Relationship between perceived performance appraisal justice on employee engagement outcome variables

Abstract

Justice or fairness is a fundamental underlying principle in life. Not only do unfair practices have the potential for deep discontent, but it also potentially has a deep impact on employee engagement. While some research has been conducted on the relationship between perceived performance appraisal justice and employee engagement, this research goes deeper to understand if significant relationships exist between perceived performance appraisal justice and two of the most commonly cited outcome variables of employee engagement, viz. discretionary effort and intention to turnover. This study aimed to identify if significant relationships existed between perceived performance appraisal justice and the abovementioned employee engagement outcome variables. These insights can help human resource practitioners in the designing of performance appraisal systems as well as with the training of managers who are supposed to conduct the appraisals, in order to unlock potential employee engagement value. The hypotheses were tested using quantitative research methods. The required data was collected via a cross-sectional self-report online questionnaire. A final sample of 143 respondents was utilised for the statistical analysis. Construct validity and reliability of the measurement scales were tested. The hypotheses were tested using multiple regression analysis. This study provided empirical evidence of a significant negative relationship between perceived performance appraisal justice and intention to turnover. Interventions to reduce intention to turnover and improve employee engagement should focus on perceived performance appraisal justice. This study thus contributes to the literature in the fields of employee engagement, justice, human resource development, human resource management and performance management.