Person-Organization Fit and Organizational Commitment: Mediating Role Between Performance Appraisal Effectiveness and Employee Turnover Intention

Due to the harmful consequences of turnover in the context of hospitality industry, the current study aims at proposing a moderating mediated model through which turnover intention may be reduced. Person-organization fit, and organizational commitment were proposed to aid performance appraisal in lowering turnover intention. The study’s purposes are threefold. Firstly, to assess the direct effect of performance appraisal effectiveness on employee turnover intention. Secondly, to evaluate the indirect effect of performance appraisal effectiveness on turnover intention through organizational commitment. Finally, it examines the moderating effect of person-organization fit between performance appraisal effectiveness and organizational commitment. Research data were collected through a questionnaire form designed and distributed to a sample of employees of five-star hotels in Riyadh, Saudi Arabia. Four hundred forms were distributed, and 289 were returned. Data were analyzed using Smart PLS. It was revealed that performance appraisal effectiveness significantly negatively affects turnover intention. Moreover, organizational commitment mediates the relationship between performance appraisal effectiveness and turnover intention. Finally, person-organization fit could moderate the effect of performance appraisal effectiveness on organizational commitment. The study recommends that performance appraisal effectiveness is enhanced through achieving equity in the appraisal process and providing trust and effective communication between appraiser and appraisee. This requires conveying appraisal criteria in advance to the appraisee and conducting appropriate appraisal interviews where the appraisee can freely discuss the appraisal results with their appraiser. Fostering person-organization fit via appropriate selection and socialization can support performance appraisal effectiveness by preparing employees for their understanding of organizational policies and practices.