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JOHAR – Journal of Hospitality Application & Research

15 (1) 2020, 01-20
http://www.publishingindia.com/johar/

IMPACT OF PERFORMANCE MANAGEMENT

SYSTEM ON EMPLOYEE'S JOB
SATISFACTION IN HOTEL INDUSTRY

Critica Raj*, Anupama Verma**

*Bachelor of Business Administration, Department of Management, Usha Martin
University, Ranchi, Jharkhand, India.
Email: criticaraj322@gmail.com

**Assistant Professor, Department of Management, Usha Martin University,

Ranchi, Jharkhand, India. Email: anu_verma001@yahoo.com

Abstract

India has a very rich cultural and historical heritage which attracts tourists from
all over the world making it the world's 34th most attractive destinations
according to the World Economic Forum. As per the government statistics,
the country saw 10.5 million tourists in the previous year. Infrastructure
development, rise in living standards and disposable income of middle class
propelled the growth of the hospitality sector. The hotels of the Western India
and the tourist destinations provide world class service to their domestic and
foreign customers to compete against internationally renowned hospitality
chains.

This paper tries to capture the motivation level of hotel employees of

Jharkhand which is not a tourist hub but contributes significantly in the
economic growth of India. This is a study on the impact of Performance
Management System on Employees Job Satisfaction in the Hotel Industry.
Questionnaire method was adopted to gather data from the respondents. A
total of 314 completely filled questionnaires were used to explore the impact of PMS on Job Sati
A hypothesis was formulated to know whether PMS significantly impacts Job
Satisfaction or not. The results show very interesting patterns.

Keywords: Performance Management, Job Satisfaction, Hospitality Industry,

Employees Satisfaction, Economic Growth
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2 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

Introduction

In the present competitive scenario, the role of HR managers has evolved

dramatically from an appraiser to the strategic manager who is translating the
corporate philosophy into concrete action plans while protecting the interests
of individual employees. This gradual shift in the focus of HR managers has
enabled the major corporate to successfully execute its strategies. HR
managers try to align their strategy with corporate strategies to get the
competitive edge over other firms.

All the major activities and functions of HR are driven towards development
of high performance leaders and strengthening employee motivation. So, it
can be well said that the role of HR managers has evolved from being merely
an appraiser to a facilitator and an enabler. In recent times, Performance
management is the buzzword and is a necessity in today's cut throat
competition. Performance management is thus a much broader term and a
complicated function of HR. It is basically concerned with evaluating and
enhancing the performance of employees as individuals as well as in groups
to achieve organizational goals. It is a continuous process which encompasses
numerous activities such as setting of goals, performance evaluation,
feedback, training and development programs for improved performance and
rewarding achievements in monetary as well as non-monetary form.

It should be emphasized that performance management is not just about

appraising and compensating the employees in return of their work. However,
it is equally concerned with the employee's motivation and satisfaction which
results in increased job satisfaction among the employees. The process of
performance management begins with the recruitment of a new incumbent in
a system and ends when an employee leaves the organization. It is
fundamentally about managing individual employee's performance at work
and aims at enhancing the employee's efforts, skills and their contribution in
the organization.

The hotel industry being a service industry is completely dependent on

the delicate fabric of customer-employee relationships. Nowadays this is a
multi-billion-dollar industry that relies heavily on the availability of disposable
income of its customers. So, the success of this business depends largely on
how efficiently the hospitality team is handling their customers and their
satisfaction. It is a domain which demands employee's innovation, strategy,
and novelty at each step while handling their wide range of guests. Like all

Department of Hotel Management, BIT-Mesra, Ranchi-835215

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Impact of Performance Management System on Employee's Job Satisfaction... 3

other service sectors, the hospitality industry demands focus; staff leniency,
good relationship management, and other integrated marketing skills for its
smooth running and expansion. The employee performance is attributed by a
number of factors such as level of job satisfaction, motivation, compensation,
reward system, and organizational culture etc. This can be achieved by
maintaining a proper Performance Management System.

Theoretical Framework

(Brewster et al., 2003) Performance management (PM) is a set of activities

that ensure goals are met in an effective and efficient manner. Performance
Management can focus on the performance of an organization, a department,
an employee, or the processes in place to manage particular tasks. (US Office
of Personnel Management) Performance management standards are generally
organized and disseminated by senior leadership at an organization, and by
task owners.

