Effects of Understanding and Perceived Fairness of Performance Appraisal on Employee Performance

Abstract

The purposes of this study were 1) to study the perceived fairness of performance appraisal, and 2) to study the effects of understanding and perceived fairness of performance appraisal on employee performance. Using the survey research, the samples of this study were 400 employees who work in the firms at the industrial estates in the eastern part of Thailand. The data was collected by using multistage sampling technique.

The results of the present study revealed that the understanding in performance appraisal system of employee was at the medium level in the area of the reason of criteria setting, appraisal form and method, salary policy and the use of appraising results. Moreover, it also showed a medium level of the perceived of procedural fairness, interpersonal fairness and outcome fairness. The perceived of procedural and outcome
fairness of performance appraisal on employee performance has positively affect employee performance at the 0.05 level of significance that could be described the employee performance at 15.7 percent.

The study has the further recommendation to the firms in increasing employees’ levels of procedural fairness, interpersonal fairness and outcome fairness through using multi-source of appraising, evaluation results feedback.