How to Encourage Employees’ Acceptance of Performance Appraisal Systems in Korean Nonprofit Organizations? An Empirical Exploration of the Influence of Performance Monitoring Systems and Organizational Culture

Abstract

As the consequences of the raise in the roles that nonprofit organizations play in providing public services, there is a need to generate solutions for the financial scandals involving nonprofit organizations that have ensued. Nonprofit organizations receive government funding as “third-party agents” of the government to deliver the meaningful outcomes required on performance measures. Many nonprofit organizations utilize performance appraisal systems to improve their accountability and demonstrate organizational trustworthiness. This study employs confirmatory factor analysis and hierarchical multiple regression to examine data from the 2013 Korean Nonprofit Sector Survey. The results are as follows: (a) The current human resources and organizational monitoring systems in Korea play the most significant role in increasing employees’ acceptance of performance appraisal systems (APAS); (b) Korean nonprofit organizations’ new public management (NPM) culture is positively associated with APAS; and (c) the type of organizational culture (NPM or Confucian) moderates the relationship between performance monitoring systems (PMS) and APAS among nonprofit organization employees.

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