Determinant Factors of Employee Satisfaction in the Performance Appraisal Based on Management by Objectives

Fiera Wardhani Gladisa, Ade Irma Susanty

Abstract

In response to the phenomenon of low employee satisfaction level on performance appraisal, organization
nowadays need to identify the determinants of employee satisfaction in the performance appraisal. The purpose
of this article is to develop a conceptual framework about the determinants of employee satisfaction in
performance appraisal using the effectiveness of performance appraisal approach.
The review of this article using three approaches. First, this article discusses the relevance of employee
satisfaction with performance appraisal. Second, review the literature about performance appraisal
effectiveness as determinants of employee satisfaction in the performance appraisal. Third, integrating the types
of performance appraisal systems in organizations with a determinants model of employee satisfaction in the
performance appraisal in order to develop a comprehensive framework for the organization.
A determinants practical model of employee satisfaction in the performance appraisal based on management
by objectives has been obtained. This model adopts the performance appraisal model with the changes caused
by adjustments to the appraisal basis management by objectives. This shows that employee satisfaction in
performance appraisal can be obtained from the effectiveness performance appraisal system.

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