RELATIONSHIP BETWEEN PERFORMANCE APPRAISAL SYSTEM AND INTENTION TO LEAVE WITH MEDIATING EFFECT OF PROMOTION AND TRAINING & DEVELOPMENT: A CASE STUDY OF SRI LANKA NAVY

Abstract

Performance Appraisal System helps to make HR related administrative decisions such as promotions and training & development etc. The Sri Lanka Navy also uses Navy Officers’ Performance Appraisal System (Sri Lanka Navy Form NAV 206) to make such HR related decisions. The officers in the Sri Lanka Navy are promoted up to the rank of Lieutenant Commander on time-based promotion stream and Commander and above are on vacancy based stream. Then, there is a huge stagnation of promotion of Commander, Captain and Commodore rank in the Sri Lanka Navy because promotions of these officers totally depend upon the number of vacancies available for each rank. The performance appraisal system of Sri Lanka Navy is used to promote these officers and to provide training opportunities for them. However, most of the officers are not satisfied with the transparency of the existing appraisal system. On the other hand, premature retirements of these officers have become a trend and most of them have left the Sri Lanka Navy before maturing the age. There is no any empirical evidence to prove what are the reasons for premature turnover of officers in the Sri Lanka Navy. Therefore, the purpose of this study was to investigate whether appraisal system, promoting and training & development influence on officer’s intention to leave. Based on the theories as well, main variables were identified; Performance Appraisal System as a predictor variable, Intention to leave as Criterion variable and Promotion and Training & Development as intervening variables. Data were gathered through questionnaires from 147 officers in the rank of Temporary Lieutenant Commander and above up to Commodore rank officers in the Sri Lanka Navy and discussions were also held with few officers among them. Bivariate and multivariate analyses were mainly used to analyze data. According to the findings of the study, performance appraisal system significantly influences on officers’ promotion, training & development. Ultimately, existing appraisal system, promotion, training & development significantly influence officers' intention to leave the Sri Lanka Navy. Promotion significantly mediates and training & development partially mediate the relationship between appraisal system and intention to leave. Thus, promotion and training & development opportunities should be provided for officers through a just and fair performance appraisal. It will lead to minimizing the officers' intention to leave the Sri Lanka Navy. Therefore, a new performance appraisal system should be established to eradicate lapses in the present system.