Impact of Performance Appraisal Politics on Work Outcome: Multidimensional Role of Intrinsic Motivation and Job Satisfaction

Abstract

The current study focus on performance politics regarding appraisal in order to analyze the performance of employees, to interpret job satisfaction, organizational commitment, and employee’s turnover in the banking sector of Pakistan. At the same time, employees’ intrinsic motivation and satisfaction will were investigated as possible mediators. For this purpose, data was collected from the selected sample of various bank employees across different districts in KPK and Islamabad. Data was analyzed through exploratory factor analysis and structural equation modeling using SPSS & AMOS software. Results indicate that the relationship between performance appraisal politics (PALP) and employee’s commitment level is negative and significant, while performance appraisal politics is positively and significantly associated with turnover intentions. Interestingly, the relationship between job performance politics and job satisfaction was insignificant. In order to validate the meditational affect (Baron & Kenny, 1986) meditational technique was applied. Since the relationship between PAPL (Performance Appraisal Politics) and job satisfaction is found to be insignificant; hence, it is concluded that job satisfaction could not mediate the relationship between PAPL and turnover intention. In the proceeding step, the relationship between PAPL and turnover intention was checked with intrinsic motivation as a mediator. It was concluded that intrinsic motivation strongly mediated the relationship between PAPL and TRI. Based on the findings of the current study, future direction, managerial implication and limitations are also provided in the last section.