Investigating the Mediating Role of Organizational Commitment

between Performance Appraisal and Employee Productivity

Judy Anne CababanDe La Salle-College of Saint Benilde

Christine DavidDe La Salle-College of Saint Benilde

Gian Carlo MagistradoDe La Salle-College of Saint Benilde

Jerald SombreroDe La Salle-College of Saint Benilde

Performance Appraisal• Performance appraisal is an administrative,

informative and motivational tool in assessing employees (Cameron, 1981).

• Performance appraisal determines the employees' areas of improvement and growth in order to motivate them to improve their potentials, productivity and as well as their overall performance (McAfee & Champagne, 1993).

Employee Productivity

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• Productivity refers to the relationship of output produced to the input factors used by the system (Pekuri, Herrala, Haapasalo & Pekuri, 2011).

• Employee productivity opens the employees’ perspectives of acquiring new skills and abilities for career advancement and also helps in coping up with the rapid changes in the competition and environment (Berman, Bowman, West & Van Wart, 2010).

Organizational Commitment

• Organizational commitment is the person’s psychological bond to the organization (O’Reilly, 1989).

• Organizational commitment is also described as the connection to the organization that is characterized by the will to remain in it (Porter, Steers, Mowday & Boulian 1974).

Performance Appraisal and Employee Productivity

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• Performance appraisal system triggers an employee to make a goal that will lead to its productivity (Caruth & Humphreys, 2008) and it also helps the team to attain higher level of performance in the organization (Armstrong & Baron, 2005).

• Previous studies suggest a positive relationship between performance appraisal system and employee productivity (Locke & Latham, 1990).

• Goal-setting theory (Locke & Latham, 1990)

Mediating Effect of Organizational Commitment

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• Social Exchange Theory (SET) by George Homans could explain the mediating role of organizational commitment to the relationship of performance appraisal system and employee productivity.

• SET states that the employee’s organizational commitment depends on the perceived fairness in which it points out the significance of the exchange relation among the employee and employers (Sheldon, 1971).

Conceptualized Framework

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OrganizationalCommitment

Performance Appraisal

Employee Productivity

Participants

• Surveyed 200 employees from fast food restaurants based in Metro Manila• Obtained usable data from 137 respondents

(Retrieval Rate = 68.5%)• Participant profile• 58% were male • 42% were female• Average age is twenty-three point forty-five

(23.45) years old ranging from 17 to 37 years old. • Average tenure is one point ninety-two (1.92)

years in the organization.

Measures

• Performance appraisal from Keeping & Levy (2001) (α=.67)

• Employee productivity from Jean Endicott, PhD (1997) (α=.90)

• Organizational commitment from Meyer and Allen (1990) (α=.70)

Pattern of Results Performance appraisal system is

positively related to employee productivity. (r=.44, p<.00)

Organizational commitment will have an indirect effect between the relationship of performance appraisal system and employee productivity. (Indirect effect=.08, Boot SE=.03, 95% CI=.03-.15)

General Discussion Performance appraisal triggers an

employee to make a goal that will eventually lead to their productivity in the organization

Organizational commitment will have an indirect effect between the relationship of performance appraisal and employee productivity

Strength Provided further evidence on the indirect

effect of organizational commitment between the relationship of performance appraisal and employee productivity

Limitations All measures were taken from self-report

data Sample was limited to restaurant industry

in the service sector

Implications to HRM Create and initiate performance

appraisal systems that would give effective appraisal of the employees

Develop a concrete way of giving their developmental feedback right after performance appraisal