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Original Articles

Antecedents and outcomes of acceptance of performance appraisal system in Korean non-profit organizations

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Pages 479-500 | Published online: 22 Jun 2016
 

ABSTRACT

This study identifies the antecedents of non-profit public service motivation (NPSM) and employee outcomes using Korean non-profit acceptance of performance appraisal system (APAS) survey data. We test an NPSM model and examine the concept through public service motivation (PSM) in the non-profit sector. We then apply findings on work motivation, PSM, and performance appraisal systems to quantitative research and test several hypotheses concerning how (1) the non-profit sector’s APAS affects and uniquely shapes non-profit workers’ motivation, (2) NPSM relates to organizational trust, and (3) organizational characteristics affect Korean non-profit employees. We discuss our findings’ implications for non-profit theory and practice.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. For example, Kim and Rubianty (Citation2011) investigated the relationship between the perceptions of PAS and employee intrinsic motivation and found that public employees’ intrinsic motivation or intrinsic reward orientation is significantly and positively associated with the perceived procedural fairness of PAS. Rahman (Citation2006) found that employees report high job satisfaction even if they receive low results on their performance appraisals as long as sufficient explanation and proper feedback is provided for the results. Similarly, employees are likely to express more favourable reactions towards PAS in their organizations even when receiving lower evaluations if they feel that they are treated fairly.

2. In this way, organizations supposedly possess a high level of NPSM, which provides employees with a platform or a channel for fulfilling their destiny in doing this type of work (Bunderson and Thompson Citation2009). Therefore, mission-driven NPOs create opportunities for employees with high degrees of NPSM to cultivate more trustworthy organizations. Based on Katz and Kahn (Citation2001), to make organizations function effectively, employees should perform the tasks they are supposed to do and must maintain trustworthy relationships with other employees and the organization. Therefore, organizational trust can be a crucial proxy for factors affecting organizational effectiveness.

3. The initial sample (400 employees) was randomly selected with equal probability of selection for all members of the target group – those who conducted performance appraisals – to minimize bias. The effective sample size of 400 is much larger than the common estimates of what is needed to produce stable and robust measures for CFA, SEM, and regressions. Our model includes eleven observed variables, which is a sufficient sample size for supporting the number of observed variables according to two different rules of thumb (a commonly used rule is that a sample needs to contain at least fifty more than eight times the number of variables in the model or fifteen cases per observed variable (Stevens Citation1996). Although the overall distribution pattern of the current sample appears consistent with that of the NPO data (the entire NPO population is approximately 21,372 organizations), as a methodological limitation, the NPO employees’ gender, age, education, and job tenure are well represented in the sample. In other words, the sample is adequately distributed in terms of the proportion of real-world NPO employee characteristics. This difference might be partially the result of the relatively small size of the sample.

4. Measurement of the three types of APAS occurs as follows. Managerial APAS: A performance evaluation system is necessary to run the organization; a performance evaluation system is necessary for the good operation of institutions. Result-based APAS: The institutional system is arranged to enable organization members to participate in operating the performance evaluation system. The opinions of organization members are well reflected in the operation of the performance evaluation system. Index-based APAS: Detailed evaluation items well represent the items required to evaluate the organization’s management capability. The performance evaluation is suitable as a criterion for evaluating my job activities.

Additional information

Funding

This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-2013S1A3A2055042).

Notes on contributors

Min Young Kim

Min Young Kim ([email protected]) is a PhD candidate in the Graduate School of Governance at Sungkyunkwan University. She is currently working as a senior researcher at Research Center for Public Human Resource Development. Her primary research topics include public and nonprofit management, strategic human resource management, and organizational behaviour. Her works appear in International Journal of Manpower, Public Money and Management, and International Review of Public Administration.

Sung Min Park

Sung Min Park ([email protected]) is currently an associate professor in the Department of Public Administration & Graduate School of Governance at Sungkyunkwan University and a visiting professor at University of Southern California (USC) Price School. He serves as a Director of the Research Center for Public Human Resource Development. He received a PhD from the Department of Public Administration, University of Georgia. He has worked as an assistant professor at the Greenspun School of Environmental and Public Affairs, University of Nevada, Las Vegas. His primary research interests are public management, public human resources management, IT management, human resource information systems, human resource development, organizational behaviour, and quantitative research methods. His works appear in American Review of Public Administration, Review of Public Personnel Administration, International Public Management Journal, International Journal of Manpower, Public Personnel Management, Public Money and Management, International Review of Administrative Sciences, Public Management Review, International Journal of Human Resource Management, and International Review of Public Administration.

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