THE EFFECT OF EMPLOYEES’ FAIRNESS PERCEPTION ON THEIR SATISFACTION TOWARDS THE PERFORMANCE APPRAISAL PRACTICES

Belete Getnet, Tariku Jebena, Assefa Tsegaye

Abstract:  It is overt that improving organizational growth has become one of the prime goals of human resource management. Organizational performance is the synergetic sum total of the performance of all employees in the organization. As employees are one of the most valuable assets of the organization that can make things happen, the practice of performance evaluation is an inherent and inseparable part of the organizations’ life. Hence, this study is targeted to assess the effect of employees’ fairness perceptions on their satisfaction towards performance appraisal practices in the University of Gondar. The underlying assumptions here is that employees’ perceptions of distributive, procedural, informational and interpersonal fairness parameters are highly associated or determine their satisfaction on the performance appraisal practices of their institution. Cross sectional descriptive survey design was employed. Using stratified random sampling technique 230 participants (employees) of the target institution-UoG were selected from the total population of 1913.  The primary data collected using Walsh (2003, p. 56) adapted standard questionnaire were subjected to subsequent statistical analysis using SPSS software. Accordingly, the total perception responses of the participants on the overall fairness parameters with (M=2.46, β =.877, P<0.000) found to be significantly and highly correlated with overall satisfaction (M= 2.37) of the performance appraisal practices.  Specifically, each of the fairness dimension variables interpersonal (M=2.65, β= .153, P<0.001), procedural (M=2.40, β = .545, P<0.000) and informational fairness (M=2.42, β =.246, P<0.000) parameters, except distributive fairness (M=2.40, β =.025, P<0.610), are found to be significantly correlated with the overall satisfaction. These results imply that the employees in UoG generally did not perceive the performance appraisal practices in the institution as fair. Similarly, their overall satisfaction on the performance appraisal practices of the University is low (below the average). Therefore,  in order to be effective in achieving its targeted goals and objective  the UoG is required to reevaluate its performance appraisal practices specifically on the three basic dimensions of fairness parameters and their associated variables: clarifying expectation standards, providing feedback, rating decisions, respectfulness of supervisions, sensitivity of supervisions, setting employees performance expectations, raters confidence and appealing procedures.

Keywords: Performance evaluation, Organization fairness, Employees’ perceptions and satisfaction of Performance appraisal.

Title: THE EFFECT OF EMPLOYEES’ FAIRNESS PERCEPTION ON THEIR SATISFACTION TOWARDS THE PERFORMANCE APPRAISAL PRACTICES

Author: Belete Getnet, Tariku Jebena, Assefa Tsegaye

International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)

Research Publish Journals

Vol. 2, Issue 1, April 2014 - September 2014

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THE EFFECT OF EMPLOYEES’ FAIRNESS PERCEPTION ON THEIR SATISFACTION TOWARDS THE PERFORMANCE APPRAISAL PRACTICES by Belete Getnet, Tariku Jebena, Assefa Tsegaye