Can performance appraisals motivate employees to improve performance? A Mexican study

In this study of Mexican employees, we examined the relationship between performance appraisal characteristics (appraisal source, appraisal purpose and feedback richness) and perceived reactions of employees to the appraisal characteristics (perceived fairness and perceived accuracy of appraisals) and appraisal outcomes (appraisal satisfaction and motivation to improve). We hypothesized that multisource appraisals, appraisals used for administrative and developmental appraisals (multipurpose appraisals) and appraisals that have a high degree of feedback richness would lead to more perceived accuracy and perceived fairness of appraisals. We further hypothesized that higher levels of perceived fairness and accuracy would lead to higher levels of employee appraisal satisfaction and motivation to improve performance in the future. Results based on a survey of Mexican employees provide support for most of the hypothesized relationships. We discuss implications of the findings for research and practice of performance appraisals in the Mexican context.     

Linking Belgian employee performance management system characteristics with performance management system effectiveness: exploring the mediating role of fairness

Based on expectancy theory, goal-setting theory and control theory, we propose a model in which perceived fairness mediates the relationship between characteristics of employee performance management (PM) systems and their perceived effectiveness by employees. PM system characteristics we propose are the frequency and length of formal reviews, the frequency of informal reviews and feedback, whether the formal conversation focused on evaluation or development and finally the degree of participation. The model was tested on a cross-industry sample of 3192 employees in Belgium. The measurement and structural models were simultaneously tested using structural equation modeling, and we used a bootstrapping approach to test the mediation hypothesis. Our findings indicate that performance review focus and employee participation strongly relate to perceptions of appraisal fairness and PM system effectiveness and that the frequency of informal performance reviews is stronger related to PM system effectiveness than the frequency of formal performance reviews. This suggests that the manifest expressions of PM have more impact on PM system effectiveness rather than the more latent characteristics of PM systems. The findings advance research to the role and functionality of PM systems by showing that (a) the manner in which PM systems are shaped and executed is of fundamental importance for their effectiveness, (b) fairness partially mediates the relationship between PM system characteristics and their effectiveness and (c) the three motivational theories appear useful for understanding the consequences of PM practices on individual employees.     

Employee ownership and affective organizational commitment: employees’ perceptions of fairness and their preference for company shares over cash

Interest in profit-sharing and employee ownership is growing among both practitioners and researchers. This study examines the relationship between the preferences and perceptions of employees regarding an ongoing share ownership plan on the one hand, and the employees’ affective organizational commitment on the other. After controlling for various personal and work-environment characteristics and for size of the financial contribution it was found that preference for ownership and the perceived fairness of the employee ownership plan were significant predictors of affective commitment. These findings support the notion that employee ownership may have intrinsic motivating effects on employees by way of a mediating mechanism, whereby the effects of ownership on organizational commitment depend on how employees evaluate and perceive formal ownership plans.     

Communicating Corporate Social Responsibility to Internal Stakeholders: Walking the Walk or Just Talking the Talk?

As organizations recognize the need to engage in CSR and sustainability initiatives, it is integral to success to communicate that they are doing so. However, the research focus is more often on communicating with external stakeholders to draw attention to corporate responsibility initiatives. Internal stakeholders as employees are not researched as often, despite their integral role in communicating the organization's CSR vision and sustainability as they interact with external stakeholders. In order to explore employee perceptions of CSR communication, a two‐phase mixed‐method study was undertaken, including semi‐structured interviews with 20 CSR managers in NZ organizations to provide content to inform an online questionnaire survey to seek feedback from employees in these same organizations. This paper contributes to research on internal stakeholders in revealing the influence of the perceived value congruence between managers and employees in influencing internal stakeholder perceptions of CSR and sustainability initiatives. The findings have implications for public policy, enhancing organizational communication, the need for authenticity and managerial recognition of their role in facilitating employee commitment to CSR initiatives. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

The power of goal internalization: studying psychological empowerment in a Venezuelan plant

This study, based in a manufacturing plant in Venezuela, examines the relationship between perceived task characteristics, psychological empowerment and commitment, using a questionnaire survey of 313 employees. The objective of the study was to assess the effects of an organizational intervention at the plant aimed at increasing productivity by providing performance feedback on key aspects of its daily operations. It was hypothesized that perceived characteristics of the task environment, such as task meaningfulness and task feedback, will enhance psychological empowerment, which in turn will have a positive impact on employee commitment. Test of a structural model revealed that the relationship of task meaningfulness and task feedback with affective commitment was partially mediated by the empowerment dimensions of perceived control and goal internalization. The results highlight the role of goal internalization as a key mediating mechanism between job characteristics and affective commitment. The study also validates a Spanish-language version of the psychological empowerment scale by Menon (2001).     

