Performance appraisal: employee perceptions of organizational justice and satisfaction a study of private sector organizations in Pakistan

Abstract

The present challenging economic conditions have forced organizations to concentrate on employee performance to extract maximum benefit and achieve competitive advantage. Thus performance management in general and performance appraisal in particular remains one of the most important human resource practices and organizational activities. In order for performance appraisal to be an effective tool for of employees’ performance enhancement, it has to be perceived as fair and accurate. The employees’ perceptions of organizational justice (fairness) play a vital role in creating satisfaction with the system. Higher the satisfaction level of the employees better would be their individual performance which would enhance organizational performance. This study investigated employee perceptions of organizational justice and satisfaction with performance appraisal in the context of private sector organizations in Pakistan. It also investigated relationship between organizational justice and employee satisfaction. Fourdimensions of organizational justice (distributive, procedural, interpersonal and informational) were identified in the study. The study used ten multi-item constructs to measure employee perceptions of organizational justice in the context of performance appraisal processes. Employee satisfaction with performance appraisal, performance appraisal system and the role of supervisor was also explained in this study. The data was obtained from middle and lower level employees (administrative, clerical, professional, supervisory, managerial staff) of private sector organizations. The data collection method used for the study was survey method. Results supported the relationship hypothesized between distributive justice and satisfaction with performance appraisal; procedural justice and satisfaction with the performance appraisal system; and informational justice and interpersonal justice and employee satisfaction with supervisor. The study highlighted the value of nurturing employee perceptions of fairness of performance appraisals. It would help private sector organizations of Pakistan in evaluating their performance appraisal practices to identify shortcomings for subsequent improvement thereby affecting individual employee and overall organizational performance. Key words: Performance, Performance management; Performance appraisal; Employee perceptions, Organizational justice; Fairness; Satisfaction.The present challenging economic conditions have forced organizations to concentrate on employee performance to extract maximum benefit and achieve competitive advantage. Thus performance management in general and performance appraisal in particular remains one of the most important human resource practices and organizational activities. In order for performance appraisal to be an effective tool for of employees’ performance enhancement, it has to be perceived as fair and accurate. The employees’ perceptions of organizational justice (fairness) play a vital role in creating satisfaction with the system. Higher the satisfaction level of the employees better would be their individual performance which would enhance organizational performance. This study investigated employee perceptions of organizational justice and satisfaction with performance appraisal in the context of private sector organizations in Pakistan. It also investigated relationship between organizational justice and employee satisfaction. Fourdimensions of organizational justice (distributive, procedural, interpersonal and informational) were identified in the study. The study used ten multi-item constructs to measure employee perceptions of organizational justice in the context of performance appraisal processes. Employee satisfaction with performance appraisal, performance appraisal system and the role of supervisor was also explained in this study. The data was obtained from middle and lower level employees (administrative, clerical, professional, supervisory, managerial staff) of private sector organizations. The data collection method used for the study was survey method. Results supported the relationship hypothesized between distributive justice and satisfaction with performance appraisal; procedural justice and satisfaction with the performance appraisal system; and informational justice and interpersonal justice and employee satisfaction with supervisor. The study highlighted the value of nurturing employee perceptions of fairness of performance appraisals. It would help private sector organizations of Pakistan in evaluating their performance appraisal practices to identify shortcomings for subsequent improvement thereby affecting individual employee and overall organizational performance. Key words: Performance, Performance management; Performance appraisal; Employee perceptions, Organizational justice; Fairness; Satisfaction.The present challenging economic conditions have forced organizations to concentrate on employee performance to extract maximum benefit and achieve competitive advantage. Thus performance management in general and performance appraisal in particular remains one of the most important human resource practices and organizational activities. In order for performance appraisal to be an effective tool for of employees’ performance enhancement, it has to be perceived as fair and accurate. The employees’ perceptions of organizational justice (fairness) play a vital role in creating satisfaction with the system. Higher the satisfaction level of the employees better would be their individual performance which would enhance organizational performance. This study investigated employee perceptions of organizational justice and satisfaction with performance appraisal in the context of private sector organizations in Pakistan. It also investigated relationship between organizational justice and employee satisfaction. Fourdimensions of organizational justice (distributive, procedural, interpersonal and informational) were identified in the study. The study used ten multi-item constructs to measure employee perceptions of organizational justice in the context of performance appraisal processes. Employee satisfaction with performance appraisal, performance appraisal system and the role of supervisor was also explained in this study. The data was obtained from middle and lower level employees (administrative, clerical, professional, supervisory, managerial staff) of private sector organizations. The data collection method used for the study was survey method. Results supported the relationship hypothesized between distributive justice and satisfaction with performance appraisal; procedural justice and satisfaction with the performance appraisal system; and informational justice and interpersonal justice and employee satisfaction with supervisor. The study highlighted the value of nurturing employee perceptions of fairness of performance appraisals. It would help private sector organizations of Pakistan in evaluating their performance appraisal practices to identify shortcomings for subsequent improvement thereby affecting individual employee and overall organizational performance. Key words: Performance, Performance management; Performance appraisal; Employee perceptions, Organizational justice; Fairness; Satisfaction.