If, like many others, you have never committed yourself to the performance appraisal process because you feel it is inherently unfair, you are not alone. In recent research (Kavanagh, Benson, and Brown, 2007) using data from 2377 Australian public sector employees, confirmed that the way in which performance appraisals are conducted have a significant impact on the perceived fairness of the appraisal system.
The research found that three processes were positively and significantly associated with employee perceptions of performance appraisal fairness:
- Participation in the performance appraisal process
- Level of two-way communication
- Involvement in setting objectives
- Attitudes towards the supervisor
- Degree of supervisor neutrality
- Knowledge of the performance appraisal process
- Clarity of the system
- Understanding of the system
- Acceptance of the objectives of the system
When employees perceive that their performance appraisal is fair, they are more likely to commit to it, and the decisions that flow from it such as pay adjustments, promotions, terminations and training requirements.
In addition, higher levels of perceived fairness should enhance more positive attitudes towards the organisation, justifying the investment required to adequately train both appraisers and appraisees about the performance appraisal system.
References
Kavanagh, P., Benson, J., & Brown, M. (2007). Understanding performance appraisal fairness. Asia Pacific Journal of Human Resources, vol. 45, 132-150.