You care about me,but can I count on you? Applying a psychological contract perspective to investigate what makes employees willing to be internally employable

Abstract

For this study, we adopted a psychological contract-based perspective to investigate whether the fulfillment of perceived developmental promises made to employees is positively related to their willingness to accept internal job-related changes when needed by the organization, a construct we refer to as the willingness to be internally employable. We also examined the role played by line managers in facilitating employees’ willingness to be internally employable by fulfilling perceived developmental promises. We tested our conceptual model with data collected from ninety-eight recently hired employees in a Norwegian organization under an initiative emphasizing employee development. We found that developmental promise fulfillment is more important for employees’ willingness to be internally employable in this context than any perceived provision of developmental inducements in isolation. Further, we found that employee perceptions of the developmental support provided by their line manager related positively to their willingness to be internally employable by way of developmental promise fulfillment; however, this was not the case with perceived developmental inducements. Our findings support the importance of developmental promise fulfillment in fostering employee willingness to be internally employable and the critical role played by line managers in fulfilling developmental promises that employees believe have been made by their organization.     

Micro- and small-sized enterprises’ willingness to borrow via internet financial services during coronavirus disease 2019

This paper explores the relationships among micro- and small-sized enterprises’ (MSEs) willingness to borrow from internet financial services (IFS) and the related impacts of coronavirus disease 2019 (COVID-19) and then analyses the mediating effects of their beliefs on the advantages and disadvantages of IFS. We further analyse the differences produced by the moderator effects of MSEs’ enterprise variables (sector, operating years, entrepreneur's education, profit margin, and employee number) on the above relationships. We collected 632 valid reports by developing an online questionnaire in China and employing judgement sampling of MSEs with fewer than 50 employees and annual operating income less than RMB 5 million. Then, we analysed the findings with partial least squares structural equation modelling. The results show that COVID-19 significantly impacted most Chinese MSEs and that most Chinese MSEs tend to borrow via IFS, but the amount and period of MSEs’ willingness to borrow should not be affected by the impacts of COVID-19 on MSEs. Rather, the explanation concerns the greater unfamiliarity or uncertainty concerning IFSs relative to traditional financial instruments. Moreover, MSEs' understanding of IFS's advantages and disadvantages has significant adverse mediating effects on the relationship between MSEs' willingness to borrow via IFS and the impacts of COVID-19. Furthermore, the enterprise variables of MSEs, namely, their industry type, entrepreneur’s education, number of employees, profit margin, and operating years, have significant moderating effects on these relationships. The results have implications for the government’s comprehensive supervision system for IFS risks, IFS firms’ enterprise performance, risk survey, and information disclosure systems, and the development of customer-specific and easy-to-use marketing strategies for IFS firms.

     

Can a workplace have an attitude problem? Workplace effects on employee attitudes and organizational performance

Using the employee opinion survey responses from several thousand employees working in 193 branches of a major U.S. bank, we consider whether there is a distinctive workplace component to employee attitudes despite the common set of corporate human resource management practices that cover all the branches. Several different empirical tests consistently point to the existence of a systematic branch-specific component to employee attitudes. “Branch effects” can also explain why a significant positive cross-sectional correlation between branch-level employee attitudes and branch sales performance is not observed in longitudinal fixed-effects sales models. The results of our empirical tests concerning the determinants of employee attitudes and the determinants of branch sales are consistent with an interpretation that workplace-specific factors lead to better outcomes for both employees and the bank, and that these factors are more likely to be some aspect of the branches' internal operations rather than some characteristic of the external market of the branch.     

