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The Effects of Performance Rating, Leader–Member Exchange, Perceived Utility, and Organizational Justice on Performance Appraisal Satisfaction: Applying a Moral Judgment Perspective

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  • Carrie Dusterhoff
  • J. Cunningham
  • James MacGregor

Abstract

The performance appraisal process is increasingly seen as a key link between employee behaviour and an organization’s strategic objectives. Unfortunately, performance reviews often fail to change how people work, and dissatisfaction with the appraisal process has been associated with general job dissatisfaction, lower organizational commitment, and increased intentions to quit. Recent research has identified a number of factors related to reactions to performance appraisals in general and appraisal satisfaction in particular. Beyond the appraisal outcome itself, researchers have found that appraisal reactions are affected by perceptions of fairness and the relationship between the supervisor and the employee. To explain the relationships among these factors, the present article proposes a moral cognition perspective. We suggest that employees judge a performance appraisal from the perspective of its moral justifiability, and that appraisal reactions will be determined, at least in part, by the perceived moral justifiability of the process. The proposal was supported by results from a survey of government employees using measures of performance ratings, leader–member exchange, perceived utility, and organizational justice. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Carrie Dusterhoff & J. Cunningham & James MacGregor, 2014. "The Effects of Performance Rating, Leader–Member Exchange, Perceived Utility, and Organizational Justice on Performance Appraisal Satisfaction: Applying a Moral Judgment Perspective," Journal of Business Ethics, Springer, vol. 119(2), pages 265-273, January.
    • Handle: RePEc:kap:jbuset:v:119:y:2014:i:2:p:265-273
    DOI: 10.1007/s10551-013-1634-1
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    References listed on IDEAS

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    1. Blakely, Gerald L., 1993. "The Effects of Performance Rating Discrepancies on Supervisors and Subordinates," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(1), pages 57-80, February.
    2. Greenberg, Jerald, 2002. "Who stole the money, and when? Individual and situational determinants of employee theft," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(1), pages 985-1003, September.
    3. Manjit Monga, 2007. "Managers’ Moral Reasoning: Evidence from Large Indian Manufacturing Organisations," Journal of Business Ethics, Springer, vol. 71(2), pages 179-194, March.
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    1. Won Kwak & Suk Choi, 2015. "Effect of rating discrepancy on turnover intention and leader-member exchange," Asia Pacific Journal of Management, Springer, vol. 32(3), pages 801-824, September.
    2. Barffour Samuel Kyei & Ampofo Isaac Atta Junior, 2021. "Appraising Teachers’ Performance In The Ghana Education Service: A Case Of Birim Central Directorate Of Ghana Education Service (G.E.S.)," Education, Sustainability & Society (ESS), Zibeline International Publishing, vol. 4(1), pages 15-24, April.
    3. Bao Cheng & Xing Zhou & Gongxing Guo & Kezhen Yang, 2020. "Perceived Overqualification and Cyberloafing: A Moderated-Mediation Model Based on Equity Theory," Journal of Business Ethics, Springer, vol. 164(3), pages 565-577, July.
    4. Benson Chege Njuguna & Kitainge Kisilu, 2023. "Influence of Procedural Fairness on Implementation of Performance Appraisal Practices in Public Secondary Schools in Cherangany Sub-County," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 1642-1659, May.
    5. Christoph Endenich & Rouven Trapp, 2020. "Ethical Implications of Management Accounting and Control: A Systematic Review of the Contributions from the Journal of Business Ethics," Journal of Business Ethics, Springer, vol. 163(2), pages 309-328, May.
    6. Jamie L. Gloor & Manuela Morf & Samantha Paustian-Underdahl & Uschi Backes-Gellner, 2020. "Fix the Game, Not the Dame: Restoring Equity in Leadership Evaluations," Journal of Business Ethics, Springer, vol. 161(3), pages 497-511, January.
    7. Shaher Alshamari, 2017. "Literature Review On The Relationship Between Organizational Culture And Performance In Qatar’S Public Sector Organizations," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 725-729, July.
    8. Michael A. Mulvaney, 2019. "Examining the Role of Employee Participation, Supervisor Trust, and Appraisal Reactions for a Pay-for-Performance Appraisal System," Public Organization Review, Springer, vol. 19(2), pages 201-225, June.
    9. Shanaka Rajakaruna & Alge Wattage Wijeratne & Tim Mann & Chen Yan, 2017. "Effect of Individual Skills and Performance on Humanitarian Organisations: A Structural Equation Model," Logistics, MDPI, vol. 1(1), pages 1-21, August.
    10. Bei Liu & Hong Chen & Xin Gan, 2019. "How Much Is Too Much? The Influence of Work Hours on Social Development: An Empirical Analysis for OECD Countries," IJERPH, MDPI, vol. 16(24), pages 1-15, December.
    11. Izlem Gozukara & Zeynep Hatipoglu & Ozlem Oncel Gunes, 2017. "The Impact of Perceived Leadership Style on Performance Appraisal Satisfaction and Organizational Diagnosis in terms of Turnover Intention," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(9), pages 104-104, August.
    12. Umair Ahmed & Kabiru Maitama Kura & Waheed Ali Umrani & Munwar Hussain Pahi, 2020. "Modelling the Link Between Developmental Human Resource Practices and Work Engagement: The Moderation Role of Service Climate," Global Business Review, International Management Institute, vol. 21(1), pages 31-53, February.

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