Organizational justice and performance: is appraisal fair?

2012 ◽  
Vol 7 (3) ◽  
pp. 280-293 ◽  
Author(s):  
Caroline Ann Rowland ◽  
Roger David Hall

PurposeIn a changing economic climate, characterised by pressures to improve productivity and reduce costs, performance management has a more central role in helping to ensure competitive advantage. Appraisals have become an almost universal feature of modern organizations and it is essential that they are perceived as fair if they are to bring about commitment to discretionary effort, which is increasingly a key feature in gaining competitive advantage. The purpose of this paper is to examine the outcomes and processes of performance appraisal through the concept of organizational justice.Design/methodology/approachThis paper uses the concept of organizational justice to explore the outcomes, procedures and implementation of appraisal in contemporary organizations. It draws on a range of theoretical frameworks from both philosophy and social science, examines current practices and experiences and looks at future trends. Empirical research includes a ten‐year longitudinal study of practising managers and ethnography, questionnaires and interviews.Research limitations/implicationsThe authors conclude that appraisal frequently creates both actual and perceived injustice in organizations and a tension between managing performance and encouraging engagement, which is dependent on perceptions of fairness. The authors place appraisal within a framework of organizational justice and encourage further research into areas of organizational effectiveness.Originality/valueThe research clearly indicates that both managers and employees see a potential for appraisal, which is rarely achieved in practice. It opens up a dialogue linking the performance agenda with issues of development, motivation and perceptions of justice in the search for models of competitive advantage. This research also confirms the findings of others, most significantly in terms of reinforcing perceptions of dishonesty, mistrust, inequity and managerialism.

2017 ◽  
Vol 40 (6) ◽  
pp. 684-697 ◽  
Author(s):  
Anshu Sharma ◽  
Tanuja Sharma

PurposeThis paper aims to explore the role of human resource (HR) analytics on employees’ willingness to improve performance. In doing so, the paper examines issues related to the performance appraisal (PA) system which affect employees’ willingness to improve performance and how HR analytics can be a potential solution to deal with such issues. Design/methodology/approachThe paper develops a conceptual framework along with propositions by integrating both academic and practitioner literatures, in the field of HR analytics and performance management. FindingsThe paper proposes that the use of HR analytics will be negatively related to subjectivity bias in the PA system, thereby positively affecting employees’ perceived accuracy and fairness. This further positively affects employees’ satisfaction with the PA system, which subsequently increases employees’ willingness to improve performance. Research limitations/implicationsThe paper provides implications for both researchers and practitioners in the performance management area for improving employees’ performance by applying HR analytics as a strategic tool in the PA system. It also provides implications for future researchers to empirically test the conceptual framework in different organizational settings. Originality/valueThe paper offers insights into how the use of HR analytics can deal with issues of subjectivity bias in the PA system and positively affects employees’ willingness to improve performance.


2019 ◽  
Vol 32 (7) ◽  
pp. 721-740
Author(s):  
Giorgio Giacomelli ◽  
Nora Annesi ◽  
Sara Barsanti ◽  
Massimo Battaglia

Purpose The purpose of this paper is to contribute to the scholarship on public management models and to advance the theoretical conceptualization of the complexity of performance management systems (PMSs). The paper explores how the characteristics of PMSs vary within and across different organizational units in common institutional context, based on the case of a regional authority in Italy. Design/methodology/approach A framework of analysis considering both objective and subjective factors was derived from a combination of performance typologies in the public sector, namely ideal types of managing performance (Bouckaert and Halligan, 2007) and performance regimes (Jakobsen et al., 2017). The combination of the characteristics of these two models across different Directorates General (DGs) has also been explored through a nested case study (Starman, 2013). Data were gathered via a desk analysis of official documents regarding the planning and programming of a regional authority along with in-depth interviews with top-level managers. Findings The results highlighted a clear differentiation of PMSs, both within and across DGs. The findings of the study reveal the hybrid nature of PMSs within a common institutional context. Originality/value Drawing on the theoretical frameworks of Bouckaert and Halligan (2007) and Jakobsen et al. (2017), the paper provides an integrated approach for analysing PMSs, considering both objective and subjective dimensions. Insights and indications for future research on hybridity at a meso level of public organizations are highlighted.


