Employees' Justice Perceptions of Performance Appraisal Systems: Attitudinal, Behavioral, and Performance Consequences

Jeff Johnson


ABSTRACT
Organizational justice theory provides a useful framework for explaining employees’ attitudes and behaviors resulting from their perceptions of performance appraisal systems. However, research on employee reactions to performance appraisal systems has not fully adopted an organizational justice perspective.

In this dissertation study, I examined how employees’ perceptions regarding the fairness of their performance appraisal systems (e.g., the performance ratings, the appraisal process, and interpersonal interactions with raters) had direct and interaction effects on work-related attitudes and behaviors. I also examined whether organizational and team justice perceptions mediated these relationships.

To test the hypotheses, data were collected from 245 employees working in a large health care organization. Participants completed surveys consisting of modified versions of previously established scales. To reduce single source-effects, supervisors also completed a survey regarding employees’ contextual and in-role task performance. A total of 174 supervisor surveys were matched to those employees who completed a survey.

Using regression analyses, I found that employees’ perceptions of distributive justice, procedural justice, and interactional justice dimensions pertaining to their performance appraisals were positively related to perceptions of overall organizational justice and overall team justice. In addition, perceptions of overall organizational justice and overall team justice were significantly predictive of various work-related attitudes and job performance behaviors. I also found partial mediation by both perceptions of overall organizational justice and overall team justice on the relationships between distributive justice, procedural justice, and interactional justice and various work-related attitudes and behaviors. Only one of the hypothesized moderator effects was found. Lastly, path analyses revealed numerous significant paths among the variables in this study.

There are numerous research implications of these findings. Most importantly, the findings of this dissertation indicate that there are perceptions of overall justice pertaining to different organizational levels, and that these perceptions have somewhat different antecedents and consequences. This research also has implications for management practices. Foremost among these implications is the importance of considering employees’ fairness perceptions of performance appraisal systems when seeking to maximize positive impacts and minimize potential negative impacts of those systems.

Thursday, October 16, 2003
DISSERTATION COMMITTEE
Donald Truxillo, Chair
Talya Bauer
Leslie Hammer
George G. Lendaris
William Pfeiffer, Graduate Studies Rep.