Background: It is evident from Western literature that performance appraisal (PA) results in innovation. However, evidence of empirical research on the different models on the PA-innovation link is seemingly lacking within the South African environment. The South African context may be unique, given the legislative framework within which PA is administered.Aim: To provide clarity on the specific PA-innovation models within the South African context.Setting: The PA-innovation relationship is contextualised within the South African context, across more than 50 organisations and more than 3000 randomly selected employees.Methods: A quantitative research approach was adopted, using a cross-sectional survey design as the study involved 3180 employees from 53 organisations. Seven variables were included in the model, namely PA, individual innovative behaviour (IIB), proactive personality (PP), transformational leadership (TL), corporate entrepreneurship (CE), work engagement (WE) and affective commitment (AC).Results: The results reveal that PA directly influences innovation. The PA-innovation relationship is mediated by WE and AC, with WE having the most significant effect. Furthermore, TL and CE moderate the PA-innovation relationship, with TL having the strongest effect and CE having almost no effect. Additionally, PP does not moderate the PA-innovation relationship. Managing employees with TL practices and instilling WE may be at the root of innovation in organisations.Conclusion: The research contributes to the body of knowledge on the PA-innovation link, and the outcomes of this study are expected to be of value to all stakeholders and may assist managers to appropriately assign resources to particular organisational variables, thereby enhancing innovation within organisations. This evidence-based information would help managers to increase innovative behaviour, performance, competitive advantage, organisational success, growth and organisational survival.
Literature suggests that performance appraisal (PA) contributes to innovation. However, the absolute and relative importance of PA to innovation, the different aspects of PA which drive innovation, as well as PA as a precursor among other antecedents to innovation, has not been adequately described. The aim of the study is to provide clarity on the drivers of innovation, specifically contextualising the impact of PA within the South African context. This study used a cross-sectional survey design, where only quantitative data was collected from full-time employees across private sector, parastatal, and government organisations. The respondents represented a broad cross-section of South African employees. PA and three other known antecedents to innovation, as well as innovation itself, were measured. It was found that PA (as a single variable) was responsible for 5.7% of the variance in innovation. Items in the PA scale with a clear link to innovation were identified, and thematically integrated. It was further found that, when PA was combined with other antecedents of innovation, leading to 26.6% of the variance in innovation being explained, the role of PA was significant, though mostly secondary. Proactive personality was the most dominant predictor of innovation. The importance and relative importance of PA as an antecedent to innovation in the workplace has thus been established. The outcomes of this study may assist managers and human resource practitioners to focus on appropriate, evidence-based information when attempting to enhance innovation.
Orientation: Innovation is essential to organisational survival, and several studies have shown that performance appraisals (PAs) contribute to innovation.Research purpose: The purpose of this study was to examine the importance of PA as an antecedent to innovation relative to other human resource practices (HRPs).Motivation for the study: The specific HRP drivers of innovation among employees and across organisations are not well specified, hindering appropriate resource allocation.Research approach/design and method: The PA–innovation link was investigated among 3180 employees across 53 South African organisations, utilising a cross-sectional survey design involving quantitative data, and focusing on correlation and regression analyses.Main findings: Human resource practices accounted for approximately 10% of the variance in innovation when considering individual employees. Performance appraisal was neither a common nor a unique predictor of innovation. When focusing on the link across organisations, a significant HRPs–innovation link was established in approximately 60% of organisations, with PA playing a significant role as the predictor of innovation in 10 (out of 53) organisations.Practical/managerial implications: Other HRPs, specifically supervisor support and staffing, played a much bigger role than PA in driving innovation of individuals, also across organisations. This specifies the relative importance of PA amongst other HRPs.Contribution/value-add: General managers, human resource practitioners and researchers can now use data-driven evidence to select specific HRPs which significantly enhance innovation among employees and across organisations.
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