2012 ◽  
Vol 2 (2) ◽  
pp. 1-4 ◽  
Author(s):  
Seema Bhatt ◽  
Sridar Natrajan

Subject area The case throws light on performance management in general and performance appraisal in a specific Indian context, its linkages with various other HR systems in an organization and the various issues and challenges attached with it. The case is especially suited for understanding people management in small organizations and organizations in emerging markets. Study level/applicability This case has been tried and tested in the classroom setting with management students pursuing a post graduate diploma in business management (PGDBM). The case has been administered to students in Chennai Business School, Chennai in their core course human resource management (first year PGDBM) and to second year students specializing in HR in their course “Performance management and compensation management” in G D Goenka World Institute, Sohna. Case overview The case is set in the southern part of India in a retailing organization which grew from a small retail store catering to the daily needs of the student community to a four store retail store (Bolts'). Mr Andrew (Head, HR), introduced performance management and appraisal at Bolts'. Since the appraisal was interrelated with various other HR systems like motivation, compensation, training and development and promotions, it generated a lot of excitement among the employees. After implementation of performance appraisal, the organization seems to experience one problem after another. There were complaints from customers, followed by a range of challenges such as discontented employees, unprofessional behavior, low motivation in the organization and loss of profit. Expected learning outcomes Understand and analyze the performance management in general and performance appraisal in a specific Indian context, its linkages with various other HR systems in organization and the various issues and challenges attached with it. Understand people management in small organizations and organizations in emerging markets. Assess and identify HR practitioners' problems in studying SMEs' HR related problems in an Indian context. Supplementary materials Teaching notes are available to faculty. Please consult with your librarian.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Swati Garg ◽  
Shuchi Sinha ◽  
Arpan Kumar Kar ◽  
Mauricio Mani

PurposeThis paper reviews 105 Scopus-indexed articles to identify the degree, scope and purposes of machine learning (ML) adoption in the core functions of human resource management (HRM).Design/methodology/approachA semi-systematic approach has been used in this review. It allows for a more detailed analysis of the literature which emerges from multiple disciplines and uses different methods and theoretical frameworks. Since ML research comes from multiple disciplines and consists of several methods, a semi-systematic approach to literature review was considered appropriate.FindingsThe review suggests that HRM has embraced ML, albeit it is at a nascent stage and is receiving attention largely from technology-oriented researchers. ML applications are strongest in the areas of recruitment and performance management and the use of decision trees and text-mining algorithms for classification dominate all functions of HRM. For complex processes, ML applications are still at an early stage; requiring HR experts and ML specialists to work together.Originality/valueGiven the current focus of organizations on digitalization, this review contributes significantly to the understanding of the current state of ML integration in HRM. Along with increasing efficiency and effectiveness of HRM functions, ML applications improve employees' experience and facilitate performance in the organizations.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amr Mohamed Said Abdel-Halim ◽  
Mirghani N. Ahmed

Purpose This paper aims to evaluate the usefulness of two conceptual frameworks: levers of control (LOC) (Simons, 1995) and performance management systems (PMSs) (Ferreira and Otley, 2009) for studying PM practices using a case study. Design/methodology/approach A case study method is used whereby data are collected through semi-structured interviews, examination of the group’s annual reports and internal documents. Findings A key finding of this study is the use of a PMS at the case company which is formally structured and with objectives, mechanisms and processes designed beyond a mere “performance measurement system.” While the case analysis indicates that most of the key components of the two frameworks are featured in the company’s PMS design, the uses of Simons’ (1995) LOC, however, are not consistent with the notion of “balance” as advocated by the model. Research limitations/implications The evidence presented in this study is based on one large manufacturing company, and hence the findings cannot be generalized. Practical implications The findings of this study can be used in enriching the design of current proposed theoretical frameworks and also in encouraging management accounting researchers to continue the efforts of studying performance management (PM) practices. Originality/value A deeper understanding of PM practices using holistic frameworks has yet to receive more contested efforts from management accounting researchers. This paper attempts to contribute to this endeavor and fill in the gap in this area of research.