Employee organizational commitment: the influence of cultural and organizational factors in the Australian manufacturing industry

The importance of enhancing employee organizational commitment (EOC) is highlighted by the extensive literature revealing its positive impact on employees' job performance, reducing absenteeism and turnover rates, and improving employees' adaptability to organizational change. This study provides an insight into how EOC levels can be enhanced by examining the contextual factors that can influence EOC. Specifically, the study examines the association between cultural, organizational, and demographic factors with the level of EOC in the Australian manufacturing industry. Data were collected by a survey questionnaire from a random sample of 500 managers with the results revealing that two cultural factors (outcome orientation and stability) and three organizational factors (organizational size, perceived organizational support and job satisfaction) were found to be significantly associated with the level of EOC. Further analysis provides a preliminary insight into how to enhance the EOC of specific managers with different cultural and organizational factors found to be associated with the EOC of managers at different levels in the organizational hierarchy. The findings have important implications for practitioners attempting to improve the level of EOC of their employees with the subsequent enhancements in the level of EOC likely to contribute to improvements in productivity and growth in the Australian manufacturing industry.     

Cross-cultural perceptions of clan control in Korean multinational companies: a conceptual investigation of employees' fairness monitoring based on cultural values

While enjoying success in their home territory in terms of human resource management (HRM) and employee commitment, Korean multinational companies (MNCs) seem to struggle in their overseas subsidiaries to replicate this success in attracting/retaining talent. To explain the HRM challenges seen in many Korean MNCs, we adapt the notion of employees' fairness monitoring in developing a model which illustrates the relationships between clan control in Korean MNCs, employee's perceived fairness and the cultural values of individualism and collectivism. We offer our first set of propositions concerning associations between fairness monitoring and cultural values, before suggesting another set of propositions about relationships between employees' fairness judgement and clan control in Korean MNCs. Figures graphically illustrating of some of our propositions are also presented. Our model proposes that clan control in Korean MNCs may cause perceived low fairness judgement during employees' fairness monitoring in both individualistic and collectivistic cultures. We believe this paper should stimulate further enquiries in international HRM, cross-culture and fairness literatures.     

An investigation of cultural cohesion in a community bank

This study examines the culture of a medium-sized community bank based in the Western United States. The study aims to identify the organization's culture and then measure the level of cultural cohesion that exists three years after a major cultural campaign was launched. The cultural characteristics the organization valued most highly were integrity, willingness to serve the customer and teamwork - all components of the official bank document on culture. Interestingly, the analysis uncovered some significant value differences among different employee groups and also employees and management; differences which can affect firm performance levels. The analysis also revealed that changing the culture in an organization does not necessarily lead to cultural cohesion.     

Happy together,or not? Balanced perceived investment in standard and nonstandard employees

This study investigated whether the relationship between temporary employees' perceived investment in employee development and work outcomes was moderated by temporary employees' perceived investment in standard employee development (PISED). A study among 2022 Norwegian temporary employees showed that the relationship between perceived investment in temporary employee development and in-role and contextual performance was moderated by the temporary employees' PISED. These results suggest that client organizations that invest more in standard employee development will get the most of their investments in temporary employee development. Implications for practice and future research are discussed.     

Exploring alternative relationships between perceived investment in employee development,perceived supervisor support and employee outcomes

The purpose of this study was to explore alternative relationships between perceived investment in employee development (PIED), perceived supervisor support (PSS), and employee outcomes in the form of attitudes (affective commitment and turnover intention) and work performance (work effort, work quality and organisational citizenship behaviour). A cross-sectional survey among 331 employees from a Norwegian telecommunications organisation showed that the relationship between PSS and employee attitudes was partially mediated by PIED. In addition, PSS was found to moderate the relationship between PIED and three self-report measures of work performance. The form of the moderation revealed a positive relationship only for high levels of PSS. These findings suggest that line managers are of vital importance in implementing developmental HR practices, either because they influence how such practices are perceived by employees, which, in turn, affects employee attitudes, or because positive experiences with both line managers and HR practices seem to be needed in order for developmental HR practices to positively influence employee performance.     

Inducements,contributions, and fulfillment in new employee psychological contracts

This longitudinal study of newly hired Chinese college graduates (N = 143) investigates the effects of contract fulfillment, employee reports of company inducements (organizational support and job rewards), and supervisory reports of individual contributions (job performance and extra‐role citizenship behavior) upon changes in the graduates' psychological contracts. Three survey waves were administered a year apart, starting with the recruits' job offer acceptance. Analyses revealed that employee fulfillment and perceived contributions predicted particular changes in employer psychological contract obligations, whereas employer fulfillment and perceived inducements predicted changes in employee obligations. The effects of inducements on employee obligation changes and contributions on employer obligation changes were mediated by their respective fulfillment measures. Changes in obligations were greater in the first year of employment than in the second. This study yields implications for managing newcomers and researching the initial phase of employment. ©2011 Wiley Periodicals, Inc.     

