The Effect of HRM Practices: Performance Appraisal System and Career Development on Turnover Intention

Abstract

The purpose of this study is to determine the impact of Performance Appraisal System (PAS) and Career Development (CD) on Turnover Intention (TI). The sample was made up of executive-level employees from large-scale garment factories in Sri Lanka. For the final data analysis, 386 samples were used. The hypotheses were tested using structural equation modeling. According to the findings, PAS has a significant negative impact on TI, whereas CD has a positive impact on TI. The study concluded that improving Performance Appraisal Satisfaction can lower employees' Turnover Intention, whereas improving Career Development lowers employees' TI. Improved Career Advancement in this case indicates that employee CD expectations are high. As a result, the organization should develop Performance Appraisal and Career Development strategies, especially for executives. Many studies in the garment industry look at the social and working environments, but little is said about how PAS and CD affect TI. The findings have theoretical implications, filling a literature gap.