Personnel Turnover and Organization Performace
INTRODUCTION
The business environmen
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The business environment of the mid1990s in the United States, together with the business environment that will emerge as the North American Free Trade Agreement (NAFTA) begins to be implemented, places American business firms under tremendous competitive pressures. To survive in this dynamic era, the level of performance must be improved by all American firms. This imperative is particularly relevant in the materials handling equipment manufacturing industry where higher American wage levels demand improved productivity (Ramsay and Lehto, 1994, pp. 3841). High rates of personnel turnover leads to substandard organizational performance. A high personnel turnover rate one of the most costly problems that afflict organizations. The costs of personnel turnover are not limited to those incurred directly in relation to those employees leaving the organization, such as the loss of productive workers, lost training costs, the necessity to train replacements, and so forth. Personnel turnover also exacts organizational costs through the effects it has on those employees who remain with the organization (Bailey and Davenport, 1986, pp. 105108). Ineffective performance evaluation has been identified as a major factor that contributes to high levels of personnel turnover (Kegel and Peters, 1988, pp. 124128). As important to an organization as the task of personnel performance evaluation or is, however, there are indic
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y be enhanced through the use of a rating scale format, include objectivity, reliability, and equity. The criterionbased design has also been found to enhance the probability of attaining several of the required goals with respect to personnel performance evaluation. The goals, the attainment of which may be enhanced through the use of a criterionbased design, include validity, relevancy, accountability, and objectivity. The ratingscale format satisfies the criteria for an effective performance evaluation process. This format also enhances the quality of communication between raters and rated.
Perceptions of the Performance Evaluation Process
Performance evaluation is among the most important of all organizational human resource activities (Judge and Ferris, 1993, p. 80). Performance evaluations "represent critical decisions that are key influences on a variety of subsequent human resources actions and outcomes" (Judge and Ferris, 1993, p. 80). A concern with organizational performance (productivity) is one of the more significant of the many problems which confront managers in organizationsin both the public and the private sectors. The costs to an organization of substandard performance involve profit deteriorat
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Some common words found in the essay are:
Performance Evaluation, Hawthorne Effect, Stress Stress, Frederick Herzberg, Anderson Fenton, Liverpool Wilson, Judge Ferris, Parasuraman Alutto, SMWTs Barton, Mahler Nicholson, performance evaluation, evaluation process, personnel performance, performance evaluation process, organizational structure, personnel performance evaluation, 1991 pp, 1984 pp, 1992 pp, alutto 1984, parasuraman alutto, gortner 1992, parasuraman alutto 1984, mahler nicholson 1989, gortner mahler nicholson,
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