The influence of performance appraisal on the psychological contract of the inpatriate manager

Abstract

This article explores the extent, nature and limitations of performance appraisals, and the subsequent influence that these issues may have on the psychological contract of inpatriate managers in a sector of the health care industry in Australia. Eighteen in-depth interviews using a grounded theory methodology revealed that the process was significantly influenced by multinational organisations’ emphasis on the bottom line and the inpatriate manager’s relationship with his/her supervisor. Furthermore, the findings suggest that the inpatriate manager’s experience of his/her performance appraisal frequently results in a perception of violation of his/her psychological contract with the organisation.