Performance Appraisal System and Employee Satisfaction among its Employees in Bangalore

Every organisation follows a Performance Appraisal System in one way or other and the same has some impact on the satisfaction level of the employees over a period of time. In this paper, the authors have made an attempt to study the same among some of the IT employees. Top five IT companies were selected based on their revenue released by the third quarter for the year 2014. The sample of 110 respondents was selected based on systematic random sampling method constituting 1 percent of the population under study. The study used factor and regression analysis using 5 percent level of significance. The factor analysis has identified four factors and the variables of factor one contribute 49.79 percent variation, followed by 16.667 percent, 9.961 percent and 5.410 percent variation being contributed by second, third and fourth factors respectively. A multiple regression analysis was used to test the hypothesis and it was found that hypothesis being considered by the researcher is partially accepted and partially rejected.