Abstract
Employee reactions to performance appraisals are essential to appraisal effectiveness: They are correlated with subsequent job attitudes, motivation, and performance. Yet, many managers dread giving appraisal reviews and employee reactions are often negative. Although performance appraisal research has traditionally focused on psychometric properties of performance ratings, there is a burgeoning literature on appraisal reactions. In this chapter, this burgeoning literature is reviewed to identify key predictors of appraisal reactions, opportunities for future research, as well as implications for managers and organizations. A conceptual model is developed to guide future research; this model implies that more longitudinal and multilevel studies are needed to better understand the processes whereby predictors are related to appraisal reactions. This review suggests that managers and organizations should pay special attention to leader–member exchange quality, due process performance appraisal, and providing opportunities for voice in the appraisal review so as to improve performance appraisal effectiveness.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Employee reactions to performance appraisals will be referred to as appraisal reactions throughout the rest of the document for purposes of clarity and parsimony.
References
Aguinis, H. (2013). Performance management (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Anseel, F., Van Yperen, N. W., Janssen, O., & Duyck, W. (2011). Feedback type as a moderator of the relationship between achievement goals and feedback reactions. Journal of Occupational and Organizational Psychology, 84(4), 703–722.
Balzer, W. K., & Sulsky, L. M. (1990). Performance appraisal effectiveness. In K. R. Murphy & F. E. Saal (Eds.), Psychology in organizations: Integrating science and practice (pp. 133–156). Hillsdale, NJ: Erlbaum.
Bassett, G. A., & Meyer, H. H. (1968). Performance appraisal based on self-review. Personnel Psychology, 21, 421–430.
Bernardin, H. J., & Beatty, R. W. (1984). Performance appraisal: Assessing human behavior at work. Boston, MA: Kent Publishing Co.
Bonness, B., & Macan, T. (2006). Reactions to the performance appraisal process: Effects of self-appraisals. Paper presented at the Society for Industrial-Organizational Psychology conference.
Borman, W. C. (1979). Format and training effects on rating accuracy and rater errors. Journal of Applied Psychology, 64(4), 410.
Brett, J. F., & Atwater, L. E. (2001). 360° feedback: Accuracy, reactions, and perceptions of usefulness. Journal of Applied Psychology, 86(5), 930.
Burke, R. J., Weitzel, W., & Weir, T. (1978). Characteristics of effective employee performance review and development interviews: Replication and extension. Personnel Psychology, 31, 903–919.
Cardy, R. L., & Dobbins, G. H. (1994). Performance appraisal: Alternative perspectives. Cincinnati, OH: Southwestern Publishing.
Carver, C. S., & Scheier, M. F. (1981). Attention and self-regulation: A control-theory approach to human behavior. New York: Springer.
Cawley, B. D., Keeping, L. M., & Levy, P. E. (1998). Participation in the performance appraisal process and employee reactions: A meta-analytic review of field investigations. Journal of Applied Psychology, 83(4), 615–633.
Cobb, A. T., Vest, M., & Hills, F. (1997). Who delivers justice? Source perceptions of procedural fairness. Journal of Applied Social Psychology, 27(12), 1021–1040.
Colquitt, J. A. (2001). On the dimensionality of organizational justice: A construct validation of a measure. Journal ofAapplied Psychology, 86(3), 386.
DeGregorio, M., & Fisher, C. D. (1988). Providing performance feedback: Reactions to alternate methods. Journal of Management, 14(4), 605–616.
Dulebohn, J. H., & Ferris, G. R. (1999). The role of influence tactics in perceptions of performance evaluation’s fairness. Academy of Management Journal, 42(3), 288–303.
Elicker, J. D. (2000). An organizational justice explanation of feedback reactions in different leader-member exchange relationships. Unpublished Doctoral Dissertation, University of Akron.
Erdogan, B. (2002). Antecedents and consequences of justice perceptions in performance appraisals. Human Resource Management Review, 12, 555–578.
Erdogan, B., Kraimer, M. L., & Liden, R. C. (2001). Procedural justice as a two-dimensional construct: An examination in the performance appraisal context. Journal of Applied Behavioral Science, 37, 205–222.
Evans, E. M., & McShane, S. L. (1988). Employee perceptions of performance appraisal fairness in two organizations. Canadian Journal of Behavioral Science, 20(2), 177–191.
Fassina, N. E., Jones, D. A., & Uggerslev, K. L. (2008). Relationship clean-up time: Using meta analysis and path analysis to clarify relationships among job satisfaction, perceived fairness, and citizenship behaviors. Journal of Management, 34, 161–188.
Ferris, G. R., Judge, T. A., Rowland, K. M., & Fitzgibbons, D. E. (1994). Subordinate influence and the performance evaluation process: Test of a model. Organizational Behavior and Human Decision Processes, 58(1), 101–135.
Folger, R., Konovsky, M., & Cropanzano, R. (1992). A due process model of performance appraisal. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior (Vol. 14, pp. 129–177). Greenwich, CT: JAI Press.
Folger, R., & Konovsky, M. A. (1989). Effects of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 32(1), 115–130.
