IMPACT OF PERFORMANCE APPRAISAL SYSTEM ON TURNOVER INTENTION & JOB COMMITMENT OF EMPLOYEES IN SERVICE INDUSTRIES AT KARACHI, PAKISTAN

Abstract

Purpose: The aim behind conducting this study is to understand the impact of the Performance Appraisal System on the Employee Turnover Intentions and Job Commitment in Services industry employees in Karachi, Pakistan Methodology & Design: The data for this study was gathered through the use ofonline and Physical survey Forms collected from 327 Participants from Service industry of Karachi including Courier & Logistics, Banking, BPO & Distribution sector employees from Public and Private organizations. The results of the study were analyzed using SMART PLS SEM using Correlation and Regression Analysis. Findings: The study conclusions indicate that Performance Appraisal System satisfaction has a negative relationship with the Turnover intentions ofthe staff and a positive relationship on the Job Commitment outcomes. These findings suggest that the businesses must stress on incorporation of a Performance Appraisal process that leaves positive impacts on the employee motivation because negative motivators can lead to dissatisfaction which results in Turnover Intentions in the staff. Implications: The scope ofthe study is limited due to the constraints oftime and lack of availability of resources, employers’ interest in the research paradigm, limited access to employee information and confidentiality ofsuch information thus depending only on the material shared voluntarily has been added to the research. As it is a self-measure study, the Supervisory and Managerial feedbacks lack on casc-to-casc basis.