Abstract:
The Indian IT industry is having many challenges in managing their employees such as turnover, skill updates, performance management etc. While performance management is done in a more structured way in large IT companies, the small and medium IT companies do not follow the same approach towards the performance management of their employees. This research paper investigated the relationship between employees‘ job satisfaction and the employees‘ perception on their performance. A survey was conducted in small and medium sized IT companies in Coimbatore city of Tamil Nadu, India. The relationship between job satisfaction dimensions and various demographic characteristics of the employees and their perception of their performance was analysed. The data for the survey was collected using self-administered questionnaire which was based on COPSOQ and industry employee effectiveness surveys. The data was quantitatively analysed using Z-test, Chi-square and oneway ANOVA. The analysis resulted indicate that there was a significant correlation between job satisfaction, feedback, employee satisfaction on the perception of performance. In addition, a strong correlation was found to be existing for the presence of the Performance Management system in the company, the frequency of the PM process, and the perception on their performance. No statistically significant correlation was found to be existing for the educational base, age group, experience of the employee and the perception. It was also found that amongst the small and medium IT industry, more than 50% of the companies conduct the performance management annually and face to face discussion is the predominant appraisal method used followed by the rating scales. Further, this paper presents the limitations of the study and suggestions for the improvement of the perception amongst the small, medium IT industry.
