RELATIONSHIP BETWEEN PERCEIVED PERFORMANCE APPRAISAL EFFECTIVENESS AND EMPLOYEE TURNOVER INTENTION IN LEBANESE BANKS

Abstract

The study examines the relationship among perceived performance appraisals (PA) and retaining employees in Lebanese banks from a human resources management (HRM) viewpoint. As a consequence of regulatory demands and high levels of employee turnover, improvements are urgently required in Lebanon. The study explores the effects of perceived PA effectiveness on the employees in Lebanese banking sector and in particular explores the complexity of partnership between basic PA successful elements (targets, requirements, expectations, source and input and frequency) and the purposes of employee turnover. For data collection, a questionnaire has been distributed over 201 respondents. The obtained data has been then analyzed using SPSS. The results reveal that the expected efficacy of PA in Lebanese banking has a detrimental connection to the goals of employee turnover. Multiple linear regression (MLR) reveals the substantial intention for employee turnover within the banking industry as Lebanon as a feedback aspect of PA. Structural equation modeling (SEM) results show that three components of PA accounted for 37% of the improvement in workers purpose. The findings indicate that increased understanding of the PA systems will help to minimize the turnover intention.