Performance Appraisal And Trust Theory

Improved Essays
Performance appraisal and trust theory

In addition to the mediating role of organisational justice in the relationship between performance management practices and organisational commitment, extant literature also shows that trust creates conditions which affect employee responses to performance appraisal practices and commitment (McAllister, 1995; Macky and Boxall, 2007). Trust can be defined as a psychological state comprising the intention to accept vulnerability based upon positive expectations of the intentions or behaviors of another” (Rousseau et al., 1998). For the purpose of this research trust will be defined as the relationship between an employee and line manager. Aryee et al (2002) explains that trust can be looked at from both
…show more content…
Further he explained that self-appraisal in performance evaluation system is positively associated with trust. Trust can be enhanced should feedback or results on appraisal are fed back to the appraises. Mayer & Davies (1999) explains that should performance appraisal system reflect the employee’s true performance, trusts for those employees are enhanced when it comes to their view of performance appraisal. Further they expand that recognition and rewards that are based on performance appraisal, would in employees eyes be linked with true performance which thus form the basis of trust in the performance appraisal system. In conclusion they denoted that trust is affected by an appraisal system that increases the perceived linkages between performance and rewards, which will affect the trust relationship. Farndale, Hope-Hailey & Kelliher (2011) summarized that levels of employee trust in their employer/senior management can therefore be seen as impacting the link between employee experiences of performance appraisal practices, and their related behavioral and attitudinal outcomes in terms of commitment and perceptions of justice. Aryee et al (2002) further agrees that trust in …show more content…
Sojoudi & Farahbod (2012) defined organisational commitment as a kind of emotional and fanatical attachment to the values and goals or organization and thus if there is an absence of organisational commitment, that the quantity and quality of work can be reduced. Neha and Himanshu (2015) explained in a study they conducted that employees who are satisfied with their performance appraisal system of their organisation were committed to their organisation. A performance appraisal system that is fair and transparent has an influence on how employees show commitment towards their organisation. The study support the finding that performance appraisal is a key variable which determine how committed an employee can be, depended on the experience of the performance appraisal (Farndale, et.al, 2011). Hai & Mian (2007) denotes that performance appraisal including system and process facets has significant effect on organizational commitment and that organisational commitment plays a mediating role between performance appraisal and employee behaviour. According to Farndale, Hope-Hailey & Kelliher (2011) eemployee experiences of performance appraisal are related to their perceptions of organisational justice and there is a positive relationship between perceived

Related Documents

  • Improved Essays

    Intrinsic Reward Theory

    • 2149 Words
    • 9 Pages

    • Quality based promotions- promotions when achievement of organization’s set objectives. Intrinsic motivational characteristics are namely: role clarity, participation in decision-making, skill variety, autonomy, feedback and training (12). All these contribute significantly to the development of intrinsic rewards and will encourage employee motivation and commitment to the organization (12). Intrinsic incentives appeal to motivation mechanism of self-regulation…

    • 2149 Words
    • 9 Pages
    Improved Essays
  • Improved Essays

    For instance, transactional leadership helps organizations achieve their current objectives more efficiently by linking job performance to valued rewards and by ensuring that employees have the resources needed to get the job done (Zhu, Chew and Spengler, 2005) (Obiwuru, et al., 2011). Employees follow the footsteps of a good leader. A leader who inspires and motivates the employees. A well understanding and strategic leader’s employees will have job satisfaction, high performance of the organization and the organization goals will be achieved. According to (Obiwuru, et al., 2011) leaders with emotional, intellectual and moral encourages followers to develop and perform beyond expectations (Burns, 1978; Bass, 1985).…

    • 829 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Herzberg in his theory indicated that managers must focus more on motivational aspects, which lead to job satisfaction, employee productivity, and customer satisfaction. Job satisfaction can be perceived as a motive for people who work for a company (Herzberg, 1966). Experimental studies conducted have found that it is important to satisfy the needs of the employee, as job satisfaction is a predictive factor for job performance, counterproductive work behavior, and turnover intentions (Hwang et al., 2017 & Qazi et al. 2017). Satisfied employees are an invaluable asset to a company that works like a team to fulfill the goals (Soodan et al., 2017).…