Giles, W. F., Findley, H. M., & Field, H. S. (1997). Procedural fairness in performance appraisal: Beyond the review session. Journal of Business and Psychology, 11(4), 493–506.
Greenberg, J. (1986). Determinants of perceived fairness of performance evaluations. Journal of Applied Psychology, 71(2), 340.
Greenberg, J. (1987). A taxonomy of organizational justice theories. Academy of Management Review, 12, 9–22.
Greller, M. M. (1975). Subordinate participation and reactions to the appraisal interview. Journal of Applied Psychology, 60(5), 544–549.
Ilgen, D. R., Barnes-Farrell, J. L., & McKellin, D. B. (1993). Performance appraisal process research in the 1980’s: What has it contributed to appraisals in use? Organizational Behavior and Human Decision Processes, 54, 321–368.
Ilgen, D. R., Fisher, C. D., & Taylor, M. S. (1979). Consequences of individual feedback on behavior in organizations. Journal of Applied Psychology, 64, 349–371.
Inderrieden, E. J., Allen, R. E., & Keavey, T. J. (2004). Managerial discretion in the use of self-ratings in an appraisal system: The antecedents and consequences. Journal of Managerial Issues, 16(4), 460–482.
Inderrieden, E. J., Keaveny, T. J., & Allen, R. E. (1988). Predictors of employee satisfaction with the performance appraisal process. Journal of Business and Psychology, 2(4), 306–310.
Jawahar, I. M. (2010). The mediating role of appraisal feedback reactions on the relationship between rater feedback-related behaviors and ratee performance. Group & Organization Management, 35(4), 494–526.
Kavanagh, P., Benson, J., & Brown, M. (2007). Understanding performance appraisal fairness. Asia Pacific Journal of Human Resources, 45(2), 132–150.
Kay, E., Meyer, H. H., & French, R. P. (1965). Effects of threat in a performance appraisal interview. Journal of Applied Psychology, 49, 311–317.
Keeping, L. M., & Levy, P. E. (2000). Performance appraisal reactions: Measurement, modeling, and method bias. Journal of Applied Psychology, 85(5), 708–723.
Kinicki, A. J., Prussia, G. E., Wu, B., & Mckee-Ryan, F. M. (2004). A covariance structure analysis of employee’s response to performance feedback. Journal of Applied Psychology, 89(6), 1057–1069.
Kleiman, L. S., Biderman, M. D., & Faley, R. H. (1987). An examination of employee perceptions of a subjective performance appraisal system. Journal of Business and Psychology, 2(2), 112–121.
Klein, H. J., & Snell, S. (1994). The impact of interview process and context on performance appraisal interview effectiveness. Journal of Managerial Issues, 6(2), 160–175.
Klein, H. J., Snell, S. A., & Wexley, K. N. (1987). Systems model of the performance appraisal interview process. Industrial Relations, 26(3), 267–280.
Korsgaard, M. A., & Roberson, L. (1995). Procedural justice in performance evaluation: The role of instrumental and non-instrumental voice in performance appraisal discussions. Journal of Management, 21(4), 657–669.
Korsgaard, M. A., Roberson, L., & Rymph, R. D. (1998). What motivates fairness? The role of subordinate assertive behavior on manager's interactional fairness. Journal of Applied Psychology, 83(5), 731.
Kossek, E. E., Pichler, S., Bodner, T., & Hammer, L. B. (2011). Workplace social support and work–family conflict: A meta-analysis clarifying the influence of general and work–family-specific supervisor and organizational support. Personnel Psychology, 64(2), 289–313.
Landy, F. J., Barnes, J. L., & Murphy, K. R. (1978). Correlates of perceived fairness and accuracy of evaluation. Journal of Applied Psychology, 63(6), 751–754.
Levy, P. E., Cavanaugh, C. M., Frantz, N. B., & Borden, L. A. (2015). The role of due process in performance appraisal: A 20-year retrospective. In The Oxford Handbook of Justice in the Workplace, NY: Oxford University Press, 605–620.
Levy, P. E., & Williams, J. R. (1998). The role of perceived system knowledge in predicting appraisal reactions, job satisfaction, and organizational commitment. Journal of Organizational Behavior, 19, 53–65.
Levy, P. E., & Williams, J. R. (2004). The social context of performance appraisal. Journal of Management, 30(6), 881–905.
Liden, R. C., Sparrowe, R. T., & Wayne, S. J. (1997). Leader-member exchange theory: The past and potential for the future. Research in Personnel and Human Resources Management, 15, 47–120.
Lind, E. A., & Tyler, T. R. (1988). The social psychology of procedural justice. New York: Plenum.
Locke, E. A., & Latham, G. P. (1990). A theory of goal setting and task performance. Englewood Cliffs, NJ: Prentice Hall.
Lombardi, M. (2011). The engagement/performance equation. Aberdeen Group. Retrieved from: http://hosteddocs.ittoolbox.com/the-engagement-performance-equation.pdf
Masterson, S. S., Lewis, K., Goldman, B. M., & Taylor, M. S. (2000). Integrating justice and social exchange: The differing effects of fair procedures and treatment on work relationships. Academy of Management Journal, 43, 738–748.
Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709–734.
Meinecke, A. L., Lehmann-Willenbrock, N., & Kauffeld, S. (2017). What happens during annual appraisal interviews? How leader–follower interactions unfold and impact interview outcomes. Journal of Applied Psychology, 102, 1054–1074.
Murphy, K. R., & Cleveland, J. N. (1995). Understanding performance appraisal: Social, organizational, and goal-based perspectives. Thousand Oaks, CA: Sage.
Nathan, B. R., Mohrman, A. M., & Milliman, J. (1991). Interpersonal relations as a context for the effects of appraisal interviews on performance and satisfaction: A longitudinal study. Academy of Management Journal, 34(2), 352–369.
Nemeroff, W. F., & Wexley, K. N. (1979). An exploration of the relationships between performance feedback interview characteristics and interview outcomes as perceived by managers and subordinates. Journal of Occupational Psychology, 52, 25–34.
Pichler, S. (2012). The social context of performance appraisal and appraisal reactions: A meta-analysis. Human Resource Management, 51(5), 709–732.
Pichler, S., Beenen, G., & Wood, S. (2018). Feedback frequency and appraisal reactions: a meta-analytic test of moderators. The International Journal of Human Resource Management, 1–26. https://doi.org/10.1080/09585192.2018.1443961
Pichler, S., Varma, A., Michel, J. S., Levy, P. E., & Budwar, P. S. (2016). Leader-member exchange, group and individual-level procedural justice reactions to performance appraisals. Human Resource Management, 55(5), 871–883.
Pichler, S., Varma, A., & Petty, R. (2008). Rater–ratee relationships and performance management. In A. Varma, P. Budhwar, & A. DeNisi (Eds.), Performance management systems: A global perspective. (pp. 55–66). London: Routledge.
Russell, J. S., & Goode, D. L. (1988). An analysis of manager’s reactions to their own performance appraisal feedback. Journal of Applied Psychology, 73(1), 63–67.
Rynes, S. L., Gerhart, B., & Parks, L. (2005). Personnel psychology: Performance evaluation and pay for performance. Annual Review of Psychology, 56, 571–600.
Steelman, L. A., Levy, P. E., & Snell, A. F. (2004). The feedback environment scale: Construct definition, measurement, and validation. Educational and Psychological Measurement, 64(1), 165–184.
Suh, Y. (1992). Instrumental and noninstrumental voice effects on perceptions of procedural justice in a performance appraisal. Unpublished Doctoral Dissertation, The University of Nebraska – Lincoln.
Taylor, M. S., Masterson, S. S., Renard, M. K., & Tracy, K. (1998). Manager’s reactions to procedurally just performance management systems. Academy of Management Journal, 41(5), 568–579.
Taylor, M. S., Tracy, K. B., Renard, M. K., Harrison, J. K., & Carroll, S. J. (1995). Due process in performance appraisal: A quasi-experiment in procedural justice. Administrative Science Quarterly, 40, 495–523.
Tharenou, P. (1995). The impact of a developmental performance appraisal program on employee perception in an Australian federal agency. Group & Organization Management, 20, 245–271.
Tziner, A., & Kopelman, R. E. (2002). Is there a preferred performance rating format? A non-psychometric perspective. Applied Psychology, 51(3), 479–503.
Tziner, A., Kopelman, R. E., & Joanis, C. (1997). Investigation of raters’ and ratees’ reactions to three methods of performance appraisal: BOS, BARS, and GRS. Canadian Journal of Administrative Sciences, 14(4), 396–404.
Tziner, A., Kopelman, R. E., & Livneh, N. (1993). Effects of performance appraisal format on perceived goal characteristics, appraisal process satisfaction, and changes in rated job performance: A field experiment. The Journal of Psychology, 127(3), 281–291.
Tziner, A., Murphy, K. R., & Cleveland, J. N. (2005). Contextual and rater factors affecting rating behavior. Group and Organization Behavior, 30(1), 89–98.
Varma, A., Pichler, S., & Srinivas, E. S. (2005). The role of interpersonal affect in performance appraisal: Evidence from two samples–the US and India. The International Journal of Human Resource Management, 16(11), 2029–2044.
Williams, J. R., & Levy, P. E. (1992). The effects of perceived system knowledge on the agreement between self-ratings and supervisor ratings. Personnel Psychology, 45(4), 835–847.
Williams, J. R., & Levy, P. E. (2000). Investigating some neglected criteria: The influence of organizational level and perceived system knowledge on appraisal reactions. Journal of Business and Psychology, 14(3), 501–513.
Zander, A., & Gyr, J. (1955). Changing attitudes toward a merit rating system. Personnel Psychology, 8(1955), 429.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Pichler, S. (2019). Performance Appraisal Reactions: A Review and Research Agenda. In: Steelman, L.A., Williams, J.R. (eds) Feedback at Work. Springer, Cham. https://doi.org/10.1007/978-3-030-30915-2_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-30915-2_5
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-30914-5
Online ISBN: 978-3-030-30915-2
eBook Packages: Behavioral Science and PsychologyBehavioral Science and Psychology (R0)