2014 ◽  
Vol 43 (1) ◽  
pp. 19-40 ◽  
Author(s):  
Jane Maley ◽  
Robin Kramer

Purpose – The aim of this paper is to examine the practice of performance management in a cross-border context in times of global uncertainty. Design/methodology/approach – This is a conceptual paper. Findings – The findings expose global uncertainty to be wielding a significant influence on performance management. Practical implications – A practical framework is developed using real options theory. This approach offers suggestions for multinational corporations to increase the effectiveness of their performance management while at the same time focusing on profit-maximisation. Originality/value – This paper enhances international management research by recognizing that real options theory can effectively be applied to improve the effectiveness of performance management in global uncertainty.


2018 ◽  
Vol 35 (6) ◽  
pp. 1253-1267 ◽  
Author(s):  
Khahan Na-nan ◽  
Kanokporn Chaiprasit ◽  
Peerapong Pukkeeree

Purpose The purpose of this paper is to develop a performance management (PM) scale questionnaire that encompasses the pre-requisite, performance planning, performance evaluation, performance review, and performance application dimensions of PM. Design/methodology/approach In the study, the 33 questionnaire questions were first validated using exploratory factor analysis (EFA) and then by confirmatory factor analysis (CFA) along the three performance dimensions. The research sample consists of 330 entrepreneurs. The factor analysis results confirm the validity of the questionnaire as a reliable entrepreneur PM evaluation tool, as evidenced by the composite reliability of 0.845 and the average variance extracted of 0.532. Findings All constructs revealed the acceptable internal consistency reliability. A good model fit was found for the measurement model using several fit index like χ2=449.983, degree of freedom=415, p-value (p)=0.114, goodness of fit index=0.927, adjusted goodness of fit index=0.901, root mean square error of approximation=0.016, and root of mean square residuals=0.032. Research limitations/implications The PM model was examined using EFA and CFA only. A sample with only SMEs entrepreneurs and large sample size and sample area can be used in future research. Practical implications This research paper is an endeavor to explore only the reliability and validity of the PM model. Thus all the five dimension, namely “pre-requisite” “performance planning,” “performance evaluation,” “performance review,” and “performance application” proved out of be reliable and validated when it will be tested in case of SMEs’ high-growth sectors and high-impact sectors. Originality/value The main contribution of this research is that all factors have a good fit and acceptable reliability value; each factor can be measured individually depending on the nature of the research.


Author(s):  
Jeanette N. Cleveland

Contexts shape the way the performance appraisal (PA) and performance management (PM) systems are designed and utilized. Yet, the analysis of situations, especially more macro-context, including cultural, economic, and political/legal values, is one of the most underresearched areas in applied psychology despite the fact that context is likely to be critical to understanding the success and the failures associated with individual and team PM in organizations. To date, most research on situations has focused on proximal factors that impinge directly on raters’ and ratees’ motivation and goals, with less attention given to variations in macro and meso context across and within organizations, nations, and cultures. In the present chapter, the current research linking context with PA and PM is reviewed. Drawing from both situational strength and institutional theories, the mechanisms (e.g., norms and constraints) by which situations can shape the design and process of PA/PM within and across organizations are discussed. The chapter concludes by translating key features from the context and situation assessment literature into action that can be taken by industrial and organizational psychologists to help improve PA/PM research and practice in organizations.


2020 ◽  
Vol 12 (3) ◽  
pp. 255-286
Author(s):  
Jorge Ferreira ◽  
Arnaldo Coelho

Purpose The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO). Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables. Findings The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC. Research limitations/implications This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results. Practical implications This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness. Originality/value This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.


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