The Determinants of Satisfaction with a Performance Appraisal System:The Effect of Team’s Goals and Fair Distribution of Duties

Abstract

This paper explains the determinants of an appraisee’s satisfaction with a performance appraisal system. For this purpose, 1) we distinguished the satisfaction with the institution from the outcome of a performance appraisal, 2) we adopted the satisfaction with the institution of performance appraisal as an explained variable, 3) we examined the effect of the management procedures and the difference in the effect when the appraisee engages in the different types of jobs.

Based on this, we made a data set that combines an employee questionnaire survey with personnel micro-data. Then this data was used for the estimation. We ware able to control an individual attribute and an appraisal outcome and explain the effects of the management procedure.

Our conclusions are the following; 1) The interview positively influences satisfaction with the performance appraisal system, 2) The degree of consent regarding team’s goals and the fair distribution of the duties, which is not considered by the appraisal procedure, greatly influences it. 3) In addition these effects vary depending on the type of job.