Antecedents and consequences of employees fairness perception towards performance appraisal system A study of Indian banking industry

Abstract

The study has indicated that employees of Indian banking industry perceived their current appraisal system to be moderately fair. The employees did not appear to be highly satisfied with the system, which calls for substantial improvements in existing appraisal practices. However, perceived fairness and satisfaction among private banks employees is significantly greater from that of public sector banks. The results further indicate that all the dimensions of justice have great implications for employees reactions towards their supervisor and organisation. Perceived fairness was found to positively influence a number of outcomes in the form of system satisfaction, rating satisfaction, rater satisfaction, feedback and pay satisfaction, whereas the perception of injustice directly influenced employees intention to leave the organisation. The findings highlight the importance of interpersonal and distributive justice in Indian work settings. By influencing a variety of attitudinal and behavioural outcomes; interpersonal and distributive justice take precedence in Indian work settings. The study found that employees perception of appraisal justice is distinctly shaped by a variety of structural and process characteristics of the system i.e. perceived validity of appraisal criteria, supervisor trust, performance feedback and consistent application of performance standards etc.