Employees’ Fairness Perception towards Performance Appraisal System: Antecedents and Consequences
Research Hypothesis: H1a: Employees’ perception of procedural justice is significantly related to system-referenced outcomes/evaluations. H1b: Employees’ perception of distributive justice is significantly related to individual-referenced outcomes/personal evaluations. H1c: Employees’ perceptions of Interpersonal and informational justices are significantly related to agent-referenced outcomes. H2a: Employee’ trust in supervisor make a significant contribution to the prediction of informational justice perception. H2b: Structural-distributive characteristics and organisational support make a significant contribution to the prediction of distributive justice perception. H2c: Specific explanations make a significant contribution to the prediction of interpersonal justice perception. H2d: Structural-process characteristics make a significant contribution to the prediction of procedural justice perception. Description about Data: On the basis of review of literature, a comprehensive structured questionnaire was designed to gather the responses on employees’ justice perception, its antecedents and subsequent impact on their attitudinal and behavioural reactions. A large number of constructs were developed to measure the employees’ justice perception, its antecedents and subsequent impact on employees’ work-related attitudes and behaviours. Unless otherwise noted, all items were scaled on four-point likert scale. Independent variables: From conceptual model, as noted, the one part of the model guides the research to highlight the consequences of employees’ perceived fairness; and another part guides the research to identify the determinants of fairness perception. Dependent variables: For the first part, there are twelve dependent variables in the following analysis: performance appraisal system satisfaction, satisfaction with rating, satisfaction with rater, pay satisfaction, job satisfaction, feedback satisfaction, work performance or motivation to improve the performance, organisation commitment, withdrawal behaviour, intention to quit, and organisational citizenship behaviour. Control variables: Subjects’ demographic and organisational information including age, gender, education, salary, organisation level, length of employment and organisation’s sector were also solicited. Age and tenure were measured in number of years and subsequently classified in range. Gender and bank type were measured as dichotomous variables coded as 1 for female and 2 for male; 1 for public sector and 2 for private sector. Notable Findings: The findings provided support for both procedural justice and interactional justice as two-dimensional constructs. The findings highlight the importance of all the dimensions of justice that lies in its explanatory power to predict a multitude of employees’ reactions that are paramount for organisational efficiency and growth.