Perceived Appraisal Fairness Effect on Performance Appraisal Effectiveness and Appraisal satisfaction in Higher Education

Abstract

Purpose: The reactions of ratee to appraisal practices and their perceptions of appraisal system fairness may be a good indicator of appraisal system success. This research investigates employees' perception of performance appraisal (PA) aspects connected with organizational justice on Performance Appraisal effectiveness and employee satisfaction with the evaluation process in higher education. Design/Methodology/Approach: The partial least square structural equation modeling (PLS-SEM) was employed to check the hypothesized results. Overall, 497 respondents filled the questionnaire with their views on appraisal fairness, effectiveness, and satisfaction with appraisal practices. Findings: The findings show a positive relationship between organizational justice dimensions (socially determined justice and structurally determined justice) with effectiveness and satisfaction with the appraisal system. However, satisfaction with performance appraisal effectiveness and socially determined justice do not have a statistically significant relationship. Furthermore, there is a significant mediation relationship between the appraisal system's effectiveness, employee satisfaction with performance appraisal, socially determined justice, and structurally determining justice. Implications/Originality/Value: The study presents some useful suggestions to managers working as appraisers on increasing the performance appraisal system effectiveness and making it acceptable for the employees with their satisfaction.