    • 999 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Rosch Mindfulness

    • 824 Words
    • 4 Pages

    (1997) However, it is also important to understand how those practices impact employees. Certain number of researchers and authors have started writing about the benefits that come from having a mindful leader in the workplace. These benefits result on a positive impact towards employees well-being and performance in the work place (Carrol,2007). With this being said, is important for leaders throughout different organizations, such as the County Executive’s Office to provide their subordinate with the correct support, motivation, and direction. (Scandura,1994).…

    • 824 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Extrinsic Motivation Paper

    • 1480 Words
    • 6 Pages

    Similarly, the Maslow’s hierarchy of needs and Vroom’s theory of expectancy provided that the leaders understand the needs of their employees while knowing ways of prioritising the needs of employee for their benefits. The previous research studies have provided that the motivation of employees is associated with the attribution theory or the expectancy theory while focusing on certain form of intrinsic and extrinsic motivation as compared to the personality and behaviour (Ankli & Palliam, 2012; Gangwar, et al., 2013; Barrick, et al., 2014; Lăzăroiu, 2015; Malik & Naeem, 2013; Smith & Shields, 2013). Barrick et al (2014) have considered that intrinsic and extrinsic motivations are the strong indicators of employee performance. The increase in the programs of employee motivation can lead to the increase in the levels of employee performance. Gangwar, et al (2013) suggested that the increase in the motivation of an employee provides the appropriate opportunity of employees to share their knowledge of behaviour.…

    • 1480 Words
    • 6 Pages
    Superior Essays
  • Great Essays

    ORGANIZATIONAL TRUST In defining organisational trust, Mishra & Morrissey (1990), sees organisational trust as the reflection of an employee’s perception related to the support provided by the organisation. Zaheer (1998) defined organisational trust as a dispositional belief that employees have for the organisation. Fukuyama (1996) opined that trust is an essential source of social capital within social system, and is therefore a pivotal element of societal functioning. According to Tan & Tan (2000), organisational trust is defined as an employee feeling of confidence that the organisation will perform actions that are beneficial or at least not detrimental to him or her. Gilbert & tan (1998) defined organisational trust as a belief that employers will follow the rules.…

    • 1566 Words
    • 7 Pages
    Great Essays
  • Superior Essays

    Make Communication and Education a Priority: total rewards work effectively when the employees support and understand them. Poor communication may result in affecting employee’s choices from selecting the right rewards. Describe the behaviors of the sales force that are targeted with the compensation plan. For an organization to be effective, it must tackle the motivational challenges involved in arousing individuals’ desires to be productive members of the organization. Successful compensation plan is the one that direct individual’s behaviors to perform the tasks for which they were hired.…

    • 1327 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    The organization will, therefore, gain insight into the employees’ motivation factors such as job security, praise and acknowledgment, public recognition, and financial rewards. In addition, employees should be empowered by giving them job descriptions that awards them autonomy and hence enable them find solutions in their job activities. The company should research on the gaps that exist in the current motivation schemes to identify patches. The organization should also ensure that the enterprise's internal image aligns to the external image (Thomas, 2009). The image should be reflected in the manner n=in which the employees are rewarded, treated, and their problem…

    • 2283 Words
    • 10 Pages
    Superior Essays
  • Great Essays

    Therefore, Maslow's hierarchy of needs theory is useful and important in today's business organisation. It is important and relevant to the organisation, which want to create a successful human resource department, create an organisational culture in hierarchy of needs, which has proved to improve employees' performance and can achieve organisational excellence with better working…

    • 1150 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    A competency-based approach offers methods in accordance to these objectives and focuses on the ability to apply knowledge and skills in real life, and performance’s outcomes or competencies has become a criteria for assessing learners and training programs (Falender & Shafranske, 2004). A competency-based approach can be used to enhance supervisor. There is a specific framework; it is beneficial for developing and…

    • 785 Words
    • 4 Pages
    Improved Essays