earticle

영어

This study examines the effect of performance appraisal systems in companies with merit pay systems. Particularly, the two aspects of performance appraisal systems are examined in relation to the degree of improvement in perceived overall productivity, organizational commitment, satisfaction with pay, satisfaction with job, and motivation for skill development compared with them before the introduction of merit pay systems. Those two aspects of performance appraisal systems include whether the companies use management by objective (MBO) methods for performance appraisals, and whether the companies provide formal rater training. In addition, the effect of employee participation in MBO is examined in case of the companies with a merit pay systems as well as MBO methods. A total of 74 companies responded to the questionnaires. According to correlation and regression analyses using the total sample, MBO and rater training are shown to be related to the degree of improvement in outcome variables. It is also shown that employee participation in MBO relates to the degree of improvement in outcome variables according to analyses using 48 samples with MBO. The importance of appropriate performance appraisal system is further discussed in the companies with merit pay systems.