Role of Performance Appraisal Justice on Employee Performance: Mediating Role of Work Engagement

Abstract

Human resource management cannot ignore performance appraisal as a managerial tool often used to enhance organizational sustainability. Nevertheless, it will make an organization’s performance appraisal work and be effective in enhancing the performance of employees only if these employees consider it fair. Therefore, aligning with the perspective of social exchange theory, we proposed a model to explore the influence of performance appraisal justice on employee job performance through work engagement. Survey data from 157 employees in the education department were analyzed using multiple regression. Findings show that the work engagement of employees is significantly affected by the performance appraisal justice of the employees. Also, work engagement was found to have partially mediated the relationship between PA justice and their job performance. Thus, the conclusions drawn in this work equate to the idea that when employees recognize justice in the organizational performance appraisals, they will invest more effort and energy into their work assignments, which, in return, will enhance organizational job performance. The limitations and implications for future research and practice are also discussed.