The relationship between perceived performance appraisal effectiveness and employee turnover intention in Saudi Banks

Abstract

This thesis explores, from a Human Resource Management (HRM) perspective, the relationship between perceived Performance Appraisal (PA) effectiveness and employee turnover intention in Saudi banks. There is a growing need for improved performance management processes in Saudi Arabia as the result of regulatory pressures and high levels of employee turnover. The study reported here examined the influence of perceived PA effectiveness on employees who work in the Saudi banking industry. The perceived PA effectiveness has six core elements including; goals, criteria, standards, source, feedback and frequency. This research also focused on assessing the strength of the relationship between the perceived PA effectiveness elements and employee turnover intention. A validated questionnaire was used to collect quantitative data from 201 employees of three Saudi banks located in Riyadh. The research findings support the hypothesis that the perceived PA effectiveness is negatively correlated with employee turnover intention in the Saudi banking industry. In addition, Multiple Linear Regression (MLR) analyses also showed that the feedback component of PA significantly predicted employee turnover intention in the Saudi banking industry. Findings from Structural Equation Modelling (SEM) analysis indicated that six components of PA explained 37% of the variation in employees' turnover intention. These results significantly contribute to broaden the theoretical understanding of the implementation of PA and particularly the nature of its multidimensional structure while at the same time highlighting its role in influencing the issue of employee turnover intention in the Saudi banking industry.

Date of Award	2018
Original language	English