager to implement them. It is concerned with satisfying the needs and expectations of organizations stakeholdersowners, management, employees, customers, suppliers and the general public. However their ability to apply their skills, knowledge and work effectively together as a team is enhanced and improved over time through performance management systems and practices. Performance management is a system that affects everyone, one key question that may be asked, is the organization realizing results from its existing performance management system? There has been confusion around the term performance management, with the term being substituted for tools of performance management such as performance appraisal or performance related pay. The aim of this study was to assess the perceived effect of performance management practices on employee satisfaction at Swedish Cooperative Centre. This was a descriptive survey and data was collected from all the employees by use of a questionnaire and was analyzed through quantitative analysis. This study found that only some of performance management practices namely; Training and development, career development, performance related pay and rewards seemed to satisfy the employees. Even though the rest of the performance management practices were present in the organization they did not seem satisfy the employees or were not significant. They included Performance agreements, performance planning, managing performance throughout the year and reviewing performance. There was a link between years of service in the organization and some of the performance management practices whereby majority of the employees who had stayed in the Organization for more than 10 years seemed to be satisfied with the Training and development, rewards, performance related pay and rewards. This led to the conclusion that over the years the performance management practices gain familiarity to the employees. However the researcher recommended creation of a well-structured performance management process that will help both the Organization and employees in terms of improving the overall performance and communication. Communication will ensure that the employees are aware of the existing performance management practices and how they can use that for job satisfaction throughout their time with a given organization.