Yes, it does. An unjust and unfair performance appraisal (PA) system makes  employees feel dissatisfied and disgusted. They always want to be consulted and involved in it, and want to have the feedback as to how they are doing. Every reasonable human being wants to experience organizational justice. PA also helps employee development.  That way it helps develop psychological contract. Employers who believe in crude unitarism and command and control style do PA in an authoritarian way, which put the employee off and enhances her/his desire to leave the organization.

I examined psychological contract and performance appraisal in the  healthcare industry. Poor performance appraisal did indeed influence  employee intention to stay. See:    

Maley, J (2009). The influence of performance management on the psychological contract. South Africa. Journal of Human Resource Management. 7(1). 179-199.

It certainly does. Performance appraisal always influence the performance per se, the desire to continue in the same organization, and the affection the worker may feel for her/his enterprise, no matter it is IT or not. Good IT specialists usually are very motivated people and frequently are in high demand; hence they have less difficulty to find a new job. Job opportunities for other specialists are more difficult to find. Therefore, if she/he does not feel properly assessed she/he may find a better opportunity somewhere else to develop her/his talents.

Thank you very much for the interesting feedback.

In my view, when employers fulfill their own part of the psychological contract entered with employees, several positive actions emanate from the employees in their attempt to fulfill their own part of the psychological contract. In such context, intention to quit will be low or absent. Similarly, a good performance appraisal is also a booster of employee morale , hence  can influence employee to stay with the organisation.  Therefore both psychological contract and perfomance appraisal are positively associated with employees intention to stay.

Good. Both psychological contract and performance appraisal are positively correlated with employees intention to stay.

Dear 

Both psychological contract and performance appraisal provide feedback to employees. This feedback influence intention to stay. 

Yes, indeed  feedback is a huge part of PA and a very important part. I have conducted two empirical studies on PA and in both studies feedback and follow-up of the PA emerged as essential for an effective PA, relationship with the supervisor and intention to remain in post. An effective PA also build trust (See:   Maley, J. & Moeller, M. (2014). The effect of the performance appraisal system on trust for the inpatriate manager. Journal of Business Research. 67(1), 2803-2810.

Hi - just a contrary answer - not to disagree with the responses but rather to question the concept of an employee "staying".  In a fast moving industry like IT there may be merit in constantly having new blood with new skills and knowledge entering.

Industries that require organisational history may need some stable element - but I wonder about the merit of "staying in some sectors.  So I would suggest that you consider that - what is the purpose and what proportion of the company complement should be reasonably static?

I would like to advise some of my contributions on the subject: - "The role of the" good soldier "in overcoming the first great economic crisis of the 21st century: The Psychological Contract and Organizational Citizenship Behaviors" (" El Protagonismo del" buen soldado "en la superación de la primera gran crisis económica del siglo XXI: El contrato psicológico y los comportamientos de ciudadanía organizacional") - which you can find among my contributions as "Articles" here in "RG" and in the same way, a Doctoral Thesis on the subject, directed by me; In both contributions -in addition- there is a lot of bibliography on the subject