The term performance management was coined by Aubrey Daniels in the

1970s, but it gained its popularity in the early 1980s, when total quality
management programs got recognition as of utmost importance for achieving
high standards and quality performance. In addition to it, different managerial
tools and functions such as job design, leadership development, training and
reward system received an equal boost. By the early twenty-first century,
leading companies incorporated in their operations a holistic approach to
performance management and appraisals. They began measuring operational
performance by adopting brand new metrics as part of their appraisal process
such as communication, group conflicts, teamwork, problem solving capability
etc. and by linking individual and team goals with organizational goals.

It was defined by Alder (2011) as the activities that the organization

implements with the aim of achieving the goals consistently and efficiently.
The scope of PM varies and can be implemented at various organizational
levels including individual employees, departments, the entire organization
and processes.

Literature Review

Performance Management System (PMS) seems to be a determining

factor in predicting the behavior of employees in the workplace. The impact
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4 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

of PMS has been noted in diverse fields. In the hospitality industry, the impact
of PMS is studied on the employee's Job Satisfaction to notice their behavior
while working at their workplace.

Singh et al. (2016) summarized the paper as job related parameters

should be employed to assess performances of employees. Use of non-
performance parameters should be avoided. The industry is still using old
patterns and unrevised PA methods. There is a need to replace them with
new contemporary tools and techniques. Job descriptions must be properly
revised and improved and each employee must know exactly what he is
supposed to do and what is expected from him as job description is prerequisite of a good PAS.

Numes and Machado (2014) focused on two specific goals- to identify the
methods of performance evaluation used by the hotel industry and the second
one was to analyze the link between hotel characteristics and the performance
evaluation methods used. The results fill the gap in understanding as the
empirical data shows the existence of the relationship between the legal form
of the company and the methods used to evaluate performances. The results
suggest using new variables to measure organization's dimensions in the
hotel industry.

Eldeen and Abdien (2012) revealed that the four dimensions of Employee
Performance Appraisal System (EPAS) were investigated by the researchers
and were implemented in the participating sample. The research also
investigated the potential of any discrepancy between managers' and
employees' perceptions as regards the dimensions of EPAS. It is established
that EPAS is the system that clarifies performance expectations from the
employee in advance and involves all persons related to the employee's
performance. It should also give frequent feedback to employees, adopt fair
procedures, reward employees without bias, and support the personal
relationship between the supervisor and the employee.

Karatepe O. (2013) in his research paper found that work engagement

plays a mediator role between HPWPs (high performance work practice) and
performance outcomes. According to him when an organization takes care of
the employee by bonuses, rewards and other benefits which are given by the
organization leads to greater work engagement. The results showed that
availability of HPWPs, as manifested by training, empowerment and reward
led to work engagement. It proposed a tested research model that shows how
all these are related to each other and how HPWPs work as a mediator between

Department of Hotel Management, BIT-Mesra, Ranchi-835215

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performance outcomes. In today's global competitive market environment, a

good knowledge of HPWPs leads to more work engagement and employee
work performance outcomes.

Zigan and Zeglat (2001) concluded that the research purpose was to
understand the importance of intangible resources in performance management
whereas it shows that traditional financial data are no longer leading indicators
of the performance in the hotel industry. The author found that direct relations
between customers and employees leads to greater work engagement which
plays a major role in building trust and customer employee relationships.

Brymer R. (2012) in the paper attributed the role of social media in

Performance Management in the hotel industry. This is because at present
social media plays an important role in the formation of people's perception
about the hotel industry. Customer's feedback, reviews and opinions are shared
on a number of social media networks and a favorable comment which helps
employees get motivated. These also help in employee's performance
evaluation which is basically based on customer reviews. Effective use of online
reviews leads to better performance management due to which hotel industries
have started investing money for social media and its networking with increasing
involvement in online reviews. They also analyzed the influence of online
reviews in the hospitality sector.

Jauhari and Manaktola (2007) found that issues to be addressed in the

hospitality industry are manpower attrition, education competencies and skill
development. They concluded that these factors are strong enough for the
growth of the industry and have made a considerable contribution to the economic growth.
The study also intended to find out the importance of skill management and the
significance of trust culture and the consequences of openness and fairness in
all the levels of the organization in order to manage it efficiently. Practice should
be adopted which contributes not only to positive customer experience but also
towards employee experience. This leads to a better reward and recognition
system that can help to identify and foster talent in the firm.

