Performance appraisal and its effect on job satisfaction and turnover intentions

Abstract

The main focus of the case-study based research presented in this thesis is the performance appraisal and its effect on job satisfaction and the turnover intentions of software engineers in a large IT services company in Sri Lanka. This global information technology service providing company operates in a market segment which is highly competitive and experiencing rapid technological advancements. In order to be sustainable in the served market segment, company has identified that it should expand its client base. The company has been experiencing a considerably high annual staff turnover rate. Employee retention has become a critical issue for the company. This is because it lacks a quality resource pool to address growing project requirements which are essential to overcome the present challenges they are facing and for overall organizational success in the long term. As such, a research was carried upon the areas covering performance appraisal process and its impact on employee’s job satisfaction and turnover intentions. This research brings out results that can be incorporated in organizational performance appraisal process making by the management of the company with a special emphasis on the job satisfaction of their employees, which is the most valuable asset of the organization. Further, the present study hints on other avenues that could be explored further as future research, in the field of performance appraisal process and its impact on employee's job satisfaction and turnover intentions