The analysis was done only with the sample 200 employees who are supposed to be representing the IT sector employees.The results are given based on the assumption that the questions answered by the employees are true.The survey was limited to only few IT companies.Chi square test will be used to prove the hypothesis.Factor analysis will be used to find the importance of various attributes.Books offering information relevant to the study.Secondary data is collected from the following sources:.Primary data is collected with the use of structured questionnaire.The sampling design used for the study is random sampling The size of the sample chosen for survey is 200 employees from different IT companies Bangalore, India. H1: There is no significant relationship between the factors affecting performance appraisal system and employee satisfaction Ho: There is a significant relationship between the factors affecting performance appraisal system and employee satisfaction To find whether the performance appraisal leads to better working environment.To find if there is any opportunities provided for the employees to improve their performance.To assess whether the appraisal system help in skill development.To find whether the appraisal system leads to better communication between superior and subordinate.To find whether the existing appraisal system in the organisation measures the employee’s performance.Factors affecting performance appraisal system.‘A study on performance appraisal system, feedback processes in IT Industry and its impact on Employee Satisfaction.’ the research is intended to find the relationship of performance appraisal system prevailing in IT Industry to the above mentioned development needs which lead to employee satisfaction. The development needs of employee involve better compensation, promotion, career development, better communication with superior, training needs, rewards, improvement in work life balance etc. An effective performance appraisal needs to meet the development needs of the employee and thereby improving the employee satisfaction. The performance appraisal system is usually being conducted just on a protocol basis as per the schedule. The scope of the study was aimed at understanding the performance appraisal system, feedback process followed in Indian IT industry and its impact on employee satisfaction.
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