Pengaruh Implementasi Forced Distribution Rating Performance Appraisal terhadap Task Performance: Motivasi dan Retensi sebagai Mediasi
Abstract
The assessment method of human resource that is often used, but has not been widely discussed in empirical studies is the Forced Distribution Rating Performance Appraisal (FDRPA). This study examines the effect of FDRPA on task performance mediated by motivation and retention. Data from Relationship Managers at a bank in Surabaya that implements the FDRPA system. Data collect is 81 people. The results show that FDRPA has a positive effect on task performance. Where, motivation and retention also show the mediating role of the relationship between FDRPA on task performance. This shows that management needs to understand that the factors in improving the performance of the task, there are variable motivation and retention that need to be considered as well. Furthermore, management is expected to be able to manage the implementation of FDRPA well, so that these positive benefits can continue to be sustainable.
References
Aguinis, H. (2007). Performance management. Prentice-Hall.
Aguinis, H. (2013). Performance management (3rd ed.). Pearson New International Edition.
Al-Jedaia, Y., & Mehrez, A. (2020). The effect of performance appraisal on job performance in governmental sector: The mediating role of motivation. Management Science Letters, 10(9), 2077–2088. doi: 10.5267/j.msl.2020. 2.003.
Al Kurdi, B., Alshurideh, M., & Al Afaishat, T. (2020). Employee retention and organizational performance: Evidence from banking industry. Management Science Letters, 10(16), 3981–3990. doi: 10.5267/j.msl.2020.7.011.
Bates, S. (2003). Forced ranking. https://www.shrm.org/hr-today/news/ hr-magazine/pages/0603bates.aspx.
Bawa, M. A. (2019). Employee motivation and productivity: A review of literature and implications for management practice. International Jouranal of Economics, Commerce and, Manage-ment., 5(12), 662–673. Retrieved from https://www.researchgate.net/publication/334263937_EMPLOYEE_MOTIVATION_AND_PRODUCTIVITY_A_REVIEW_OF_LITERATURE_AND_IMPLICATIONS_FOR_MANAGEMENT_PRACTICE.
Berger, J., Harbring, C., & Sliwka, D. (2013). Performance appraisals and the impact of forced distribution - An experimental investigation. Management Science, 59(1), 54–68. Retrieved from http://www.jstor.org/stable/23359605.
Blume, B. D., Baldwin, T. T., & Rubin, R. S. (2009). Reactions to different types of forced distribution performance evaluation systems. Journal of Business and Psychology, 24(1), 77–91. doi: 10.1007/s10869-009-9093-5.
Blume, B. D., Rubin, R. S., & Baldwin, T. T. (2013). Who is attracted to an organisation using a forced distribution performance management system? Human Resource Management Journal, 23(4), 360–378. doi: 10.1111/1748-8583.12016.
Burnham, T. (2015). Public goods with punishment & payment for relative rank. SSRN Electronic Journal. doi: 10.2139/ssrn.2623763.
Cable, D. M., & Judge, T. A. (1994). Pay preferences and job search decisions: A Person‐organization fit perspective. Personnel Psychology, 47(2), 317–348. doi: 10.1111/j.1744-6570.1994.tb017 27.x.
Chattopadhayay, R., & Ghosh, A. K. (2012). Performance appraisal based on a forced distribution system: Its drawbacks and remedies. International Journal of Productivity and Performance Management, 61(8), 881–896. doi: 10.1108/17410401211277138.
Chattopadhyay, R. (2019). Impact of forced distribution system of performance evaluation on organizational citizenship behaviour. Global Business Review, 20(3), 826–837. doi: 10.1177/09721509 17721819.
Cook, N. (2012). Effects of forced distribution method of performance evaluation on employee motivation in a manufacturing environment. Walden University.
Fudge, R. S., & Schlacter, J. L. (1999). Motivating employees to act ethically: An expectancy theory approach. Journal of Business Ethics, 18(3), 295–304. doi: 10.1023/A:1005801022353.
Gerhart, B., & Fang, M. (2015). Pay, intrinsic motivation, extrinsic motivation, performance, and creativity in the workplace: Revisiting long-held beliefs. Annual Review of Organizational Psychology and Organizational Behavior, 2(April), 489-521. doi: 10.1146/annurev-orgpsych-032414-111418.
