Impact of Performance Management System and Employee Satisfaction towards Employee Retention in a Small Finance Bank

Abstract

This paper provides an explanation on how performance management system affects employee satisfactionand employee retention. The study here is done to explore relationships between them in Banking Industry. The responses taken showed direct and through relation among themselves including common dependence on some human resource management factors. Impact of Performance Management System on organizational behavior has been under investigation but there are some findings which say that Performance Appraisal plays crucial role on employee satisfaction, performance and retention. More the employee satisfaction level the more is the intention of employees to stay in organization. The responses gathered were 40 from different grades like MT(Management Trainee), AT(Apprentice Trainee), A1(Executive), A2(Senior Executive), A3(Assistant Manager), B1(Deputy Manager), B2(Manager), C1(Senior Manager), C2(Assistant Vice President), C3(Deputy Vice President), D1(Vice President), D2(Senior Vice President 1), D3(Senior Vice President 3), E1(Executive Vice President), E2(President), G(Group Head) and F(Executive President). It was found that R value of Employee Retention is 57.7% and the most contributing factor is Employee Satisfaction than Performance Management System.