The Performance Appraisal and Fairness as Voluntary Turnover Factor: A nonlinear effect and its inhibition

Abstract

In this article, the relationship between the performance appraisal and turnover, and how the fair consciousness influences for both factors have examined. Although the turnover can become plus and minus for a company, the performance appraisal system is the index which enables to distinguish between those two. The performance appraisal system has a role to indicate the image of talented-worker who is required for an organization and it is important for practicing retention management as a personnel management.

However, the relation of turnover as a performance to a personnel management and existent strategic human resource management theory and the study of turnover, its attention was not paid to the relationship between the individual evaluation result and the turnover.

In addition, the performance appraisal always comes together with the dissatisfaction and should examine about the organizational justice when dealing with it, but the empirical studies that handled actual performance appraisal results are also not seen in existent studies.

Therefore, the three hypotheses based on the previous researches were set up: 1.the role of the psychological factor of turnover, 2.evaluation and unemployment relations, and 3.fair consciousness. These were verified by personnel data and questioners that collected from workers in a pharmaceutical firm.

The multiple regression analysis showed that the relationship between an individual’s evaluation and turnover was nonlinear. However, on the basis of organizational justice, when the perceived procedural justice is high, the high performance appraisal works as retention effect. On the contrary, when the perceived procedural justice is low, the high performance appraisal increases the intention to turnover.

In other words, it means that the personnel management, which increases the perceived justice, has more retention effect to the workers with the high performance appraisal. That is, the management system increasing fairness shows more effect on the retention for the higher-evaluated employees and the importance of the retention management with organizational justice was suggested.