Performance appraisal and justice perceptions: A scenario-based experimental study

Purpose An accurate and fair organization’s performance appraisal system can improve motivation and development of employees (Ilgen et al., 1979); on the other hand, employees’ frustration and extreme dissatisfaction can increase when appraisal system is biased and arbitrary (Skarlicki & Folger, 1997). Building on the organizational justice theory, we hypothesized that equity perceptions were influenced by: performance rating formats (Absolute vs relative), participants’ voice (voice vs no voice) and results (positive vs negative). Design/Methodology A scenario-based experimental study was used to test these assumptions. The research involved 244 Italian participants from several organizational contexts recruited on web through an on-line questionnaire. Results The ANOVA analyses revealed that participants’ voice (voice-modality) affected the equity perceptions. Particularly, participants in absolute rating format conditions and with positive results showed a higher level of procedural and interpersonal justice comparing for those dealing with an opposite situation. Furthermore we found significant results between participant’s voice and rating results in relation to perception of distributive justice. Limitations The study relied on self-report data, and the descriptions of the company and the scenarios were hypothetical (though based on existing firms).