Performance antecedents of voluntary and involuntary managerial turnover.

Abstract

This study examines the job performance of 420 credit managers from a large finance company who either quit their job, were fired, or were promoted to a higher position in the company. Six biographical variables and 12 performance appraisal scores were used in a cross-validated multiple discriminant analysis to predict membership in the three classification groups. The results revealed a systematic relation between the performance appraisal variables and the classification groups: The performance of promoted employees was significantly superior to those employees who quit, which in turn was significantly superior to the performance of the fired employees. The 18 discriminating variables accounted for a 46.7% hit rate in group membership. The findings are discussed in the context of research on performance antecedents of voluntary and involuntary turnover, as well as the feedback properties of performance appraisal information. Researchers have investigated the relation between turnover and many other variables such as job satisfaction, organizational commitment, job involvement, economic conditions, and a host of biographical factors (Muchinsky & Morrow, 1980). Conspicuously absent from this list are variables that would help to determine the role of performance in the turnover process, either in the form of objective or subjective performance criteria. This neglect of performance variables may be related to the fact that involuntary separations (firings), one possible outcome of negative appraisals, have been ignored as a topic of study (Bluedorn, 1978). Even in research on voluntary turnover (quitting), which predominates by far, there are few data about the performance differences between those who leave and those who stay with an organization (Price, 1977). This is surprising in light of the fact that organizational effectiveness hinges on which employees leave the organization: If those who quit are the best performers, the organization suffers (Mobley, 1982). Four recent empirical studies dealing with the role of performance in the turnover process are evident in the literature: Dalton, Requests for reprints should be sent to Paul M.