Effect of Performance Evaluation Mechanism on Job Satisfaction of Production Associates: Study in a Leading Manufacturing Company in Sri Lanka

Abstract

All the countries around the world are a part of the global marketplace and most of the businesses mainly depend on the human resources with specific knowledge, skill and abilities. At this juncture, the performance evaluation comes to the business scenarios to identify the performance gap. On other hand, there is no point of considering the employees’ level of competent, if they are not satisfied with their job. Here, the job satisfaction link with performance evaluation. Hence, this study purposively done to find out the effect of performance evaluation mechanism on job satisfaction of production associates in manufacturing company. Effect of four selected dimensions of performance evaluation system on job satisfaction was examined. Data were collected by distributing questionnaires among 180 production associates at Zone A of the manufacturing company. And also, qualitative information was gathered from an interview with the HR manager. İt was used the mixed methodology which is a combination of qualitative and quantitative to get greater and comprehensive insight about the research problem. Collected data were analyzed through SPSS by using correlation and regression analysis. The final results of this study indicate that, the performance evaluation mechanism practicing at the manufacturing company makes a significantly positive effect on the job satisfaction of the production associates. Finally, recommendation was made that the company should practice an employee friendly and practical performance evaluation