Unionised employee's reactions to the introduction of a goal‐based performance appraisal system1

While performance appraisal research has a rich history, we sought to address a long‐noted void in the human resource management (HRM) literature, namely an investigation of employees' reactions to a newly introduced performance appraisal. Specifically, we examined the reaction of 408 unionised employees to a newly introduced performance appraisal system. Reactions examined included appraisal satisfaction, job satisfaction, appraisal fairness, goal setting and the perceived purpose of the system. Satisfaction with the appraisal system was higher when (a) employees perceived it as being fair, (b) it was used primarily for developmental purposes and (c) it allowed them to participate in goal setting. Of additional importance, perception of a developmental focus in the appraisal partially mediated the relationship between appraisal satisfaction, and each of job satisfaction, appraisal fairness and goal setting.