Hoque K. (1995) concluded in the paper that HRM practice leads to high
performance outcomes among hotel managers pursuing; cost-reducing
strategies effect performance management. However, no relationship between
the absenteeism measures has been observed. There is no awareness among
the hotel managers about more effective practices of HRM. The results showed
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6 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

that the poor practice of HRM by the manager in the hotel industry leads to
mismanagement by the staff personnel.

Chang et al. (2011) gave some advice on an appropriate performance

management style of Hotels Corporation in China. The purpose of this paper
is to provide organizations with an understanding about business performance
management (BPM) and its potential value in the Chinese hotel industry.

Otoo and Mishra (2018) indicate that some human resource management
practices influence organizational performance through their impact on
employee competencies. Career planning and performance appraisal
however, do not impact employee competencies of the industry. The research
was undertaken in the hotel industry and the data were analyzed based on
cross sectional data which cannot be generalized across a broader range of
sectors and international environment. The findings of the study have the
potential to help the stakeholders and management of hotels in adopting well-
articulated HRM practices in building human capital and stimulating the
necessary behaviors that create advantage for the organization in the long run.

Ozgen et al., (2011) concluded that managing human resources is very

complex. The difficulty lies in the complex nature of beings as they are not
only composed of bones and flesh but feelings, emotions, needs, values and
so on which forms the complex and continuously changing expectations and
demands from their organization and when these expectations are not met ,
they can react either overly or covertly. PA is a tool which helps management
to know better the quality of its human resources and how well they can
convert their competencies into performance. If used correctly, PA can provide
management with the valuable information that may serve as a basis for good
decision making. However, in the hands of an incompetent manager this tool
can be a devastating weapon. Different appraisal methods should be used
for different groups of employees in an organization. Performance standards
should be developed so as to compare the actual performances of the
employees. Who is going to evaluate whose performance must be clearly
defined and stated? Instead of appraising the employees at the end of the
calendar year, appraisal can be done at the end of the tourism session.

Objectives of the Study

After going through the above literature, following objectives have been
formulated for the study:

Department of Hotel Management, BIT-Mesra, Ranchi-835215

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• To know the level of awareness about the term “Performance

Management System” among the employees.
• To know the effect of PMS in employees' job satisfaction.
• To know whether the employees are satisfied with their organizational
Performance Appraisal System.

Hypotheses

Ho : PMS significantly impacts the Job Satisfaction of Employees of Hotel

Industry of Ranchi.

Ha : PMS does not significantly impact the Job Satisfaction of Employees of

Hotel Industry of Ranchi.

Significance of the Study

In today's era of cut throat competition and globalization, organizations

have realized the significance of strategic HR practices for gaining a
competitive edge over the competitors. Performance management is an
effective tool for aligning all the major organizational functions and sub
functions so that the focus can be directed towards achieving the
organizational goal. The main theme of the research is to study the impact
of effective performance management system on employee motivation of
the hotel industry in Ranchi city and its association with the job satisfaction
of the employees.

Today managing the performance of employees is one of the toughest

challenges posed to the organization. A well planned and managed
mechanism for reward practice and feedback system serves as an important
tool for employee motivation and development. In the era of shifting
paradigms, businesses must be able to develop their human resources as
a source of competitive advantage.

Employee job satisfaction and motivation are the keys to the success of
hotel organizations. This is a significant area for focus and study as
employee satisfaction and motivation leads to organizational success
especially in hospitality which is a labor-intensive sector. The matter of
concern about this industry is that its employees are the backbone and key to the growth.
The satisfaction and development of employees becomes critical in order to
maintain the sustainability and growth of the organization as the satisfied
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8 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

employees can only make their customers satisfied. This is the reason why
employee motivation and satisfaction is always a matter of consideration.
So, the concept of PMS effectiveness in keeping the employees satisfied and
dedicated towards their job has been taken for study.