The role of human resources in ethics/compliance management: a fairness perspective

Many large corporations now have formal programs for managing ethical behavior and legal compliance. But the often minor role of human resources (HR) in companies' ethics management efforts is problematic. This is because ethics management efforts are likely to raise questions of fairness, and trigger a fairness heuristic among employees that can generate important outcomes for the ethics program specifically and the organization generally. Relying on research on fairness in organizations and corporate ethics practices, we explain why the extensive involvement of HR in corporate ethics programs is important to the perceived fairness, and thus the likely outcomes (e.g., employee commitment), of those programs.     

Opportunity,fair process and relationship value: career development as a driver of proactive work behaviour

In line with recent findings from organisational justice theory, we hypothesised that employee proactive behaviour and careerist orientation is predicted by the interplay of perceived favourability of career development opportunities, the perceived fairness of the procedures used to decide them, and employee organisational commitment. Employees (N = 325) of a large financial services organisation responded to a self‐completion questionnaire. As predicted, when career development opportunities were viewed unfavourably, perceived procedural justice was significantly and positively related to individual proactive behaviour and significantly and negatively related to careerist orientation but only when organisational commitment was high. It appears that high procedural justice may only ‘offset’ the negative effects of unfavourable career development opportunities when employees identify with, and are committed to, their organisation. Further support is presented for a relational, rather than instrumental, model of procedural justice when reflecting on employee reactions to their employers’ policies and decision‐making. Implications for theory and practice are discussed.     

The anatomy of performance appraisals in Germany

We investigate the use of performance appraisal (PA) in German firms. First, we derive hypotheses on individual and job-based determinants of PA usage. Based on a representative German data set on individual employees, we test these hypotheses and also explore the impact of PA on performance pay and further career prospects. The results include that PA is positively linked to an individual's willingness to take risks. The performance of older employees and woman is evaluated less often. Furthermore, larger firms evaluate the performance of their employees more. We find evidence for a non-monotonic relation between the hierarchical level and usage of performance appraisal: The performance of employees with very high or very low responsibilities is assessed less often.     

企业绩效管理实践有效性的影响因素研究——基于某大型水电企业集团的实证分析

绩效管理是现代企业人力资源管理的重要职能之一.本文从绩效管理有效性出发,探讨绩效管理与企业业绩的关系以及绩效管理实践有效性的关键影响因素,并利用中国某大型水电企业集团的调研数据开展实证检验.研究结果表明,绩效评价结果的合理利用、评价指标体系设置、考评结果反馈以及考评过程公平等对绩效管理有效性产生重要影响.本研究将对提升我国企业绩效管理实践的有效性产生一定指导意义.     

Exploring the factors associated with employees' perceived appraisal accuracy: a study of Chinese state-owned enterprises

Western employment practices have increasingly been used in emerging markets, but little is known about the factors influencing non-Western employees' views regarding Western employment practices. This paper presents a study that investigates the factors associated with Chinese employees' perceived appraisal accuracy. Based on the extant literature, the study tests six aspects of a performance appraisal (PA) system: employees' perceptions of distributive justice, procedural justice, interactional justice, administrative purpose, developmental purpose and the use of multiple raters. A mixed methods approach was used to collect the data; quantitative data collected from a survey were used to test the hypothesized relationships and qualitative data collected from interviews were used to help explain the underlying logic behind the relationships. The results of the hypotheses testing show that employees' perceived accuracy of PA is positively associated with the three types of justice and the two purposes of PA. The findings from the interviews indicate that employees' perceptions of appraisal accuracy are influenced by certain Chinese cultural characteristics and management traditions. The implications of the findings for research and practice are discussed.     

Fairness perceptions and work attitudes revisited: roles of employee specialty,hospital level and ownership

Compensation is widely acknowledged as an important job element in the eyes of employees. Health care is a special industry in which compensation received by employees differs greatly. This study examines empirically the relationships between hospital employees' perceptions of compensation fairness and their work attitudes, taking into account the roles of employee specialty, hospital level and ownership. Using data from 2,938 employees of thirty hospitals in Taiwan, the results indicate that fairness perceptions and work attitudes differ significantly among hospital employees according to their specialties. Hospital level and ownership exert impacts on employees' fairness perceptions, although not on their work attitudes. A positive relationship is observed between fairness perceptions and work attitudes of hospital employees.