This research investigates the pivotal role of performance management in fostering employee satisfaction and contributing to organizational success. In an era marked by dynamic work environments and evolving employee expectations, effective performance management systems have become imperative for organizations seeking to optimize workforce potential. The study employs a mixed-methods approach, combining quantitative analyses of performance metrics with qualitative insights from employee surveys and organizational case studies. The research delves into the key components of successful performance management systems, exploring how clear goal setting, regular feedback mechanisms, and employee development initiatives contribute to heightened job satisfaction. It examines the impact of employee satisfaction on overall organizational success, considering factors such as increased productivity, reduced turnover, and enhanced team collaboration. Additionally, the study assesses the challenges and opportunities associated with implementing robust performance management systems, considering organizational culture, technological integration, and leadership commitment. By analysing best practices in diverse industries, this research aims to provide actionable recommendations for organizations seeking to enhance their performance management strategies. The findings of this research contribute to the growing body of knowledge on performance management and offer practical insights for human resource professionals, organizational leaders, and scholars interested in optimizing employee satisfaction as a pathway to achieving sustained organizational success in today's competitive business landscape.

Keywords: Performance Management System, Employee Satisfaction and Organizational Success.