Effect of Performance Appraisal System on Employee Satisfaction in Budget Hotels of Kolkata

There has been unprecedented growth of budget hotels in India. Human resources have been important element for the growth and sustainability of the hotels. HR practices are critical for enhancing job satisfaction and productivity of employees. A fair and transparent performance appraisal process are key for enhancing trust and confidence with the system. Employees who are satisfied with the performance appraisal system will be keen to be committed with the hotels. The present study has been conducted in the budget hotels of Kolkata. 135 employees and 10 employers were taken for the study. Stratified random sampling was employed and SPSS Version 20.0 was used for the data analysis. The results indicated that there was a marked difference between the levels of satisfaction amongst permanent and contractual employees. The performance appraisal was included for all employees, however, the pay and promotion were limited to permanent employees.