Are performance appraisals in the public sector fair? EXPLORING bias and best practices

Abstract

This study explores biases in performance appraisal systems within Indonesian government institutions and proposes a tailored framework to address these challenges. Identified biases include confirmation, similarity, central tendency, anchoring, status quo, and leniency/severity biases, exacerbated by political factors, bureaucratic culture, and hierarchical structures unique to Indonesia. These biases often result in appraisals reflecting political maneuvering rather than true employee performance. Using qualitative interviews and thematic analysis, the study uncovers the root causes of these biases and evaluates their impact on fairness and effectiveness. The proposed framework integrates Equity Theory, Cognitive Bias Theory, and goal-setting principles, offering solutions such as structured appraisal methods, quarterly reviews, enhanced evaluator training, and behaviorally anchored rating scales (BARS). These recommendations address the systemic issues of bias, promote transparency, and foster a fair and motivating work environment. This research uniquely contributes to the literature by focusing on Indonesia’s public sector, where cultural and political factors significantly influence performance appraisals. It provides actionable strategies for policymakers and practitioners to create appraisal systems that are fair, effective, and aligned with the organizational goals of government institutions, ultimately enhancing employee engagement and organizational performance.