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Fairness Of And Satisfaction With Performance Appraisal Process

Author

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  • Suhaimi Sudin

    (Universiti Tenaga Nasional, Muadzam Shah, Pahang)

Abstract

Literature in organizational justice suggest that organizational fairness in decision making processes may encourage employees’ acceptance of and positive reaction to many organizational decisions including decision in human resource interventions such as performance appraisal system. This study seeks to understand how perceived fairness in the performance appraisal process affects employees’ satisfaction. The perception of fairness on performance appraisal was discussed and analysed in the light of theory of organizational justice which consist of procedural, distributive, interpersonal and interaction justice as the independent variables, and employees’ satisfaction as the dependent variable. This study explored employees’ satisfaction as consist of satisfaction with the last performance appraisal ratings, satisfaction toward supervisor in relation with appraisal process and satisfaction toward the performance appraisal system. Data from companies in Malaysia were collected to test these relationships. The findings showed that distributive and informational justice are significantly related to satisfaction with the last appraisal ratings; distributive, interpersonal and informational justice are significantly related to satisfaction with supervision; and distributive and informational justice are related to satisfaction toward the performance appraisal system. It also showed that distributive, interpersonal and informational justice are related to overall employees’ satisfaction. Implication of the justice concerns and practice of a more just performance appraisals are discussed.

Suggested Citation

  • Suhaimi Sudin, 2011. "Fairness Of And Satisfaction With Performance Appraisal Process," Journal of Global Management, Global Research Agency, vol. 2(1), pages 66-83, July.
  • Handle: RePEc:grg:03mngt:v:2:y:2011:i:1:p:66-83
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    References listed on IDEAS

    as
    1. I.M. Jawahar, 2006. "Correlates of Satisfaction with Performance Appraisal Feedback," Journal of Labor Research, Transaction Publishers, vol. 27(2), pages 213-236, April.
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    Cited by:

    1. Michael, Noela & Fotiadis, Anestis, 2022. "Employee turnover: The hotel industry perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(1), pages 38-47.
    2. Zia Ullah & Naveed Ahmad & Miklas Scholz & Bilal Ahmed & Ilyas Ahmad & Muhammad Usman, 2021. "Perceived Accuracy of Electronic Performance Appraisal Systems: The Case of a Non-for-Profit Organization from an Emerging Economy," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    3. Glen Kobussen & Suresh Kalagnanam & Ganesh Vaidyanathan, 2014. "The Impact of Better‐than‐Average Bias and Relative Performance Pay on Performance Outcome Satisfaction," Accounting Perspectives, John Wiley & Sons, vol. 13(1), pages 1-27, March.
    4. Eric Ng Chee Hong & Lam Zheng Hao & Ramesh Kumar & Charles Ramendran & Vimala Kadiresan, 2012. "The Effectiveness of Human Resource Management Practices," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 3(2), pages 60-79, April.
    5. Azman ISMAIL & Rozanariah MOHD SANI & Mohd Hamran MOHAMAD, 2014. "Communication Openness In Performance Appraisal Systems Enhancing Job Satisfaction," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 5(5), pages 98-109, June.
    6. Kevin Baird & Amy Tung & Sophia Su, 2020. "Employee empowerment, performance appraisal quality and performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(4), pages 451-474, December.
    7. Benson Chege Njuguna & Kitainge Kisilu, 2023. "Influence of Procedural Fairness on Implementation of Performance Appraisal Practices in Public Secondary Schools in Cherangany Sub-County," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 1642-1659, May.

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    More about this item

    Keywords

    Organizational justice; Performance Appraisal; Employee Satisfaction;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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