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Performance management system is a key component of organizational management, which has a significant impact on employees' job satisfaction. Through the literature review, this study explored the theoretical basis of the performance management system, mainly including management by objectives theory, expectation theory, and the balanced scorecard. Performance management can improve employees' job satisfaction by clarifying goal setting, fair performance evaluation, effective feedback mechanism and reasonable reward system. This paper further puts forward the strategy of optimizing the performance management system, and is committed to providing theoretical support and practical guidance for enterprises to develop more effective management methods.
Meng et al. (2024) studied this question.