Organizational Justice in Performance Appraisal System: Its Effects on Performance Appraisal Satisfaction and Work Performance

Performance appraisal is an integral part on the Human Resource Management system. An organization implements the performance appraisal system to allocate rewards for the employee, provide development advice as well as to obtain their perspectives and justice perceptions about their jobs, department, managers and organization. Further, performance appraisal is an ongoing communication process between employees and supervisors. Superior should set expectations, monitor performance and provide feedback to employees. By having this information it will direct and develop employee performance by identifying training and development needs, correcting problems and determine raises and promotion. Employees job satisfaction is important for work performance (Suliman, 2007). For improved work performance, the employees also need a good performance appraisal system to provide them with feedbacks regarding their job. However, for the system to be effective it must be perceived as fair (Suliman, 2007). In line with this, the purpose of this study is to identify the effect of employee perception of justice in performance appraisal system on performance appraisal satisfaction and lastly it will affect the work performance too. Overall, this study was to examine the employees perceptions of organizational justice (distributive, procedural and interactional justice) in performance appraisal system and the effect
on performance appraisal satisfaction and work performance. This study also identified the main perceptions that employee have on performance appraisal system and how reliable the system are to them.