Research Methodology

There are numerous hotels operating in the state of Jharkhand catering

service to the different categories of customers. The selection of the Ranchi
district (Jharkhand) has been done as it is the capital city and so closely
reflects the overall population of the research area of the Jharkhand state.
The questionnaire method has been used to collect information and data for
the purpose of making business decisions. There are around 66 hotels in
Ranchi district. Collection of data from all these hotels is not possible. So, by
simple random sampling technique, samples of 45 hotels have been selected.
The questionnaire employed for the survey had 15 questions, consisting of
two variables viz. Performance Management System (PMS) and Employee
Job Satisfaction. Out of these 15 questions, 8 questions were from PMS and
7 were from Job Satisfaction. Questionnaires were provided with the
appropriate request to the respondents to complete the same for the purpose
of the research. 400 questionnaires were distributed and 314 responses were
received from the employees of different hotels of Ranchi district, Jharkhand.
The response rate was 78.5%. Responses of 314 employees with complete
details in the questionnaire were taken for the study and for further analysis.
The other methodologies include research publications, interviews and other
research techniques including both present and historical information.

Findings and Conclusion

The hotels of the Ranchi district have been selected by dividing them into
clusters as it was not feasible to get data from all the 66 hotels. The hotels
were first divided into clusters on the basis of blocks from which clusters were
picked up randomly.

The data were collected from the hotels which fell under these selected
clusters. The hypothesis formulated for this study was tested on the basis of
responses gathered from the questionnaire.

Department of Hotel Management, BIT-Mesra, Ranchi-835215

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Fig1. Mean of Fig.

PMS1:and
Mean
JS of PMS and JS

Reliability Analysis
7.1. Reliability Analysis
Cronbach's alpha is a measure that assesses the internal consistency
of a set of scales or test items. Internally consistency provides a way of how
well set of scales or test items. Internally consistent provides a way of how
a test
that or survey
a test is actually
or survey measuring
is actually measuringwhat youyou
what want to measure.
want to measure. It isIt best
is
most commonly used when you have multiple Likert questions in a
questionnaire and you want to determine if it is reliable or not. The following
questionnaire
Table that the
1 and 2 gives forms a scale
value and you
of internal wish to determine
consistency if reliable or
predicates
corresponding to Cronbach's alpha calculated value:
note. The following 2 tables give the value of internal consistency predicates
corresponding to Cronbach's alpha calculated value:
Table 1: Effectiveness of PMS

CRONBACH'S ALPHAALPHA
CRONBACH'S ( (a) 0.82 0.82

The calculatedTABLE
value 1:
of EFFECTIVENESS
Cronbach's alpha isOF 0.84
PMSwhich suggests that
questions formulated are very consistent and reliable for evaluating the The
calculated value
Management of Cronbach's
System for the hotelalpha is 0.84 which
employees. suggests
The internal that Performance
consistency of
the questions
are is excellent
very consistent as the questions
and reliable takenthe
for evaluating in the questions formulated
questionnaires related to
one another. Management System for the hotel employees. The internal
Performance

Table 2: Effectiveness of Job Satisfaction

0.78 9
CRONBACH'S ALPHA (a)
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10 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

The calculated value of Cronbach's alpha is 0.78 which suggests very

consistent and reliable questions we formulated for the Job Satisfaction.
The internal consistency of the questions is good.

Item Analysis of Performance Management System

Table 3: Mean Analysis (PMS)

Sr. No. Questions Mean

1 PMS1 Do you think PMS is clearly defined in your organization? 2.14

2 PMS2 Do you think PMS has a significant impact on job satisfaction? 2.18

3 PMS3 Do you get any formal feedback regarding your performance? 2.14

4 PMS4 Are you satisfied with your existing PMS & PAS? 2.38
5 PMS5 Do the PMS implemented in your organization 2.41
create a participative environment?
6 PMS6 Is promotion strictly based on PMS? 2.68
7 PMS7 Are there any steps to improve the performance if not up to 2.56
the mark?
8 PMS8 Do you feel free to express to your appraiser your 2.65
disagreements regarding the appraisal decisions?

Above Table 3 gives us the mean responses of each question that were
asked to measure the Effectiveness of Performance Management of the
respondents of Hotel Industry. Most of the respondents of the hotel industry
agreed that PMS is not clearly defined in their organization (mean = 2.14)
also the values are supported to the fact that PMS has no significant impact
on the job satisfaction (mean = 2.18). The mean score of 2.14 suggests that
the employees of hotel industry of Ranchi do not get formal feedback about
their performance and are not satisfied with the existing PMS and PAS. The
values also show that the employees are dissatisfied with the promotion
policy of the organization which they feel is strictly based on the PMS. The
PMS employed in the hotel industry in Ranchi does create a participative
environment for the employees on an average as can be seen from the
mean score of 2.41. However, the mean score of 2.56 emphases that 50%
of the employees agree that necessary steps are taken within the hotel
industry to improve their performances from time to time. The mean score
of 2.65 describes that more than half of the employees feel free to express
their disagreement regarding the appraisal decisions to the appraisers in their organization.

