A Role Of AI-Driven Performance Appraisal Systems In Enhancing Employee Satisfaction And Promoting Sustainable HR Practices In Small And Medium IT Enterprises In Pune District
Ms. Dhaneshwari Shinde
Department of commerce and management,
Shivaji university, Kolhapur
Abstract
In today’s dynamic IT industry, particularly within small and medium enterprises (SMEs), performance appraisal systems play a vital role in assessing employee contribution, motivating workforce, and ensuring organizational sustainability. However, traditional appraisal methods are often criticized for being biased, time-consuming, and misaligned with employee expectations. With the emergence of Artificial Intelligence (AI) and smart technologies, organizations have the opportunity to design appraisal systems that are data-driven, transparent, and sustainable. This research examines employee satisfaction with existing appraisal systems in SMEs of Pune District and explores the potential of AI-driven appraisal models to enhance fairness, efficiency, and sustainable HR practices. The study aims to provide insights into how AI-based performance appraisal systems can transform HR processes in SMEs, thereby improving employee engagement and supporting organizational growth in the digital era. Keywords: Performance appraisal, Small and Medium Enterprises, IT sector, Pune District, Human Resource Development
DOI link – https://doi.org/10.69758/GIMRJ/2509I9VXIIIP0066
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