Academic journal article Asian Social Science

Perceived Fairness of Performance Appraisal, Promotion Opportunity and Nurses Turnover Intention: The Role of Organizational Commitment

Academic journal article Asian Social Science

Perceived Fairness of Performance Appraisal, Promotion Opportunity and Nurses Turnover Intention: The Role of Organizational Commitment

Article excerpt

Abstract

The purpose of this study is to examine the effect of the performance appraisal fairness and promotion opportunity on employee quitting intention with the mediating effect of organizational commitment. A cross-sectional design was employed to investigate the relationship in a sample of 150 full-time nurses employed in different private hospitals. Partial Least Square path modeling, a variance based techniques of SEM was employed to test the proposed hypotheses. The results indicate the significant negative effects of perceived fairness of performance appraisal and promotion opportunity on nurses' quitting intention and organizational commitment. Further, organizational commitment is found having a significant effect on nurses' turnover intention and as a partial mediator in the relationship between both performance appraisal fairness and nurses' turnover intention and promotion opportunity and nurses' turnover intention.

Keywords: performance appraisal fairness, promotion opportunity, organizational commitment, turnover intention, nurses

1. Introduction

Since human capital is the key element that drives the growth of an organization, the ability of an organization in sustaining its human resources will bring greater rewards and success to the organization itself. High performers are very much sought after by all organizations to meet their goals, deliver the specialized products and services and eventually to gain competitive edge to be the leading organization in the industry. It is worth mentioning here that most organizations are fully aware of the high cost of turnover and expect even higher costs to skilled-performers turnover. For example, the inescapable nursing shortage and nurses' high turnover rate have become a critical issue (Kingma, 2001). Globally, nurse turnover rate ranges from 10-21% per year across the countries (El-Jardali, Dimassi, Dumit, Jamal, & Mouro, 2009). These nursing shortages and high turnover are symptoms of the health care problems of many hospitals across the globe (Rahman et al., 2010; Hayes et al., 2006). Therefore, research that focuses on the nurses turnover intention has the potential to produce a more comprehensive and realistic understanding of nurses turnover. The dearth of qualified health workers, specifically in low-income countries like Bangladesh has drawn consideration in recent times as it seriously pressurizes the achievement of the millennium development goals (Global Health Watch, 2005). Only 0.18 million nurses are available to serve 140 million people, which is a high potential threat to quality services for the patients in Bangladesh (Bangladesh Bureau of Statistics, 2012). Hospitals in Bangladesh have been suffering from high nurse turnover (Alam & Shasi, 2012). Nurses' absenteeism rate reported is 27% (Chaudhury, Hammer, Kremer, Muralidharan, & Rogers, 2006) but Ministry of health and family welfare of government republic of Bangladesh only reveals that nurse turnover rate is approximately 15% (Bangladesh Bureau of Statistics, 2012). High turnover rates are reflective of low organizational commitment and possible indicator of an unhappy workforce in the hospitals. High turnover rates eventually lead to a broader issue. It also means that the hospitals do not have their best staff available. An overall shortage of health care employees, especially nurses and their turnover rates are alarming for the hospitals to provide better services to the patients (Ahmed, Hossain, Raja Chowdhury, & Bhuiya, 2011). Hence we propose that adoption of proper human resource management (HRM) practices is a key determinant for organization success in the industry (Rubel & Kee, 2013). Keeping a pool of valuable human resources via positive human resource practices is a critical issue today.

In Bangladesh, Hossain (2008) finds 63% nurses are dissatisfied with their jobs which results low attachment to the organization and frequent job search behavior. …

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