The moderating effects of perceived procedural and distributive justice of the performance appraisal on the relationship between entrepreneurial characteristics, organizational commitment and turnover intention

Performance appraisal which is one of the functions of human resources has been widely researched in literature, and this thesis attempts to cover whether it is possible to retain and make committed employees with strong entrepreneurial characteristics with the aid of fair performance appraisal systems. Participants were 195 white-collar employees from a multinational telecom vendor company, an information technologies company, and a pharmaceuticals company, located in Istanbul. The data were collected with a questionnaire. Correlational and multiple regression analyses were conducted to test the hypotheses. Results showed that perceived procedural justice of the performance appraisal and need for achievement exerted a positive effect on affective commitment. Need for independence exerted a negative effect on affective commitment. Need for achievement exerted a negative effect on continuance commitment. Perceived distributive justice of the performance appraisal and affective commitment exerted a negative effect on turnover intention. Need for achievement and continuance commitment exerted a positive effect on turnover intention. Perceived procedural justice and distributive justice of the performance appraisal moderated the relationship between entrepreneurial characteristics (internal locus of control, need for achievement, and need for independence) and organizational commitment types (affective commitment and continuance commitment). Perceived procedural justice and distributive justice of the performance appraisal moderated the relationship between entrepreneurial characteristics (internal locus of control, need for achievement, and need for independence) and turnover intention as well. Recommendations were made for managers about how to benefit from a performance appraisal system.