Department of Hotel Management, BIT-Mesra, Ranchi-835215

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Impact of Performance Management System on Employee's Job Satisfaction... 11

Fig. 2: Fig2. Pie Chart

Pie Chart of of MeanAnalysis
Mean Analysis ofofPMS
PMS

Table 4: Mean Analysis (JS)

Sr. No. Questions Mean

1 JS1 Do you believe thatQUESTIONS
the company has a great future S.No. 2.38
MEANS
and would you recommend this organization to Do you
1 JS1 believe that the company has your friends 2.38
and family members?
great future and would you recommend this
2 JS2 Do you think PMS organization
helps peopletotoyour
set and achieve 2.13
friends and family
meaningful goals?
members?
3 JS3 Do you think your excellence in performance & 2.43
2 JS2 Do you think PMS helps people to set and 2.13
achievement of results are rewarded in time?
achieve meaningful goals?
4 JS4 Do you think your future growth opportunities look 2.08
3 JS3 Do you think your excellence in 2.43
great here?
performance & achievement of results are
5 JS5 Do you agree that your performance has been significant 2.20
rewarded in time?
impact on your salary?
6
4 JS4 Do you think about your future growth 2.08
JS6 Does your superior provide guidance and take keen 2.63
opportunities look great here?
interest in your development?
7 JS7 Does your senior management encourage your ideas & 2.68
innovation at the workplace?
12

Similarly, the Table 4 above shows the mean response of each

respondent in terms of Job Satisfaction. On an average employee of Hotel
Industry of Ranchi, believe that the company has a great future and they will
recommend the organization to their friends and family members (mean =
2.38). The mean value of 2.13 shows that most of the employees feel that PMS helps to set and
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12 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

achieve meaningful goals. The mean value of 2.43 suggests that only 48.6%
of employees think that their excellence in performance and achievements
are rewarded in time. Most of the employees think that their future growth
opportunities do not look good here (mean = 2.08). The mean of 2.20
suggests that only 44% of respondents agree that their performance has a
significant impact on the salary. 53% of respondents with a mean of 2.63
agreed that they provide superior guidance and take keen interest in their
development and they also encourage their ideas and innovation at the workplace (mean = 2.68

Fig. 3:Fig3.
PiePie Chartof
Chart ofMean
Mean Analysis
Analysis of JS
of JS

Table 5: Standard Deviation Analysis of PMS

S.No. Questions STDs

Sr. No. 1 PMS1 Do you thinkQuestions

PMS is clearly defined in your STD 0.9070
1 organizations? 6
0.90706
PMS1 Do you think PMS is clearly defined in your organization?

2 PMS2 Do2you think PMS has a significant impact on 0.965841

PMS2 Do you think PMS has a significant impact 0.9658
job satisfaction? 41
on job satisfaction?
3 PMS3 Do you get any formal feedback regarding your 0.863329
performance?
3 you satisfied
4 PMS4 Are any formal
with your
feedback
existing
regarding
PMS & PMS3
0.815458
Do you get 0.8633
PAS? your performance? 29
5 PMS5 Does the PMS implemented in your organization create 0.747724
a participative environment?
4 PMS4 Are you satisfied with your existing PMS & 6 0.8154
PMS6 Is promotion strictly based on PMS? 1.02373
PAS? 58

Department of Hotel Management, BIT-Mesra, Ranchi-835215 14

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Sr. No. Questions STDs

7 PMS7 Are there any steps to improve the performance if not up to the 1.066389
mark?
8 PMS8 Do you feel free to express to your appraiser your disagreements 1.080122
regarding the appraisal decisions?

Table 6: Standard Deviation Analysis of JS

Sr. No. Questions STDs

1 JS1 Are you satisfied with the existing PMS & PAS? 0.922905
2 JS2 Do you believe that the company has a great future and 0.814498
would you recommend this organization to your friends
and family members?
3 JS3 Does the PMS implemented in your organization create a 0.927441
participative environment?
4 JS4 Do you think your excellence in performance & achievement 0.931355
of results are rewarded in time?
5 JS5 Do you think about your future growth opportunities 0.767469
looks great hear?
6 JS6 Do the promotions are strictly based on PMS? 1.0618
7 JS7 Does your superior provide guidance and take interested 1.086935
interest in your development?

