Performance Appraisal Fairness & Its Outcomes: A Study of Indian Banks

This study examines fairness perceptions of performance appraisals in the fast changing Indian banking sector. The mediating role of performance appraisal satisfaction on the relationship between justice perceptions and job satisfaction has been investigated using a cross-sectional study with 340 respondents. The findings highlight that satisfaction with the appraisal process is guided by perceptions of fairness and this further impacts the job satisfaction. The findings emphasize the importance of employee perceptions and consequent reactions that shape employee outcomes versus the intent and design of HR systems. For ensuring success of the HR systems organizations need to incorporate regular assessments of employee perceptions and reactions as despite best efforts employee perceptions can vary from management intent.