The relationship between performance appraisal satisfaction and employee outcomes: a study conducted in peninsular Malaysia

Abstract

Purpose - It is often suggested that in order for performance appraisal to positively influence employee behaviour, employees must experience positive appraisal reactions. The purpose of the present study is to examine the relationship between performance appraisal satisfaction and employee outcomes, in the form of work performance, affective organizational commitment and turnover intention. Furthermore, the influence of intrinsic motivation as a mediating variable was also explored. Design/methodology/approach - Data were collected from 303 employees from many organizations pertaining to several different industries, throughout peninsular Malaysia. Findings - Results from a survey of 303 employees showed that the relationship between performance appraisal satisfaction and employee outcomes in the form of work performance, affective organizational commitment and turnover intention was mediated by employees’ intrinsic motivation. Research limitations - The three most important limitations, which are discussed in more detail in chapter one, are the sample used, which is mainly from the Klang valley, the measurement used in the study and the reliance on self-reported questionnaire data. Consequently, experimental studies are needed to examine causality issues. Practical implications - These results have important managerial implications: in order to obtain positive employee outcomes, organization should provide a performance appraisal platform where employees must report satisfaction with performance appraisal. Furthermore, managers should create an environment within the organization to enhance employees’ intrinsic motivation and thus their work performance and affective organizational commitment. Originality/value - This study contributes to the knowledge on satisfaction with performance appraisal and the influences on the employee outcomes, an area of research that is almost unexplored in Malaysia. Keywords Performance appraisal, Human resource management, Performance management, Work performance, Intrinsic Motivation, Affective organizational commitment, Turnover intention Paper type Research paper