The above Table 5 and 6 shows the standard deviation of the PMS and
Job satisfaction adopted for the employees of Hotel Industry of Ranchi. As
can be seen from Table 5, Standard Deviation of responses towards the
questions of PMS by the employees of hotel industry of Ranchi lies between 0.7 and 1.1.
The lowest deviation ie 7.58164 is recorded for the question on participative
environment for the employees through PMS while the highest deviation of
1.074625 is recorded for the interest and involvement of superior for the
development of their employees. From the perspective of Job satisfaction the
Standard Deviation varies from 0.78 to 1.07. The lowest deviation was
observed for the question related to future growth opportunity at the
organization while the highest one was observed for the freedom of the
employees to express their views regarding the appraisal system adopted.
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14 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

Fig4. Bar Chart of STD Analysis of PMS

Fig. 4. BarBar
Fig4. Chart ofofSTD
Chart STDAnalysis ofPMS
Analysis of PMS

Fig5. Bar Chart of STD Analysis of JS

Fig5. Bar Chart of STD Analysis of JS

Fig. 5: Bar Chart of STD Analysis of JS

Table 7: Variance Analysis of PMS

17
Sr. No. Questions STDs
1 PMS1 Do you think PMS is clearly defined in your organization? 0.82831
17

2 PMS2 Do you think PMS has a significant impact on job satisfaction? 0.928603

Department of Hotel Management, BIT-Mesra, Ranchi-835215

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Impact of Performance Management System on Employee's Job Satisfaction... 15

Sr. No. Questions STDs

3 PMS3 Do you get any formal feedback regarding your performance? 0.740685

4 PMS4 Are you satisfied with your existing PMS & PAS? 0.66645

5 PMS5 Does the PMS implemented in your organization create a 0.555921

participative environment?
6 PMS6 Is promotion strictly based on PMS? 1.061191
7 PMS7 Are there any steps to improve the performance if not up to the 1.128518
mark?
8 PMS8 Do you feel free to express to your appraiser your disagreements 1.179433
regarding the appraisal decisions?

Table 8: Variance Analysis of JS

Sr. No. Questions STDs

1 JS1 Are you satisfied with the existing PMS & PAS? 0.851753
2 JS2 Do you believe that the company has a great future and 0.663407
would you recommend this organization to your friends
and family members?
3 JS3 Does the PMS implemented in your organization create a 0.860147
participative environment?
4 JS4 Do you think your excellence in performance & 0.867422
achievement of results are rewarded in time?
5 JS5 Do you think your future growth opportunities look great? 0.589009

6 JS6 Do the promotions are strictly based on PMS? 1.127419

7 JS7 Does your superior provide guidance and take interested 1.181427
interest in your development?

Tables 7 and 8 above show the variance of responses towards each

question of PMS and Job Satisfaction. Here also, the smallest variance is for
the participative environment creation through PMS and the highest one is
for the involvement of superior for the development of employees. Similarly,
for the question on Job Satisfaction, smallest variance can be seen for the
question related to future growth opportunity at the organization while highest one is
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16 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

observed for the freedom of the employees to express their views regarding the
appraisal system adopted.

Regression Analysis

A regression analysis approach has been applied on the data to see how
the job performance of an employee depends on the PMS adopted. The results
of the analysis are plotted below:

Fig6. Regression Analysis

Fig. 6: Regression Analysis
As can be seen from the above graph that the job satisfaction of an
employee of hotel
can be seen industry
from the aboveingraph
Ranchi depends
that the job on PMS withofthe
satisfaction anfollowing
equation:As
employees of hotel industry in Ranchi depends on PMS with the following
equation:
Job Satisfaction= 0.5485 + 0.7539* PMS
Job Satisfaction = 0.5485 + 0.7539 * PMS
The graph does not show any linear pattern which further emphases that
the adopted PMS does not linearly affect the job satisfaction of an employee
The graph
hotel does
industry of not show any linear pattern which further emphases that of the
Ranchi.
the adopted PMS does not linearly affect the job satisfaction of an employee of
Effective
the hotel Employee
industry Performance Management System (EEPMS) is
of Ranchi.
one of the very significant factors that affects employee satisfaction
and is a many
remove tool forEffective
employee motivation.
Employee A deep study
Performance of the factors
Management can
System
(EEPMS) is one obstacle from the path of smooth functioning of the
organization. The of the very significant factors that affect employee satisfaction
and is a tool for study on the employee satisfaction of the hospitality
industry is increasing employee motivation. A deep study of the factors can
remove many obstacles from the path of smooth functioning of the organization. The study on the

