Agreement Satisfaction And Fairness

Perceived Fairness and Satisfaction of Employee Performance Assessment Employee Performance assessment is one of the most widely used management tools in the United States. More than 90% of large organizations, including 75% of public employment systems, require some kind of annual evaluation (Seldon, Ingraham-Jacobson, 2001). Performance evaluation is one of the most studied areas of industrial/organizational psychology (Murphy – Cleveland, 1993). However, the traditional research program has little effect on improving the usefulness of performance evaluation as a management tool. Recent research is moving from psychometric precision and measurement studies to staff responses to performance evaluation as indicators of system satisfaction and effectiveness. The perception of the fairness of employee performance evaluation was considered a key factor in staff acceptance and satisfaction in performance evaluation. This study examined staff responses to fairness and satisfaction with an existing performance evaluation system that uses a hypothetical four-factor model (Greenberg, 1993) of organizational justice as a theoretical basis. The underlying assumption was that the four-factor conceptual model, which differed between conceptions of fair interactions and procedures, would be best able to form the underlying structure of data factors. The data were collected through a questionnaire of 440 participants from two organizations that were part of a large public employment system. Ten multi-point scales, which represent four factors of organizational equity and equity in performance evaluation, and three scales that indicate satisfaction were included. The results of the study showed that respondents felt that the performance evaluation system was fair, as suggested by their consent to 9 of the 10 scales used to measure responses to equity. Respondents were also relatively satisfied with their recent assessment of performance evaluation and their supervisor.