The study on PERFORMANCE MANAGEMENT AND EMPLOYEE SATISFACTION is written by Milica and Milos Jaksic. This paper attempts to relate human resource management practices to performance management that help in employee satisfaction. Human resource management by measuring employee performance and obtaining valuable feedback helps achieve higher results and better performance within the organization. Furthermore, trying to focus on managerial effort that will improve employee performance as well as their job satisfaction and matching overall organizational results. In various aspects and dimensions in the literature, employee satisfaction is considered one of the objectives of human resource management. Furthermore, it is also seen as one of the effects of organizational culture through which the dominant overall philosophy, attitude, beliefs, values ​​and goals are established in the organization (Jaksic et al. 2012, p87). In the success of the organization, highly educated employee and his satisfaction with the job and the tasks he performs is more important, originally written by Guest (2002 cited in Jaksic.M and Jaksic M, p 87). Among the many definitions of performance management, (Ivancevich, 2001, p243) defines employee performance management is the process in which executive, managers and supervisors work together to combine employee performance with organizational objectives. Employee satisfaction can be analyzed as one of the objectives of human resource management and the main objective of strategic management where it starts with the satisfaction of key stakeholders in defining the organization's mission, strategy and objectives. Kearns (2000, p 20 cited in Jaksci M and Jaksic M, p 88) tries to define the PDCA (Plan-Do-Check-Act) model, which helps to develop... ... half of the document .... .. Performance and ion management system helps employees acquire better skills and supports performance with good strategy leading to employee satisfaction (Kandula. RS, 2006). In addition to employee satisfaction, the organization should also focus on customer satisfaction, customer satisfaction and stakeholder satisfaction. Human resource management involves performance management for better employee satisfaction. All human resource management activities such as strategic or operational have a significant impact on employee satisfaction. Human resource management helps to allocate all the work performance of employees and helps to manage its impact by monitoring and controlling which helps in achieving the best results. HRM can assign the most suitable education, training and other additional programs that will increase the best outcome for the organization along with employee satisfaction.