Abstract
This study examined employee perceptions of Performance Management Systems (PMS) and their relationship with employee satisfaction and retention indicators within selected organizations. Using a descriptive-quantitative research design, data were gathered from 54 employees through a structured survey questionnaire utilizing a 4-point Likert scale. The study focused on four PMS dimensions: Goal Clarity and Alignment, Continuous Feedback and Coaching, Linkage to Career Development, and Linkage to Rewards and Recognition. Descriptive statistics such as frequency distribution, mean, standard deviation, and correlation analysis were employed to interpret the data. Findings revealed that employees generally perceived the PMS as effective, particularly in terms of Goal Clarity and Alignment (M = 3.69), while Linkage to Rewards and Recognition obtained the lowest mean score (M = 3.36). Employee satisfaction and retention levels were likewise interpreted positively, indicating favorable employee attitudes toward remaining in their organizations. Correlation analysis showed a significant relationship between PMS effectiveness and employee satisfaction (r = .99, p = .007), while no significant relationship was found between PMS effectiveness and employee retention (r = .47, p = .52). Age was identified as the only demographic factor significantly related to PMS effectiveness and employee satisfaction. The study concludes that effective performance management practices contribute substantially to employee satisfaction and may indirectly influence retention outcomes. Recommendations include strengthening feedback systems, enhancing developmental opportunities, and improving reward alignment to sustain employee engagement and organizational retention strategies.
Keywords: Employee perceptions, performance management system, employee retention, retention indicators