Ghosh, P., Satyawadi, R., Joshi, J. P., & Shadman, M. (2013). Who stays with you? Factors predicting employees’ intention to stay. International Journal of Organizational Analysis, 21(3), 288–312. doi: 10.1108/IJOA-Sep-2011-0511
Ghozali, I. (2009). Analisis multivariate lanjutan dengan program SPSS. Badan Penerbit Universitas Diponegoro.
Giumetti, G. W., Schroeder, A. N., & Switzer, F. S. (2015). Forced distribution rating systems: When does “rank and yank” lead to adverse impact? Journal of Applied Psychology, 100(1), 180–193. doi: 10.1037/a0037191.
Grote, D. (2006). Forced ranking: Making performance management work. In Working Knowledge for Business Leader (pp. 11–14). Harvard Business School Press.
Hair, J. F., Black, W., Babin, B., & Anderson, R. (2014). Multivariate data analysis (7th eds.). Pearson Education Limited.
Hamukwaya, S. I., & Yazdanifard, R. (2014). How a proper performance related reward system can contribute to work performance excellence. Open Journal of Business and Management, 2(3), 189–194. doi: 10.4236/ojbm.2014. 23023.
Hartmann, F., & Schreck, P. (2018). Rankings, performance, and sabotage: The moderating effects of target setting. European Accounting Review, 27(2), 363–382. doi: 10.1080/09638180.2016. 1244015.
Hausknecht, J., Rodda, J. M., & Howard, M. J. (2008). Targeted employee retention: performance-based and job-related differences in reported reasons for staying. Human Resource Management, 48(2), 269-288. doi: 10.1002/hrm. 20279.
Jayasuriya, Y., & Dasanayaka, S. W. (2016). Impact of bell curve forced ranking performance appraisal on employees motivation. Proceedings, 37-41. International Conference in Technology Management (INCOTeM 2016).
Kanwal, K., & Syed, M. (2017). Impact of reward system on employee performance in banking sector. RADS Journal of Social Sciencess & Business Management, 4(2), 82–103. Retrieved from http://jssbm.juw.edu.pk/index. php/jssbm/article/view/44.
Kwon, K., Bae, J., & Lawler, J. J. (2012). High commitment HR practices and top performers: Impacts on organizational commitment. Management Interna-tional Review, 50(1), 57–80. doi: 10.1007/s11575-009-0023-6.
Lawler, E. E. I. (1973). Motivation in work organization. Brooks/Cole Publishing Co. Retrieved from https://eric.ed.gov/ ?id=ED091542.
Loberg, L., Nüesch, S., & Foege, J. N. (2021). Forced distribution rating systems and team collaboration. Journal of Economic Behavior and Organization, 188, 18–35. doi: 10.1016/j.jebo.2021. 04.035.
M. Badubi, R. (2017). Theories of motivation and their application in organizations: A risk analysis. International Journal of Innovation and Economic Development, 3(3), 44–51. doi: 10.18775/ijied.1849-7551-7020.2015. 33.2004.
Malhotra, G., & Mukherjee, A. (2013). Comparative study of forced distribution and absolute rating performance management systems. International Journal of Business Excellence, 6(2), 121–130. doi: 10.1504/IJBEX.2013.052475.
Moon, S. H., Scullen, S. E., & Latham, G. P. (2015). Precarious curve ahead: The effects of forced distribution rating systems on job performance. Human Resource Management Review, 26(2), 166–179. doi: 10.1016/j.hrmr.2015.12. 002.
Motowidlo, S. J., & Van Scotter, J. R. (1994). Evidence that task performance should be distinguished from contextual performance. Journal of Applied Psychology, 79(4), 475–480. doi: 10.1037/0021-9010.79.4.475.
Mulligan, J. R., & Schaefer, R. A. B. (2011). A new hope for rank and yank. Journal of Leadership and Organizational Studies, 18(3), 385–396. doi: 10.1177/1548051811405206.
Naim, M. F., & Lenka, U. (2018). Development and retention of Generation Y employees: A conceptual framework. Employee Relations, 40(2), 433–455. doi: 10.1108/ER-09-2016-0172.
Osborne, T., & McCann, L. (2004). FDRS and age-related employment discri-mination. Human Rights Magazine, 31, 6–9. Retrieved from https://heinonline. org/HOL/LandingPage?handle=hein.journals/huri31&div=20&id=&page=.
