Consequences of the performance appraisal experience

The purpose of this paper is to examine the role of low quality performance appraisals (PA) on three human resource management outcomes (job satisfaction, organisational commitment and intention to quit).

Using data from 2,336 public sector employees clusters of PA experiences (low, mixed and high) were identified. Regression analysis was then employed to examine the relationship between low quality PA experiences and job satisfaction, organisational commitment and intention to quit.

Employees with low quality PA experiences (relative to those with mixed and high quality PA experiences) were more likely to be dissatisfied with their job, be less committed to the organisation and more likely to be contemplating leaving the organisation.

The data were collected in a large public sector research organisation where the results of the appraisal were linked to pay increments. Further research is needed to determine the applicability of the results to private sector employees.

The quality of the PA experience varies and a low quality experience results in lower job satisfaction and organisational commitment and higher quit intentions. The challenge for human resource (HR) practitioners is to decide whether the allocation of additional resources to ensure that all employees have a uniformly high quality PA experience is a worthwhile investment.

Research has tended to focus on the relationship between a single feature of a PA process and HR outcomes. Organisations need to acknowledge the importance of the overall PA experience when evaluating its consequences for HRM outcomes.