Department of Hotel Management, BIT-Mesra, Ranchi-835215 20

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Impact of Performance Management System on Employee's Job Satisfaction... 17

Employee satisfaction of the hospitality industry is gaining momentum as this

is a labor intensive industry. So, there is a need to keep the employees satisfied.

ANOVA Test

The results of the hypothesis are shown in the table 9 below. Based on
the ANOVA test result, we accept our formulated Null Hypothesis (since sample
F is less than F-critical) and conclude that "PMS significantly impacts the Job
Performance of Employees of Hotel Industry of Ranchi".

Table 9: Anova Test Results

ANOVA: Single Factor

ANOVA
Source of SS df MS F P-Value F-Crit
Variations
Between 0.06685 1 0.0668 0.241869477 0.62355 3.901761
Groups 1266 51266
Within 43.1174 156 0.2763
Groups 5996 93974
Total 43.18431 157
122

Limitations

The limitations with this research work were as follows:

• Sample size was small as the research had been narrowed down to a
particular geographical area.
• Unwillingness of the employees in giving their response.
• Unawareness about the contribution of the research to the society at
large.
• Excessive work load on the employees and unavailability of time.
• We have not considered any demographic factors in our study.

Conclusion & Suggestions

In this paper we studied the Impact of Effective Performance Management

System on Employee Job Satisfaction of Ranchi, Jharkhand to conclude how
they react to the PMS in the workplace and to know whether they are satisfied
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18 JOHAR – Journal of Hospitality Application & Research Volume 15 Issue 1 January 2020

with their organization's PMS or not. We formulated a hypothesis and tested it

based on the responses gathered from the questionnaire. Based on the testing it
was concluded that:

• PMS significantly impacts the Job Satisfaction of Employees of Hotel Industry

of Ranchi.

We can infer that the employees of the hotel industry are less aware about
the existing Performance Management System. The Performance Management
System should be more employee centric as it is not able to contribute in raising
the job satisfaction level.

The study can further be carried out taking a larger sample size of the
employees of hospitality sector of Jharkhand. Also comparison can be made
based on gender and age to know the level of satisfaction among different groups.

Effective Employee Performance Management System (EEPMS) is one of

the very significant factors that affects employee satisfaction and is also a tool for
employee motivation. A deep study of the factors can remove many obstacles
from the path of smooth functioning of the organization. The study on employee
satisfaction of the hospitality industry is gaining momentum as this is a labor
intensive industry. So, there is a need to keep the employees satisfied. This can
only be achieved by enhancing the reward system. Work should be equally
distributed, so that no one is overloaded. Training programs should be organized
to make the employees aware about the concept of PMS.
Feedback of performance appraisal must be shared with the employees so that
they can improve the areas where they lack. Organizations should provide
opportunities for career growth and advancement which will ensure employee
motivation and thus will enhance their performance.

Hotels are the third largest foreign exchange earner and also the backbone
of the country, which is emerging as a new economic hub for global trade and
business. In this coal belt, hotels are not the leading sector but are providing good
placement opportunities to the youth willing to build their career in the service
industry. Hospitality sector alone accounts for 7.5% in GDP of India. This sector
along with tourism has emerged as the key economic driver providing 9.3%
employment opportunities to the job seekers. This Industry is also associated
with other major sectors of the economy such as transportation, aviation,
entertainment and recreation, food business and tourism. So, it should be
understood that the performance of any individual employee is very vital for the
organizational growth and can be enhanced only when he or she

Department of Hotel Management, BIT-Mesra, Ranchi-835215

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Impact of Performance Management System on Employee's Job Satisfaction... 19

is satisfied with his job. Job Satisfaction can be achieved only when the level
of contentment incumbents of an organization feel with their respective jobs.

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Department of Hotel Management, BIT-Mesra, Ranchi-835215

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Reproduced with permission of copyright owner. Further

reproduction prohibited without permission.