Research on the underlying mechanisms that transfer the effects of performance appraisal (PA) on employees’ behaviors and intentions remains scarce. The social exchange view of performance appraisal can be a source of deeper understanding about these underlying mechanisms. This study aims to investigate how psychological empowerment (PE) and organizational commitment (OC) explain the link between performance appraisal and three important distal outcomes: voice behavior (VB), organizational citizenship behavior (OCB), and turnover intentions (TOI).
The current study utilizes two wave – two source data from a sample of 250 employees and their supervisors from private organizations in Pakistan and tested the mediation model using SMART-PLS.
Results demonstrated that organizational commitment mediated the effects of performance appraisal on VB, OCB, and TOI, whereas psychological empowerment mediated the effects of performance appraisal on VB and OCB. These results have significant implications for theory and practice.
This study adopts the social exchange perspective to examine the mediation mechanisms linking PA with the three distal outcomes: VB, OCB and TOI. The paper identifies two novel mediators of PA – outcome relationship, i.e., psychological empowerment and organizational commitment.
