Impact of Automated KPI-based Management Systems on the Satisfaction of Employees in the Remuneration System

Master's dissertation is devoted to consideration of influence of automated KPI-based management system usage on satisfaction of employees by a remuneration system. The main goal of the work is to identify the factors of employee satisfaction with the automated KPI-based management system, which are the effects of implementation, determine how they can affect the work and behavior of employees, specifically, their aspects such as satisfaction with the remuneration system, participation in the KPI evaluation process and the employee involvement. The practical outcome of the study was to develop recommendations for working with staff and the formation of a remuneration system based on KPIs for successful transition to an automated KPI-based management system. The results of a comprehensive empirical study, in a sample of which included 6 Russian companies, revealed that after the implementation of the automated KPI-based management system: - the process of wages calculating becomes faster and easier; - the process of obtaining employee feedback becomes faster; - the evaluation process and the rewards formation mechanism become more understandable and transparent to the employee, increasing the satisfaction with the remuneration system and participation in the KPI evaluation process. In addition, the following results were obtained: - participation in the KPI evaluation process depends on the regular use of certain functions in the programs; - satisfaction with the remuneration system is based on the frequency of the rewards, the clarity of the intermediate values during the evaluation period, an understanding of the mechanisms of indicators’ performance and the perception that the subjective assessment is fair; - between the participation in the KPIs evaluation process and the satisfaction with the payment system, there is a positive relationship, and involvement of employee is the effect of satisfaction with the remuneration system based on KPIs.