Parijat, P., & Bagga, S. (2014). Victor Vroom’s expectancy theory of motivation – An evaluation. International Journal of Business and Management, 7(9), 1–8. Retrived from http://irjbm.org/irjbm2013/Sep2014/Paper1.pdf.
Pearce, J. L., & Porter, L. W. (1986). Employee responses to formal performance appraisal feedback. Journal of Applied Psychology, 71(2), 211–218. doi: 10.1037/0021-9010. 71.2.211.
Pradhan, R. K., & Jena, L. K. (2017). Employee performance at workplace: Conceptual model and empirical validation. Business Perspectives and Research, 5(1), 69–85. doi: 10.1177/ 2278533716671630.
Reizer, A., Brender-Ilan, Y., & Sheaffer, Z. (2019). Employee motivation, emotions, and performance: a longitudinal diary study. Journal of Managerial Psychology, 34(6), 415–428. doi: 10.1108/JMP-07-2018-0299.
Rynes, S. L., Gerhart, B., & Parks, L. (2005). Personnel psychology: Performance evaluation and pav for performance. Annual Review of Psychology, 56, 571–600. doi: 10.1146/annurev.psych.56. 091103.070254.
Sari, J., & Suhariadi, F. (2019). Kontrak psikologis terhadap commitment to change: Resiliensi akademik sebagai variabel mediasi. Persona: Jurnal Psikologi Indonesia, 8(2), 178–192. doi: 10.30996/persona.v8i2.2535.
Scullen, S. E., Bergey, P. K., & Aiman-Smith, L. (2005). Forced distribution rating systems and the improvement of workforce potential: A baseline simulation. Personnel Psychology, 58(1), 1–32. doi: 10.1111/j.1744-6570. 2005.00361.x.
Seng, N. L., & Arumugam, T. (2017). Financial reward and motivation toward employee job performance in the hospitality industry in Klang Valley. Electronic Journal of Business & Management, 2(1), 51–60. Retrieved from https://ejbm.sites.apiit.edu.my/ files/2018/05/Paper5_Financial_Reward_And_Motivation_Toward_Employee_Job_Performance_In_The_Hospitality_Industry_In_Klang_Valley.pdf.
Stewart, S. M., Gruys, M. L., & Storm, M. (2010). Forced distribution perform-ance evaluation systems: Advantages, disadvantages and keys to implement-ation. Journal of Management and Organization, 16(1), 168–179. doi: 10.5172/jmo.16.1.168.
Syahreza, D. S., Lumbanraja, P., Dalimunthe, R. F., & Absah, Y. (2017). Compensation, employee performance, and mediating role of retention: A study of differential semantic scales. European Research Studies Journal, 20(4), 151–159. doi: 10.35808/ersj/825.
Thomason, S. J., Brownlee, A., & Harris, A. B. (2018). Forced distribution systems and attracting top talent. International Journal of Productivity and Performance Management, 67(7), 169–176. doi: 10.1080/03081069108717452.
Turban, D. B., & Keon, T. L. (1993). Organizational attractiveness: An interactionist perspective. Journal of Applied Psychology, 78(2), 184–193. doi: 10.1037/0021-9010.78.2.184.
Wassem, M., Baig, S. A., Abrar, M., Hashim, M., Zia-Ur-Rehman, M., Awan, U., Amjad, F., & Nawab, Y. (2019). Impact of capacity building and managerial support on employees’ performance: The moderating role of employees’ retention. Sage Open, 9(3). doi: 10.1177/2158244019859957.
Wigfield, A., & Eccles, J. S. (2000). Expectancy-value theory of achieve-ment motivation. Contemporary Educational Psychology, 25(1), 68–81. doi: 10.1006/ceps.1999.1015.
Yu, K. Y. (2014). Person-organization fit effects on organizational attraction: A test of an expectations-based model. Organizational Behavior and Human Decision Processes, 124(1), 75–94. doi: 10.1016/j.obhdp.2013.12.005.
Zenger, T. R. (1992). Why do employers only reward extreme performance? Examining the relationships among performance, pay, and turnover. Administrative Science Quarterly, 37(2), 198-219. doi: 10.2307/2393221.
Zheng, W., Zhang, M., & Li, H. (2012). Performance appraisal process and organizational citizenship behavior. Journal of Managerial Psychology, 27(7), 732–752. doi: 10.1108/02683941 211259548.
