The effect of performance appraisal system on job satisfaction and organizational commitment: A case of Vietnam Airlines - Sounthern Branch

Abstract

Although performance appraisal (PA) is very familiar in the workplaces, lightly is treated how employees‟ reactions to the system may influence on important factors to organizations. The main focus of this study is to investigate two closely-relating relationships: one is the relationship between a number of crucially independent factors and job satisfaction, while the other is between job satisfaction and the commitment of employees. Therefore, with job satisfaction as the middle mediator, whether or not there may be a directly or indirectly affection among these crucially independent factors and employees‟ commitment can be examined. Before this study is carried out, performance appraisal is deemed as either unfair or cheating as a tool to get promoted, which leads to employees‟ dissatisfaction. Consequently, performance appraisal can be viewed as a potential source of increasing staff turnover. However, the results of this study could provide evidences that if the performance appraisal is carried out the right way, then employees will be satisfied with the outcomes. Thus, these positive attitudes may benefit both the enterprises and the individuals in term of increasing organizational commitment and reducing employees‟ turnover. This study also delves into what factors should be included in and methods of performance appraisal in Vietnam, especially in those state-owned companies. Then, this appraisal may reflect the true performance of employees and become effective. Keyword: performance appraisal, job satisfaction, commitment, airline.