EMPLOYEE PERFORMANCE APPRAISAL FORMALIZATION AND CHANGE IN SOME EMPLOYEE INTENTIONS TO QUIT

This study examines the influence of employee performance appraisal formalization on employee intentions to quit. Specifically, this study extends existing research on human resource management in the small to medium sized enterprise (SME) context, employee performance appraisal, and social exchange theory (SET) by examining the influence of performance appraisal procedural justice, change in trust in leadership, and change in organizational commitment following performance appraisal formalization on change in SME employee intentions to quit. Study results suggest that the formalization of performance appraisal reduces SME employee intentions to quit. Consistent with SET, study results also suggest that performance appraisal procedural justice, trust in leadership change, and organizational commitment change are negatively related to SME employee intentions to quit. Finally, study results suggest that trust in leadership change mediates the effect of performance appraisal procedural justice on SME employee intentions to quit.