FORCED RANKING PERFORMANCE SYSTEM AND EMPLOYEE TURNOVER INTENTION IN A PUBLIC SOCIAL SECURITY ORGANIZATION

Abstract

This study examines the influence of the forced ranking performance system on employee turnover intention within a public social security organization in Indonesia, as well as the mediating role of perceived organizational justice in this relationship. A quantitative approach was employed with a cross-sectional survey design. Data were collected from 100 employees of a public social security organization using purposive sampling. Structural Equation Modeling (SEM) was applied to test hypotheses. The results indicate that the forced ranking system negatively influences perceived organizational justice (β = -0.513, p < 0.001) and positively influences employee turnover intention (β = 0.452, p < 0.001). Organizational justice negatively influences turnover intention (β = -0.492, p < 0.001). Mediation analysis using the Sobel test confirms that organizational justice partially mediates the relationship between the forced ranking system and turnover intention (indirect effect = 0.168, Z = 3.056, p = 0.002). These findings suggest that performance management systems in public sector organizations must consider fairness perceptions to sustain employee retention and institutional effectiveness.