Effectiveness of performance appraisal (EPA) in higher education institutions in Nigeria: moderated by employee participation

In the higher education institutions (HEIs), academics’ staff performance is recognized as a key determinant of students’ and institutions’ performance. Therefore, the need to execute effective performance appraisal becomes imperative because literatures have indicated the ineffectiveness of performance appraisal for academics especially for Nigeria’s HEIs. Past studies suggest that factors such as organizational fairness, organizational politics, leadership styles and employee participation may contribute to EPA. The objective of the study was to determine the influence of organizational fairness, organizational politics, and transactional leadership style on effectiveness of performance appraisal among 395 academics in Polytechnics and Colleges of Education located in the northeast and northwest geopolitical regions of Nigeria. Additionally, this study aimed at investigating employee participation as a moderator. For purpose of data analysis and hypotheses testing, PLS-SEM was utilized to understand the relationships among the variables. Results supported the hypothesized direct influence of distributive, procedural and informational fairness, as well as organizational politics, and transactional leadership style on EPA. However, no direct influence was found between interpersonal fairness and EPA. Furthermore, employee participation moderated three of these relationships, precisely, distributive fairness, informational fairness and transactional leadership style on EPA for performance appraisal system with high contrary to low levels of employee participation. Thus, HEIs should emphasize on organizational fairness, organizational politics, leadership styles and employee participation to help improve effectiveness of performance appraisal in HEIs. Based on research findings, theoretical and practical implications were discussed. Limitations and recommendations for future research were also highlighted.