''Performance Appraisal System and Employee Satisfaction: The role of trust towards supervisors''

Abstract

The purpose of performance appraisal (PA) is to improve the contribution of employees into the achievement of organizational objectives. However, appraisers and appraisees do not respond favourably to a performance appraisal system unless they find it equitable. In practice, the PA has not always helped achieving the desired results. The employee's perception of the PA plays a determinant role in the success of the PA system as they are willing to voluntarily engage in the pursuit of performance. The perception of fairness towards the PA is a crucial for achieving employee's satisfaction. The PA can be used to improve the level of job satisfaction. Many authors consider trust critical in the relationship supervisor-employee. And through a trust relationship towards the supervisor that employee's satisfaction with the PAS can be cultivated. The first objective of our research is to determine the importance of the relation between the perception of performance appraisal and job satisfaction. Second, our research examines the impact of trust towards supervisors on the relation between the perceived performance appraisal effectiveness and job satisfaction. The proposal was supported by results from a survey of Bank employees using measures of PA perception, job satisfaction and trust towards supervisor.