Assessing The Impact of Performance Management System and Reward Practice on Employee Satisfaction at Action Professionals Association for the People

Abstract

Performance management practice and reward system assist organizations to achieve their goals and are important for their success and survival. While have been widely researched in for profit making organizations, studies focusing on the not-for-profit sector are very few. The purpose of this study is to Assess the impact of performance management system and reward practice in Action Professional Association for the People it is not-for-profit organization ,and the specific objectives of the study were; to assess the major problems in the practices of performance management of employees, to identify the potential sources of employees dissatisfactions regarding performance management, to give alternative solutions for problems regarding the practices of employees performance management and to determine the influence of rewards and recognition system on employee performance. To answer these questions descriptive survey research design has been employed by using both quantitative and qualitative research approach. The total number of employee in the organization is 38 of which 34 employees to fill in the questionnaire, which is the main data collection instrument. The data gathered from the questionnaire were compiled using table and percentage, Descriptive statistics method was used for analyzing data obtained from questionnaire and data gathered from interview and document analysis were analyzed contextually. The result of the analysis was presented using tables. In general, the finding of the study revealed that organizational goals were not fully aligned with departmental and individual goals, participation of employee’s in the planning stage of performance management is not across all employee, lack of regular feedback. In addition to this Benefits and rewards the organization decrease time to time, there is no salary increment in the organization within five years, the employees feel that payments they earn are lower than other similar organization. In order to fulfill 70:30 rule the organization can’t spend more amount of money to rewarding the employee based on their performance and also there is no annual employee training plan in the organization. Recommendations were forwarded to align organizational goals with departmental and individual level, to improve the level of employee’s participation in the PMS process, to enhance the awareness of employees about the purpose of PMS, and the organization need to develop and implement focused training and development programs as well as motivate their employees so as to realize improved organizational performance. Rewards be based on performance considerations after a fair and accurate evaluation of its effects on the beneficiary. Supervisors should also be trained and sensitized about the value of performance based reward systems and also be made aware that pay motivates employee to perform at their be